What are the Top Four Ecommerce Models?
We have found ourselves in a generation where ecommerce is taking over the normal of ways of conducting businesses. People now use their mobile phones and computers to order goods online. We shall talk about the top four ecommerce models in this post today.
If you are going into the ecommerce space, you will definitely fall into one or two of the ecommerce models.
Knowing exactly where you should fit will help you make better decisions and know what threats you will be facing and how to deal with it.
So what are the ecommerce models we will be talking about today?
1. B2C – Business to Customer
This is a type of an ecommerce models that businesses sell directly to their end users. It is the most common model of the different ecommerce models we will be talking about here.
There are many ways to approach this kind of model.
Anything you have ever bought online – Your wrist watch, Phones, house hold supplies are done as part of B2C transaction.
The decision and process of making a purchase for a B2C model is much easier and shorter than that of the B2B ecommerce model.
Because they have a really shorter sales cycle, Business to Customer businesses spend less marketing money to make sales, but have lower orders compared to B2B businesses.
B2C businesses are not limited to selling products alone, but also Services.
B2C businesses have adopted the use of technology – Mobile apps, advertisement and remarketing to drive sales and make business operation easier for them.
Most Home based businesses are B2C kind of businesses.
2. B2B – Business to Business
In this kind of ecommerce model, Businesses sell products or services to another Business.
In some cases the buyers are end users but in most cases the buyers buy and sell to other people (Business to Customer).
B2B businesses tend to have a longer sale cycle compared to B2C businesses, but they have a higher order value and more of recurring orders or purchases.
B2B businesses have over the recent years replaced orders sheets and catalogues with ecommerce and improved targeting in niche marketing.
A 2020 research shows that close to half of B2B buyers are millennials more than double the amount in 2012. This shows that the more the younger generation adapt the online form of Marekting the more important B2B becomes.
3. C2B- Customer to Business
This is an ecommerce model in which customers sell goods and services to companies.
In this model, sites allow customers to post a work they want to be completed and allow companies come bid for the services. One might say that affiliate marketing can also be classified as a C2B kind of ecommerce model.
This can be seen as kind of work in which freelancers are the ones that engage in it more.
The competitive edge of this kind of ecommerce models is in the pricing of the goods and services.
These models give the customers the power and freedom to name their prices and have companies and businesses bid for their goods and services.
Sites like Upwork and fiverr have successfully been able to link companies and social media influencers to market their products on the social media.
4. C2C- Customer to Customer
This model is also called an online marketplace. It brings customers together so they can buy and sell to each other. The Facebook marketplace is an example.
Ebay is one of the leaders in this ecommerce model.
C2C businesses greatly benefit from self-inspired growth by buyers and seller in high spirit, they face great problem when it comes to quality control and maintenance of technology.
It is important for everyone who is going into ecommerce business to know the different ecommerce models so as to know where exactly to fit in.
The different ecommerce models are somehow interconnected but by thin lines.
Everyone who is into the ecommerce world directly or indirectly crosses all the different ecommerce models listed above just that everyone is having a place to major into.
What ecommerce models would like to go into?
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