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September 28, 2020 by Tanya Aquino

eCommerce 101: Business Models and Website Types

person on an online store

Running a business can be an incredibly exciting venture, but entering the world of eCommerce entails a ton of considerations. It is vital that you choose and apply for the right eCommerce business model, for instance, but doing so can be a huge challenge. Choose the wrong one, and you’ll end with empty hands. 

That said, make sure to begin your road to success by choosing the right model based on your target market, resources, and goals. Right after identifying your business model, should come to the right type of eCommerce website, another key player to your success.

While an eCommerce business requires intuition, nothing beats an extensive knowledge of business foundations. That said, here is an eCommerce guide for you, specifically made for beginners. We talk about the business classifications, along with the variations of eCommerce websites you can choose from. Let’s begin!

What are the eCommerce business classifications? 

All electronic commerce transactions make use of the internet to connect buyers and sellers. Transactions are classified according to their main types of transactions, whether they sell to businesses or consumers, and if they’re operating as businesses or consumers themselves.

When starting out with eCommerce, it’s important to know the distinction between these classifications. Here are the most common classifications of transactions and brief descriptions of them:

  • B2B: Business To Business eCommerce: Business To Business (B2B) models operate through businesses providing products and services to other businesses. Most businesses that operate in a B2B model fall under services, supplies, and software industries. 
  • B2C: Business To Consumer eCommerce: Unlike B2B, in which businesses sell to other businesses, B2C works like the traditional retail model. In this model, a business sells its products and services to individuals rather than companies. Brick and mortar stores operate this way, and now it’s becoming more prevalent in eCommerce.
  • C2B: Consumer To Business Ecommerce: Compared to the first two, Consumer To Business (C2B) eCommerce is a lesser-known model of eCommerce. In C2B, consumers sell goods and services to businesses. This model is typically operated by sole proprietors selling to larger businesses. 

What are the different types of eCommerce websites?

While your choice of eCommerce business model indeed is necessary, the playing field is equal—everything runs online. In other words, your eCommerce business requires the power of a good website. Here are the different types to choose from:

  1. Single brand website: This type of website is best suited for individual brands, particularly those businesses that only sell products or services from a single brand. It’s one of the most common types of website, and the best way to begin your eCommerce journey. 
  2. Online retailers: These websites are also common, but are mostly used by the bigger retailers. This eCommerce platform is best suited for online retailers owning bigger stores, particularly those that sell other brands on wholesale prices. 
  3. Marketplaces: Marketplaces are websites that accommodate individual entrepreneurs, where they’re given a space to list their products for sale. Amazon is the classic example of an online marketplace, as with eBay and Etsy. 

Setting Your eCommerce Business Up For Success 

The world of eCommerce is full of trends, and it’s easy to get caught up in the excitement of adapting the new and shiny. Unless you’re aware of the principles, however, you’ll end up hitting a wall with no means of growth. As you venture into your new business journey, keep this guide in mind. You’ll want to begin with a bang, and that means choosing the right business model and website platform for you. 

If you need help, however, IO Zoom is the place to go. We are an eCommerce growth agency in Houston, Texas, dedicated to helping entrepreneurs all over the world reach their business dreams. We provide hosting solutions across the globe, ensuring that our clients enjoy the best hosting services at affordable prices. Let’s talk business—reach out to us today. 

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