What are the Different Types of eCommerce (Online Store)?

What are the Different Types of eCommerce (Online Store)?

Before we get into different types of eCommerce, let us first answer one fundamental question:

What is eCommerce?

If we do any type of trading or commerce electronically then it is called electronic commerce or e-commerce (sometimes written as eCommerce). Simply, we can say that eCommerce is the process of buying or selling goods, products or services over the electronic medium. It is a business model that lets business owners and individuals buy and sell things over the internet.

To name a few, Amazon, eBay, Flipkart, etc are the world’s leading e-commerce websites. Electronic payment systems are widely used in those electronic commerce sites. Here we generally use various e-payment methods like credit/debit cards, internet banking for buying or selling products.

ECommerce Stores have transformed the way we shopped today.

A successful eCommerce business takes knowledge of your market, a solid business plan, and careful research into products and eCommerce business models. Many aspiring eCommerce business owners just don’t know how eCommerce is set up and what business and product model options are available.

Types of eCommerce (Online Store)

If you are planning to start an eCommerce business, you’ll fall into one of these types of eCommerce.

There are 6 types of e-commerce. They are:

  • B2B (Business to Business)
  • B2C (Business to consumer)
  • C2C (Consumer to Consumer)
  • C2B (Consumer to Business)
  • B2A (Business to Administration)
  • C2A (Consumer to Administration)

All 6 types of e-commerce that are used today are classified based on the nature of the transaction.

Knowing what category your business fits will help you think creatively about what your opportunities and threats might be. Therefore, you will need to familiarize yourself with each type of business model before you start your eCommerce business.

1. B2B (Business to Business) eCommerce

B2B eCommerce can be simply defined as commerce between companies. It is two companies doing business with each other. For example, a manufacturer selling a wholesaler selling a product to the retailer, or a product to a wholesaler. Here, wholesalers, manufacturers, and retailers are all doing their separate businesses.

These businesses have custom, enterprise eCommerce platforms that work directly with other businesses in a closed environment. A B2B eCommerce business typically requires more startup cash.


2. B2C (Business to Consumer) eCommerce

The B2C eCommerce is what most people think of when they imagine an eCommerce Store. B2C is the most common business model, so there are many unique approaches in this sector.

Think of it as:


Anything we buy online as consumer-like accessories, clothing, household supplies – is a B2C eCommerce.

Examples of B2C eCommerce are everywhere. This includes Lazada, Wish, Overstock.com, etc.


3. C2C (Consumer to Consumer) eCommerce

In a C2C eCommerce, consumer sells products, goods or services to other consumers. The C2C business model helps us to sell our assets or properties like clothes, cars, houses, bikes, electronics, etc via online to other consumers. OLX, Quickr, etc are this type of business model.

Made by the rise of the eCommerce sector and growing consumer confidence in online sales, these sites allow customers to trade, buy, and sell items in exchange for a small commission paid to the site. Opening a C2C site takes careful planning.


4. C2B (Consumer to Business) eCommerce

A C2B eCommerce business model is a type of commerce where a consumer or end-user provides a product or service to a business or an organization. It is the reverse type of the B2C eCommerce or business to consumer model, where businesses produce products and services for consumer consumption. 

Here, individual customers offer to sell products or services to the businesses that are prepared to purchase them. For example, if you are a software or web developer, you can showcase your portfolio online. If a company finds you and likes your software or skills then the company will directly buy the software or website from you or can hire you for their services.


5. B2A (Business to Administration) eCommerce

B2A eCommerce or business to administration is also referred to as the business to government (B2G) commerce. In this type of eCommerce, the businesses’ sole clients are governments or type of public administration. They market various products and services to various levels of government.

Services could be legal documents, financial in nature, deal with employment or the like.


6. C2A (Consumer to Administration) eCommerce

Consumer to Administration can be thought of as similar to C2B (Consumer to Business) eCommerce in that, in C2A (Consumer to Administration) eCommerce, the consumer is also selling their products and services to the administrative sector.

For example, making payment of taxes, making electricity bill payments through the website government, payment of health insurance, etc are C2A type of business model.


Conclusion

We’ve covered the most common eCommerce type models and examples of eCommerce businesses that have blazed their paths.

Now that you know what types of eCommerce businesses exist, you’re ready to get started. Take a look at your business plan. If you have not created a business plan and are planning to start your online store, you can also check out this article to know the step by step process in starting your online store.

If you're ready to get your business a website, contact us now.