What is the Difference Between B2B, B2C, and C2C eCommerce Models?

eCommerce is an undeniable trend that has been reshaping the way customers shop. According to market research, eCommerce made up 14.7% of retail sales in the U.S. in 2022 and it is expected that by 2025, it will make up nearly 22% of the total purchases in the country. Hence, it is pivotal to understand the types of business models if you are trying to set a foot in the eCommerce world.

In this write-up, we cover eCommerce business models, B2B, B2C, and C2C, and how they differ from each other in meeting business expectations.

What is eCommerce?

eCommerce, electronic commerce, or digital commerce is simply a practice of buying and selling goods or services online using the Internet. 

Instead of visiting a physical store, customers visit a virtual store to browse and purchase products or services according to their requirements from a wide range of available options.  

These virtual storefronts are called online stores, eCommerce platforms, or marketplaces. Businesses list their products or services on these eCommerce platforms or marketplaces in order to trade digitally. 

However, these eCommerce marketplaces are majorly divided into three types:

1. B2C (Business to Customer) is the most popular eCommerce marketplace model where businesses approach customers through multiple channels in order to sell their products or services. 
2. B2B (Business to Business), where businesses trade with other businesses in bulk and large quantities or volumes. 
3. C2C (Customer to Customer), in this marketplace model one customer trades with another customer or vice versa to buy or sell products. 

Explore Major eCommerce Marketplaces Models in Details: B2B, B2C, and C2C

Before starting your eCommerce business, you need to carefully consider the different eCommerce business models possible to determine the best fit for your specific needs and goals. Below we discuss the three major eCommerce models.

Also, we have included key features that are needed in a marketplace to facilitate smooth operations of these business models.

B2B (Business-to-Business) Model

The business-to-business eCommerce marketplace facilitates a business to sell its goods or services to another business. It mainly involves commercial transactions between manufacturers, wholesalers, retailers, and distributors that need goods in bulk.

Examples of Popular B2B Marketplace

• Alibaba: Alibaba was founded in 1999 and its headquarters are located in Zhejiang, China and George Town, Cayman Islands. Initially, it was founded by a group of 18 people including Jack Ma and 17 friends and students. Today, Alibaba is the world’s leading B2B marketplace that connects manufacturers, suppliers and wholesalers on a digital platform to initiate B2B transactions. The number of active sellers on the platform is 8.5 million and the number of active buyers is 279 million. In addition, the total number of estimated annual orders was 12.7 billion and revenue generated in 2024 is 130 billion.  

• Amazon Business: A popular B2B eCommerce platform launched in 2015 by Amazon. It provides the opportunity for businesses of all sizes to trade in bulk as its name suggests. Amazon Business is primarily serving in the US, Canada, India, United Kingdom, Germany, Japan, Spain, France and Italy. It has an intuitive interface like Amazon.com that makes buyers on the platform feel familiar.  The combined value of gross merchandise volume (GMV) of Amazon Business amounted to $41.5 billion in 2022. 
• eWorldtrade: eWorldTrade launched in 2016 is a leading B2B marketplace that connects millions of buyers with suppliers across the world. Currently, the platform has over 7,000,000 registered users. eWorldtrade provides a safe, fast and reliable buying opportunity for businesses.

Explore the post on Building B2B Online Marketplace

Key Marketplace Features That Make B2B eCommerce Model Work

 

– Minimum Order Quantity: In B2B eCommerce marketplaces, sellers focus on providing bulk orders and special discounts for businesses that place large orders. No buyer can request an order below MOQ.

– Quote Management: B2B eCommerce marketplaces often offer access to RFQ requests or view re-quoted offers, speeding up the quoting procedure.

– Search and Filtering Capabilities: Buyers can search for goods or services using keywords, categories, and filters to find what they are looking for.

– Shipping Management: Pre-integrated third-party shipping APIs that allow quick creation of shipping labels and real-time shipment tracking.

– Digital Payment Methods: It supports a mix and wide range of payment methods to offer an appreciable checkout experience. 

B2C (Business-to-Consumer) eCommerce Marketplaces

Using this model, businesses sell their products or services directly to end-consumers. The marketplaces built on the B2C model have a short buying journey. The end-consumers know their needs, they browse options, and place their order. Moreover, a B2C digital marketplace bridges the gap between physical spaces and offers personalized eCommerce experiences.

Examples of Popular B2C Marketplace

• Amazon: This marketplace needs no introduction, who doesn’t know about Amazon? Founded in 1994 as an online bookstore by Jeff Bezos. Today, it’s a full-fledged eCommerce platform that offers a variety of products and services to customers. Amazon has 310 million active users worldwide and the platform generated revenue of $574 billion in 2023.

