Post by account_disabled on Feb 17, 2024 22:15:56 GMT -6
E-commerce is the act of doing business over the internet. Models include business-to-business and business-to-consumer sales. An e-commerce business model explains who your online business sells products or services to, whether it's other businesses, individual consumers, or government agencies. Here's what ecommerce business models are and how to find which one is right for you. A business model defines who you sell products or services to. There are a variety of business models that can work for an e-commerce business, brick-and-mortar operation, or both. Choosing one can help your ecommerce business position itself in the market and reach customers effectively. E-Commerce Types Here are the types of e-commerce: Business to Consumer (B2C) Business to consumer, or B2C , is the most common type of business model and what people usually think of when they think of e-commerce.
A B2C business sells products or services to end users, not to other Business & Consumer Email List businesses or manufacturers. Most retailers are B2C businesses. Since your potential customer base is so large, starting a B2C business can be easier than other business models. But dealing with a large number of customers can mean handling a large number of complaints and returns. And with so many other sellers out there, it can be difficult to convince buyers to come back for additional purchases. Many B2C decisions are made quickly because they often concern small purchases of low value. You may disagree that buying a new lawn mower requires a lot more thought than buying a new shirt. And you probably buy shirts much more often than lawn mowers. In other words, B2C represents a classic retail business, and that's what e-commerce usually represents when a deal happens online.
Business to Business (B2B) B2B, or business-to-business, is a model in which one business sells to another business. For example, you can sell raw materials or parts that manufacturers use to create B2C products (this is called the B2B2C model). Or you might offer a service that appeals to businesses rather than individuals, like bookkeeping. One of the positive aspects of a B2B business model is that you often receive repeat orders or – for service businesses – collect recurring revenue from a customer. However, because you are selling a more niche product, you may have a smaller customer base. Your business customers may also want to negotiate prices and payment methods. Many B2C decisions are made quickly because they often concern small purchases of low value. You may disagree that buying a new lawn mower requires a lot more thought than buying a new shirt.
A B2C business sells products or services to end users, not to other Business & Consumer Email List businesses or manufacturers. Most retailers are B2C businesses. Since your potential customer base is so large, starting a B2C business can be easier than other business models. But dealing with a large number of customers can mean handling a large number of complaints and returns. And with so many other sellers out there, it can be difficult to convince buyers to come back for additional purchases. Many B2C decisions are made quickly because they often concern small purchases of low value. You may disagree that buying a new lawn mower requires a lot more thought than buying a new shirt. And you probably buy shirts much more often than lawn mowers. In other words, B2C represents a classic retail business, and that's what e-commerce usually represents when a deal happens online.
Business to Business (B2B) B2B, or business-to-business, is a model in which one business sells to another business. For example, you can sell raw materials or parts that manufacturers use to create B2C products (this is called the B2B2C model). Or you might offer a service that appeals to businesses rather than individuals, like bookkeeping. One of the positive aspects of a B2B business model is that you often receive repeat orders or – for service businesses – collect recurring revenue from a customer. However, because you are selling a more niche product, you may have a smaller customer base. Your business customers may also want to negotiate prices and payment methods. Many B2C decisions are made quickly because they often concern small purchases of low value. You may disagree that buying a new lawn mower requires a lot more thought than buying a new shirt.