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E-Commerce Business Models
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B2C - Business-to-Consumer
A model where businesses sell directly to consumers. Characterized by online marketplaces and retail e-commerce sites. Examples include Amazon, Walmart.com.
B2B - Business-to-Business
Involves selling products or services from one business to another. Typically emphasizes bulk orders and long-term relationships. Examples: Alibaba, ThomasNet.
C2C - Consumer-to-Consumer
A platform where consumers sell directly to other consumers. Often facilitated by a third-party site. Examples: eBay, Craigslist.
C2B - Consumer-to-Business
A model where individuals sell products or services to businesses. Characterized by freelance services, crowd-sourcing, and auctions. Examples: UpWork, Fiverr.
B2G - Business-to-Government
Businesses provide products or services to government agencies. Typically involves contracts and often requires compliance with government regulations. Examples: Lockheed Martin, Northrop Grumman.
B2E - Business-to-Employee
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.
M-Commerce
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.
Social Commerce
E-commerce that involves social media platforms. Utilizes the network effect and user engagement. Examples: Instagram Checkout, Facebook Marketplace.
Dropshipping
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.
Subscription-Based Model
Products or services are offered on a subscription basis, leading to recurring revenue. Often involves tiered pricing. Examples: Netflix, Spotify.
Freemium Model
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.
Flash Sales
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.
Peer-to-Peer (P2P) Business Model
Allows individuals to directly interact and transact without intermediary. Emphasizes user collaboration and sharing. Examples: Airbnb, Uber.
E-Procurement
Businesses use the internet to acquire goods and services. Streamlines the purchasing process, often using specialized software. Examples: Ariba, Coupa.
White Labeling
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.
Private Labeling
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.
Direct-to-Consumer (D2C)
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.
Multi-level Marketing (MLM)
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.
Group Buying
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.
Vertical E-Commerce
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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