• Walmart: Walmart formerly known as Wal-Mart Stores was launched in 1962 by Sam Walton. Today, it is the world’s leading omnichannel marketplace. Walmart is committed to offering products at low prices and has a wide range of products listed on the platform sets it apart from its competitors. The eCommerce sales amounted to $53.4 billion in the US and $82 billion worldwide in 2023.  
• eBay: An online marketplace with a massive customer base. It connects millions of sellers and buyers on the platform. eBay allows sellers to showcase their physical and digital products on common storefronts. Launched in 1995 as an auction site, today it is one of the most popular marketplaces with 133 million active buyers and 18 million sellers. According to eBay’s latest financial reports (Aep 2023 to Sep 2024), the revenue generated by eBay is $10.26 Billion.

Key Features That Make B2C eCommerce Model Work

 

– Inventory Management: B2C marketplaces offer tools to keep a check on stock levels and handle sales accordingly.

– Intuitive User Panels: B2C marketplace has dedicated user panels for sellers, buyers, and admins, enabling all to easily access account details such as insights, key statistics, and more.

– Standardized Pricing: The price of the product is the same for everyone, regardless of their purchase history or volume of previous orders.

– Product Catalog: A product/service listing feature is provided to the vendors to upload product details including specifications, description, quantity, media, and so on.

– Platform Management: There can be multiple features that allow marketplace admin to control and manage various eCommerce operations in a marketplace.

Explore An In-depth Guide to Build a B2B2C Marketplace

C2C (Customer-to-Customer) eCommerce Model

The Customer-to-Customer business model represents a marketplace that allows one customer to sell their goods or services to another customer directly. The focus is usually on selling used or unique products not readily available in retail stores. The customers can put a product on sale and other customers can browse and decide from the goods/services posted that they are interested in buying.

Examples of Popular C2C Marketplace

• Etsy: Founded in 2005, Etsy is a renowned example of a C2C marketplace. The founders, Robert Kalin, Chris Maguire and Haim Schoppik identified a market gap and launched Etsy. With over 100 million product listings, 96 million active buyers, and 9 million active sellers, Etsy is a leading marketplace for unique handicrafts. In addition, the annual gross sale of Etsy was $13.16 billion in 2023. Moreover, the success of Etsy as a handmade marketplace caught the attention of established players along with startups in this niche.

• Poshmark: Poshmark is one of the greatest examples of a successful C2C (Customer-to-customer) marketplace which was founded in 2011. With 200 million listed items, 80 million active users and 7 million active sellers, Poshmark holds the record of listing 18 million items daily. It helps people find unique clothing, home decor and electronic items on the platform. 
• Depop: Founded in 2011, Depop is a popular UK-based social peer-to-peer online marketplace popularly known as a social shopping channel. With over 30 million active users, it contributes to the environment by selling vintage fashion items by encouraging people to reuse preloved or pre-owned clothing. Depop is such a marketplace where the next generation comes to discover fashion items. It allows users to buy, sell and discover secondhand clothing on the platform. According to Statista, Depop’s revenue has grown and reported $63 million in 2023.

Key Features That Make C2C eCommerce Model Work

 

– Commission-Based Revenue Model: C2C eCommerce marketplace platforms usually charge a commission on the transactions that place orders on their platform. The commission can be a percentage of the sales price, a flat fee per transaction, or a combination of both.

– Platform Management: It comprises extensive features for admin like managing seller and buyer accounts and payment processing for better C2C platform management.

– Advanced Filters and Search Capability: It enables buyers to execute their search for a specific product based on pricing and feature preferences.

– Reviews and Rating System: C2C marketplaces feature customer reviews and ratings of sellers and products, which help buyers make informed decisions.

– Product Listings: Sellers can list items for sale, including descriptions, photos, and pricing information.

How to build C2C marketplace – read this post

What are the differences between B2B, B2C and C2C marketplaces?

There are multiple differences between B2B (business-to-business), B2C (Business-to-Customer) and C2C (Customer-to-Customer) marketplaces. Let’s explore them in the below table:  

Difference Type	B2B	B2C	C2C
Target Customers	Businesses	Individuals	Individuals
Market Size	Small and Focused	Large	Medium
Transaction Type	Large Amount Negotiable Bulk Discount	Small Amount Fixed Discount on Offers	Small Amount Fixed/Negotiable Discount on Offers
Sales Cycle	Long-term	Short- term	Short-term
Focused on	Building Trust & Relationship	Product or Services	Product or Services
Business Approach	Long-term Partnership	Short-term Relation	Short-term Relation
Complexity	Complex	Simple	Simple
Quantity	Large	Single/Small	Single
Relationship Horizon	Long Term	Short Term	Short Term
Customer Services	Dedicated 24/7	Standard	Standard
Decision Maker	Multiple	Single	Single
Buying Decision	Logical Based on Requirements	Emotional Based on Desire/Want	Emotional Based on Desire/Want

Examples of Businesses That Use Multiple Models to Diversify Their Revenue Streams

Below is the name of a few businesses that use multiple business models to diversify their revenue streams and increase their chances of growth in the long run.

