The introduction of e-commerce has changed the way of shopping. Various new ways of e-commerce have been explored and they are all rising day by day. Reports also state that online sales will be increasing this year.

Nowadays, people love online shopping. With the introduction of the internet, the digital shift has emerged to be a real trend. E-commerce now plays a very significant role in the import-export industry of the country. This is also a major reason why a lot of businesses have shifted to the online platform.

Businesses are adapting to the digital shift, but a lot of them are still confused regarding what type of e-commerce model is a perfect fit for them.

E-commerce is expanding with time and we can say that it is surely here to stay. Therefore, if you own a business, then you need to know everything about e-commerce and how it can be beneficial for your business.

This is the era of higher competition. In such a situation, moving your business to the e-commerce platforms might prove to be your best choice to enhance its growth.

Types of e-commerce business model

We are all aware of the traditional business models. Traditional business models are similar to the type of business models that have been in use since ancient times.

But, what are the types of e-commerce business models and how are they different from traditional business models? Let us find it out in detail.

B2B – Business to Business

B2B is considered to be the most common business model. It is the type of business model that involves the selling of goods and products from one business to another business.

We can better understand this with an example. Let us assume that you are a business owner selling raw materials that a manufacturer needs to create a Business to Consumer (B2C) product. This can be considered as a B2B business model.

Manufacturers, retailers, and various trade agencies perform B2B types of business. Now let us come to the B2B business model in e-commerce. When shifting to the online platform, the owners of this type of business model perform various awareness campaigns to boost their sales.

There are various ways through which B2B business owners grow their business. This includes spreading brand awareness, developing the interest of the audience, and then converting them into brand loyalists with time. The B2B business model is a bit complicated and has a slower growth rate compared to the other business forms.

B2C – Business to Consumer

B2C or Business to consumer is a type of business model where exporters directly connect with the sellers without any third-party involvement. This is considered to be the most basic type of business model. A lot of retail businesses make use of this model to enhance their business.

If you are starting a new import-export business, this is the perfect model of business that you can start with. It is because B2C is the only business model with the largest customer base. Moreover, customers involved in this model know exactly what they want.

But, what is the role of B2C in e-commerce platforms? How has it been adapted to the online platform? The best part about this type of traditional model is that it is the easiest to get transformed into the online model. This is because even with the shift to digital trends, the potential customer base in the B2C model remains the same. The business adapting this type of business model uses various ways to promote its products and services. This includes social media marketing, content marketing, email marketing, mobile app development, etc.

C2B – Consumer to Business

Consumer to business, popularly known as the C2B business model, is the type of business model where customers establish value to provide advantages to a particular business.

In the C2B business model, content marketing plays a very significant role. Businesses adapting this type of e-commerce business model often hires an expert content writer to create the best possible content for their promotion.

Another interesting way of marketing is also involved in the C2B business model. It includes a thorough study of customer reviews and complaints, comments, and answering frequently asked questions regarding the products and services. Basically, it involves engaging in conversations with your customers to get an idea of what their choice and preferences are.

This type of business model pays major attention to establishing as much value as possible. But, what happens when it gets transferred into the online mode? Even when shifting to e-commerce platforms, it makes the most use of content marketing to boost sales. Content marketing comes into major action in the C2B business model.

C2C – Consumer to Consumer

The C2C or Consumer to Consumer business model is also known as peer-to-peer business. The interesting part about this business model is that it does not include any business. It just involves two consumers selling and purchasing goods from each other with the involvement of a reliable third party.

The third party involved in the C2C business model is a reliable and reputable platform where sellers and purchasers connect to initiate the process of buying and selling. There are some very popular third parties involved in this C2C business model including Facebook marketplace, OLX, Quikr, etc.

Now let us come to the e-commerce platform. This type of business model is often facilitated by lots of e-commerce platforms. Also, here the third parties involved generate their income by charging a minimal amount on each transaction conducted on the respective platforms.

B2G – Business to Government

This is considered to be the rarest form of business. Business to government, commonly known as the B2G business model is specifically designed for those exporters who sell their goods and products to the country’s government.

If you study the B2G business model, you will see that the government places requests and proposals at times to businesses that can bid on government projects. This business model can only be availed by highly-established businesses. They often compete for government projects.

The government aims to enhance Indian exports in the global market. With the new FTP 2023, the government has paid a major focus on promoting Indian exports. They have introduced various promotional schemes such as the RoDTEP scheme to support the Indian exporters and enhance their competitiveness.