e-commerce business models : brick-and-mortar retailing to influencer marketing

E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. It involves conducting business transactions through online platforms, websites, or mobile applications. E-commerce has revolutionized the way businesses operate and how consumers shop.

There are several different types of e-commerce models that offer unique experiences and features. Here are a few examples:

1. Business-to-Consumer (B2C) E-commerce

This is the most common type of e-commerce, where businesses sell products or services directly to individual consumers through online platforms. It refers to the online transactions conducted between businesses and individual consumers. It is the most common model of e-commerce and involves businesses selling products or services directly to end consumers through online platforms.

In B2C e-commerce, businesses set up online stores or websites where consumers can browse, select, and purchase products or services. These online platforms typically include features such as product catalogs, shopping carts, secure payment gateways, and order fulfillment processes.

B2C e-commerce offers several advantages for both businesses and consumers. For businesses, it provides a global reach, allowing them to target a wide customer base beyond their physical locations. It also eliminates the need for physical storefronts, reducing overhead costs and allowing for 24/7 availability. B2C e-commerce also enables businesses to collect and analyze customer data, allowing for personalized marketing and improved customer experiences.

For consumers, B2C e-commerce offers convenience, as they can shop from the comfort of their homes or on the go. They have access to a wide range of products and services, often at competitive prices. B2C e-commerce also provides customer reviews and ratings, making it easier for consumers to make informed purchasing decisions.

Examples of B2C e-commerce platforms include popular online marketplaces like Amazon, eBay, and Alibaba, as well as individual brand websites and online retailers.

2. Business-to-Business (B2B) E-commerce

In this model, businesses sell products or services to other businesses through online platforms. This can involve bulk orders, customized pricing, and long-term contracts. B2B refers to online transactions and interactions between businesses, where one business sells products or services to another business through online platforms. It involves electronic exchanges of goods, services, or information between businesses in a digital format.

B2B e-commerce platforms are designed to facilitate the buying and selling process between businesses. These platforms typically offer features such as product catalogs, pricing and quoting tools, bulk ordering capabilities, customizable pricing and payment terms, and integration with backend systems like inventory management and supply chain management.

B2B e-commerce offers several benefits for businesses involved:

1. Efficiency and Cost Savings: B2B e-commerce streamlines the procurement process, reducing paperwork, manual processes, and transaction costs. It enables businesses to automate tasks such as order placement, invoice generation, and payment processing, leading to time and cost savings.

2. Global Reach: B2B e-commerce allows businesses to expand their market reach beyond their geographical boundaries. It enables businesses to connect with suppliers, distributors, and customers from around the world, opening up new growth opportunities.

3. Enhanced Customer Experience: B2B e-commerce platforms offer personalized and self-service capabilities, allowing businesses to easily browse and order products, track shipments, and access account information. This improves customer satisfaction and loyalty.

4. Streamlined Supply Chain Management: B2B e-commerce platforms integrate with supply chain systems, enabling real-time visibility into inventory levels, order fulfillment, and shipping status. This helps businesses optimize their supply chain processes and improve inventory management.

5. Data-driven Insights: B2B e-commerce platforms generate valuable data and analytics, providing businesses with insights into customer behavior, preferences, and buying patterns. This information can be used to drive marketing strategies, product development, and customer relationship management.

Examples of B2B e-commerce platforms include Alibaba, Shopify Plus, and SAP Commerce Cloud. These platforms cater to businesses across various industries, ranging from manufacturing and wholesale to professional services and technology.

3. Consumer-to-Consumer (C2C) E-commerce

C2C e-commerce platforms facilitate transactions between individual consumers. These platforms act as intermediaries, providing a platform for individuals to buy and sell products or services to each other. C2C e-commerce refers to the online transactions and interactions that take place between individual consumers. It involves individuals buying and selling products or services directly to each other through online platforms or marketplaces.

C2C e-commerce platforms provide a marketplace where individuals can create listings to sell their products or services, and other individuals can browse and purchase those offerings. These platforms typically facilitate communication, negotiation, and payment between buyers and sellers.

