Are you familiar with the types of social e-commerce business models? How about the traditional types of social e-commerce business models? Do you know its benefits and challenges?
Want to know the answers to these questions? Read more to learn more.
Types of Social E-commerce Business Models
Business to consumer (B2C)
The most common type of social e-commerce business model is B2C. There is a lot of unique approaches under this type.
What you purchase online is a part of B2C transaction. It could be household supplies, gadgets, etc. For items that have lower value, the decision-making process for a B2C purchase is much shorter.
Because of that, B2C business model does not spend that much to make a sale. But it also has a lower average order value.
In addition, B2C does not only about buying products but services as well. The developer of this business model uses mobile applications. They also use native advertising and direct marketing to their clients. In that way, their client’s life would be so much easier during the process.
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For an instance, a mobile application called “Lawn Buddy” helps a lot to consumers. This mobile app is designed for clients to easily connect with local lawn mowing services.
Also, a mobile app called “Housecall Pro’s” can be used by home services businesses. How?
This mobile app enables tracking the routes of the deliveries, send messages to the clients, and process credit or debit card payments. In this way, both the seller and the clients can benefit from this type of business model.
Business to business (B2B)
When a business sells its product or service to another business, that is the B2B business model. Sometimes the client can be the end-user. But most of the time the buyer also resells the product to another customer.
The transaction of this business model has a longer sales cycle compared to B2B. But this also has a higher order value and return sales.
Besides, B2B developers have replaced order sheets and catalogs. They have turned it into e-commerce storefronts and developed targets in the market.
B2B business model is becoming more important in today’s generation. That is because of the online space it fills. That is also because the younger generations have been able to enter the making of business transactions.
Consumer to business (C2B)
This business model lets individuals sell services and goods to companies. Also, clients may also be asked to post their desired services and let the business have to bid for the project.
One example of this business model is Upwork. It is a platform that helping businesses hire freelancers for a specific task. This gives clients the power to name their prices. Or look for potential workers that will meet their needs.
The developers of C2B business model have effectively used this. To bind companies to social media influencers to advertise their products.
Consumer to consumer (C2C)
This business model is also known as an online marketplace. eBay and Amazon are online businesses that are examples of this business model.
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