5 Types of E-commerce Business Models That Will Grow In 2020
In 2020, e-commerce sales are expected to grow by 78% and, that’s quite a huge leap! While most of us think that B2C is the only type of e-commerce that’s flourishing, you can be wrong with this. E-commerce is mainly of 5 types and, all of them have witnessed a remarkable growth in the past few years.
The five types of e-commerce include:
- B2B: Business to Business Ecommerce
- B2c: Business to Consumer Ecommerce
- C2C Ecommerce
- C2B: Consumer to Business Ecommerce
- (B2G/B2A/C2A/C2G) Government / Public Administration Ecommerce
Whether you are running an e-commerce store or are thinking to start one, you should understand each of the types thoroughly.
Types of E-Commerce
B2B: Business to Business e-Commerce
As the name says, a B2B e-commerce business Model is the one where products are sold from a business to another business. The products sold in this type of e-commerce are usually the services (such as software, mobile application, web development, content writing etc.) but, physical goods (such as corporate gifts, office furniture, etc.) are also sold often.
The examples of a business to business e-commerce include Microsoft, IBM, Oracle, Intel, Huawei, FedEx, JP Morgan, Siemens and many more. All of these companies provide software, banking services, logistic services to other big businesses.
The start-up amount in B2B e-commerce is pretty high.
B2C: Business to Consumer e-Commerce
The most common and renowned type of e-commerce is the business to consumer one. It’s where the goods or services are served by a business directly to a customer. B2C is a traditional selling model with only one difference that it’s done online.
Examples of a B2C e-commerce platform include Amazon, Flipkart, Sephora (though they have brick and mortar stores as well), IKEA, Target etc. The initial start-up cash that goes into B2C e-commerce is mediocre.
C2C: Consumer to Consumer e-commerce
Many of us often get confused with the consumer to consumer e-commerce type. Well, it’s a business done between a customer and another customer.
Consider that you are into handicrafts and wish to sell your products worldwide but, you don’t have the money to start an e-commerce platform of your own. The best that you can do here is to create a sellers account on any big e-commerce website like Amazon and start selling your goods by paying a certain commission to them.
This is one of the fastest-growing businesses in the world because people don’t have to invest much and get into the hustle of getting an e-commerce platform.
C2B: Consumer to Business e-Commerce
People didn’t really know about the consumer to business e-commerce. How can a customer sell to a business? Well, the freelancing network is the best examples that you can have for C2B e-commerce.
Websites like Freelancer, Fiverr, and UpWork connects businesses to customers to seek services.
Suppose you are a digital marketing company, currently looking for a website developer to get a website designed for one of your clients. You can easily search for people out there who are a pro at developing and get the work done from them.
Government / Public Administration Ecommerce
Apart from the most common e-commerce types discussed above, there are a couple of business models that include business/consumer and a government entity.
B2A or B2G (business to government/administration): The businesses that sell services or goods only to government bodies fall under this category. The examples are the companies that take tenders from government organisations.
C2A or C2G (consumer to government/administration): When you pay taxes to the government, it’s an example of C2G model. Or if you are a student paying college fees, it falls under the C2A business model.
Well, this was a brief insight into e-commerce types that are going to be huge in 2020. If you are someone who’s planning to start an e-commerce platform, the best that you can do is to hire digital marketing agency like kingcrescent and make your business successful right from the beginning.