Traditional Types of Ecommerce Business Models | Techsaga Corporations

 

e-Commerce business ideas are incomplete without being decided on a business model. One must look at various types of eCommerce business models to see how they work and why you may want to choose one over the others? So start with thinking about today's shopping trends, transformed completely now with the advent of the Internet.

Be your clothes, stationery, groceries or you want to buy something, now Innovative eCommerce businesses have transformed the way we shop today, redefining shopping sprees completely.

E-commerce business models drive innovation and should be evaluated for the target market, otherwise, it can be detrimental for your business in later stages. Digital marketing also with content marketing can be employed to increase traffic volume and generate better ROI, but only if an eCommerce effective business model is planned in a row.

the four main business models outlined below.

• Business to Business (B2B) 

• Business to Consumer (B2C)

• Consumer-to-business (C2B)

• Consumer to Consumer (C2C).

Picking an eCommerce Business Model:

Evaluate and identify the business model, which works best for you:

• Choose your customers.

The entire e-Commerce business plan is dependent on the end consumer of your product and should be planned in such a way that individuals can order quickly in higher quantities because individual product sales come with less revenue.

• Define your capabilities. 

Focus on your starting capital, pre-existing knowledge of the target market and product or service you want to sell, and your technical limitations. 

 

• Pick your offerings. 

You should be offering a service to produce your own products or resell or distribute other products. Make sure you decide on the cost and ensure a profit. Try to look into some of the best eCommerce books or spend some time reading eCommerce blogs to learn about markets.

• Position your business. 

Work on positioning yourself in the market and bring your services in front of customers, work on standing out from the crowd. This step will be key when it comes time to work on your B2B marketing.

Especially if you’re new to the industry. Your greatest chance of success in e-commerce depends on your business model which helps you to analyze your target niche, resources, and capabilities.

eCommerce has more options than we realize, other than the only B2C, primarily we think of. Selling privately branded retail products to individuals is what we assume e-commerce is. 

But Here are 4 major eCommerce classifications and 6 proven models to consider before applying the right eCommerce business model to your online store:

1. Business-to-business (B2B)

Business-to-business (B2B) eCommerce describes online transactions that happen when a company sells its products or services directly to other businesses as a wholesaler or manufacturer.

B2B models mainly composed of wholesalers, manufacturers, and distributors organizations. 

1. While launching a B2B business, you should keep in mind:

2. Target market prefer bulk ordering or not

3. Client’s or end consumer requirements and specifications

4. Potential competitors, offering competitive pricing while maintaining ROI

5. Inventory and supply chain management capabilities

6. Pricing depends on whether you are a manufacturer or reseller or distributor

2. Business-to-consumer (B2C)

B2C e-commerce is a more common eCommerce business, serving a wide audience, where online retailers sell products and services directly to end consumers. B2C business is simple as one can order anything on;y with one click online. B2C retailers adopt modern marketing and sales strategies like ads-based marketing, influencer marketing, and even social media to attract customers.

Since everything is online, e-commerce businesses can’t afford delays in service, therefore should serve customers promptly.

B2C eCommerce business owners focus on optimizing traffic, promoting marketing campaigns, and sales conversions rather than negotiating terms or managing order production.

3. Consumer-to-business (C2B)

less well-known and less intuitive than B2B and B2C e-commerce business models. In the C2B model, consumers sell products or services to a business, using freelancer platforms like Upwork and Fiverr. Increasing digitalization helps influencer-matching marketplaces like Influenza to have innovative forms of C2B.

4. Consumer-to-consumer (C2C)

C2C eCommerce businesses facilitate transactions between consumers where individuals can sell, buy, and exchange goods or services with other consumers. Consumer-to-consumer models earn profits by charging listing and transaction fees.

Unlike B2B and B2C, C2C works with third-party business owners to facilitate online transactions, protect consumers from fraud, and manage quality control on their own. 

Today, Amazon, eBay have been the largest C2C eCommerce websites in the world and expanded their reach through digital marketing and social media.

Business Hacking:

Building an eCommerce business model depends on the products or services you want to offer and what capabilities you have and how much profit you can make. If you want to produce your own goods or want to become a reseller with high markup, you should be ready to learn how to calculate important metrics like your fill rate.

Techsaga, a IT company for e-commerce, helps you to opt for a solid eCommerce business plan and pick the right platform. You can choose to have your own digital store or allow businesses to sell B2B wholesale, direct to consumers, or both. 

eCommerce business needs a smart investment in eCommerce accounting software related to all your business needs.

Techsaga offers Customised E-Commerce retail Software Solutions, as it brings expertise and a problem-oriented approach to revolutionize changes across your business resulting in cost savings and increased ROI.