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What are the Different Types of Ecommerce Models?

Learn the types of ecommerce business models you can use for your own company’s success.

Are you planning to launch a small business? If so, you might want to consider creating an ecommerce website and social media profiles. Starting your business online costs less than putting up a physical store or restaurant. It provides entrepreneurs with many benefits such as various payment methods, lower operations costs, and higher profit potential. You also have the option to cater to different types of markets, whether it’s other businesses or direct consumers.

Here are the different types of ecommerce business models you can look into.

Business to Business or B2B

If you’re planning to launch a small company, you can sell products or services to other businesses in your industry or a complementary niche. Being an expert in a particular field can help you succeed in a B2B ecommerce model. Use your expertise in IT, engineering, product development, marketing, advertising, accounting and others to fill the needs of your target market. You can also offer your partners’ supplies, equipment, tools, machinery, fixtures and other items they may need.

Consumer to Consumer or C2C

One of the types of ecommerce business models you can consider is C2C. With this model, entrepreneurs create a website that acts as a “middleman” to consumers who transact with each other. They use the site you make to buy and sell or trade items. You earn money by establishing a commission that all parties must agree on. This business model takes a combination of good fortune, investment, consumer trust, and technical expertise to work. One successful example of an ecommerce business that utilized this model is eBay.

Business to Consumer or B2C

B2C ecommerce is similar to its traditional retail model counterpart. Many retailers have a physical store and an online one. You can choose to just invest in a website and social media accounts to reduce costs. Prepare your small business to take on several competitors when you open an online store. Identify the main benefits and value you provide customers. Regularly improve your website to make it user-friendly. Offer multiple payment methods, return policies, and the occasional special promos to entice people to choose your site over your competitors.

Consumer to Business or C2B

The C2B model is growing in popularity despite its counterintuitive nature wherein consumers sells to businesses. An apt description of this model is a sole proprietor selling their goods or services to bigger companies. Upwork and platforms like it follow this concept. Outsourced service providers or small businesses create accounts on those sites then companies bid on their services. Affiliate marketing and Google’s AdSense are also models that follow a similar approach.

These different types of ecommerce business models provide you with opportunities to start your journey as an entrepreneur. Determine which model works best for you. You can start with one then move to another once your company grows and hits a stable profit margin. You can make money by using drop shipping, warehousing and/or wholesaling when you launch your ecommerce website.

We at Robookkeeper can be your business partner. Outsource your bookkeeping to us so that you can focus on growing your small business. We have a team of virtual bookkeepers that can update your accounting books regularly. We offer good value bookkeeping services for small business owners.

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