Types of E-commerce Business Models

E-commerce is the way of doing business through the internet. As e-business or e-commerce become the new way of doing business, several business models have unfolded.  If you are thinking of running an online business/e-commerce, here are some of the e-commerce business models you can choose to implement:

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    • Business to Customer model (B2C)B2C model is where your business sells products directly to individual customers. Your clients can view products on your site, place an order, and pay for it. After that, your organization delivers the goods and services to those customers directly. The good thing about this model is that you are able to interact with your clients directly. However, it is only reliable for products that relate directly to your customers.

  • Business to Business model (B2B) As its name suggests, this type of model is where a business sells its products to another business organization. For instance, if you manufacture certain products, then you sell them to a wholesaler through online channels that are the concept behind B2B model. The model is particularly applied in supplier and buyer business as well as import and export ventures. Also, there is no interaction between you and your customers as you sell to a wholesaler from whom the customers will buy the products.
  • Consumer to Consumer (C2C)This is where a user sells goods or services to another customer through a third party who may either charge you a fee or offer free service. For instance, selling your car through the online auction where interested persons place their bid. This model is essential where the consumers cannot meet without the online platform. Also, the model is critical as it enhances secure transactions hence there are small chances of losing your money through dubious consumers.
  • Consumer to Business model (C2B) C2B model takes place where a consumer compares different services providers. In this type of business, the customer offers a certain amount of money and waits for the business meeting providing services within the available budget to approach them. For instance, you can have an online market where customers deposit some amount to purchase a given product, then the suppliers of that product can view it, and the one with prices equivalent to the amount offered can deliver the product to the user/consumer.


In conclusion, the above are the major types of e-commerce business models. As an online entrepreneur, you can choose the model suitable for your business. Importantly, your model of choice should be able to help you achieve your goals.

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