As per statistics, the U.S. ecommerce economy is worth $349 billion and China’s ecommerce economy is worth $562.66 billion. To be a part of this growing ecommerce ecosystem and enthralling economy, your business plan for ecommerce startup must be ready soon. Opportunities are obtainable out there, you just have to identify them before others.
Research plays a big role in planning an ecommerce business; the mistakes committed by failed startups demonstrate this state. It all starts by knowing which business model is a good fit for you.
Business – to – Consumer (B2C)
Choosing business to consumer model comes with several advantages such as availability of tools and expertise, ready to deploy platforms, etc. Major players include Amazon and eBay which enable businesses to sell online to consumers
- Cost effective
- Availability of expertise
- Ready to deploy tools and platforms
- Too many players in the industry
Business – to – Business (B2B)
The business to business model has seen tremendous acceptance ever since ecommerce became a household name. The biggest name in this segment is Alibaba with an annual turnover of USD 14.7 billion. However, as alluring this segment may appear, sustaining your B2B ecommerce business requires you to know both, who can provide you goods in bulk and those who can buy from you in bulk.
- Great market opportunity due to less competition
- Delivering orders on time in bulk
- Warehousing and other operational difficulties
- Obtaining bulk orders
Also Read – How to Attract Customers to your Ecommerce Marketplace?
Consumer – to – Consumer (C2C)
The biggest example in the C2C ecommerce segment is eBay. More recent examples in the ecommerce ecosystem include Airbnb, where people list available accommodation and travelers from around the world can pay the rent to experience life while living as a local.
- Easy to facilitate as per the demand
- Less budget needed to setup
- Quality service is hard to maintain
- Wrong information can mislead and create distrust
- Lack of payment guarantee
Also Read – About to Start an Ecommerce Business? Know How to Overcome These Common Hurdles First
Business – to – Government (B2G)
The government outsources work on contract basis to businesses that can offer their expertise and provide quality solution to government. It can be seen in many sectors such as Construction, Information Technology, Healthcare, etc.
There are many ecommerce projects as well, which the government needs help with. However, there are certain challenges associated with the business to government model as well.
The business to government model adds convenience to the lives of citizens. This can be seen when one tries to pay tax. More examples include online registration of documents such as passport, birth certificate, death certificate, vehicle registration, etc.
- Great opportunity to earn huge profit
- Simplifies operational process by bringing convenience to citizens
- Needs large capital and quality certifications before taking up the order
- Carried out on a large scale so extensive product testing needs to be done
Choose a platform with advanced features for your ecommerce website
Choosing a successful ecommerce business model depends on a lot of factors. Not sure which one will suit your ecommerce business idea? Drop a query and our business consultants will get in touch with you.