Ecommerce business models that you should take into account: B2B, B2C, and some more

Whatever your position on eCommerce, whether you are a beginner or a veteran in the digital sector, it is important that you know all the options that this field provides. Today we are going to talk about the different business models that exist.

• Business to business
• Business to consumer
• Consumer to business
• Consumer to consumer
• Other business models

Business to business (B2B)

The term B2B stands for Business to Business, i.e. trade between professionals, not aimed at the general public. It differs from B2C, the one directed to customers, in focusing more on how the products are, their characteristics and the functionalities they have. It has the advantages of the traditional commerce directed to companies, but adds some more, such as:

• Staying open 24 hours a day. Today’s society does not rest, and to miss these advantages is not understandable.
• It allows continuous feedback, since we know what our customers’ needs are and have a fluid communication.
• B2B e-commerce allows a permanent expansion, so that we are no longer talking about local
• markets, but global ones. You can offer your products and services to companies all over the world.
• The costs of this type of commerce is usually much cheaper, allowing a higher profit margin and saving money on taxes, which are usually the great handicap of traditional businesses.

Business to consumer (B2C)

As its name implies, it refers to direct-to-consumer sales. This means that there is no third party involved. An example of this business model could be an online store like Gymshark that sells fashion and sports nutrition products directly to the interested customer.

One of the advantages of this type of business is that it fits perfectly in digital marketplaces. This allows them to increase sales through social media selling, personalized eCommerce experiences and mobile apps.

Consumer to business (C2B)

In this type of model, it is the consumer who offers something of value to the business from which they can benefit. Many customers review products or services that can be of use to the business, or when a company hires a freelancer.

This type of ecommerce usually uses an intermediary to hire people such as Upwork or Fiverr.

Consumer to consumer (C2C)

In this case, no business is included in the transaction. This business model is between two consumers with a third party entity enabling the purchase. An example of this type of business could be eBay, or even PayPal.

Other business models

• Consumer-to-government (C2G): These transactions are carried out with the government, such as the payment of taxes.
• Business-to-government (B2G): This is a complex business model in which the government buys products, services or information from a company. At first the government requests information or proposals for businesses to contact them and offer their products via online. Afterwards, the institution will make the decision. It is a negotiation model with many regulations and laws involved.
• Business-to-business-to-consumer (B2B2C): In this case, companies collaborate with other companies to reach new customers. For example, if you are a pharmaceutical company that wants to sell its products in Mexico, you can join forces with one of the largest online pharmacies in the country to reach new Mexican consumers.
• Government-to-business (G2B): These are public agencies that provide services to companies, i.e., companies act as “consumers” in this sense. This type of business is usually conducted through the government’s digital portals.
• Government-to-consumer (G2C): In this type of business, consumers, i.e. citizens, may need information from the government, such as documents, laws or regulations. Since the advent of the digital realm in our lives, this type of communication is often done online.