Ecommerce business models are quite famous these days. The eCommerce industry is booming currently. It is expected to rise even more during this decade. The latest eCommerce trends might seem too alluring, but until and unless you know the basics of eCommerce, you might not be able to reach new heights. The eCommerce solution providers can help develop the right strategy for business.
Keep reading if you want to know more about the different traditional and innovative eCommerce business models.
Traditional and Modern Kind of Ecommerce Business Models
If you plan to start an eCommerce business, you have to follow one of these models. Each model is well known for the kind of challenges and the benefits. Several companies fall under these categories.
Business to Customer – B2C
The online shopping that we do can be considered as a B2C transaction. This is one of the most common models. It mainly deals with selling to end-users. The decision process is a lot easier and shorter than B2B models, specifically when the item cost is too low. Taking personal decisions is easier than deciding on behalf of a company. So, as the sale cycle is shorter, we end up spending a lot less money on B2C business sales. At the same time, the order values are a lot less compared to their B2B counterparts. The free amazon fba course is quite beneficial for newbies.
B2C includes a wide number of services in addition to products. B2C innovators use a wide range of technology such as mobile apps, advertising, and event marketing to get new customers. The main aim is to develop something that will be beneficial for the customers.
Business to Business – B2B
In the case of B2B, a particular business sells its products and services to another business. In most cases, the buyer sells it to a consumer. B2B transactions have longer cycles and high order values.
These days the B2B platforms and marketing approaches have changed as well. Ecommerce storefronts have replaced the old ways of catalogs, and now it has become easier than ever to target the customers.
B2B buyers are mostly the younger generation, making the business boom even more. This has become an important part of the entire online business industry.
Consumer to Business – C2B
C2B business mainly sells goods and various kinds of services to different companies. In this particular e-commerce model, customers get to post work they have completed, and other businesses can bid for this opportunity. Affiliate marketing services are also considered part of the C2B and a great eCommerce marketing strategy. One of the very initial companies that followed this model is Upwork. They helped businesses hire freelancers.
The main competition here lies in the pricing of goods and services. This business model approach helps consumers have the power to choose the price or help the businesses to complete the needs as and when necessary. These days innovators have made it possible to connect this model to other companies and social media influencers who can market the products easily.
Consumer to Consumer – C2C
A C2C business is also known as an online marketplace. It is meant to connect consumers to help exchange goods and services. One can make money by charging or listing fees. Different online businesses such as craigslist and eBay are made to follow this model. C2C businesses majorly benefit from the growth of motivated buyers. However, the main challenge is taking care of the quality and maintenance.
If you want to flourish your eCommerce business, there are some vital points that you should take care of. One can take the best eCommerce training course to learn more about the business models and then implement them. These include having market knowledge, sticking to a perfect business plan, and good research on products and business models. Most of the newbies are confused about starting with the eCommerce business.