A couple of years ago, there were only a few e-commerce businesses with a small pool of consumers still struggling to understand the benefits of buying things online rather than in-store.

Fast forward to our time, there are millions of e-commerce businesses representing different models and serving a global audience.

Now, people would rather shop all day on their smartphones and track their orders easily, instead of driving several miles to get to a brick and mortar shop with limited product inventory.

Even the latest eCommerce websites allow visitors to either shop or browse through their gallery of different products in several niches ranging from electronics, home decor, wears, books and just anything you could think.

Did eCommerce improve or did people begin to understand its usefulness?

The answer to both sides of the question would be YES.

eCommerce has evolved through the years with improved payment options, automatic order processing, faster shipping, more developed UIs, and different innovative models as we’ll learn shortly.

These significant improvements are the reasons why people started to understand the usefulness of eCommerce and embraced it to the current levels.

However, given the millions of e-commerce businesses in existence, there could be confusion about what form of practice to classify as an e-commerce business model.

The confusion could even become a significant challenge for individuals or organizations who want to join the eCommerce industry.

Well, in this article, we dive into the types of e-commerce business models and afterward, discuss the pros and cons of running an e-commerce venture using any of them.

Before we get to that, let’s define what a business model is.

A business model refers to a plan for the successful operation of a business and how it relates to existing products or services in the industry. It also encompasses the revenue sources as well as the potential customer base.

Now that we got that let’s get to the core business models that exist in the eCommerce industry.

Types of eCommerce Business Models

There are primarily six eCommerce business models :

• Business-to-Business (B2B)
• Business-to-Consumer (B2C)
• Consumer-to-Business (C2B)
• Consumer-to-Consumer (C2C)
• Business-to-Government (B2G)
• Consumer-to-Government (C2G)

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