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Dołączył: 09 Lis 2024 Posty: 2
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Wysłany: Sob Lis 09, 2024 04:12 Temat postu: 6 Types of E-Commerce: Business Models, Marketing, and More |
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Electronic commerce (or "e-commerce") describes the sale of goods and services over the Internet.
Today, there are six website development service
main models for conducting e-commerce:
Business to Consumer (B2C)
Business to Business (B2B)
Business to Government (B2G)
Consumer to Consumer (C2C)
Consumer-to-Business (C2B)
Consumer-to-State (C2G)
Use this guide to learn about each model's unique features, capabilities, and challenges. Plus, discover the best digital marketing tactics for all types of eCommerce businesses.
Infographic "Types of eCommerce"
1. Business to Consumer (B2C)
The B2C e-commerce business model involves selling products directly to consumers.
B2C companies may sell their own products (a practice known as direct-to-consumer (D2C) sales), or they may sell products from other brands.
Walmart, BestBuy, Amazon, and Alibaba are classic examples of B2C businesses. They resell other companies' products through e-commerce sites.
BestBuy Home Page
H&M, Adidas and HelloFresh are companies that use the B2C e-commerce model, which also uses the D2C model. They sell their products to consumers.
Some B2C companies sell both their own brands and other brands. For example: online clothing store ASOS (UK).
ASOS Homepage (UK)
It is typical for B2C e-commerce companies to have:
Short sales cycles (the time it takes to engage a prospect and get them to make a purchase)
Large volume of transactions
Low average transaction cost
In the B2C category, various revenue models are used, such as:
Dropshipping: Sellers display other brands' products in their online stores. When someone buys, the seller buys the product at a lower price from a third-party supplier, who ships it directly to the buyer. This process is often automated.
Subscription services: Customers pay a recurring fee to access ongoing services or have products delivered regularly. Spotify and pet supply company BarkBox are popular B2C subscription services.
Used/Refurbished Goods: Sellers obtain used goods from consumers and other companies. For example: BackMarket sells refurbished cell phones in varying conditions.
Low start-up costs (compared to opening a physical store) give entrepreneurs easy access to the B2C e-commerce sector. That's why competition here can be fierce.
2. Business to Business (B2B)
B2B companies sell products or services to other companies.
B2B companies may sell directly to end users. Or they may sell to businesses that then resell the products to other businesses or consumers.
For example: project collaboration tool Trello is a B2B e-commerce company that sells products to end users.
Trello Home Page
Conversely, an auto parts manufacturer that supplies a car factory is an example of a B2B business that sells products to another business.
Semrush is also a B2B eCommerce brand. Many of our users are business owners, marketing agencies, and freelancers (i.e. micro businesses).
B2B e-commerce includes wholesalers like Faire that target resellers.
Compared to B2C purchases, B2B transactions typically involve:
Longer sales cycles
Higher transaction amounts
More repeat purchases
Subscription models are popular among B2B e-commerce companies, especially software providers. Sellers receive regular, predictable revenue, and buyers can spread the cost of purchases to better manage cash flow.
B2B e-commerce companies often use a white labeling business model. This means that an online business sells an unbranded product to a reseller. The reseller then brands and sells it to consumers or other businesses as its own.
3. Business to Government (B2G)
In the B2G e-commerce model, businesses market and sell products to government organizations or government administrations. These include federal, state, county, and local organizations.
For example: OpenGov sells software to local government agencies.
OpenGov Homepage
Many B2G transactions begin with a request for proposal (RFP), which is when a government agency invites businesses to submit their product or service to them in order to bid for a contract.
Most B2G companies experience:
Long sales cycles
High transaction amounts
Strict compliance requirements
B2G e-commerce models can be useful for companies with niche offerings and effective marketing. Additionally, longer government contracts usually mean greater financial predictability and security.
However: Government bureaucracy can make the sales process slow and highly competitive.
4. Consumer to consumer (C2C)
C2C describes business transactions involving two or more consumers. The term can also refer to any provider that manages online transactions of this type.
For example: When a person sells his car to another person, it is a C2C transaction.
They can use Autotrader to advertise their product, find potential buyers, and close the deal. In this case, Autotrader is a C2C e-commerce business.
Other C2C (online marketplace) e-commerce platforms include Facebook* Marketplace, eBay, Craigslist, and Vinted.
Vinted Homepage
C2C apps and websites add structure to an unregulated business environment.
They provide listing services, quality control, payment processing, and dispute resolution to move money and products between consumers. They usually receive fees or commissions in return. Or they earn advertising revenue from consumer traffic to their site.
5. Consumer-to-Business (C2B)
C2B e-commerce involves consumers selling goods and services to companies.
Sometimes a company will be the end user. For example: an individual selling an image to a newspaper is conducting a C2B transaction. Since the newspaper publishes the image, it is also the end user of the product.
Sometimes a company that buys consumer goods resells them. Take Shutterstock. The image library buys content from contributors (consumers) to sell to other users (often companies). _________________ website development service |
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