C2C e-commerce has become increasingly popular due to various reasons:

1. Opportunity for Individuals to Generate Income: C2C e-commerce platforms enable individuals to turn their unused or secondhand items into cash. They can sell items such as clothing, electronics, furniture, collectibles, and more.

2. Wide Range of Products and Services: C2C e-commerce platforms offer a diverse range of products and services since they rely on the listings created by individual sellers. Buyers can find unique and hard-to-find items that may not be available in traditional retail stores.

3. Cost Savings: Consumers can often find better deals and lower prices on C2C platforms compared to traditional retail stores. Sellers may offer discounted prices since they are selling directly to other consumers, eliminating the need for intermediaries.

4. Peer-to-Peer Interaction: C2C e-commerce platforms facilitate direct communication between buyers and sellers. This allows for negotiation, asking questions about the products or services, and building trust between the parties involved in the transaction.

5. Sustainability and Recycling: C2C e-commerce promotes a circular economy by encouraging the reuse and recycling of goods. It reduces waste by giving individuals the opportunity to sell their used items to others who may find value in them.

6. Feedback and Ratings: C2C platforms often include feedback and rating systems, allowing buyers to leave reviews and ratings about their experience with sellers. This helps build trust and ensures transparency in the transaction process.

Popular examples of C2C e-commerce platforms include eBay, Etsy, Poshmark, and Craigslist.

4. Peer-to-Peer (P2P) E-commerce

P2P e-commerce platforms enable individuals to directly engage in transactions with each other without intermediaries. These platforms often focus on sharing or renting assets, such as cars, homes, or equipment. P2P e-commerce refers to online platforms or marketplaces that facilitate direct transactions between individuals without the involvement of intermediaries. In P2P e-commerce, individuals can buy and sell products or services directly to each other.

P2P e-commerce platforms typically provide a space where individuals can list their products or services and connect with potential buyers. These platforms act as facilitators, allowing users to communicate, negotiate, and complete transactions.

P2P e-commerce has gained popularity due to several factors:

1. Lower Costs: P2P e-commerce eliminates the need for intermediaries, such as retailers or wholesalers, resulting in lower costs for both buyers and sellers. Sellers can offer products at competitive prices, while buyers can find better deals.

2. Wide Range of Offerings: P2P platforms often have a diverse range of products and services available. Individuals can sell various items, including used goods, handmade crafts, digital products, and more. This variety provides buyers with a wider selection to choose from.

3. Flexibility and Convenience: P2P e-commerce platforms offer flexibility and convenience for both buyers and sellers. Users can access the platform at any time and from anywhere, making it easy to browse, list, and purchase items. Transactions can be completed without the need for physical stores or fixed business hours.

4. Direct Communication: P2P e-commerce platforms facilitate direct communication between buyers and sellers. This allows for negotiation, clarification of product details, and building trust between the parties involved. Direct communication also enables personalized customer service and enhances the overall buying experience.

5. Community and Trust: P2P e-commerce platforms often foster a sense of community among users. Buyers and sellers can leave feedback, ratings, and reviews, which helps establish trust and credibility. This feedback system benefits both parties and encourages positive interactions.

6. Sustainability and Sharing Economy: P2P e-commerce contributes to the sharing economy and promotes sustainability. By buying and selling used items, individuals can reduce waste and environmental impact. Sharing resources through P2P platforms also helps optimize resource utilization.

Overall, P2P e-commerce provides an alternative and decentralized approach to buying and selling, empowering individuals to connect and transact directly with each other.

5. Mobile Commerce (m-commerce)

M-commerce refers to e-commerce transactions conducted through mobile devices, such as smartphones or tablets. It enables users to shop, make payments, and access online services on the go. Mobile Commerce (m-commerce) refers to the buying and selling of goods and services through mobile devices such as smartphones and tablets. It involves conducting e-commerce transactions using mobile applications, mobile-optimized websites, or other mobile platforms.

M-commerce has become increasingly popular due to the widespread use of smartphones and the convenience they offer. Some of the key features and benefits of m-commerce include:

1. Convenience: M-commerce allows users to shop anytime and anywhere, as long as they have access to their mobile device and an internet connection. Users can browse products, make purchases, and complete transactions with just a few taps on their mobile screens.

