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eCommerce Business Models

Are you considering getting into e-commerce? You should first know and understand the basic types of such transactions.
By International Institute of Digital Marketing |
eCommerce Business Models

So you have decided to venture into e-commerce?

Before you dig in, it’s important to know the type of commerce you are in so you would know your overall business strategy.

“Your e-Commerce Business Structure influences everything you do in your business, from your USP (unique selling proposition) to your team structure, to your finances,” writes Chloe Thomas of “Understanding which of these your e-commerce business fits into will fundamentally change the way you run and market your business.”

According to the UK government, e-commerce or electronic commerce is the exchange of information across electronic networks, at any stage in the supply chain, whether within an organization, between businesses and consumers, or between the public and private sector, whether paid or unpaid.

International Institute of Digital Marketer (IIDM) basically has identified two types of e-commerce: buy-side and sell-side. The sell-side e-commerce or transactions involved with selling products to an organization’s customers is the more popular one and most likely what your venture is about.

The sell-side e-commerce has four types: the first one ensures online sale of products and services; second, which is more service-oriented where information dissemination is the goal; third, which is to enhance brand awareness; and the fourth type, the more complex one, is what’s considered as portal, publisher or media site.

It can further be classified as business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), and consumer-to-business (C2B).

“Classifying e-commerce businesses is tricky,” says e-commerce expert Ajeet Khurana of “We run the risk of turning it into an inconsequential exercise, or we could end up splitting hair. To grasp a deeper understanding of ecommerce concepts, it is important to ascertain the basis and purpose of classifying ecommerce businesses into types.”

Thinking of starting your own online business?

Join the CRM and eCommerce Marketing Specialist Track and learn the elements for successful eCommerce.

Log on to or call 927-0096 / 0928-506-5382 for more details.




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