eCommerce - July 14, 2021

6 Types of e-Commerce Business Models in 2021

The technological revolution has empowered entrepreneurs to take their businesses to a global market with limited investments. According to a study by 99Firms e-commerce Statistics, 97% of businesses will conduct operations via e-commerce business models by 2040. 

If you’re one of the people who want to use this time to boost your business, the first thing to consider is the most suitable e-commerce business model for you.

What are the common types of e-commerce business models?

Let’s look at the common e-commerce business models, and what their pros and cons are in 2021

A B2B e-commerce business model focuses on one business providing goods and services to another business. 

Examples: Marketing consultancies, web development firms, financial software companies, etc.

Pros

Cons

A B2C e-commerce business model is one where the individual business is an online version of a store. B2C, as the name suggests, is when a business caters to the needs of consumers by selling products and services. 

Examples: Myntra, Nykaa, Netflix, etc.

Pros

Cons 

With the increase in e-commerce businesses, the C2C business model developed as a way for consumers to buy, sell, and trade goods and services with other individuals for a small commission paid to the host website. 

Examples: eBay, Craigslist, Quikr, OLX, etc.

Pros

Cons 

The C2B e-commerce business model involves consumers offering products or services to businesses- it is therefore sometimes called a ‘reverse business’ model. 

Examples: Influencer marketing, Upwork, and reverse auctions

Pros

Cons

B2A defines a business transaction taking place between a business and the public administration/the government. 

Examples: In India, various lakes and roads are maintained through such a business arrangement. Other examples include- e-storage, employment services, fiscal measures, and so on. 

Pros

Cons

C2A businesses involve a transaction between an individual and the public administration/government. It is an easy way to establish a connection between the government and the consumers. 

Examples: Circulation of information, distance education, payment for health services, etc.

Pros

Cons

Conclusion

The e-commerce business has become increasingly important in the post-pandemic world as it provides more flexibility and safety than any physical store could. It is important to note that no matter what type of business you choose, you need to be able to deliver on your promises and provide excellent service to be successful. 

Faster, reliable, and cost-effective methods of shipping will change the way your customers view your brand. It is therefore imperative to your business to choose the right logistics aggregator. The only foreseeable future in business is the e-commerce model, prepare your business for success with Shyplite.

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