Starting your e-commerce business may seem like child’s play initially but is a daunting task once one gets into it. As a business owner, you might have to deal with a lot of products and choose the best ones among them. 

But this is not all. In addition to this, another major concern of most business owners is the kind of business model they should choose for their business. Compared to traditional marketing, digital marketing has a long list of business models making it difficult for business owners to decide which one is best or not. 

Also, research on the ecommerce development services you want to take advantage of for your business. No worries if you are also confused about the business models as we are there to assist you with this. Let’s discuss some popular E-commerce business models and double up your sales this season. 

Business Model 

Before going straight to the business models, you should be knowing the basics of the business model. The business model is the core framework of the business which aims at providing value to customers. 

A good business model explains the customer value proposition and pricing strategy. Above all, a business model should identify the products and services which a business is about to offer, its target audience, and the expenses it will have in the future. 

Be it a new or established business, a business model is something essential for nearly every business. It is the business models only that help the employees to understand their customers, get investment, and get an advantage over others. 

Kinds of E-commerce Business Models 

Mainly, there are four types of e-commerce business models that form the basis of e-commerce businesses and indicate the transactions between customers and businesses. Here are the e-commerce business models to take note of. 

Business to consumer (B2C) 

The foremost business model to take note of is business-to-consumer (B2C). This business model witnesses the transactions between a business and an individual customer. For instance, when a consumer buys any product online of a particular brand, it is deemed as a business-to-consumer model. 

Business to business (B2B) 

The next significant business model is business-to-business (B2B). As the name indicates, Business to Business refers to the transactions between two businesses. Usually, wholesale retailers tend to fall under this business model. 

For instance, one business sells software or products to another company. Nearly all kinds of brands or businesses come under this business model. 

Consumer-to-consumer (C2C) 

The consumer-to-consumer business (C2C) model refers to a business where one consumer sells to another consumer. This could be a used laptop or any other used item that one consumer sells to another consumer on marketplaces. 

Individual sellers simply have to look out for online marketplaces, build a brand and witness an increase in sales and profits.

Consumer to Business (C2B) 

The next business model is a consumer-to-business model (C2B). This business model is a result of the rise in the creator economy. In this business model, a consumer sells his products or services to a business. 

This kind of business model is specifically meant for influencers and photographers looking to do business online. 

Business to Government (B2G) 

Business to Government (B2G) is the next business model quite popular among business owners. This refers to a business model where a business sells its products to government entities or institutions. 

The government entities can be local, county, state, or federal. The government agency releases a proposal and e-commerce businesses bid on those government projects and begin working on projects. 

Compared to all other business models, this business model is more secure as it differs from other business models. But one major drawback of this is the limited revenue. 

Ecommerce Delivery Methods 

Besides the e-commerce business models, there are value delivery methods for e-commerce Innovation. Not many people and businesses know about value delivery methods. The value delivery method refers to the process of how a product is designed to bring value to customers. 

Let’s have an insight into some popular value delivery methods in the post mentioned below: 

Subscription 

Subscription service is as old as the 1600s. Many businesses still use the subscription model to deliver products or services monthly to their customers. At present, nearly every industry is using subscription services to bring savings to customers. 

Dropshipping 

The most popular and fastest-growing e-commerce value delivery method is dropshipping. The dropshippers sell items fetched by third-party suppliers such as printful or Aliexpress. The dropshippers are middlemen who in turn connect buyers to manufacturers. There are plenty of easy-to-use tools which allow users to integrate inventory. 

Wholesaling

Another popular example of the B2B E-Commerce model is Wholesaling. It is a business model where you don’t need to sell individual products to consumers but directly to businesses. The wholesalers act as intermediaries between the manufacturer and the distributor. The retailer offers its products at a discounted price to wholesalers and they sell them further. 

Private label 

The next comes the private label. It refers to the business model in which a third party produces a retailer but the selling tends to take place under the brand’s name. The total control of the product or products is in the hands of the retailer. It includes everything concerning the product including how it’s packaged and other things. Once you are done with this, these are passed on to the retailers for sale. 

White label 

White label refers to the situation when a brand sells its products under its name and logo but gets them manufactured by some third party. It helps a brand to boost brand visibility and minimizes manufacturing costs. This business model is especially popular in the fashion and cosmetic industries. 

Wrapping Up 

Now that you have come to know about the diverse business models, choose the best one for yourself according to your product or services. Also, do in-depth research on varied business models and finalize the one that suits you the best.