E-commerce business models are becoming more and more complex as the industry grows. Recently, a study published by FIS Global showed that the e-commerce industry in India will grow to $ 111 billion in sales by 2024. As an industry insider, however, you need to know the basic business models: in retrospect, no e-commerce market has maintained the same business model that you started with, the simplest example would be Amazon or Flipkart. which started with books and grew into the giants they are today. Many websites start with an inventory-based model of selling their own products but then move on to marketplaces. This enables them to offer a range of products and reduce prices. This could be the reason why every niche brand is opting for an types of eCommerce Web Development Agency to develop a solid-commerce website to attract the masses.
Having said that, let us first take you through different types of e-commerce websites & business models to select the best for you.
What is Ecommerce Website?
Electronic commerce, also known as electronic commerce, refers to transactions that take place over the Internet. Individuals and businesses e-commerce when they buy or sell products or services online. Other activities that fall under the term e-commerce include online auctions, internet banking, payment gateways. E-commerce, also known as electronic commerce, is simply the sale and purchase of services and goods through an electronic medium such as the internet, or in other words, online shopping as we know it. Most companies that have an e-commerce presence use an e-commerce store and/or an e-commerce platform to manage online marketing, offer services and sales, and handle logistics and fulfillment.
Now is the time to explore different types of e-commerce websites that can do wonders for your business. And these are:
Direct to Consumer Business Model (D2C)
It is the most common form of e-commerce business. This model represents companies that sell their products or services directly to the end-user. Order values are low and recurring orders are rare, but the market is big and sales cycles are short. Profitable e-commerce companies are DTCs.
Business to Consumer (B2C)
The most common business model in physical and online shops is B2C e-commerce. As the name suggests, the B2C e-commerce model represents a transaction between businesses and individuals. For example, if you buy a phone in line at a retailer, you will be entering a deal with consumers.
Business to Business (B2B)
Business to Business (B2B) is a business model that includes transactions between two companies. The transaction can relate to a product or a service. Wholesale is a great example of a B2B business. However, vendors are not the only form of B2B business. The sale of office supplies, office furniture, appliances, and other things used to run a business is also done in the B2B model.
Business to Government (B2G)
Business to Government (B2G) is when a company markets its products and services directly to a government agency. This authority can be a local, district, state, or federal authority. In the B2G sector, companies often bid on projects when governments announce tenders. Interacting with government agencies is very different from working with other businesses or consumers. Because of the bureaucratic burden, trade agreements tend to be much slower than in other sectors.
Consumer to Consumer (C2C)
Consumer To Consumer (C2C) is an e-commerce model in which consumers buy and sell products from one another. Buyers and sellers can change roles at any time in C2C e-commerce, as they are simply several consumers shopping together. took place at flea markets or flea markets. In recent years, however, there has been a push towards digitization in C2C transactions. Some popular C2C online marketplaces are eBay, Craigslist, Etsy, OfferUp, Poshmark, and Facebook Marketplace.
Consumer to Business (C2B)
This model can first appear strange, but it is a growing and profitable field. C2B-e-commerce works in the opposite direction of traditional electronic trading, in which individual customers sell their goods or services to companies.
Business to Consumer to Consumer (B2C2C)
B2C2C is one of the e-commerce business models that fall under social commerce, but we would like to call it organized social commerce (we will go into more detail on social commerce later.) Here, a seller sells to a consumer (i.e. not a legal entity) and the consumer resells to another consumer. Meesho, Deal share, Glowroad, and Bulbul are examples of this model in India.
Social Commerce
When the pandemic broke out in 2020, different types of eCommerce business models emerged, one of which was what we like to call disorganized social commerce. The B2C2C model, while a types of eCommerce social commerce, is led and therefore organized by an e-commerce company like Meesho. The disorganized social e-commerce we’re talking about has fueled the growth of micro-entrepreneurs during the pandemic. Stores meant they had to move online.
Recraft Your Existing E-Commerce Strategy to Make a Difference
Identifying your e-commerce business model gives you a clear advantage over your competition. Once you’ve identified your target market and the right business model you need to best serve your customer base, you can focus your marketing efforts and refine your business model to maximize sales. This also gives you a clear advantage over your competition. This is why it is important to outsource types of Ecommerce Web Development Agency to take your business whether small or large to the next level.
Surprisingly, many companies are very messy when it comes to selling. While your competition is taking the “if you build it, they’ll come” approach to sales and marketing, you can generate more revenue with less effort and expense by identifying the best business model for your market and then focusing your marketing efforts on this model.