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E-Commerce Business Models

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B2C - Business-to-Consumer

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A model where businesses sell directly to consumers. Characterized by online marketplaces and retail e-commerce sites. Examples include Amazon, Walmart.com.

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B2B - Business-to-Business

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Involves selling products or services from one business to another. Typically emphasizes bulk orders and long-term relationships. Examples: Alibaba, ThomasNet.

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C2C - Consumer-to-Consumer

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A platform where consumers sell directly to other consumers. Often facilitated by a third-party site. Examples: eBay, Craigslist.

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C2B - Consumer-to-Business

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A model where individuals sell products or services to businesses. Characterized by freelance services, crowd-sourcing, and auctions. Examples: UpWork, Fiverr.

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B2G - Business-to-Government

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Businesses provide products or services to government agencies. Typically involves contracts and often requires compliance with government regulations. Examples: Lockheed Martin, Northrop Grumman.

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B2E - Business-to-Employee

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A corporate model where businesses provide products or services specifically for their employees. Often used for employee benefits platforms. Examples: Corporate intranet stores, employee discount programs.

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M-Commerce

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E-commerce conducted through mobile devices. Characterized by the use of apps and responsive web design. Examples: Amazon's mobile app, Apple's App Store.

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Social Commerce

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E-commerce that involves social media platforms. Utilizes the network effect and user engagement. Examples: Instagram Checkout, Facebook Marketplace.

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Dropshipping

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A retail fulfillment method where a store doesn't keep the products it sells in stock. Orders are fulfilled and shipped by a third-party. Examples: Oberlo, AliExpress dropshipping.

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Subscription-Based Model

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Products or services are offered on a subscription basis, leading to recurring revenue. Often involves tiered pricing. Examples: Netflix, Spotify.

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Freemium Model

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Offers basic services for free while charging a premium for advanced features. Common in apps and software-as-a-service (SaaS). Examples: LinkedIn Premium, Dropbox.

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Flash Sales

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Sales of products or services that are offered for a short period of time and often at steep discounts. Built on the scarcity and urgency principles. Examples: Groupon, Woot.

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Peer-to-Peer (P2P) Business Model

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Allows individuals to directly interact and transact without intermediary. Emphasizes user collaboration and sharing. Examples: Airbnb, Uber.

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E-Procurement

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Businesses use the internet to acquire goods and services. Streamlines the purchasing process, often using specialized software. Examples: Ariba, Coupa.

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White Labeling

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A business model where products are produced by one company but rebranded by another company to make it appear as their own. Examples: Many AmazonBasics products, supermarket store brands.

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Private Labeling

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Similar to white labeling, but typically involves a degree of customization and exclusivity in the product offering. Examples: Target's Up&Up, Walmart's Great Value.

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Direct-to-Consumer (D2C)

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Manufacturers or brands sell directly to consumers without going through a retailer or intermediary. Characterized by a focus on brand and customer experience. Examples: Warby Parker, Dollar Shave Club.

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Multi-level Marketing (MLM)

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A strategy where sales representatives are compensated not only for sales they generate, but also for the sales of the representatives they recruit. Controversial due to pyramid-like structures. Examples: Avon, Herbalife.

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Group Buying

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Products or services are offered at reduced prices on the condition that a minimum number of buyers would make the purchase. Relies on collective buying power. Examples: Groupon, CrowdSavings.

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Vertical E-Commerce

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Focuses on specific product categories and offers deep vertical integration in the supply chain. Characterized by expertise in a particular niche. Examples: Zappos, Chewy.

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