Different Types of E-Commerce Business Models

Fetchr
Fetchr
Mar 25 · 3 min read

Ready to build your e-commerce website? Hold up. Which business model are you going to follow? B2B? C2C? Y2K? Okay, maybe not that one. But, making the right choice is super important for your startup. Keep reading to see which of the four business models is the best for your company.

B2B — Business to Business:

Just like it sounds, this is when one business sells its goods/services directly to another business. Think supply chains, where you have giant suppliers and giant distributors. The big plus about this e-commerce model is that order quantity is quite large and orders often get repeated in a reliable way. Some of the most popular examples of this in the region are Dubai Traders Online, The Desert, and Togar.

Another great example is Panasonic Middle East. The company’s managing director, Hiroki Soejima, said, “We see huge growth potential in B2B business as multiple projects are being announced across the region.” The company is focusing on B2B as much as possible and it’s likely to pay off.

B2C — Business to Consumer:

Probably the most common business model is B2C, or when a business sells directly to the end consumer. If you go onto Namshi and purchase a new pair of jeans, what you’re doing is B2C. Other popular B2C sites in the region include Mumzworld, for all things mama and baby, and Desertcart, for basically everything.

As anyone who does online shopping knows, it’s easy to find what you want and at a good price. This is because B2C companies know their potential audience and who is buying their products. They make it quick and easy, which is why it’s so popular with buyers. Sites such as Amazon and Groupon are great examples of the various ways B2C can work wonders.

B2C companies should plan on spending more time and effort on social media marketing. Promoting your products on Instagram, Facebook, Twitter, etc. helps sellers reach buyers easier and faster than traditional marketing approaches. And B2C customers can end up making their purchasing decisions within minutes. So, if you want to keep pace with your clients’ online shopping, you’ve gotta be ready to sprint also.

C2B — Consumer to Business:

Take B2C, flip it on its head, and you’ve got C2B. It’s totally opposite of the traditional business concept, but it’s a possible pathway to success. C2B is when end users create products/services that are consumed by businesses. Basically, this model has three different groups:

  1. The customer: individual who has a product or service to offer
  2. The business: purchases product or service from customer
  3. The website: portal that connects customer and business

This simple network creates new connections for everyone involved, which is why websites such as Upwork and Amazon Affiliates have become more and more popular.

C2C — Consumer to Consumer:

C2C is super simple, right? One consumer sells products to another consumer. But, the big challenge is the huge crowd of people doing it. So, it’s tough to stand out. I mean, how many more pairs of earrings or types of socks do you need? Okay, maybe just one more…

Websites such as Souq, Noon, and Facebook Sellers are able to be the middle man in C2C because they charge a commission or use advertisements. However, online transactions are usually the best way for consumers to connect. So, it’s worth it.

Endless Opportunities

These are the four main paths you could take as a potential business owner when deciding about your e-e-commerce transactions. Or, as an existing business owner, you now know which model complements your product/service, so you can expand your growth. Either way, the opportunities in the e-commerce world are practically endless. So, make a decision and get to it!

We are Fetchr; a company specialized in e-fulfillment. We help e-commerce entrepreneurs grow their business in the Middle East. Let’s make it happen! One box at a time. Learn more here.

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This blog is intended for informational purposes only, and should not be considered business or legal advice. MENA 360 DWC-LLC (Fetchr) will not be held liable for the use, non-use or misapplication of this information, lost profits, personal or business interruption, or any other loss.

Fetchr

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Fetchr

We’re on a mission to build the next generation of e-commerce entrepreneurs. Let’s make it happen. One box at a time!

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