2. Portability: Mobile devices are portable and can be carried with ease, enabling users to shop on the go. Whether it's during a commute, while waiting in line, or during a break, m-commerce allows users to make purchases and take advantage of time.

3. Personalization: Mobile apps and websites can offer personalized shopping experiences based on user preferences, browsing history, and location. This allows for targeted recommendations, customized offers, and a more tailored shopping experience.

4. Mobile Payments: M-commerce platforms often provide various secure and convenient mobile payment options. Users can make payments using mobile wallets, such as Apple Pay or Google Pay, or through other mobile payment gateways. This eliminates the need for physical credit cards or cash.

5. Push Notifications: M-commerce platforms can send push notifications to users' mobile devices, informing them about new product releases, discounts, or promotions. This helps businesses engage with their customers and encourage repeat purchases.

6. Enhanced User Experience: M-commerce platforms are designed to be mobile-friendly, with responsive layouts and optimized interfaces. This ensures that the shopping experience on mobile devices is smooth, intuitive, and visually appealing.

6. Social Commerce

Social commerce integrates e-commerce features into social media platforms. Users can discover and purchase products directly within the social media platform, often with the help of user reviews and recommendations. Social commerce refers to the integration of social media and e-commerce, where users can discover, share, and purchase products or services directly within social media platforms. It combines the social and interactive elements of social media with the convenience and functionality of e-commerce.

Social commerce has gained significant traction in recent years due to the widespread use of social media platforms and the growing influence of social networks on consumer behavior. Some key aspects of social commerce include:

1. Social Discovery: Social media platforms provide an environment for users to discover new products and services through posts, recommendations, reviews, and endorsements by friends, influencers, or brands. Users can explore product catalogs, watch videos, read user-generated content, and engage in discussions before making a purchase.

2. Social Sharing: Social commerce encourages users to share their purchases, reviews, and experiences with their social network. This word-of-mouth marketing can significantly influence buying decisions as friends and followers trust recommendations from people they know.

3. Seamless Shopping Experience: Social commerce platforms aim to provide a seamless shopping experience within social media platforms. Users can view product images, descriptions, prices, and make purchases without leaving the social media app or website. This reduces friction in the buying process and increases conversion rates.

4. User-Generated Content: User-generated content plays a crucial role in social commerce. Customers can share their product photos, videos, reviews, and testimonials, which adds authenticity and social proof to the shopping experience. Brands can also leverage user-generated content as part of their marketing strategies.

5. Influencer Marketing: Influencers, individuals with a significant following and influence on social media, play a vital role in social commerce. Brands collaborate with influencers to promote their products or services to their engaged audience, driving awareness, trust, and sales.

6. Social Advertising: Social media platforms offer targeted advertising options that allow brands to reach their desired audience based on demographics, interests, and behaviors. Social ads can be integrated with e-commerce capabilities, enabling users to make purchases directly from the ad.

7. Socially Engaged Communities: Social commerce fosters communities of like-minded individuals who share common interests, passions, or hobbies. These communities provide a platform for discussions, recommendations, and support related to products and services.

Overall, social commerce transforms the way people discover, engage with, and purchase products or services by leveraging the power of social media and fostering an interactive and social shopping experience.

7. Subscription Commerce 

Subscription-based e-commerce models offer products or services on a recurring basis. Customers pay a subscription fee and receive regular deliveries of products or access to services. Subscription commerce, also known as subscription-based or subscription box commerce, refers to a business model where customers pay a recurring fee at regular intervals, typically monthly, to receive a curated selection of products or services. It involves the delivery of products or services directly to customers' doorsteps on a regular basis.

Subscription commerce has gained popularity in recent years due to its convenience, personalization, and surprise element. Here are some key aspects of subscription commerce:

1. Subscription Model: Customers sign up for a subscription plan and agree to pay a recurring fee, usually monthly or annually. This model provides businesses with a predictable revenue stream and allows customers to receive products or services regularly without the need for repeated purchasing.

