Options range from B2C, B2B, C2C, C2B, subscription-based, drop-shipping, and hybrid models. Little Big Shop can cater to your needs no matter the model that you ultimately choose.
Let’s look at these in more detail!
What ecommerce
business model
is right for you?
When deciding which ecommerce business model is the best fit for your company, consider your goals, the people you want to reach, and the marketplace gaps you plan to fill.
Your ecommerce business model options
Business to Consumer (B2C)
The most prevalent type of ecommerce, Business-to-Consumer (B2C), involves the direct sale of products or services to individual customers. This includes online stores, as well as services like online travel and ticketing agencies.
B2B (Business-to-Business)
This form of commerce is prevalent in areas such as manufacturing, procurement, and wholesaling, where one business sells goods or services to another.
C2C (Consumer-to-Consumer)
This ecommerce model involves individuals buying and selling goods or services to each other, usually through a virtual platform such as eBay or Etsy.
C2B (Consumer-to-Business)
This form of ecommerce consists of customers providing products or services to companies, usually by means of a web-based platform such as Upwork or 99designs.
Subscription-Based
This form of trading involves customers making a continuing payment to be able to use products or services on a regular basis. For example, streaming services such as Netflix and food delivery services such as Blue Apron.
Dropshipping
This ecommerce business plan consists of selling items produced by another entity and sent directly to the consumer. The ecommerce company acts as the go-between, executing the advertising and sales of the products and taking a percentage of each sale.
Hybrid
This type of ecommerce involves a mixture of two or more of the standard business models. For instance, a company could offer both physical and electronic products, or it could provide merchandise to both individual customers and corporate customers.
FAQs
What are the main points to consider with a dropshipping ecommerce model?
Dropshipping is an advantageous business model due to its low start-up costs, flexibility, scalability, and lack of need for warehouse space. It allows businesses to offer a wide range of products without the risk of investing in large quantities of inventory.
Conversely, dropshipping can be a challenge as it gives less control over the supply chain, resulting in increased competition and lower margins. Additionally, the business is heavily reliant on its supplier and shipping and handling costs can be higher than other fulfilment methods.
What do I need to consider when choosing an ecommerce business model?
When choosing an ecommerce business model, factors to consider include the target audience, products/services, competition, scalability, logistics/fulfilment, cost, customer service, and legal/regulatory requirements.
Each factor can affect the success of the business and should be taken into account when deciding on a business model.
It’s important to carefully consider all of these factors when choosing an ecommerce business model, as your choice will impact many aspects of your business, from logistics and fulfilment to customer service and marketing.
What products or services are commonly sold through a subscription based ecommerce model?
Subscription-based ecommerce models are popularly used to sell a variety of products and services, such as streaming services, SaaS, physical products, fitness and wellness, entertainment, and business services. These include popular services like Netflix, Amazon Prime Video, Microsoft Office 365, meal delivery services, online gaming, online music streaming, and virtual HR services.
The key characteristic of this model is that customers pay a recurring fee to access the products or services, which creates a predictable and recurring revenue stream for the business.
What products/services are commonly sold through a B2B ecommerce business model?
B2B ecommerce businesses commonly sell a variety of products, such as wholesale goods, manufacturing components, business services, software and technology, and business supplies. Examples of these products include industrial equipment, raw materials, office supplies, enterprise software, and office furniture.
What are the main C2C ecommerce platforms used in Australia?
Here is a list of some of the main Consumer-to-Consumer (C2C) ecommerce platforms used in Australia:
- eBay
- Amazon
- Facebook Marketplace
- Gumtree
- Carousell
- GraysOnline
- Trade Me
- Catch
- TheMarket
- OzBargain
C2C platforms are popular among Australians for buying and selling a variety of items from clothing to electronics. It is important to research the different platforms and their features, fees, and target audience to find the one that best fits one’s needs. Gumtree and Facebook Marketplace are two particularly popular ones in Australia for buying and selling goods locally.
What is Print On Demand?
Print on Demand is when you submit a design and the third party will print your design when you receive an order.
What is Retail Arbitrage?
Retail arbitrage is when you buy a product for a low price, often from a retailer, and then sell them directly to consumers.
What is Private Labelling?
Private labelling is when a product is manufactures by a third-party manufacturer and sold under a different label.
What is Affiliate Marketing?
Affiliate marketing is when you link your audience to a product and if they buy it you receive a commission.
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