The buying and the selling of the goods and services and transferring funds over the electronic network, is referred to as e-commerce (electronic commerce). Often we tend to use the terms e-commerce and e- business interchangeably. At times, the term “e-tail” is also used when talking about transactional processes related to online retail shopping. To understand more about e-commerce, you can pursue a good Digital Marketing Course In Gurgaon.

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In the last 2 decades, the contribution of two e-commerce platforms- amazon and eBay have contributed a lot in online retail. According to the US Census Bureau, in the year 2011, e-commerce accounted for as much as 5% of the total retail sales. By the end of the quarter 2 of the year 2020, after the COVID 19 pandemic, e-commerce accounted for as much as 16.5% of the retail sales. After the physical stores reopened, it had fallen a little to about 15%.

Types of E-commerce

There are six types of e-commerce models and these are:

1. Business to Consumer ( B2C)

This is the business model that involves the business where products are sold to the customers directly. These businesses can sell their own products or they can sell products of other brands. When a business is sellings its own products to the customers, it is known as D2C ( Direct to consumers). Some of the best examples of B2C businesses are Amazon, Alibaba etc. They sell the products of other brands through their platform. Brands such as Adidas, H&M also use the B2C model and they also use the D2C model so as to sell their own products to the consumers. There are some other companies that sell the products of other companies as well as their own products. One of such examples is Flipkart that has its own products and also sells the products of other brands.

The most common features of the B2C e- commerce companies are:

• They have a short sales cycle.( the time it takes to attract the prospects and complete the sales process is quite short.)
• The transaction volume is high in comparison to other business models.
• The average value of a transaction is low.
• They use several types of revenue models that include:

1. Drop Shipping

Here, the sellers showcase the products of other brands in their online store. When someone orders the product, the seller buys it from a third party at a lower price and ships it directly to the customer. This process is most of the time automated. Pursuing Digital Marketing Courses Gurgaon, will benefit you to a great extent.

1. Subscription Services

Here the customers pay a recurring fee to get access to a regular product delivery or an ongoing service. Some of the most popular B2C subscriptions include pet product supplier Barkbox and Spotify.

III. Pre-Owned or Refurbished Products

Here the sellers source used products from the consumers to other companies and the best example for this is BlackMarket. This company sells used mobile phones.

The startup cost for opening an e-commerce store is much less in comparison to the physical store. As a result, there are several entrepreneurs these days who prefer to open e-commerce stores. The competition can therefore be quite tough.

2. Business to Business ( B2B)

Here businesses sell their products to other businesses. The B2B companies can either sell the products to the end users or they can even sell it to companies that again resell the products to the end consumers. Trello is one of the best examples of a B2B company. This is an e-commerce company that sells their products to the end user businesses.

Again, when the supplier of auto parts sells their products to an automobile factory that is also an example of a B2B business. SEMRUSH is also another example of a B2B e-commerce brand. Many of their users are marketing agencies, business owners and even freelancers. The B2B ecommerce also includes some wholesalers and these include Faire. This targets the resellers.

The features of B2B e-commerce companies are:

• The sales cycle is longer than the sales cycle of B2C e-commerce businesses.
• The transaction volume is low in comparison to the B2B companies.
• There are more recurring purchases.

The subscription models are quite popular among the B2B e-commerce companies. This is especially true for the software vendors. The sellers are also able to get a predictable, regular income. The buyers can also spread the purchase cost and this helps them manage the cash flow better.

The B2B companies also use a white labelling business model. This means that the online businesses sell products that are not branded. The reseller on the other hand can market and sell their products to other businesses putting their own company name.

3. Business to Government ( B2G)

In this business model, the businesses sell products to the government organizations or to the public administrations. Some of the government organizations to which these companies sell their products to are state, county, federal and local organizations. OpenGov is one of the companies that sell products to the local government agencies.

Most of the B2G transactions start with a RFP (Request for Proposal). It is here that the government agencies invite the different companies to pitch their products or services to bid their contracts.

The features of the B2G businesses are:

• Longer Sales Cycles
• Strict requirements for compliance.
• High transaction values

This business model is perfect for organizations that have effective marketing and have niche offerings. Moreover the government contracts are longer. This provides additional financial security and predictability. The disadvantage for this business model is that the sales process might be slow and highly competitive due to government bureaucracy.

4. Consumer to Consumer ( C2C)

This is the kind of business model that involves transactions between two or more customers. You can also use this term for any provider who manages this kind of an online transaction. When a person sells their car to another person that is referred to as the C2C business model. Some of the most common examples of C2C e-commerce platforms include eBay, Vinted, Facebook marketplace etc. The C2C apps and the websites also add structure to the business environment that is otherwise unregulated. These business models also provide quality control, payment processing, listing services and dispute resolution to ensure that money and products flow between the consumers. They also earn commission in return and they generate revenue from the consumers who bring traffic to the website.

5. Consumer to Business ( C2B)

The consumer to business ecommerce business model involves the selling of goods and services to the organizations. At times, the company themselves might be the end user. For example, when an individual sells an image to the newspaper, it is conducting the C2B transaction. This is because since the Newspaper publishes the image, they are also the end user. At times a company purchases the consumer’s products to resell them. For example, Shutterstock, the image library buys contents from the consumers and sells them to other users and businesses.

The influencer networks also promote the C2B transactions. They connect businesses to those consumers who are popular on social media. Now these consumers sell these brands to their followers. They promote the brand against a fee.

6. Consumer to Government (C2G)

This is the kind of business model where the transaction takes place between the government and the consumers. This type of an e-commerce business is any organization that facilitates this kind of transaction. For example, the utility companies give the business and the home owners direct access to the energy services sponsored by the government. The best example for this is Dominion energy. This is a company that provides reliable power and gas and allows the consumers to enjoy the services.

Conclusion

E-commerce businesses bridge the gap between the local sellers and the global audiences. This way, they are able to widen their reach across the global market segment without investing in any other thing. The consumers also have several options for procurement. This also facilitates trade round the clock. Make sure you pursue a digital marketing course from the best Digital Marketing Institute in Gurgaon.