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Types of Online B2C Business Models

A few primary types of online B2C business models used by companies include the following:

• Marketplaces-Sales on Amazon, eBay, Alibaba, etc.
• Online “Go-Between” Sellers—Internet sites like Etsy, Expedia, Trivago, etc. fall into this category, as they do not actually own products or services, rather place sellers and buyers together.
• Direct-to-Consumer Fee-Based Site-Sites like Netflix charge a fee for access to their content just as large newspapers like The New York Times do
• Online community-based sellers—Facebook and other similar sites that build shared-interest communities help sellers promote their product via advertising to consumers who were a part of the community. The demographics and geographical location of consumers will target the ads they see directly to them.
• Direct sellers—This is, by far, the most common model where consumers purchase items from online retailers. Small businesses, online versions of department stores, or manufacturers all fall into the direct seller category.

B2C vs. B2B

While consumers buy products for their personal use, businesses buy products to use for their companies. Since large purchases typically require approval from the heads of the company, the purchasing power of a company is much more complex than the purchasing power of a consumer. Further, consumers generally pay the same price for the same products in B2C, while pricing structures can differ significantly in the B2B business model. Businesses tend to negotiate prices and payment terms, while consumers rarely have that option.  Think about it like this: Business users must continuously think about how a product helps them better serve their customers; if a B2B buyer sees no benefit in a partnership with a company, there is no chance of winning their business.

This means value propositions must be made clear by speaking to them on their own terms. In B2C business, you are speaking to thousands and thousands of consumers, but also only to one consumer—one single buyer. B2B buyers tend to base their buying decisions on logic and information, while B2C buyers tend to base their buying decisions on emotion. B2B sellers form long-term relationships with their vendors, while B2C sellers are more likely to form a quick, one-time relationship that could possibly translate into future sales, but most will not.