11 Classic E-Commerce Business Models

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Maksudasm
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11 Classic E-Commerce Business Models

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B2B

This model involves interaction between two companies for the purpose of mutually beneficial cooperation. Let's say you sell another company a product that it uses to implement its own production of goods or provide services aimed at the end consumer. An example of such a transaction could be the sale of building materials, cash and computing equipment, or the rental of cloud data storage.

Also typical for the B2B segment is the resale of goods or services previously purchased from another seller. Let's say you own an event planning agency. You purchase products from a manufacturing company, which you then put your brand logo on for advertising and attracting customers.

Well-known marketplaces also belong to the B2B model. The electronic trading platform acts as a landlord for sellers who place their goods on it, and receives revenue from this.

These deals typically involve a business owner database long sales period, and their success depends largely on a carefully developed strategy and well-established communication.

B2C

The B2C model is the most common type of e-commerce, as it reflects the direct interaction of the buyer and the seller. Moreover, the latter can be either a manufacturing company or a retail supplier.

Cooperation is carried out on the website of the online store, the landing page, through a mobile application.

A manufacturing company, as a rule, uses the services of distributors, wholesalers or retailers to sell its own products. For example, Toyota cars are sold by dealerships.

B2C companies have significantly lower marketing costs than B2B companies. This is due to the lower cost of services offered and a shorter sales cycle. However, such companies should be as customer-oriented as possible, since their profits depend on the reputation they have in the eyes of their customers.

B2C e-commerce model

D2C (direct-to-consumer)

The peculiarity of this model is the direct interaction between the producer and the consumer, carried out without intermediaries, wholesale or retail.

Any business related to the B2B or B2C segment can switch to the D2C model. For example, Askona, a company specializing in the production of orthopedic mattresses and sleep products.

C2C

Another type of e-commerce is the C2C model, in which the purchase and sale transaction takes place online between two consumers. Trading is carried out on such platforms as Avito, Farpost or eBay.

Communication between the parties occurs either directly, that is, by telephone or in the form of correspondence via e-mail, or through an intermediary (website, social network).

B2B2C (Business to Business to Client)

This model combines two segments: B2B and B2C. It looks like this: two companies agree on mutually beneficial cooperation, the purpose of which is to provide services or sell goods to the end consumer - an individual.

A manufacturer or wholesaler operating in this segment contacts customers through another business or sells products directly.

For example, company A sells its products in an online store owned by company B: Company (A) → Business (B) → End customer. In this case, A is the manufacturer or supplier, and B is the service that provides specific services. If we turn to the example of a marketplace again, then in this case it is business B that provides a platform for the products of company A. The advantage of such cooperation is that the manufacturer does not need to look for customers, since they already use the services of company B.

The famous online e-commerce stores Wildberries and
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