Types of Ecommerce classifications in today’s business

Ecommerce business models encompass a wide spectrum of approaches that dictate how products and services are presented, marketed, and delivered to customers. From traditional online retail stores to innovative subscription services and peer-to-peer marketplaces, each model reflects a unique set of challenges and opportunities.  However, it is critical to select a particular model of getting revenue which works perfectly for your company to leverage into greater success. What are the different types of e-commerce – let us start this post by answering the primary question. 

Commercial solutions relevant to your type of business category 

Electronic commerce in business has taken root so deeply that it is difficult to imagine the second without online transactions. In addition to the better known B2C and B2B there are also subscription-based, drop-shipping, and marketplace models. Each has diverse of goals, different selling and promotion tools. When creating custom e-commerce solutions, the developer considers the needs of the business and the digital commerce model chosen by the enterprise. 

There are four widely used e-commerce models: Business-to-Consumer, Business-to-Business, Business-to-Business-to-Consumer and Direct-to-consumer.

• B2C model presupposes selling directly to the end users. Therefore, each time you make a purchase through a digital showcase, you witness a part of a B2C transaction. The model is the most widespread, allowing companies to sell both products and services.
• B2B purposefully offers to sell products to another business. The members of the model are companies. For example, it may be a large IT company that will develop custom software for the company. Or a small cleaning company, which is exclusively engaged in cleaning offices and public establishments. 
• B2B2C describes the model in which a business is selling items or services in tandem with another company to end customers. The example of such well-known companies are Alibaba Group, IBM, Shopify:
• D2C a new but rapidly gaining model that implies that companies to sell their products and services directly to consumers. The bright representative of this model company Tesla who sells vehicles directly to consumers through company-owned showrooms and its website.   

When developing e-commerce solutions, each model has its own requirements. The D2C model implies the creation of personal solutions, taking into account the position and style of the brand.  In addition to the above-mentioned models, there are several that need special platforms for electronic commerce. 

• Business-to-government model has in its core selling and marketing products to public administrations and government entities – whether federal, state, county, or local.
• Consumer-to-business model, allows individuals to offer services and sell goods to enterprises. An example would be highly skilled professionals whose services are valued, or freelance workers.
• Consumer-to-Consumer the model connects consumers to exchange services/items. The system makes a profit from listing fees and charging transactions.

Major e-commerce business classifications in terms of value delivery

E-commerce solutions include not only the process of product sales management but also inventory, supply, and revenue management.  While developing, specialists pay attention to this problem and form solutions that are most responsive to the customer.

White label is spread business in e-commerce.  Most often, this model is used in beauty salons and self-care. How does it work? The company produces the product or service and then allows another company (usually a retailer or reseller) to rebrand and sell the product or service as its own. 

If the product is manufactured by a third party and sold under the name of the brand, it is a private label. Unlike in the case of white labelling, the retailers control all stages of manufacturing, including packaging. 

Wholesaling belongs to the B2B model: the seller provides the client with an exclusive group of items.

Dropshipping is one more type of electronic commerce. Dropshippers operate as mediators between manufacturers and buyers. In this regard, an important point is integrating inventory from all the suppliers across the globe for their storefronts. 

Subscription service is a solution that is popular in digital products.  The user subscribes and has access to a wide range of application content, training materials, etc. But, this model shows itself well in the sale of actual goods. The consumer pays for the package of services and, in a certain timeline, receives goods: magazines, animal feed, household goods and the like.

Now that you know more about e-commerce models and kinds of value delivery, you can proceed with creating a business plan. Once you have defined the target market, you need to concentrate on maintaining your e-commerce infrastructure and marketing strategy to maximise income. 

We create the best IT solutions for business

PNN Soft has a team of tech experts who prefer to work with enthusiasm. We are experienced enough to provide our clients with reliable software development. Although our company has been creating corporate solutions for 20 years, we are determined continuously to hone our skills. The PNN Soft team has created more than 1000 efficient and stable web products for different industries. We are determined to seek innovative solutions that meet individual companies’ needs. That is why we know which technologies spell success for your business. 

Refer to the portfolio for a more profound understanding of the web products we create. If you need professional support or more information on a particular type of electronic commerce specifics, feel free to contact our team below.