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What e-Commerce Business Model Should I Use?
What e-Commerce Business Model Should I Use?
There are different types of e-Commerce business models out there. And with technology and creativity, new ones are coming out. But let's start with the basics.
B2B or Business to Business : This type of model, focuses from one business to another. They have custom enterprise platforms that work directly with each other. This type of business typically requires more start up cash. A popular example of this is Lazada's LaMall and Shopee's Shopee Mall. Major brands like Unilver, Samsung and others use this type of e-commerce.
B2C or Business to Consumer : This is the traditional retail model where businesses sell directly to consumers. It is the most popular model and is typically what people imagine of what an e-commerce business is. Examples of these businesses is Lazada (not LazMall), Shopee (not Shopee Mall) and other independent e-commerce websites like www.lamaristela.com.
C2C or Consumer to Consumer: Also popularized by the growth of the internet, this business model is the buy and sell model. Websites that cater to these types of businesses are eBay and Carousell (former sulit.com).
Honestly, when choosing what business model to use, it would help by analyzing your desired business with the 4Ps of marketing. Keep in mind, it is not what you want but what the market wants.
Every market has its own uniqueness, unless you get advice from someone with the exact same situation and market as yours (which we doubt you will find), it will be pretty hard to get advice on what business model to use.
Our suggestion, instead of seeking advice or looking for signs during research, execute the first business model that you can do right now. While that is going on, do the next that you can do and so on. When they are already running, you will be able to gauge which business to focus on and which to give less attention to.
As Steve Jobs once said, “you can't connect the dots looking forward; you can only connect them looking backwards.”
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