{"id":3811,"date":"2020-09-30T08:52:18","date_gmt":"2020-09-30T07:52:18","guid":{"rendered":"https:\/\/blog.dash101.com\/?p=3811"},"modified":"2020-10-03T07:21:05","modified_gmt":"2020-10-03T06:21:05","slug":"ecommerce-business-models","status":"publish","type":"post","link":"https:\/\/roposoclout.com\/dropshipping\/ecommerce-business-models\/","title":{"rendered":"7 eCommerce Models That Impacts Business Growth"},"content":{"rendered":"\t\t\t\t
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Ecommerce<\/abbr> businesses of all types are thriving. Some business and revenue models are more in practice than the other. But each model has advantages and disadvantages of their own. It’s easy to get caught up in a tide of new e-commerce trends, you need to find what suits the goals of your business. Many E-commerce owners are not aware of the different business models that can help them bloom their business. Knowing the fundamentals before choosing a model for your business is essential. Here’s all that you need to know about the 7 eCommerce models <\/a>to impacts business growth.<\/p>\n\n\n\n\n\n

4 traditional Types of eCommerce<\/h2>\n\n\n\n

While there are different eCommerce business models, let us understand the 4 traditional types of eCommerce :<\/p>\n\n\n\n

B2B<\/h3>\n\n\n\n
\"Business<\/figure>\n\n\n\n

In simple words, B2B means Business to business. It encompasses all companies that gear their products and services to other companies. B2B refers to the sale of products or services that are exchanged through an online platform between companies. This describes the business transacted between companies and not individuals. Because of the large nature of businesses, the volume of products and services is much higher, the shipping requirements are much more complicated. The complexity of B2B businesses requires them to deal with higher and complex tax impediments. But nevertheless, they are a vital part of most industry\u2019s supply chain. <\/p>\n\n\n\n

Example: The manufacturer of an automobile derives many products likes tires, hoses, batteries, etc. to make the final product. When you invest in a car, you\u2019re purchasing parts created by hundreds of other businesses from all over the world.<\/p>\n\n\n\n

B2C<\/h3>\n\n\n\n
\"eCommerce<\/figure>\n\n\n\n

B2c is a term used to describe an e-commerce transaction that takes place between a business and its end-user. In this type of e-commerce, the consumer directly consumes the product or service provided by a business entity. It sells to customers directly. The major benefit of B2c is the global reach that it has. The size of a business does not limit the reach of selling operations. Additionally, they have no physical overheads, trackable markets, more data to profile customers.<\/p>\n\n\n\n

Example: Most food restaurants fall under this type. Another example would be Spotify.<\/p>\n\n\n\n

C2C<\/h3>\n\n\n\n
\"eCommerce<\/figure>\n\n\n\n

This E-commerce model refers to the trade between two customers, not businesses. C2C is gaining more importance. The interaction between two parties is presupposed by a third party. Sellers can find buyers through various internet resources by paying a small fee or commission. Due to the lack of involvement of middlemen, the prices of commodities are reduced, this proves to be a major advantage for customers. On the other hand, vendors are benefited from direct sales causing high profitability.<\/p>\n\n\n\n

Example: Amazon, Flipkart.<\/p>\n\n\n\n

C2B<\/h3>\n\n\n\n
\"Unecognizable<\/figure>\n\n\n\n

In contrast with the other business models, the C2B (customer-to-business) model allows businesses to extract businesses from customers. In this model, businesses profit by the willingness of consumer\u2019s contributions. This could involve consumers contributing through the co-creation of ideas, product\/service concepts, and solutions as well. <\/p>\n\n\n\n

Example: Food companies asking food bloggers to include a specific product in their recipes, and review it for their audiences. <\/p>\n\n\n\n

E-Commerce Business Model<\/strong><\/h2>\n\n\n\n
\"consumer<\/figure>\n\n\n\n

The e-commerce business model in the conceptual structure of the traditional B2B, B2C, C2C, C2B business strategies. <\/p>\n\n\n\n

Based on the inventory management and sourcing of products, e-commerce business models are further classified into: <\/p>\n\n\n\n

Dropshipping<\/h3>\n\n\n\n

Dropshipping is the simplest form of e-commerce, as it frees you from managing inventory, warehouse stock, or dealing with packaging. This focusses on a fulfillment model that allows you to buy products individually from a wholesaler directly to your customer. It eliminates the cost that you would be born if you invested in a large amount of inventory. Instead of doing that, your simple partner up with a drop shipping supplier and list their merchandise available for sale. Once you receive an order, you take it forward to the supplier for fulfillment. The supplier then ships the order from the warehouse directly to your customers.<\/p>\n\n\n\n

Wholesaling or Warehousing<\/h3>\n\n\n\n

Wholesaling or warehousing method refers to the purchase of goods in bulk from manufacturers or distributors and reselling them through online platforms to other businesses. This model requires a lot of investment initially as you need to manage inventory and stock, track customer order and shipping information, and investing in warehouse space itself.<\/p>\n\n\n\n

Types of wholesalers are: –<\/p>\n\n\n\n