Business Models of E–Commerce: Model Based On Transaction Party: B2B, B2C, C2B, C2C.

Notes

Study Notes

E-commerce Transaction Models

E-commerce Business Models: Transactional Party Focus

E-commerce is categorized primarily by the relationship between the seller and the buyer. These four models define the flow of goods, services, or information in a digital marketplace.

1. Business-to-Consumer (B2C)

This is the most common and recognizable form of e-commerce, where a business sells products or services directly to an individual consumer.

Characteristic Description
Transaction Party Business (Seller) to Consumer (Buyer)
Sales Cycle Short (impulse buys), simple decision process.
Value Lower average transaction value, high volume.
Goal Drive customer purchases, enhance loyalty, and provide instant fulfillment.
Examples Amazon, Flipkart, Netflix, Zomato, any retail website.

2. Business-to-Business (B2B)

In this model, the transaction takes place between two or more businesses. This sector is often larger in total transaction value than B2C, as it handles bulk goods, raw materials, or specialized services.

Characteristic Description
Transaction Party Business (Seller) to Business (Buyer)
Sales Cycle Long, complex contracts, and repeated orders.
Value High average transaction value, often high volume.
Goal Streamline supply chain, reduce procurement costs, and manage enterprise resource planning (ERP).
Examples Salesforce, Alibaba (bulk trade), EDI systems, industrial equipment suppliers.

3. Consumer-to-Consumer (C2C)

This model facilitates transactions between two individual consumers, usually through a third-party platform that acts as an intermediary for a fee.

Characteristic Description
Transaction Party Consumer (Seller) to Consumer (Buyer)
Sales Cycle Varied, often driven by unique or used items.
Value Highly variable transaction value.
Goal Provide a platform for consumers to exchange or sell personal assets.
Examples eBay, OLX, Quikr, online classifieds.

4. Consumer-to-Business (C2B)

This model occurs when an individual consumer sells goods or services to a business. This leverages the collective value of a consumer base or the specialized skills of an individual.

Characteristic Description
Transaction Party Consumer (Seller) to Business (Buyer)
Sales Cycle Project-based, contract-based, or crowdsourced.
Value Transaction value depends on skill or resource provided.
Goal Allow businesses to crowdsource services, acquire content, or utilize specialized freelance talent.
Examples Freelancing platforms (Upwork, Fiverr), stock photography sites (consumers selling images to businesses), affiliates/influencers selling traffic to brands.

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