Amazon

Amazon is a marketplace that connects customers with multiple sellers of all sizes, including small businesses. The platform is constantly innovating and introducing new products and services to its customers.

According to eMarketer, the net sales of Amazon jumped 15%, from $110.8 billion to $127.1 billion in 2022, and are projected to grow by $746 billion by the year 2023. The reason behind such diversification in their sales is Amazon acts both as a B2C and a C2C marketplace. It is a two-sided online platform where both Amazon and third parties sell goods from multiple categories. It includes apparel, accessories, electronics, B2B products, home decor, and so on. Amazon’s own services include Amazon Prime, Amazon Kindle, and so on.

Epson America

Epson America sells a wide range of products, including printed products for home offices. It supplies printing supplies for industrial use as well, including professional imaging machines, projectors, and robots. As a result, their website caters to both B2B and B2C customers by segmenting the customers and product types.

Also, it has an extensive search capability, allowing the customers to find the ideal product by entering the name, code, or model type.

Launch an eCommerce Marketplace With a Ready-Made Solution: Yo!Kart

Choosing Yo!Kart can help in accomplishing prolific growth. It is a multi-vendor eCommerce marketplace software with all the out-of-the-box functionalities to deliver future-ready platforms. It also provides multi-channel support to diversify eCommerce marketplace revenue streams through commissions, subscription packages, paid ads, PPC, and more.

The platform includes essential marketplace features for efficient business management and marketing by the admin, easy vendor selling, enabling an intuitive eCommerce experience for buyers. The software is scalable and pre-integrated with multiple business APIs and payment gateways like ShipStation, StripeConnect, and others.

In addition to Yo!Kart, there is another specialized solution known as Yo!Kart B2B, exclusively designed to power a marketplace for B2B eCommerce. It includes specific B2B functionalities like an in-built RFQ module, support for bundled and exclusive services and products, minimum order quantity, bulk price discounts, direct messaging, and more.

Core Features of Yo!Kart eCommerce Marketplace Platform

– Separate user panels for sellers, admin, and buyers
– Abandoned Cart Management
– Advanced Analytics and Reporting
– Intuitive Product Catalog System
– Multilingual Functionality
– Shipping Management
– Tested scalability and easy customization

Conclusion

Modern eCommerce marketplaces need to purpose-drive their underpinnings to streamline workflows for all platform participants, especially prioritizing customers’ online shopping journey, ranging from browsing and purchasing to returning or exchanging products.

Thus, identifying the right business model from the start, and the requisite features to effectively implement it – can produce favorable outcomes. Hence, knowing B2B, B2C, and C2C marketplace models and what they have to offer for varying business needs, make decision-making effortless.

FAQs

Q 1. What are the primary differences between B2B and B2C marketplaces?

Ans. Below are the main differences between B2B and B2C marketplaces: 

• Target audience: The B2B marketplace targets businesses, whereas B2C marketplaces target individuals. 
• Order Quantity: B2B marketplaces deal in large volume orders. However, in B2C individual orders of one or two products mean small in quantity for personal use. 
• Product Offerings: B2B marketplaces offer tailored products but in B2C standardised products are offered.
• Customization Flexibility: B2B marketplaces provide complete flexibility for customization but in B2C there a less flexibility to customize products or no customization available. 

In addition, there are more differences between B2B and B2C marketplaces. 

Q 2. What are the different types of eCommerce marketplaces?

Ans. There are four types of eCommerce marketplaces: 

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

Q 3. Which is the most common type of eCommerce marketplace?

Ans. B2C (Business-to-Customer) is the most common type of eCommerce platform.

Q 4. How to build and launch a marketplace?

Ans. There are two primary ways to build and launch an eCommerce marketplace platform: 

• Develop a Platform from Scratch: It is a lengthy process that requires time, resources, expert developers and even more. This process can be very costly and time-consuming.
• Choose a SaaS-based solution: You can launch your online store by choosing software-as-a-service. However, there are a few disadvantages of these solutions including lack of control, limited customization, security vulnerability, limitations with integration, and more.  
• Self-hosted Readymade Solution: These solutions are ready-to-use means you can launch your marketplace in less possible time. These solutions offer complete control over your platform. 

Yo!Kart is a self-hosted readymade marketplace solution that allows entrepreneurs or business owners to launch their own eCommerce marketplace in less possible time. It is also a fully customizable and scalable solution that gives the flexibility to customize and scale the platform according to the requirements.