The three major types of e-commerce include B2C, B2B, and C2C e-commerce. It’s important to get the necessary information about the three major types of e-commerce. So, you can also identify your relevant market to pursue your business activities.
This article will cover the followings:
Three major types of eCommerce
Three major types of eCommerce stand for:
- Business-to-Consumer (B2C)
- Business-to-Business (B2B)
- Consumer-to-Consumer (C2C)
Let’s explore each type of e-commerce to understand it thoroughly.
Business-to-consumer e-commerce means an online business selling products directly to the end consumers. End consumers are the ones who buy and use the products instead of reselling them.
Well, the number of consumers worldwide is obviously more than that of resellers. So, B2C is the most widely used type of e-commerce.
Amazon, Alibaba, Spotify, Walmart, and eBay are some examples of B2C e-commerce. These platforms are used to sell products to end consumers.
B2B is also a widespread type of e-commerce business. People buy products from an online business to resell them, maybe to the end consumers. Business-to-business activities are done the same as B2C. However, Business owners usually buy products in bulk to resell them.
The products move from one business to another, called business-to-business e-commerce. Business owners often purchase products from the same vendor to resell them. Mostly, there are more long-term business relations in the B2B business model.
- Amazon business is an excellent example of B2B eCommerce. Businesses buy products in bulk from amazon business to resell them.
- Alibaba also offers products to consumers and businesses. This platform offers special discounts and deals for resellers.
- OverDrive provides ebooks and audiobooks to many libraries, publishers, and schools.
Consumer-to-consumer e-commerce refers to two individuals’ online selling and buying products and services. C2C sellers are not usually business owners but occasionally sell products to others.
We have yet to see bulk selling in C2C e-commerce. Both parties usually use different online platforms to communicate, negotiate, make deals, and send and receive payments.
- Olx is a perfect example of C2C e-commerce. People use Olx to sell their second-hand or new items to consumers.
- People also use Facebook and Instagram for C2C e-commerce. Facebook also gives you the option to list your products for selling purposes.
Choosing Your Type of Ecommerce
You have to adopt a particular approach before starting your online business. You first have to start with a single type of eCommerce. Later on, you can be a part of several types of e-commerce activities.
Here is the list of things you have to consider before choosing your type of eCommerce:
What are you offering to your buyers?
Who is your supplier?
Who is your target audience?
Different types of e-commerce have different dimensions. To do an online business, analyze your target marketplace and the products you want to sell. Then, select a business model according to your areas of interest.