Four Traditional Types of

Business Models

There are four types of E-commerce, including B2C (Business-to-Consumer), B2B (Business-to-Business), C2B (Consumer-to-Business) and C2C (Consumer-to-Consumer).

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B2C – Business to consumer

The Business to Consumer; as the name indicates, these businesses sell to the end-user. There is no middle layer involved in between.

It involves buying anything as a customer online- think about entertainment, supplies, wardrobe, household. All these things are bought using the B2C model.

The process for the decision making for the B2C model is shorter as compared to the B2B model, especially for the goods having a lower value.

Because of the shorter cycle, the B2C businesses model spend much fewer efforts and money to make a sale.

However, the average order value is lesser, and orders are less recurring than other models.

The B2C model does not cater to the products only. It caters services as well.

The B2C model has leveraged technologies such as mobile applications, native advertising & remarketing to market directly to customers. For instance, the app such as Lawn Guru allows the consumers to connect easily with the local lawn mowing service, patio specialist, and garden snow removal experts.

Moreover, the home service business can also use the House Call software application to track the employees' routes, their text customer, and process the credit card payment on the go.

B2B – Business To Business

B2B businesses sell to their end-user. The B2B model is the most common business model, so there are many unique approaches under this. The Business to Business; as the name indicates, these businesses sell the product or services to another business.

It is more likely that the business buying the product or the service will sell the product and service to some other person. It is less frequent than the buyer himself is the end-user,The process for the decision making for the B2B model is longer as compared to other model, especially for the goods having a lower value.

Therefore, the average order value is higher, and orders are more recurring than other models.

The B2B model does not cater to the products only. It caters services as well.

The recent innovator in B2B has made a place for themselves by replacing the catalogue and order sheets with the E-Commerce storefront.

In the year 2020, more than half of the B2B buyers are the millennials. The data is almost double compared to 2012 data.

The Business-to-Business model is becoming more and more popular these days as it allows us to earn handsome profits.

2020 data reflects that most of the B2B buyers are the millennial. The amount of these buyers as almost half back in 2012. Business-to-business in online space is getting a significant place as the young generation is entering this field.

C2B- Consumer To Business

As the name indicates, the consumer to business sells to the companies rather than the consumer.

In this type of Model, the website might allow the customers to post work they want to complete and have the business bid for opportunity.

Affiliate marketing can also be considered part of the Consumer-to-Business strategy because here the consumer posts the work he wants to get done and similarly has the businesses bid for that opportunity.

For instance, we have the Upwork, which is also known as Elance. It was an early innovator of this model by helping the businesses to hire the freelancers. The competitive edge in the Consumer to Business model is the pricing of the goods and services.

This C2B approach allows the consumers to quote their own prices or even have businesses compete to fulfil their needs.

The recent innovators in the field have used this particular Consumer to Business model creatively for connecting companies to the social media influencers to market the products and services.

C2C- Consumer To Consumer

As the name indicates, the Consumer to Consumer sells to the product and services to another end-user.

There is no middle layer involved in between which means that a person can sell their product or service directly to anyone who wants to buy it. An open marketplace allows the customer to enter and sell the product or service without any barrier.

This model is different from the other model. This model allows the consumer to make extra bucks just by exchanging goods or services in an open marketplace. The consumer-to-consumer pioneer are the businesses such as eBay and Craigslist; who allowed the customer to sell their products easily.

This C2C model is the most commonly used nowadays. One reason is that it does not have any barrier to enter.

The customer's bargaining power is not higher or lower, but it depends on the person selling and buying the product.

More and more business are entering into this market nowadays.

The consumer-to-consumer businesses benefit from the self-driven growth by the motivated buyers and sellers but face key challenges in quality control and maintaining the technology.

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