ECommerce is the future of business, and the future is now. As an entrepreneur, this is the perfect time to start an online business. The best part is that you don’t have to be a tech wizard to do this. All you need is a good understanding of eCommerce and a reliable platform to get started. ECommerce and eBusiness are often used interchangeably, but they are not the same. In fact, they are two different business models.
The main difference between the two is that eCommerce is a business model that focuses on buying and selling products online. This means that the entire business is based on the exchange of physical or digital goods. On the other hand, eBusiness is a much broader term that encompasses all business activities that are conducted online. This includes buying and selling, but it also includes things like marketing, customer service, and more.
In other words, all eCommerce businesses are eBusinesses, but not all eBusinesses are eCommerce businesses.
Types of eCommerce Business Models
When you’re starting an eCommerce business, you’ll need to decide which of the four main business models you want to use.
Here’s a quick overview of each model:
1. B2C (Business to Consumer)
B2C is the most popular eCommerce business model. It refers to businesses that sell products to individual consumers. Most of the time, B2C businesses sell directly to their customers without a middleman. When people talk about eCommerce, they’re usually referring to B2C businesses. Think of your typical online store, like an apparel company or a subscription box business. These are classic examples of B2C companies.
2. B2B (Business to Business)
B2B stands for business to business. This type of eCommerce involves a business selling products or services to other businesses. For example, a company that creates digital marketing tools may sell their software to marketing agencies. The B2B eCommerce market is actually much larger than the B2C market, with the global B2B eCommerce market expected to reach $20.9 trillion by 2027.
3. C2B (Consumer to Business)
C2B is a business model where the consumer sells products or services to businesses. This is the opposite of the traditional B2C model where businesses sell products to consumers. In the C2B model, the consumer is the one who is providing the value to the business. This can take many forms, such as a consumer writing a review of a product that a business then uses in its marketing, or a consumer creating content that a business uses in its advertising. One of the most common examples of the C2B model is influencer marketing. In this case, businesses pay consumers with large social media followings to promote their products and services.
4. C2C (Consumer to Consumer)
C2C is a business model where a consumer sells products directly to another consumer. This is typically done through a third-party platform that facilitates the transaction, like eBay or Craigslist. In the case of eBay, sellers list their products on the website, and buyers can then bid on the products they want. After the bidding ends, the buyer with the highest bid wins the product, and the transaction is completed. C2C businesses are great for people who want to make some extra money by selling products they already own. It’s also a good option for people who want to buy products at a discount.
5. G2C (Government to Consumer)
The G2C model is similar to the B2C model, but in this case, the sellers are government entities and the buyers are individual consumers. The most common example of G2C eCommerce is when people pay their taxes online. This model is also used for government agencies to sell surplus items, such as office equipment, computers, or vehicles.
