Cherono Achieng - eCommerce Day Africa Blended [Professional] Experience 2023

1. Cherono Achieng
Project Management Associate - Training
and Delivery, BrighterMonday Kenya
Linkedin

2. Topic: Business Models in
E-Commerce

3. Key Concepts
1. Introduction
2. Types of E-commerce business models
3. Benefits of E-commerce Business Models
4. Challenges of E-commerce Business Models
5. Factors that influence the choice of Ecommerce business models

4. Introduction
● E-commerce has transformed the way companies conduct business, allowing them to reach
a global audience and streamline their operations.
● E-commerce business models refer to different approaches and strategies that companies
adopt to conduct online trading.
● These models define the structure of how goods and services are bought and sold in the
online marketplace. Understanding the various types of e-commerce business models is
crucial for entrepreneurs and businesses looking to establish an online presence and engage
in electronic transactions.
● Whether you’re just starting to explore E-commerce models or already have an established
digital commerce venture and want to expand your online presence, it is important to know
which model best fits your needs and requirements.

5. Types of Ecommerce Business Model
Business-to-Consumer (B2C)
● As the name suggests this model is when a
company markets its product or service directly to
consumers.
● It is the most widely known form of commerce.
● In recent years, online B2C sales have increased.
As a result many traditional brick-and-mortar
retailers have been incorporating digital channels
to reach consumers where they shop.

6. Types of Ecommerce Business Model
Business-to-Business (B2B)
● This business model involves a business
selling their products/services directly to
another business.
● While many ecommerce sites in this niche are
service providers, you’ll find software
companies, office furniture and supply
companies, and numerous other ecommerce
business models under this heading.

7. Types of Ecommerce Business Model
Business-to-Business-to-Consumer (B2B2C)
● This model is a combination of the first and the second models
where a business collaborates with another business to sell to the
end user or consumer e.g. supermarkets, bank agents, dealership
shops.
● Unlike when you white label a product - where a company
rebrands an item to present it as its own - for B2B2C the end
customer understands that they are buying a product or using a
service from the original company

8. Types of Ecommerce Business Model
Consumer-to-Consumer (C2C)
● In C2C, consumers sell goods and services directly to
other consumers. Or they can use online platforms and
marketplaces to facilitate the interaction.
● Created by the rise of the ecommerce sector and growing
consumer confidence in online business, these ecommerce
websites allow customers to trade, buy, and sell items in
exchange for a small commission paid to the site.

9. Types of Ecommerce Businesses Model
Consumer-to-Business (C2B)
● This model is when the consumer sells goods or
services to businesses.
● Influencer marketing and several common blog
monetization strategies like affiliate marketing or
Google AdSense also fall under this heading.
● This model has become an increasingly important
part of the modern economy, facilitated by the
growth of digital platforms and online marketplaces.

10. Benefits of E-commerce Business Model
● Open 24/7
● Low Business Maintenance/Operations Cost
● Operations have less hassle (Time saving)
● Effective measurability
● Capacity to handle multiple customers at once
● Wider reach of customers
● Higher Profits

11. Challenges of E-commerce Business Model
Challenge Solution
Lack of personal touch Maximize customer experience
Fear of expectation v/s reality Include as much detail on product or service as possible
Lack of Security Use multi-layered security measures and/or credible third
party agency that provide payment solutions.
Shipping and delivery hassle Choose between self-fulfillment, 3rd party logistics or
dropshipping
Marketing Costs Use targeted marketing campaigns to increase sales and
effectiveness of the campaigns.

12. Factors that influence the choice of
Ecommerce business model
• Product: The type of product your selling will determine the model choice eg Physical Products,
Digital goods or services
• Customer: Who are your customers and how would they like to shop
• Pricing: The price level of the product
• Skills + Knowledge: your capacity to handle different value chain requirements
• Investment: the financial investment requirement will lead to a model choice.
• Logistics: ability to manage value chain logistics.
• Customer experience: The desire to deliver exceptional customer experience.
• Quality: The need to deliver superior product quality