Effective Business Models for Startups in 2022

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Effective Business Models for Startups in 2022

The eCommerce businesses have redefined not only our shopping patterns but the business arrays of entrepreneurs as well. Dated back to the first online sale in 1994, when a man sold a CD to his friend through his website named NetMarket, since then, eCommerce selling and purchasing have gone too far. Nowadays, we see several businesses emerge every day and existing businesses are also going for the Omni channels marketing for branding and selling. The buying and selling of products on the internet have become very common and people are shifting to online buying, especially from social media, websites and other electronic channels.

In this article, numerous e-commerce business models, each of them supporting a different business model will be discussed.

Types of eCommerce

Ecommerce is a transaction between the buyer and the supplier. But to go deeper, we can jot down the basic yet common types of eCommerce.

  1. Business-to-Customer (B2C)
  2. Business-to-Business (B2B)
  3. Customer-to-Customer (C2C)
  4. Customer-to-Business (C2B)

B2C-Business to Customer

The most popular business model involving user/customer is B2C. Whatever someone buys online through a store directly falls in this category. Whether it is heavy machinery or a beauty product, everything is done through the B2C procedure. The procedure seems simple and shorter where less money is used to market the products. Not only products but services are also included in this type of business. Amazon, Facebook, and Walmart are the best examples of the B2C model.

B2B Business to Business

Where two or more businesses/companies are involved in conducting business with the use of the internet is called B2B. Here, the effort of the catalogue and order sheets is drastically reduced. B2B connections can be simpler and more dynamic, but they can also be infrequent or terminated. Due to the development of the internet, this sort of trade has rapidly expanded, and there are now several online virtual shops and malls that sell a wide range of customer items, including computers, software, books, shoes, vehicles, food, financial products, digital magazines, etc.

Comparing online shopping to traditional retail, customers typically have access to more informative content and there is a general perception that online shopping will result in lower prices without sacrificing equally personalized customer service or the prompt processing and delivery of their orders. Alibaba, AliExpress and Amazon are prime examples of B2B businesses.

C2C Customer to Customer

Online marketplaces and C2C eCommerce companies connect customers to trade products and services, and they often recover their costs by charging transaction or listing fees. C2C firms get profit from the motivated customers and sellers who drive their growth, but they also confront significant challenges with quality assurance and technological upkeep. Companies like Walmart, Alibaba, and eBay pioneered this strategy.

C2B Customer to Business

The exact opposite of the B2C model is C2B. The C2B model gives end users the chance to sell their goods and services to businesses, whereas earlier is handled by a business for the customer. The technique is widely used in crowdsourcing-based initiatives, the types of which frequently involve logo creation, the selling of royalty-free images, media, design elements, and so forth. Google AdSense and Shutterstock are some examples of C2B.

The pricing of goods and services is the competitive advantage of the C2B eCommerce model. With this strategy, customers have the authority to set prices or to influence company competition to satisfy their wants. Recently, creative thinkers have connected businesses with social media stars to advertise their products.

Ecommerce has numerous advantages, the capacity to reach a global market without necessarily requiring a big financial investment is e-main commerce's advantage. This sort of commerce has no geographical bounds, enabling customers to make a decision from a distance, get the necessary data, and evaluate offers from all potential suppliers, regardless of where they are located.