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E-commerce Business Model

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In less than 25 u years, the internet has brought the whole offline shopping experience right at your fingertips. Even the offline players are trying to fit into the online sphere just because of the online sales which are projected to account for 17.0% of all the retail within next five years.

What is an E-commerce?

E-commerce is termed to be as phenomenon when commerce meets the internet. It is basically referred to as the process of conducting trade over the internet and also known as technological development which has revoluntionalized the way of people to conduct the business. The business which are to be practiced have gone global and serve customers in the countries in which they have not dream of before. There are various types of e-commerce businesses which are being practiced which are as:

• Business to Business E-commerce: It is the model which mainly focuses on providing goods and services to other business. For example, it basically includes online marketplaces, SAAS companies and various catalogues websites.
• Business to Customer E-commerce: It is one of the most prevalent eCommerce model where all the businesses sell their good directly to the end consumers . These businesses mainly run on the traditional retail model which is used for selling the gods over internet. For example, it basically includes standard e-commerce stores, social shopping websites etc.
• Customer to Customer E-commerce model: This model basically provides a platform for consumers to sell their products to other consumers. The various characteristics of this particular platform I that seller is also termed to be as consumer of other products. All these websites are usually used for making money by charging commissions or by help of advertisements.
• Customer to Business E-commerce: It is the business practiced when businesses buy products and services from the customers. All these products and services can easily be bought from e-commerce stores and marketplaces making use of customer to business e-commerce model.

E-commerce Business Model

The e-commerce business model is the conceptual structure of B2B, B2C, C2C and C2C business strategy. It basically includes the purpose and goals of the company that how to achieve them. According to the inventory management and sourcing of products, e-commerce business models are classified into various categories which are as follows:

• Drop shipping: Drop shipping business model is a retail model where one don not have to care about the fulfilment costs. This basically involves a partnership with a wholesaler supplier who stocks inventory and deliver goods on behalf of directly connected customers.
• Wholesaling and Warehousing: Wholesaling and warehousing business model is simple when compared to drop shipping, It is basically executed on the principles of offline wholesaling. This model basically suits businesses with the guaranteed demand.
• White-labeling and Manufacturing: This model is perfect for the organizations which do not have enough investment to manufacture their own products. It basically allows an individual to outsource the manufacturing at same time when manufacturer label the product.

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