Several Types of E-commerce Business Models

    E-commerce business models are usually classified into three broad categories:

    • What types of products are sold?
    • Who the products are sold to?
    • Where the products are sold on?

    Every e-commerce business can be described by the types of products that it sells. There are four fundamental products that any ecommerce business can sell and they are:

    • Physical Products
    • Digital Products
    • Services
    • Affiliates

    Every single e-commerce business online can fit into at least one of these classes, and this fundamentally just discloses to you what sort of items they pitch to their clients. Some e-commerce business sells physical items which imply that the business has real tangible items that they ship to their clients, and when their clients open the delivery bundle there will be a physical item they can touch, feel and see. Digital products, then again, are something e-commerce business can sell online however they’re not a genuine physical item that can be delivered to their clients. As a rule, when a computerized item is acquired online a client can download the advanced documents straight with no requirement for the business to really transport anything to the client. Finally, e-commerce businesses can also earn commissions through subsidiary connections which pay them a bit of the income for encouraging a deal. E-commerce businesses that earn affiliate commissions could be sites, influencer sites, or even sites like Canopy that curate items sold online for consumers.


    E-commerce businesses can be differentiated by who the business is selling their items to. While it may be normal reasoning to accept that all items are sold to purchasers, that isn’t generally the situation. Now and again the “buyer” can be another business. These are the three principle classifications that e-commerce businesses sell their items and services to:

    • B2B: B2B also known as Business-to-Business. E-commerce businesses that sell physical or digital items and services to different organizations fall under this classification. For instance, this could incorporate makers or providers that give materials or items to different businesses.
    • B2C: B2C also known as Business-to-Consumer. E-commerce businesses that sell physical or advanced items and services to consumer fall under this class. This incorporates retailers or online business retailers that sell items to the end purchaser. B2G: This represents Business-to-Government. E-commerce businesses that sell physical or digital items or services to government foundations or offices fall under this classification. For instance, this could incorporate organizations that make specific programming, office furniture, uniforms, etc.

    E-commerce businesses can also be differentiated depending on the way they sell their items to their customers. These options are:

    • Branded E-commerce Stores: These are e-commerce stores that are owned and operated by the founder or creators of the store, and they sell their very own items all alone terms to their client base. These kinds of stores are commonly based on e-commerce platforms, for example, Shopify or Big Commerce.
    • Ecommerce Marketplaces: E-commerce businesses can likewise move through online marketplaces, for example, Amazon, eBay or Etsy. For the business, this is somewhat similar to leasing space in a shopping center: The shopping center handles the showcasing and acquires the foot activity, which implies the shippers don’t need to contribute much time or cash bringing clients their shops. They do, However, need to submit to the shopping center’s standards, for example, their opening hours, what items they can and can’t sell, etc.

    Conversational Commerce:  With social media being a primary piece of consumer’s daily routines, social media platforms are making it simple for buyers to shop through the posts on their newsfeed. Instagram, Facebook, Pinterest, and Snapchat all have conversational trade alternatives that e-commerce brands can sell their items through.