Common models of e-commerce

The e-commerce model refers to the basic way for enterprises to use the Internet to conduct operations and obtain operating income. It also refers to the business operation methods and profit models based on certain technical foundations in the network environment. At present, the common e-commerce models mainly include B2B, B2C, C2B, C2C, O2O, etc. This article briefly compares these five e-commerce models.

(1) B2B model

B2B (Business to Business) refers to the business relationship established between merchants. For example, we can only buy Coca-Cola at McDonald's because of the relationship between McDonald's and Coca-Cola's business partners. Merchants establish business partner relationships in the hope that through what they provide, they can form a complementary development opportunity, so that everyone's business can be profitable. Examples: Alibaba, HC.

The B2B model is the longest-standing and most developed business model in e-commerce, which can quickly bring profits and returns. Its profits come from the reduction of various expenses brought about by relatively low information costs, as well as the benefits of supply chain and value chain integration. Its trade volume is 10 times that of direct purchases by consumers. E-commerce between enterprises has become the focus of e-commerce. Its applications include industry organizations that connect members through EDI networks, cross-industry transaction integration organizations based on business chains, and online timely procurement and supply operators.

The B2B e-commerce model mainly has the advantages of reducing procurement costs, reducing inventory costs, saving turnover time, and expanding market opportunities. Currently, the common B2B operating models mainly include vertical B2B (upstream and downstream, which can form sales relationship), horizontal B2B (concentrating similar transaction processes in the industry), self-built B2B (industry leaders use their own advantages to connect the entire industry chain), B2B in related industries (a cross-industry EC platform that integrates the comprehensive B2B model and the vertical B2B model) ). The main profit models of B2B are: membership fees, advertising fees, bidding ranking fees, value-added service fees, offline service fees, business cooperation promotion, inquiry payment, etc.

(2) B2C model

B2C (Business to Consumer) is where we often see suppliers selling goods directly to users, that is, the "Business to Customer" model, also It is commonly referred to as commercial retail, which sells products and services directly to consumers. For example, if you go to McDonald's to eat, it is B2C because you are just a customer. Examples: Dangdang, Excellence, Youkaite.

The main types of B2C websites include comprehensive malls (EC version of traditional malls with rich products), department stores (with own inventory and selling goods), vertical stores (to meet certain specific needs), and composite brand stores ( A combination of traditional brand owners), service-oriented online store (transaction of intangible goods), shopping guide engine type (interesting shopping, convenient shopping), online product customization type (personalized services, personalized needs), etc. The B2C profit model mainly includes service fees, membership fees, sales fees, promotion fees, etc.