Types of E-Commerce Business Models | E-Commerce Models

Types of E-Commerce Business Models | E-Commerce Models Followings are three general classes of e-commerce applications. The Article: Types of E-Commerce Business Models

Types of E-Commerce Business Models | E-Commerce Models 

Types of E-Commerce Business Models

Followings are three general classes of e-commerce applications.
  1. Inter Organisation or B2B
  2. Business to Consumer or B2C
  3. Consumer to Consumer or C2C

Inter Organisation or B2B

Business-to-business (B2B) refers to a situation where one business makes a commercial transaction with another.
This typically occurs when: A business is sourcing materials for its production process, e.g. a food manufacturer purchasing salt.

B2B or B to B or B-to-B may refer to B2B Business-to-business, commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer

There are different types of business-to-business (B2B) offerings

B2B offerings are categorized by how they are used. The primary categories of B2B offerings are:
  1. Capital equipment offerings
  2. Raw materials offerings
  3. Original equipment manufacturer (OEM) offerings
  4. maintenance, repair, and operations (MRO) offerings
  5. Facilitating offerings.

Capital equipment offerings

A capital equipment offering is any equipment purchased and used for more than one year and depreciated over its useful life. Machinery used in a manufacturing facility, for example, would be considered capital equipment.

Raw materials offerings

  1. Raw materials offerings are materials firms offer other firms so they can make a product or provide a service.
  2. Raw materials offerings are processed only to the point required to economically distribute them. Lumber is generally considered raw material, as is iron, nickel, copper, and other ores.
  3. If iron is turned into sheets of steel, it is called a manufactured material because it has been processed into a finished good but is not a stand-alone product
  4. it still has to be incorporated into something else to be usable. Both raw and manufactured materials are then used in the manufacture of other offerings.

OEM offerings

An original equipment manufacturer (OEM) is a manufacturer or assembler of a final product. An OEM purchases raw materials manufactured materials, and component parts and puts them together to make a final product. OEM offerings or components, like an on/off switch, are components, or parts, sold by one manufacturer to another that gets built into a final product without further modification.

MRO offerings

  1. MRO offerings refer to products and services used to keep a company functioning.
  2. Janitorial supplies are MRO offerings as is hardware used to repair any part of a building or equipment. MRO items are often sold by distributors.
  3. However, you can buy many of the same products at a retail store. For example, you can buy nuts and bolts at a hardware store.
  4. A business buyer of nuts and bolts, however, will also need repair items that you don’t, such as very strong solder used to weld metal. For convenience sake, the buyer would prefer to purchase multiple products from one vendor rather than driving all over town to buy them.
  5. So the distributor sends a salesperson to see the buyer. Most distributors of MRO items sell thousands of products, set up online purchasing Web sites for their customers, and provide a number of other services to make life easier for them.

Facilitating offerings

Facilitating offerings include products and services that support a company’s operations but are not part of the final product it sells. Marketing research services, banking and transportation services, copiers and computers, and other similar products and services fall into this category.

Business to Consumer or B2C

Types of E-Commerce Business Models

In a Business-to-Consumer E-commerce environment, companies sell their online goods to consumers who are the end users of their products or services.

Usually, B2C E-commerce web shops have open access for any visitor and user. A business selling to the general public typically through catalog utilizing shopping card or software

Those selling consumer-based products typically engage in some form of B2C marketing. Some examples include:

  1. Computer and gadget companies often market new products, providing tools to make your life more fun and efficient, solving problems you did not even know you had.
  2. Software and game companies use, among other strategies, conventions to get the word out.
  3. Restaurants will market their food, but also their reputation and atmosphere. Clothing, jewelry, and make-up companies do much of their marketing through the concept of fashion which can be changed whenever there is a new product to sell.
  4. Drug companies in the United States run advertisements for new products.
  5. Car companies continue to be creative with their B2C campaigns, such as doing road trips building towers of gasoline cans to show how much fuel you save with their high MPG cars. Food companies selling in grocery stores market not only through advertising but through product packaging and in-store displays.

Consumer to Consumer or C2C

Types of E-Commerce Business Models

In a Consumer-to-Consumer E-commerce environment, consumers sell their online goods to other consumers.
There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease.
This type of sites is suitable for the companies which act as mediators between the clients and sellers.
C2C websites provide private individuals with an opportunity to sell or purchase goods directly.
A well-known example is eBay, OLX.

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Types of E-Commerce Business Models | E-Commerce Models
Types of E-Commerce Business Models | E-Commerce Models Followings are three general classes of e-commerce applications. The Article: Types of E-Commerce Business Models
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