Published 29 Sep 2021
What Are B2B, B2C, C2B And C2C Business Models In E-commerce?
In our previous article we explained the importance and necessity of B2B blogging and gave you a few recommendations. Speaking of business models, today we focus on B2B, B2C, C2C and C2B models.
As the development of globalization, consumerism, and trading has continued, there is much talk about business models. B2C, B2B, C2C and C2B are the traditional types of e-commerce. Each of these has proven to be the successful business model.
Before starting to explain the business models let's take a look at the meaning of commerce and e-commerce.
What Is Commerce?
Commerce is utilized in the business. It assumes a significant job in organizations, fundamentally works for commerce wares or merchandise. As it were, the commerce manages to sell and purchasing of merchandise. This implies when you buy assistance or a product from any organization or offer a few products or services to others is known as Trading of products or services in the business.
What Is E-commerce?
E-commerce is the buying and selling of good or services via the internet. The definition also requires that a transfer of money and information take place online. It’s also known as electronic commerce or internet commerce and is alluded to as the paper-less commerce procedure of business data with email, electronic store move, EDI etc.
Ever since the first online transaction occurred nearly 25 years ago, e-commerce has exploded into one of the most important industries today due to their incredible services and advantages. It is the most straightforward method for buying. E-commerce has become so commonplace that many people may not even realize when they’re part of an e-commerce transaction.
What Are The Traditional Types Of E-commerce?
There are a lot of business models in e-commerce. We will try to introduce you all of them in our future blogs. But first we start with traditional ones:
Differences Between B2C, B2B, C2C And C2B Business Models
To better understand e-commerce and its impact, businesses should learn about the different types of e-commerce. How about we start to define every product step by step?
B2B (Business-to-Business)is one of the most common types of e-commerce. It is a commercial activity (business) between two companies. B2B refers to a business selling a good or service to another business, like a manufacturer and wholesaler, or a wholesaler and a retailer. So the clients of one enterprise are other companies.
The use of internet technologies in the commercial communication of enterprises creates new business connections, speeds up transactions, facilitates the process of purchasing and selling goods, materials, equipment, and products.
Business to business e-commerce isn’t consumer-facing, and usually involves products like raw materials, software, or products that are combined. Manufacturers also sell directly to retailers via B2B e-commerce.
The sizes of companies, engaged in B2B, can be different – from the smallest to the largest. B2B transaction could involve a mining company purchasing equipment from a heavy machinery company, or even a business getting supply chain logistics services. Among the most well-known B2B websites is the Alibaba B2B Marketplace.
Triginally, the term was used to describe any type of process of selling products between enterprises. Today, it is more commonly used to describe online transactions between companies.
You should remember that when, for instance, Volvo produces its vehicles and sells them to end users (individuals), it is B2C. However, the plant doesn’t sell cars directly to people. Usually, such enterprises implement this through an authorized dealer network, thus it is B2B. Authorized dealers, in turn, will sell cars to individuals, which makes it a B2C situation. But if an authorized dealer sold vehicles to a transport company, it again will become a B2B case.
There are many other examples of industries, but they depend on the country, economy, and many other factors.
B2C (Business-to-Consumer) is the most popular e-commerce model. Business-to-consumer means that the sale is taking place between a business and a consumer. It can be a huge supermarket, online store, or even a small branch of a law firm (consulting individuals).
Initially, the term was used to define any type of process of selling products directly to consumers, including shopping in-store or eating in a restaurant. Nowadays, it is used to describe transactions between online retailers and their customers. In this kind of internet business framework, an organization or business can sell its products, services or merchandise to their client straightforwardly by utilizing the B2C model.
Here a client can visit an organization or business site that has every one of the insights concerning a product, service, or products. Subsequent to settling on the correct choice the client submits a request on that organization’s site, the organization will process the request and send it straightforwardly to their client. One of the largest B2C websites is Amazon. A customer can view products on the page, choose a product and order it. Another example, Netflix engages in B2C e-commerce when it sells its service to viewers. The entire transaction occurs online.
The Business-to-Consumer model doesn’t require a middleman and reduces the cost of the goods for the ultimate consumers. B2C sites aim to make easy for shoppers to buy products end enjoy this process.
In the B2C relationship, consumers often choose goods or services that have low prices, and research shows that consumers value expedient and affordable shipping.
C2C (Consumer-to-Consumer) is a commercial activity between private individuals (consumers). It refers to the sale of a good or service to another consumer. Here a shopper can post his products or services and another customer, who is intrigued, can buy it by utilizing this e-commerce framework.
C2C manages utilized things or products.This web innovation encourages us to sell our utilized properties or resources like bicycle, vehicle, house, any electronic things or kitchen things by utilizing this model.
This business model can be implemented directly, as well as through a third-party (mediator). In this case, a need for a third-party emerges (marketplaces and classified advertisements sites, such as eBay, Craigslist, or Gumtree). One consumer may buy a product of another consumer by viewing the description on the website. Thus, if you buy a laptop on eBay from an individual, not an entrepreneur, it is a classic C2C model. Consumer-to-Consumer sales take place on platforms like eBay, Etsy, Fivver, Airbnb, Gumtree etc.
Although businesses don’t have as large of an impact on this type of transaction, Consumer-to-Consumer (C2C) transactions are still important. These transactions rely on a third party to act as an intermediary. As an example, consider eBay. While eBay isn’t selling or purchasing goods, they’re providing a service to their users. Payments are safely done through eBay’s site, and the buyer’s and seller’s information is transferred online. In this C2C relationship, the intermediary doesn’t facilitate shipping, though, as that service is generally provided by the seller.
C2B (Consumer-to-Business) is a little unusual and lesser-known model of e-commerce. In Consumer-to-Business model, individuals sell their services or products to business organizations. Here consumers define prices by themselves. It is an inverted type of business of B2B or B2C, where companies offer their services to customers. C2B encompasses influencers offering exposure, photographers, consultants, freelance writers, etc…
Websites following C2B business models are the least widespread among the other types of business models. This kind of e-commerce is generally utilized for singular purchasers giving services or products to an association or an organization.
C2B web-services provide an opportunity for the consumers to set prices for the products they would like to buy. The C2B website finds the seller who is eager to sell the goods for the price that the consumer wants. C2B businesses, as well as consumers, profit from the flexibility of such services. Surveyscout and Survey Monkey are typical C2B models.
Stock photos are an excellent example of a C2B transaction. The consumer takes a photo and uploads it to a stock photo site. The business then pays for the right to use the stock photo. The intermediary site hosts the transaction, transferring the money and information online.
In our previous blogs, we explained e-commerce at length. In today's article, we focused on traditional e-commerce models, B2B, B2C, C2B and C2C. We hope this blog was helpful for you to understand each business type and their differences.
In the coming days, business models such as G2C, C2G, G2G, B2G, G2B and G2E will also be explained in detail. But first, we will be here with a new crisis news from the UK... Keep following our blog!