E-commerce a sales model with different facets: What are the types of e-commerce?
Want to start an e-commerce business but don't even know where to start?
Rest assured ! You are in good hands ! Appvizer explains in this article all types of classic e-commerce, but also innovative e-commerce models.
Read to the end to get all this information.😜
What are the traditional e-commerce models?
In the world of e-commerce there are various models depending on the players involved.If you are inexperienced in the field choosing one model over another is very complicated.The known types of e-commerce are:B2B,B2C,C2C AND C2B.
B2C Business to Consumer
The B2C model is one of the most popular models.The main players are businesses and consumers; the former offer their products or services while the latter buy them to meet their needs.
In this type of model, the markets involved are those who offer standardized products so as to ensure that these are purchased by customers.
In this type of sale, the products offered are for private use in most cases.If you choose this model, your marketing management will also be consumer-oriented.
As for the price of the products the latter is chosen by the company which defines and modifies the price according to its needs can make discounts to liquidate a stock. Payment is made in the immediate and afterwards is sent to the customer.
B2B Business to Business
This type of sale takes place between companies in any industry that provide goods and services to each other. In this case, sales are more important.
An example of B2B e-commerce might be a business relationship between a manufacturer or wholesaler and a retailer.
B2B commerce is not oriented to the end customer, but to a database of companies, so the sales experience is not the same.
While B2C is about finished products, in B2B products can be of different types such as raw materials that can be combined before being sold to the end customer.
The price is set according to so many criteria: the importance of the sale and the quantity purchased.In this type of sale the price can be negotiated unlike the B2C model where the price is fixed and it is impossible to negotiate, also the sale is not done in the same way.The buyer sends a request for a quote as this type of sale is customized, once the buyer receives the quote the buyer contacts the company to negotiate the price.
The sales process with the B2B model is often longer as more figures are involved. Another element is the fact that these types of customers often have technical requirements, so negotiating and meeting their expectations is much more complex.
If you decide to sell under the B2C model you will therefore also be involved in the B2B model as a customer since you will be buying from a company and then selling to the end consumer.
B2A Business to Administration
This type of e-commerce is similar to the B2B model in that it does not target end users. This type of model precedes transactions between businesses and administrations online. If you hear about Business to Government don't panic know that it is just another way of calling the Business to Administration model.
In this type of e-commerce the main actors are businesses and public authorities, in most cases it is the exchange of legal and administrative documents. This form has developed in recent years for the simple reason that it speeds up procedures and saves time by allowing people to pay taxes and download necessary documents online without the need to travel.
C2C Consumer to Consumer
This type of model refers to the management of products or services between customers, in this type of sale it is not necessary to have your own e-commerce site.
The principle of this type of sale is that you place an ad on a site to sell an item, later you will be contacted if your product interests a buyer. Thanks to this type of e-commerce, your items can have a second life and be used by another person.
One of the advantages of C2C is the fact that since there are no middlemen you will be able to do good business. C2C is not only about selling products, but also about services. The C2C model is one of the models that takes advantage of the growth of Internet sites.
C2B Consumer to Business
You may be wondering how this type of e-commerce might work .
Customers offer business buyers their products or services in such a way that if a company wanted to invest in this type of service it could do so.
An example might be photographer platforms where photographers upload photos that in order to be used by a company that wants to use them for its site must purchase it. It is certainly a flipped business model, but it has worked for many years.
C2A Consumer to administration
Finally, C2A takes up exactly the same idea as C2B. In this case the company is replaced by the administration, this model involves selling products or solutions directly online to administrations on the consumer side.
An example would be consulting solutions for the development of training plans, for the national education system.
What are the innovative e-commerce models?
To adapt to a mode of e-commerce that is constantly developing, we recommend two types of innovative e-commerce models that will enable you to stand out from your competitors and increase your notoriety.
D2C Direct to consumer
This business model is becoming one of the most popular means as many brands to reduce costs want to enter different markets directly, rather than through intermediaries. Therefore they produce, market, sell and ship their products directly to the consumer.
In addition to saving money and reducing costs by using this model you will be able to strengthen your image and increase a your notoriety with consumers. One of the main advantages of this type of e-commerce is the fact that in this way you can improve your relationship with customers.
White label and private label
White label is a product to which you can attach your brand name, which is purchased from another distributor.
As for private label, on the other hand, the vendor asks a manufacturer to customize a product.With this type of model you will be able to reduce costs and you will not have additional expenses to make changes to the product.
In summary we can say that ecommerce is developing into different types, as we explained to you earlier each model has a different approach.The model you will have to choose will depend mainly on your location and needs, and often in order to run your business you will also be inclined to be a player in more than one ecommerce model.
Article translated from Italian