One of the biggest misconceptions with business models in e-commerce is that most people view all e-commerce businesses as strictly Business to Consumer (B2C).
However, the reality is that there are different types of ecommerce models, and all are thriving. According to estimates by Statista, e-commerce sales will jump to $6.388 billion per year by 2024.
If you are looking for useful information on the fundamentals of innovative e-commerce business models, you've come to the right place. In this blog, we will decode everything you need to know about the types and benefits of e-commerce models, along with real-life examples for some serious inspiration. Let's get going.
The first thing you need to make a note of is that every e-commerce business model differs from the other based on the type of online transaction that occurs between the buyer and the seller online.
Focuses on: Offering products/services from one business to another.
2. B2C: Business to Consumer E-Commerce Model
Focuses on: Providing products/services from the business owner directly to the end customer.
Focuses on: Allowing customers to buy, trade, or sell products/services in exchange for a small commission (transaction or listing fees), which is paid to the website.
Focuses on: Allowing D2C businesses to sell their products directly to end customers without the help of third-party online retailers.
Focuses on: Enabling consumers to sell goods/services to businesses; the consumer engages in a sole proprietorship serving a larger business.
Top 5 Tips to Remember When Selecting Your E-Commerce Business Model Type
Zeroing in on the right business model fit for your e-commerce business can be tricky. If you want to leverage the 360-degree advantages of the various models of e-commerce at play, you need to keep the following tips in mind:
The recipe for success for any e-commerce business lies in using the right knowledge to build your e-commerce brand right. Add your intuition, market knowledge, and strategic business plan to the mix, and you've got a winning e-commerce model at hand.
So, take a cue from the tips outlined above, familiarize yourself with the e-commerce fundamentals, select the right e-commerce platform (like the Aasaan app) that suits your specific needs, and kick-start your e-commerce journey on the right (and productive) note!