E-commerce business growth has become a consistent factor in market development. According to surveys online sales growth predicted is over 78% by 2020, which is a significant boom. Everyone wish to cash in this opportunity and is they are absolutely right to do so.
But it is vital to understand the fundamental elements and models of e-commerce businesses and to evaluate which is the best fit for you. There are so many trends and tempting examples but you should do a careful analysis to embark upon a venture.
The recipe for a successful e-commerce requires extensive knowledge of the target market, a robust plan of action, keen awareness and intensive study of the product and online business models.
Let’s first understand the Classification of E-commerce businesses:
1.B2B – Business to Business
2.B2C – Business to Consumer
3.C2C – Consumer to Consumer
4.C2B – Consumer to Business
B2B – BUSINESS TO BUSINESS
A B2B e-commerce business offers the focused approach of a transaction and providing good/services from one business to other. The B2B is conducted among companies, producers, wholesalers, and retailers. A large number of B2B e-commerce is service based e.g. Software/IT Companies, office supplies companies, Human Resource companies etc.
A B2B business usually needs higher investment and groundwork. Some major successful B2B companies are Alibaba, Ahrefs, ExxonMobil, Boeing etc.
A B2C e-commerce is a transaction between the business and its end customers. This is the most widespread and popular form of e-commerce. B2C shorten the supply chain and connect businesses directly to its end target customers.
B2C businesses work on the more traditional retails business model by selling their products/services online. Nowadays most big or small stores are moving partially or fully onto online stores. Like Wallmart, Staples, Tesco etc.
B2C e-commerce examples are any online store selling its product directly to the customer like Amazon, Snapdeal, Groupon etc.
C2C eCommerce offers a platform for transactions of goods and services among customers. The concept is to provide a secure and common platform to customers to sell and buy good from each other and getting incentive via commission, advertising or premium services.
Some of the well known C2C e-commerce businesses are OLX, gumtree, Kickstarter, eBay, and Craigslist etc.
B2C e-commerce business is reverse of the traditional sense of business as we knew it. The basis of C2B is that there are several goods/services that businesses require from customers and this e-commerce gives that platform for businesses and customers to transact.
In most cases customers selling their services and good are freelancers. This e-commerce class is great for crowdsourcing project requirements. Some of the well-known examples are Cashify, Upwork, 99deigns and many more.