Must-Know Ecommerce Business Models

Rancakmedia.com – Ecommerce business model, before starting to create your business, it is important to know the company model. The future of your business depends on your ability to determine where to go and what value you can offer consumers. If you want to run an online business, you will benefit from this.

Any Information About the Ecommerce Business Model?

In addition, you will learn about several ways to operate e-commerce. The best approach to running your business is to define what kind of people you work with. Happy reading!

Most Popular Ecommerce Business Models

  • ecommerce business models include: B2B (Business to Business) digital commerce
  • retail to consumers (Business to Consumer)
  • one-to-one (Consumer to Consumer)
  • C2B (Consumer to Business)

There are clear benefits and advantages to each of these ecommerce business models. What exactly are they? Let's do it step by step.

Ecommerce Business Model in B2B Market (Business to Business)

Business entities operate under this e-commerce business model, meaning that they offer their products and services to other companies. Customers participating in the B2B model may not always benefit from the products and services they buy. They can resell it to other consumers as resellers.

Because of this, the Business to Business sales cycle tends to be long. It is more expensive and difficult to market to B2B clients than it is for other ecommerce business models. On the other hand, these advantages offer solid results in terms of client loyalty and large sales volumes.

The most popular ecommerce business model in ecommerce

Companies using this ecommerce business model offer goods including office supplies, manufacturing machines, and other industrial products, all of which can be viewed as analogous to standard business supplies.

Moreover, digital products and services, which are widely traded in B2B e-commerce, are more than popular. Software and web hosting both serve as examples.

Electronic City and Mbiz are both well-known B2B companies based in Indonesia. In addition to a comprehensive inventory of industrial and household goods, these two places offer a wide selection of gadgets. In addition to offering cleaning, Mbiz offers maintenance services for commercial properties.

B2C (Business to Consumer) Ecommerce Retail Business Model

Companies using the B2C e-commerce business model sell directly to consumers.

This approach does not need to use a lot of promotion. People don't want to spend a long time looking for a Business to Consumer business to make a purchase.

While a number of B2C consumers are retailers, it should be noted that they are an exception. In addition, e-commerce is often characterized by poor customer loyalty.

In the business-to-consumer sector, companies have several types of goods and services. Ranging from daily necessities and basic services to entertainment.

Lazada and Blibli are two examples of successful B2C companies in Indonesia.

Customer-to-Customer Ecommerce Business Model (Consumer to Consumer)

Consumers who also use the platform can buy and sell goods. The C2C business model is characterized by this.

People who sell goods to others generally have to advertise on sites such as directories, marketplaces, and forums. In Indonesia, OLX and Kaskus are known to sell this type of online trading.

The ability to quickly start and complete projects makes C2C a very desirable business to do business with. People have a basic idea of what they want. As a result, the perpetrators of this business model do not need to make any efforts to market their products.

This online sales model cannot be considered big business. Also, apart from pricing goods at a lower cost, merchants have problems maintaining acceptable levels of quality.

C2B Ecommerce Business Model or Choice of Participation and Benefits (Consumer to Business)

In addition to other people, customers can sell to companies. While C2C products can be purchased through C2C brands, C2B actors often give consumers something to do or enjoy. This business model involves freelancing.

Business modelers often promote their services on their own websites. However, some people still rely on listing services. Examples of such platforms in Indonesia include Upwork and Freelancer.

Even though the perpetrators are consumers, the perpetrators have their own problems because their business model is very dependent on advertising. Because of all the competition and because consumers choose their service providers carefully, it matters.

Conclusion:

E-commerce business models include B2B digital commerce (Business to Business), retail to consumer and one-to-one (Consumer to Consumer). There are clear benefits and advantages to each of these business models. In Indonesia, OLX and Kaskus are known to sell this type of online trading. While a number of B2C consumers are retailers, it should be noted that they are an exception. This online sales model cannot be considered big business. In addition to pricing goods at a lower cost, merchants have problems maintaining acceptable levels of quality.

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