Different Types of E-commerce Business Models

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Woman in cafe shopping online with laptop
Woman in cafe shopping online with laptop

At present, E-commerce has changed the way we used to shop before. The main factor that gave a boost to e-commerce is the pandemic Covid-19.  At that time, people were restricted to their homes to mitigate the spread of this lethal disease. Therefore, people started shopping online. The retail industry took benefit of these circumstances and apart from their brick-and-mortar stores, they developed their websites. Consumers have different shopping preferences. Therefore to provide services to people according to regional and cultural preferences, retailers take assistance from professional website localization services. It greatly helped them to keep the momentum of their sales during that time of economic crisis. 

Different Types of E-commerce Business Models 

  There are many different types of e-commerce business models. If you want innovation and want to separate your business from other online businesses then you have to know different types of e-commerce business models so that you can take leverage from them.

B2C (Business-to-consumer)

In this model, the business sells its products directly to end users. People buy products and services from online stores which are their websites. The websites gives retailers a boost in sale if they opted for website localization services. Not one size fits all. Therefore, people buy products and services according to their preferences and tastes from these online stores.

The important thing to note is that the decision-making process for a B2C purchase is much shorter than for a B2B purchase, mainly for low-value products. Due to the shorter sales cycle, businesses spend less money on marketing. In B2C models, businesses also use different mobile apps. They integrate it with their websites after taking the assistance of app localization services. In this way, people can shop while they are on the go. 

C2B (Consumer-to-business)

These models help businesses sell goods and services to companies. In this model, the company site enables businesses to post their work so that they can bid for opportunities. C2B is a very good platform for freelancers. In this model, freelance workers work on tasks given to them by the company. 

Affiliate marketing services are used to promote the business. C2B works as a sole proprietorship helping big businesses. Reverse auction websites are also part of it. At present this model is used for connecting companies with social media influencers for the marketing of their products. This can be done properly with the help of ecommerce translation services. 

C2C (Consumer-to-consumer)

C2C e-commerce businesses are referred to as online marketplaces. It connects the consumers to exchange goods and services and make their money by listing different fees and charging transactions. In all their transactions, they receive a small commission.  

This model runs by motivated buyers and sellers. But they face great challenges in technology maintenance and quality control. If they integrate different software with their online stores then they can manage maintenance and quality control issues but for this, they have to go for software localization services

Business-to-Business (B2B)

If your business is providing products and services for other businesses then using the B2B model is a viable option for you. Reaching out to big businesses and networking is a main part of this model. For implementing this model, you have to convince the big businesses that your products and services are a great fit for their business. One of the best parts of this business is that order sizes are usually large and repeat orders are also very common. 

To handle the challenges of this model, you must take the assistance of different software to mitigate the probability of a restricted supply chain. Do take help from professional software localization services to integrate different software into this model. 

Business to Government (B2G)

Business to Government (B2G) is an e-commerce business model where a business markets its products to government agencies. If you want to select an e-commerce business model then you have to bid for government contracts. For this purpose, governments come up with different proposals, and e-commerce businesses have to bid on them. In most cases, government agencies don’t place an order on an e-commerce website whereas some local agencies do it according to their business needs.

Business to Business to Consumer (B2B2C)

In this model, businesses sell products to other businesses and then they sell products through websites. This is why this model is called Business to Business to Consumer e-commerce. Three parties are involved in this model. If you want to go for this model then you have to partner with another business and then you can sell products to the other partner with a commission on each sale.

Online stores select the business model for new customer acquisition. This is because customers are already aware of the other partner’s products and they cannot purchase from them due to high shipping costs and different geographical locations. Therefore, this business model is suitable for those e-commerce stores that want to expand their customer base. 

Wrapping Up 

To use any of these models in your business, you have to take leverage from digital technology such as websites, software, and apps. For instance, if you want to integrate any app with your website then mobile app localization services can be of great help. Make the feasibility report of your business and then rationally select the business model according to your business requirements. 

 

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