4 Ecommerce Business Models, Trends, And Strategies You Need To Focus On For Success

E-commerce has massively changed since the last decade. Think about how you purchased clothes and groceries ten years back? Online selling and purchasing have changed the entire scenario and transformed the way you shop today.

In 2017, according to the latest UNCTAD data, e-commerce sales grew 13%, hitting $29 trillion. New studies suggested that e-commerce retails sales will reach a new height by 2021.  

The numbers prove that Internet commerce is gradually gaining momentum and is capturing the entire world. Let us find out the four different types of e-commerce business models that have been ruling since their inception.

Business to Consumer- B2C model

B2C is the most common business model that involves exchanging goods and services between a business and consumers. It happens between individuals and online stores on the Internet.

online store

Photo source: https://medium.com/

Online shopping has become a convenient option for many people. A single click has made it possible to get all items at your doorsteps without any payment and shipping hassle.

Anything, whether it is a product or service you purchase online as a customer, is a part of a B2C transaction. From buying a new shirt to appointing a spa specialist, you can do it online within few minutes!

The decision-making process is generally shorter, which results in a shorter sales cycle. B2C businesses do not spend many dollars in sales, have lower order value and recurring orders. The entrepreneurs have used technology and apps to reach the customers directly, making lives easier.

Business to Business- B2B model

In contrast to B2C, the B2B approach means selling products or services to another business. In this model, sometimes, the buyer becomes the end-user and resells products to the customers.


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The model encompasses all companies that manufacture products and bestow services to other businesses to make them grow. Here, the best examples are industrial suppliers, manufacturers, digital marketers, and payroll processors.

B2B companies have a different set of target audiences. They offer consultations, raw materials, services, and other finished goods to other companies trying to operate, thrive, and make a profit. The sales cycle is longer, with a higher-order value and recurring sales.

Consumer to Business- C2B model

C2B business model appears a bit complex, but it is simple in real life. Here, individuals get the opportunity to sell goods and services to other companies.

Consumers may post the services or works that want to be done and wait for the businesses to bid for the opportunity. You can consider affiliate marketing, blogging, and photography as examples.

However, this e-commerce model’s competitive edge lies in the pricing structure. What is the perk? It gives consumers the freedom to place their price and talk to the business heads directly to get their work done.

Recently, this approach is used to connect social media influencers to different companies to advertise their products and make them reach the targeted audiences. C2B is a new and growing segment that has the full potential to function as a business model of a company.

Consumer to Consumer- C2C model

Unlike C2B, C2C occurs between individuals exchanging goods and services. This business model is often referred to as an online marketplace that connects consumers, who make money by charging fees.

Some solid examples of C2C include an auction, newspaper’s classified section, eBay and Craiglist. The primary goal of this model is to locate buyers and sellers so that they can help each other in finding products and services.

How to select an e-commerce business model?

Spend time in understanding the market you are aiming to penetrate and research the following.

a. Who are your customers?

If you do not know who you are looking to serve, you will fail to recognize the market. It would be best to consider your customers’ expectations while purchasing the goods/services you are trying to sell.

What is the secret to success?

  • Discovering customers’ buying habits and behaviors
  • Finding ways to improvise your marketing and selling skills

Once you know which segment to focus on, nothing can stop you!

b. What are your capabilities?

What is your skillset?

What can you do better than your competitors?

What special knowledge do you have?

By recognizing your strength, you can build your strategies and understand the business model that works in your favor. Be realistic about what you can do and when do you need a team’s help. Though it may be challenging at first, it will help you make better decisions.

For instance, if your company is good at producing cloth materials, you can help companies that manufacture clothes. This is what a B2B model looks like.

c. What is the best for your goods/services?

Depending on your goods/services, you need to choose a business framework. Suppose you a manufacturer, and you may look for wholesaling to manage your production cost. If you are a product distributor, you will look for ways to invest in marketing and grow your audience.

d. What is your positioning?

Does your audience understand your products?

Do they want your goods?

Can your goods/services help people?

You understand your product better than any other folks. The next step involves making it clear to your audience why your product is better than the existing products in the market and how your services will change their lives.


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From warehousing, marketing to back-end processes and shopping experience, your unique value must be clear.

Final thoughts!

Buying and selling on the Internet became a blessing to many, leading to a rapid boom in e-commerce globally. These four most common e-commerce business frameworks will help you understand your business better and build strategies accordingly.

Besides, it would help if you evaluated your competitors, audiences’ behaviors, product positioning, and more to select the right approach.

No matter what you choose, you cannot get results overnight. Correct planning, tools, skills, and management are required to reach your target. Redefine your business goals and choose a model at your convenience.