6 Types of E-commerce Business Models that You Should Know (from B2B to C2G)
E-commerce is one of the most popular business models out there. A lot of startups in Indonesia adopt this business model due to its high profitability. The digital transformation in Indonesia has made selling products and services easier than ever. Indonesia ranked 4th as the most populated country in the world. With this huge population and rapid increase in internet penetration, e-commerce in Indonesia continues to blossom. According to Statista, the e-commerce revenue in Indonesia in 2020 peaked at 30 billion USD. This number is expected to reach 56 billion USD by 2025.
When we think of e-commerce, we often think about famous startups where businesses sell their products/services to consumers. Although it is true, this thought is rather narrow. There are a lot of types of e-commerce business models out there with their unique characteristics.
6 Types of E-commerce Business Model
1. B2C E-commerce (Business to Consumer)
B2C e-commerce business model is perhaps the most common and exposed type of e-commerce. This is because the B2C business model directly sells products or services to consumers (the public at large). B2C e-commerce can either act as a platform for people to sell their products/services or sell products/services under their brand. There are a lot of fast-growing startups that adopt this business model such as Shopee and Tokopedia.
2. B2B E-commerce (Business to Business)
Like its name, the B2B e-commerce business model is about selling products or services to other businesses. Businesses need a lot of equipment and services to operate and B2B e-commerce provides that by adopting SaaS (Software as a Service) as their business model. Some of the common products/services offered are software, office equipment, energy source, and many more.
3. C2C E-commerce (Consumer To Consumer)
C2C e-commerce is a business model where people can directly sell their products or services to other people. This business model is divided into two categories, marketplace, and P2P. In the marketplace, people can both sell and buy a product on an e-commerce platform such as Tokopedia and Shopee. On the other hand, in the P2P model, people can directly sell their products or services to other people without intermediaries. Some of the common P2P platforms are Instagram, Kaskus, and OLX.
4. C2B E-commerce (Consumer to Business)
The C2B e-commerce is a business model where people can sell their products and services to businesses. In this model, e-commerce just acts as an intermediary and provides a platform for people to submit their products or services. Some examples of C2B e-commerce are Unsplash and Pexels, where people can submit photos and get royalties. Another common platform is a freelancer marketplace like Upwork.
5. B2G E-commerce (Business to Government)/B2A (Business to Administration)
Like its name, the B2G e-commerce business model is about selling products or services to governmental institutions. Usually, the government will open a tender process for businesses to take part in government projects. There is a lot of variety of products/services offered such as IT support, equipment, or even air transportation.
6. C2G E-commerce (Consumer to Government)/C2A (Consumer to Government)
The C2G e-commerce business model is a platform where citizens can make transactions with governmental bodies. Some of the examples are online tax payment, BPJS payment, and many more.
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