Types of Ecommerce Business You Should Know

We have different types of ecommerce business models you can use for your online business. You do not have to use all these models to succeed.

The types of ecommerce business models to use depend on your brand specialty. It also depends on what you want to achieve online.

Types of Ecommerce Business

Types of ecommerce business models

We have five main kinds of E-commerce and they are as follows:

  • Business to Business 
  • Business to Consumer
  • Consumer to Business
  • Business to Government
  • Consumer to Consumer

Business to business or B2B

Business to business model is included in the types of ecommerce business online.

B2B is a form of E-commerce that occurs between enterprises. It can be between a supplier and a distributor or a manufacturer, a wholesaler, or an organizations.

 This process is often done using Electronic Data Interchange (EDI) and an advanced security need is also required here, then Business to consumer.

 This process has played a vital role in Business-to-Business E-commerce.

 Establishments can increase their level of productivity and other enterprise processes such as payment, supplier, and inventory management.

 When a company uses E-commerce software applications, it aids them to manage their supplier cost.

It also reduces purchase order, processing cost, and time spent. 

This is an added advantage as companies can process a higher number of the purchase order at reduced cost and same time interval. 

The use of electronic commerce software has eliminated order-ship- bill-cycle of inventory management by channeling partners with enterprises to give rapid information access. 

Types of Ecommerce Business

Enterprise can use order gotten electronically to increase the efficiency of their inventory auditing capacities; as a result, it lowers inventory levels and increases the efficiency of the enterprise to give just-in-just services to their customers.

It can be used to increase the capability of handling transactions between an enterprise, their partners, and distributors since the transaction process is done electronically. 

It reduces the amount of clerical errors and thereby rapidly improving, invoice process at a reduced transaction payment.

When you want to use the online for business, you should consider these types of ecommerce business.

Business to consumer or B2C

The business to consumer model is among the types of ecommerce business you can online. 

This type of business model deals with consumers instead of businesses. For instance, book retailers are in the business of B2C.

Consumer to Business or C2B

This is an ecommerce process, where the consumer decides the monetary value of product services. 

 The effort is geared towards customers’ empowerment and the interest is removed from buying and selling, it is known as an opposite pricing process.

 Consumer to Business aids consumers to select between various goods and services. It also determines the price level and amount of money they can pay for specified goods and services.

This type of business model eliminates time spent on price negotiation and improves transparency.

This ensures that the transaction is processed faster at the point of sales for both the consumers and the trader.

Customer to Customer or C2C

This is a type of ecommerce focused on a person to person trading transaction that eliminates businesses from the picture.

 Here there is a direct contact between customers. For instance, eBay and peer auction giant are examples of C2C.

The types of ecommerce business ensure that you have the right business model to invest online.

Why you need to know the different types of ecommerce business

Types of Ecommerce Business

Business to Government or B2G

This is a current style of e-commerce, practiced by the government sectors used to create a website which serves as a direct channel of communication between them and their citizens.

The government functions best in types of ecommerce business models like this. People looking at the types of ecommerce business niche should go for the right one.

For the government, this type of business model is excellent for them.

 On the government’s website, you see all rules, regulations, politics associated with the different sectors.

Citizens can easily access the site to know the content. It makes it easy for people to know the law of all the government division without going there.

These types of ecommerce business also save time for both the citizens and the employees.

 It is known as a smart city and it is because of the invention of Business to Government Electronic Commerce Advantages of E-Commerce

These types of ecommerce business have been created to help you pick the right niche for your business. 



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