2. Curated Selection: Subscription commerce often involves the curation of products or services based on customer preferences, interests, or needs. The subscription provider selects and sends a selection of items or experiences tailored to the customer's preferences, providing a personalized and convenient shopping experience.

3. Convenience and Surprise: Subscription commerce offers convenience by eliminating the need for customers to actively seek out products or services. Instead, they receive curated selections regularly, saving time and effort. Additionally, the surprise element of not knowing exactly what will be included in each delivery adds excitement and anticipation.

4. Variety of Industries: Subscription commerce spans across various industries, including beauty, fashion, food and beverage, health and wellness, home goods, and more. There are subscription boxes for almost every interest or niche, catering to different customer preferences and needs.

5. Customer Loyalty: Subscription commerce fosters customer loyalty due to the recurring nature of the business model. Customers often develop a sense of attachment and loyalty to the brand or service, leading to long-term relationships and repeat purchases.

6. Data-Driven Personalization: Subscription commerce companies often leverage customer data and feedback to personalize future selections. By analyzing customer preferences and feedback, businesses can refine their offerings and provide a better customer experience over time.

7. Flexibility and Customization: Many subscription commerce businesses offer flexibility and customization options. Customers can often choose the frequency of deliveries, skip or pause shipments, and provide feedback to further tailor their experience.

Overall, subscription commerce provides a convenient, personalized, and surprise-driven shopping experience that appeals to a wide range of customers.

8. Crowdfunding

Crowdfunding platforms enable individuals or businesses to raise funds for projects or ventures by collecting small contributions from a large number of people. Crowdfunding is a method of raising funds for a project or venture by collecting small contributions from a large number of individuals, typically through an online platform. It allows entrepreneurs, artists, non-profit organizations, and individuals with creative ideas to raise funds from a diverse group of supporters.

Here are some key aspects of crowdfunding:

1. Online Platforms: Crowdfunding is primarily facilitated through dedicated online platforms such as Kickstarter, Indiegogo, GoFundMe, and Patreon. These platforms provide a space for creators to showcase their projects, set fundraising goals, and collect contributions from supporters.

2. Campaigns and Rewards: Creators launch crowdfunding campaigns, where they present their project, explain its goals, and outline how the funds will be used. They often offer rewards or incentives to backers based on their level of contribution. These rewards can range from early access to the product or service, exclusive merchandise, or personalized experiences.

3. Types of Crowdfunding: There are different types of crowdfunding models, including donation-based, reward-based, equity-based, and debt-based crowdfunding. Donation-based crowdfunding involves receiving contributions without offering any financial return, while reward-based crowdfunding provides backers with non-financial rewards. Equity-based crowdfunding allows contributors to become partial owners of the venture, and debt-based crowdfunding involves lending money to the project with the expectation of repayment.

4. Support from the Crowd: Crowdfunding relies on the collective support of a large number of individuals, often referred to as the "crowd." Supporters can be friends, family, acquaintances, or strangers who are interested in the project and believe in its potential. Crowdfunding allows creators to tap into a wider network of potential backers who may have a personal connection or a shared interest in the project.

5. Validation and Market Testing: Crowdfunding can serve as a validation tool for entrepreneurs and creators. By garnering support and funds from the crowd, it demonstrates market interest and helps gauge the viability of a project or idea before a full-scale launch. It also provides an opportunity to gather feedback and refine the product or service based on early adopters' input.

6. Community Building: Crowdfunding creates a community around a project or idea. Backers often become advocates and ambassadors for the project, spreading the word and generating further support. This community can provide valuable feedback, support future initiatives, and contribute to the long-term success of the venture.

7. Risks and Challenges: While crowdfunding offers opportunities, it also comes with risks and challenges. Projects may not reach their funding goals, and creators may face pressure to deliver on their promises. Additionally, there may be legal and regulatory considerations depending on the type of crowdfunding model used.

Overall, crowdfunding has democratized the fundraising process, allowing individuals and organizations to bring their ideas to life with the support of a diverse community of backers.

