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Explaining the 4 Different Types of eCommerce Models

22 March 2021

Graphic depicting eCommerce growth

eCommerce Growth

The stark difference to the way that we shopped just 10 years ago to the way that we shop now is often overlooked, however the popularity of eCommerce is something that you should take into consideration with regards to web development. After all, experts predict that the eCommerce market will reach 62.1 million users in the U.S alone by the end of 2025! Read on as we explain the four different types of eCommerce models and how they are used in order to generate traffic, sales and revenue within business...

Business to Consumer

As the most common type of business model, a business-to-consumer (B2C) eCommerce model involves the marketing and selling of products and services directly to the customer. These tend to have a lower value which is why the decision-making process is often shorter. Essentially, everything that you buy online - such as wardrobes, clothes, shoes and appliances - are all classified as B2C eCommerce. A few examples of this model would be Amazon, IKEA and Netflix.

Business to Business

With a business-to-business (B2B) eCommerce model, products and services are sold from one business to another. Sometimes the business itself may be considered the consumer, however it is also possible that they may resell to their own customers as part of a B2C model. These sales cycles tend to be much longer to carry out as businesses often like to vet one another.

Consumer to Business

Another type of eCommerce business model is the consumer-to-business (C2B) style which allows the consumer to market and sell products or services to a business rather than the other way around. For instance, customers may advertise the work they require to be completed and businesses with a specialisation in that industry will bid for the contract.

Consumer to Consumer

Also known as an online marketplace, the consumer-to-consumer (C2C) business model is a type of eCommerce that puts the power in the hands of the consumer and allows them to exchange goods and services between one another. The early days of this type of eCommerce was pioneered by eBay, however Etsy, GumTree and Facebook Marketplace continue to increase in popularity alongside it.

These models are a general guide that intend to help you understand the role that eCommerce plays within web development. After all, if you would like to sell goods and services then your website needs to be kitted out with the very best application to do so.

To find out more information, get in contact with the best web design Bolton has to offer and speak to a member of the OwlTree team about eCommerce today.