Types of e-commerce business models

Electronic commerce or e-commerce refers to business models that allow companies and individuals to buy and sell their products and services online. E-commerce functions in all four of the following major market areas:

1. Business to Business (B2B)

2. Business to Customer (B2C)

3. Customer to Customer (C2C)

4. Consumer to Business (C2B)

E-commerce is a commercial transaction that can be done through any digital device, from computers to smartphones. Online shopping websites such as Amazon, Flipkart, Myntra, and Snapdeal are some examples of e-commerce businesses. Now, let’s understand the 4 basic models of e-commerce:

1. Business to Business (B2B)

In the Business to Business model, brands do business with each other. The final consumer is not involved in the process. So, the transactions are only done between manufacturers, wholesalers, retailers, and distributors. SurveyMonkey, HubSpot, and Salesforce are great examples of B2B models. All of these are software companies and sell products that benefit other businesses.

2. Business to Customer

In this model, companies direct their products and services towards the consumer. It’s a straightforward model where businesses sell products online, directly to their potential customers. Top B2C e-commerce websites include Amazon, H&M, and Shoppers Stop. E-commerce websites can be an alternative for typical shopping stores, though some brands choose to be visible on both.

3. Customer to Customer

It’s an e-commerce model where one customer designs and sells a product to another customer. Customers can use platforms like eBay, Etsy, or any other shopping site to sell their products to others. With the advancement of technology, the internet is providing customers with various possibilities of selling things online.

4. Customer to Business 

In the Customer to Business model, a consumer or an individual entrepreneur sells their products or services to large businesses. The examples include a consultant, freelance content writer, or social media influencers.

Since all these models are available on the internet, almost anything and everything can be sold and purchased through e-commerce today.