9. Dropshipping

Dropshipping e-commerce models involve retailers who do not keep inventory. Instead, they partner with suppliers who ship products directly to customers when orders are placed. Dropshipping is a business model in which an online retailer does not keep products in stock but instead transfers customer orders and shipment details to the manufacturer, wholesaler, or another retailer who then ships the products directly to the customer. The retailer acts as a middleman, taking orders and handling customer service while relying on the dropshipper to fulfill and ship the orders.

Here are some key aspects of dropshipping:

1. No Inventory: One of the main advantages of dropshipping is that the retailer does not need to hold inventory. Instead, they list products on their website or online marketplace and only purchase the items when a customer places an order.

2. Supplier Relationships: Dropshipping relies on strong relationships with suppliers, manufacturers, or wholesalers who fulfill the orders. Retailers need to establish partnerships and negotiate agreements with reliable dropshippers to ensure timely and accurate order fulfillment.

3. Lower Startup Costs: Since dropshippers don't need to invest in inventory upfront, the initial startup costs are typically lower compared to traditional retail models. This makes dropshipping an attractive option for entrepreneurs who want to start an online business with limited capital.

4. Scalability: Dropshipping allows for easy scalability as retailers don't need to worry about inventory management or warehouse space. As the business grows, retailers can add more products to their online store without the need for additional physical storage.

5. Flexibility and Location Independence: Since dropshipping is an online business model, it offers flexibility and location independence. Retailers can operate their business from anywhere with an internet connection and can work on their own schedule.

6. Customer Service: The retailer is responsible for handling customer inquiries, returns, and refunds even though the products are shipped directly from the dropshipper. Providing excellent customer service is crucial for building a strong reputation and repeat customer base.

7. Profit Margins: While dropshipping offers convenience and flexibility, profit margins can be lower compared to traditional retail models. Dropshippers often charge higher wholesale prices since they handle the fulfillment process, and retailers need to factor in marketing and operational costs when pricing their products.

It's important to note that while dropshipping has its advantages, it also has challenges such as increased competition, reliance on third-party suppliers, and potential issues with product quality or shipping delays.

10. Auction-based E-commerce

Auction platforms allow users to bid on products or services, with the highest bidder winning the item. This model creates a competitive environment and can lead to unique pricing dynamics. Auction-based e-commerce refers to an online platform where individuals or businesses can buy and sell goods or services through a bidding process. Auctions allow buyers to make bids on items, and the highest bidder at the end of the auction wins the item.

Here are some key aspects of auction-based e-commerce:

1. Bidding Process: Auction-based e-commerce platforms typically have a bidding process where buyers place bids on items they are interested in purchasing. Bids are usually time-limited, and the highest bid at the end of the auction wins the item.

2. Auction Formats: There are different auction formats used in e-commerce, including English auctions, Dutch auctions, and sealed-bid auctions. In English auctions, participants place increasingly higher bids, and the highest bidder wins. Dutch auctions start with a high price that is gradually lowered until a buyer accepts the price. Sealed-bid auctions involve buyers submitting their bids privately, and the highest bidder wins.

3. Auction Listings: Sellers list their items or services on the auction-based e-commerce platform, including a description, images, starting price, and other relevant details. Potential buyers can browse the listings and decide whether to participate in the auction.

4. Competitive Bidding: Auctions create a competitive environment where buyers try to outbid each other to secure the item they want. This can lead to higher prices and a sense of excitement as participants compete for the item.

5. Time-Limited Auctions: Auctions typically have a specified duration, ranging from a few minutes to several days. The time limit creates a sense of urgency for buyers, encouraging them to place bids before the auction ends.

6. Auction Fees: Auction-based e-commerce platforms may charge fees to sellers for listing items and to buyers for participating in auctions. These fees can vary depending on the platform and the value of the item being sold.

7. Auction Extensions and Sniping: Some auction platforms may have features like auction extensions, where the auction is extended if a bid is placed close to the end time, or "sniping," where a bidder places a last-minute bid to try and win the auction.

Auction-based e-commerce provides a dynamic and interactive way for buyers and sellers to engage in online transactions, offering opportunities for both individuals and businesses to find unique items or sell their products/services to a willing market.

These are just a few examples of different e-commerce models, and there are often overlaps and variations within each category as well.