Types of ecommerce business models
Generally, there are seven main models of ecommerce that businesses can be categorized into, each catering to different audiences and types of transactions. Let’s review each type in more detail.
Business-to-Consumer (B2C).
One of the most popular sales models in ecommerce, B2C ecommerce involves transactions made between a business and a consumer. For example, when you buy shoes from an online retailer, it’s a B2C ecommerce transaction. Some of the most popular ecommerce businesses today are B2C sellers — think Walmart, Target, or Sephora.
Business-to-Business (B2B).
Unlike B2C, B2B ecommerce encompasses online sales made between businesses, such as a manufacturer and a wholesaler or retailer. B2B is not consumer-facing and happens only between businesses. For example, many popular tech companies — such as Hubspot, Slack, and Microsoft — primarily sell their products and services to other businesses.
Consumer-to-Consumer (C2C).
One of the earliest forms of ecommerce, consumer-to-consumer involves the sale of products or services between customers. This can also include any provider that manages a C2C online transaction, such as those seen on eBay or Amazon. A prime example of a C2C sale is when someone uses an online marketplace, such as Facebook Marketplace or Craigslist, to sell a good or service to another person.
