Different Business Models in E-Commerce Industry

1. D Different Busines ifferent Business Models in E s Models in E- -C Co ommerce Indust Industry ry mmerce E-commerce includes all the marketplaces online connecting the buyer and the sellers. Internet is used nowadays for all kinds of transactions. The Internet has also opened the doors to various opportunities for the business to purchase, sell or exchange goods online. Therefore, it is essential to know about the diverse kinds of e-commerce models to look for one that is fit for your business type. The Business Models are Explained Below: 1.Business-to-Business (B2B) Model: In a business-to-business model, a business sells its products and services to another business or buyer. This can be called as an intermediate buyer who then again sells the products to the final customer. This model involves a longer sales cycle, however, the value of orders is high and there are more repeat purchases.

2. Example of Business-to-Business (B2B) Model A Mobile App Development Company offering Software Development services to real estate companies in the hunt of building an app for its customer base. In this case, the Mobile App Development Company is advertising its software development services on its website and the real estate company can ask for a price for the services. 2. Business-to-Customer (B2C) Model: This model sells to the end-user that is the customer. It is the most common business model that is basically concerned with the retail e-commerce trade online. Today, this model has evolved drastically as there are also refer ECommerce Website Development e-commerce shopping sites and virtual stores on the internet having a wide range of products from the basic necessities to the electronic items. The process of decision-making is fast and short in this type of business mainly for the low price items. It is much easier to decide on a pair of clothes, shoes or jewelry than making a buying decision for your company regarding a new e-mail service provider or food caterer. The sales cycle is short therefore, less money is spending on marketing but the orders are of quite low value and there are less repeated purchases. Nowadays mobile apps, re-marketing, and native advertising are used by marketers to reach their customers directly. Example of Business-to-Customer (B2C) Model All the retail stores online such as Amazon and online payment processors such as PayPal are an example of such type of model. 3. Consumer-to-Business (C2B) Model: In this business model, consumers offer their products or services to the companies and companies pay for the services provided by the consumers. In this model, the customers can post the service they want to offer and businesses bid for the opportunity. Examples of Consumer-to-Business Model An example of this model is affiliate marketing. Social media managers, content writers, and many service providers who work online are the examples of this type of business model. 4. Consumer-to-Consumer (C2C): This model allows consumers to sell their assets to the other consumers. It involves transactions in electronic form among the two consumers. They are connected by a third party who provides them an online platform for doing transactions. The party is a website which may or may not charge the consumer for its services. Consumers sell their assets such as cars, bikes, property, etc. C2C business model yields greater profits to both the sellers and the buyers because the seller can store the products at the place, which is convenient for him, therefore, the products cost less to sell in the market so buyers also get benefit from it.

3. Examples of Consumer-to-Consumer Model 1) E-Bay: It is the most popular e-commerce platform amongst the customers which brings seller and buyers together. The sellers can list the products they want to sell and the buyers can auction for it. For each and every sale, e-bay charges a fee. It is a widely used customer-to-customer platform. 2) OLX: This platform is used by a number of people in India. It is a simple and easy to use consumer to consumer e-commerce platform used to purchase and sell used products. People post the products they like to sell along with the details such as the product’s condition, its price, and description, etc. People who want to buy a used item at low-cost OLX is the best for them to look for. 5. Business-to-Government (B2G) Model: This model of business is concerned with selling the products and services to the Government of either the area where it operates or somewhere else. Under this model, public administrative offices are the clients of the businesses and they get contracts for a long time. This situation helps them to compute profits and manage finances well while providing their solutions to a large audience. Business file reports, pay income and other taxes, sell services to Government agencies are the examples of B2G model.