E commerce has become one of the prominent sectors in the current era encompassing a diverse range of business models and delivery methods. This article provides an overview of the most important types of e commerce and what sets them apart.
Types of E commerce:
E commerce includes several types that represent different details in the process of buying and selling online. Among these types are:
Business to Consumer B2C Commerce:
This type of commerce involves a company offering its products to individuals through an online store. This model is characterized by the company selling its own products or selecting products to showcase. For example well known brands like Allbirds and Kylie Cosmetics represent this type of commerce.
Business to Business B2B Commerce:
This type includes the sale of a company s products and services to another company online. The shopping experience in this type caters to the higher volume orders of business clients often including dedicated customer service and multiple options for custom orders.
Consumer to Consumer C2C Commerce:
This type reimagines an old idea and gives it a fresh twist. It allows consumers to directly sell their used goods to other consumers through online selling platforms. eBay is one of the prominent examples of this type of commerce.
Business Models in B2C E commerce:
The world of B2C commerce is characterized by multiple available business models that cater to diverse customer needs. Among these models are:
Direct to Consumer DTC Sales:
This model involves selling products that a company manufactures directly to consumers. It can yield good profit margins and high quality product control.
This model involves selling through a monthly subscription allowing customers to purchase specific products regularly through a subscription service.
White Label and Private Label:
These models involve collaboration with suppliers to produce products bearing the company s logo. These models are known for easy operations and brand focus.
This model enables companies to display and sell other brand s products to customers. The value lies in choosing a diverse range of products and providing a unique shopping experience.
This model involves selling products through a shipping company that manages inventory and delivery instead of the store owning company.
This model allows companies to sell their products directly to consumers in bulk resembling the B2B model but for smaller quantities.
Choosing the Right Business Model:
When planning to start an e commerce venture the multitude of business models can seem overwhelming. However you can determine the appropriate model based on several straightforward questions: