3 Types of E-Commerce and How the Right One Can Help Your Business
It’s safe to say that there has never been a more lucrative time to be in the business of e-commerce. The market exploded over the past two years due to the COVID-19 pandemic, with business hitting numbers that never could’ve been expected prior.
If you’re not yet familiar with the world of e-commerce, changing that can make a world of difference when it comes to your business. What are the different types of e-commerce out there, and which might be the most applicable for your kind of work?
There’s a lot to consider. Read on, and we’ll walk you through a few major points you should be familiar with.
1. Business to Consumer
Business to consumer, also known as B2C e-commerce, is one of the most common types of e-commerce. What this form of e-commerce is all about is right there in the name.
A B2C e-commerce business markets its goods directly to the consumer. Essentially, anytime you make a purchase directly from a business, you’re engaging in this way: you’re the end goal and recipient of the product in question. There are no other breaks in the chain between the creator of the product and the person who uses it.
Most businesses are direct sellers when it comes to e-commerce. That means, if you get online and purchase boots from the official website of a company that makes boots, they are selling to you directly.
2. Business to Business to Consumer
This is a little different than another scenario that you might run into, where a company sells its product to another business, which then passes it onto a consumer. In this situation, there is a middle man between the two.
When you purchase a product from an outlet like Amazon, Amazon has purchased these goods from another business. You are not buying directly from the buyer, but through another buyer first who is providing the marketplace.
The main goal here for the initial business is the acquisition of new customers, which can be easier achieved through a partnership with the other business.
3. Business to Business
What if the consumer isn’t your ideal audience at the end of the day? Another form of e-commerce is when a business sells to another business.
This form of e-commerce is less popular than the other two we’ve mentioned, but can still be quite lucrative. You can sell vertically all within one industry, or horizontally across many.
If B2B eCommerce is right for you, it will really depend on the kind of product you’re trying to sell. Selling in bulk generally makes more sense for business-minded purchasers.
Depending on where you’re trying to sell, it’s important to try and localise your e-commerce presence. This will ensure you get the kinds of sales you want.
Understanding the Types of E-Commerce
Running an eCommerce business can be a lot of work, but it can be quite lucrative as well. If you’re confused about what kind of business to run online, the above information on the types of e-commerce businesses can really help.
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