Online shopping or e-commerce has changed our way of purchasing things. There are various types of e-commerce, and they all are flourishing. Online sales are also expected to grow more in this decade.

The new generation loves online shopping. The digital shift of everything has turned out to be a global trend. E-commerce has started playing a crucial role in the export industry and a lot of businesses have shifted to this platform. But, there are still a lot of businesses that are confused if e-commerce models are a good fit for them.

E-commerce is here to stay. This means that as an exporter, you must be able to adapt yourself to the e-commerce model that best fits your business. In this era of rapid competition, using e-commerce business models is a tactic that might prove to be the best for the growth of your business.

Types of business models in e-commerce

Most of us are aware of traditional business models. These models are similar to business forms that have been used since ancient times. So, what is the unique thing about these traditional business models when it comes to e-commerce? Let us find it out here in this blog.

B2C – Business to Consumers

Business to consumers, commonly known as the B2C model, is the basic type of business model. In this type of business model, the buyers and sellers connect directly with each other without involving any third party. Most retail businesses use the B2C model to grow and expand their business.

B2C is the easiest business model to get started with as it has the largest potential customer base. In a B2C model, consumers have a clear picture in their minds of what they want.

Now, let us come to the B2C model in e-commerce platforms. Do you know what is the best part about this traditional business model? It is the easiest form to get transformed into the online mode. Even in e-commerce platforms, their buyer journey remains the same as that in offline mode. Businesses of the business-to-consumer model gather customers using a variety of ways including the development of mobile apps, social media marketing, email marketing, etc.

B2B – Business to Business

This type of traditional business model involves selling goods from one business to another. Let us take an example. Suppose you are an exporter selling raw materials or parts that manufacturers need to create a B2C product. Or you are providing services such as bookkeeping that cater to businesses instead of consumers. This is the B2B traditional business model.

Manufacturers, retailers, and trade agencies fall under this category of traditional business models. But, how do they sell their products in e-commerce mode? The B2B business owners use various awareness campaign programs to boost their sales. The procedure through which they increase their reach includes spreading awareness about the brand, creating interest among the audience, and engaging them to turn into purchasing customers. The B2B business model is a bit complex compared to the B2C model. It even has a slower growth rate. Most B2B businesses use content marketing for their promotion.

C2B – Consumer to Business

In the consumer-to-business model, commonly known as the C2B business model, the customers develop value to benefit a particular company or business. Here, content marketing plays a very crucial role. In the C2B business model, a business hires a professional content writer to create content for its promotion.

Another form of marketing involved in this traditional business model is deeply studying the comments, customer reviews, and frequently asked questions about your products and services. Replying to your customers will make it more engaging and you will also get an idea of what their expectations are from your brand.

C2B business mostly focuses on developing as much value as possible. When it gets converted into online mode, it makes the most use of content marketing to gain a large customer base. C2B businesses often use hiring platforms to hire content writers for their brands.

C2C – Consumer to Consumer

Also known as peer-to-peer business, this type of traditional business model does not involve any particular business. C2C business usually occurs between two consumers selling and purchasing products by involving a third party.

Here, in a C2C business model, a third party is a platform where buyers and sellers can contact each other to initiate the selling process.

Consumer-to-consumer business is usually facilitated by various e-commerce platforms. The most common third parties involved in this business model are the Facebook marketplace, OLX, etc. Here, the sellers can post the products for sale and buyers can browse through the list of items to figure out what they exactly need.

Now, you might be wondering how the third parties involved in this platform generate their income. They generate their share by charging a small amount on each transaction happening on the platform.

B2G – Business to Government

Business-to-government, the B2G business model is the rarest form of business.

This traditional model is for those exporters who sell their products directly to the government of their country. Governments often place requests and proposals for businesses that can bid on government projects. However, this is only possible for well-established businesses to compete for getting government contracts. Small businesses or new startups are not able to participate in this type of traditional e-commerce business model.

Conclusion

Your traditional business model would define who your customers are. The introduction of e-commerce has made it possible for businesses to sell their products and services on a greater scale. But, choosing the correct e-commerce model may be a bit challenging for new startups. However, every business must find out the traditional model that perfectly suits their business, target markets, abilities, and resources. The best way through which you can figure out which model would help you to grow is by getting in touch with DGFT consultants near you. They will provide you with the best guidance to increase your reach and expand your business even at the International level.