Discover all the answers to your queries about eCommerce business, the right business models, and different types of eCommerce websites.

1. Types Of eCommerce Websites And
Models
Online shopping has become a popular trend today. A
trend with no geographical or age boundaries. From
small townlets to heavily populated suburbs to little
kids and senior citizens, everyone is adding to the
cart.
As it is convenient, offers better deals, access to a
wide range of products, contactless transactions, and
so much more.
This seismic transformation has created a compulsion
among brick-and-mortar store owners and businesses to
adopt eCommerce to operate their businesses and serve
their customers.
While numerous businesses have paved their way toward
eCommerce and become successful, some are still in a
fog about the types of eCommerce websites and which is
best for your business.
Fret not. We have got you covered! Read this article
and discover all the answers to your questions about
eCommerce business, the right business models, and
different types of eCommerce websites.
What Is An eCommerce Business?

2. Simply speaking, eCommerce business refers to operating
a business online. Numerous types of online stores can
manage, sell, interact with customers, and perform
almost all operations digitally.
Business owners leverage different platforms and
technologies to facilitate customer transactions to
generate revenue, expand the business, or achieve a
desired goal.
What are the Benefits of an eCommerce Business?
 Better inventory management
 Reduced overhead costs
 Efficient logistics tracking
 Scalability
 Seamless customer management
 Access to a wider range of audience
 No geographical boundaries
 Round-the-clock availability
 Quick response to customer and market demands
 Comprehensive analysis and accurate reports
So far, we have sketched a portrait of an eCommerce
business and its benefits. Let us jump to knowing why
eCommerce business models are essential.
Also Read: What Are The Benefits Of A Website For Small
Businesses
eCommerce Business Models: Why
Are They Important?

3. Identifying a suitable business model is vital for new
and established digital businesses to structure and
operate an online eCommerce business seamlessly.
Choosing the right model helps you form an elaborate
strategy. It is the initial step in figuring out your
target market, determining a proposition value, and
gaining competitive advantages. They can even help you
reach your desired conversion rates in your
eCommerce sector. The model will also help you outline
the primary mode of earning revenue.
Selecting an appropriate business model also helps
enhance the customer experience. Your model should be
customer-centric to ensure customer satisfaction, gain
loyalty, and outshine competitors.
It is equally crucial for operational efficiency and
growth. A suitable model will define the supply chain
and streamline the overall operational process. You can
adapt to the growing market, explore new markets, and
pave your way to bigger and better opportunities.
Also Read: What Is A Website Name?
5 Different Types
Of eCommerce Models

4. Discover the diverse world of eCommerce models, each
offering unique approaches to online business. Let’s
explore the wide range of possibilities.
1. Business to Business

5. As the name suggests, the B2B model pivots around
generating revenue by selling online to businesses.
This model does not focus on consumers. Instead, it
emphasizes the transaction between one company selling
to another business.
Businesses like Mailchimp, IndiaMART, Alibaba, etc.,
are prominent examples of this category.
An example of this model is a software company or
marketing firm selling its products and services to
another corporate client. Another example is a supplier
selling raw materials to a manufacturing company.
2. Business to Consumer
Business to Consumer, also known as B2C, is a retail
business model that revolves around selling directly to
consumers digitally.
To simplify, no other brand or platform will mediate
between you and your customers. You sell your products
or services firsthand to your customers, skipping
third-party retailers and platforms.
Brands like H&M, Zara, and so on fit into this category.
These clothing brands build customer relationships by
selling their products to shoppers.
3. Consumer to Consumer

6. Also recognized as C2C, this model is centered around
consumers selling their goods and services to other
consumers digitally.
Generally, the transaction is conducted via online
mediums such as websites, social media accounts, etc.
Companies like eBay, Etsy, AliExpress, and Amazon
Marketplace are included in this category.
Although C2C models are not limited to these popular
companies. The C2C model can also be leveraged by
individuals. For instance, a teacher tutors a student
of another parent, or a pet sitter takes care of an
individual’s pet.
4. Consumer to Business
This fourth model, also known as C2B, is centralized
around fostering eCommerce transactions between
consumers and organizations.
And no, this model is not similar to B2C. Unlike B2C,
C2B is all about the end-user serving as a supplier or
wholesaler and offering its services or products to
businesses, which in this case are clients or
customers.
For instance, the end user may sell paintings,
handicrafts, or any other piece of artwork to
businesses. Another example of this model can be
freelance designers who offer their creatives on

7. Freepik and Shutterstock to earn a certain percentage
when someone downloads it.
5. Direct to Consumer
Direct to consumer, also recognized as D2C, is a
digital eCommerce model that prioritizes selling
directly to consumers. No third parties or
intermediaries are involved in this transaction.
You might be wondering if B2C and D2C are similar. Let
us shed some light by saying that they are relatively
distinctive. The B2C model has multiple distribution
channels, offline and online, and they also rely on
third-party retailers.
Whereas D2C is all about online selling. They don’t
depend on mediators or retailers to reach end customers.
Their marketing channels are eCommerce websites, mobile
apps, social media platforms, and so on.
An example of D2C is Netflix. This media streaming
platform offers different packages to end users.
Another example is Warby Parker. This eyewear company
revolutionized the industry by sending customers
prescriptions for glasses and sunglasses.
Since we have given you an overview of different types
of eCommerce models. Let us jump straight to the types
of eCommerce websites.

8. Also Read: Blog VS Website: The Difference You Need To
Know As A Beginner
4 Different Types
Of eCommerce Websites
Let’s explore the diverse world of eCommerce websites,
having each with its unique approach to online shopping.

10. 1. Single Brand Website
As the name suggests, this type of website refers to
promoting and selling the products or services of a
particular brand. Single-brand websites primarily focus
on offering services and representing a single brand.
The main idea behind creating a single-brand website is
to raise brand awareness, offer digital availability,
explore a range of products, and make direct
purchases.
Also Read: 7 Best CMS For Building An eCommerce Website
2. Marketplaces
You guessed it right! Online marketplace refers to
eCommerce sites that help shoppers to make online
purchases from any corner of the world. Generally,
retailers, wholesalers, or individual entrepreneurs are
listed on this marketplace, allowing buyers to purchase
discounted products.
Renowned websites like Amazon, Myntra, and Flipkart are
examples of online marketplaces.
3. Online Retailers

11. Online retail, or e-retail, refers to eCommerce
websites that ease the journey of sellers offering
goods and services directly to customers. The goal
of creating this eCommerce website is to provide
digital availability and increase the customer base.
Most online retailers operate their businesses through
the medium of digital platforms. However, numerous
manage offline and online businesses.
An excellent example of this type of website is Zappos.
Zappos is an online retailer whose focal point is to
sell footwear and accessories to customers with free
shipping and easy returns.
ASOS is another fantastic example. ASOS is an online
fashion and beauty retailer that emphasizes launching
fast-fashion clothing and accessories for men and
women.
4. Affiliate Websites
Affiliate websites refer to promoting and selling other
businesses’ products on your website to gain a certain
amount of commission upon each sale. It works when
potential buyers click on affiliate links or buy
through recommendations. You get a pre-determined
commission or referral fee when a product or service is
purchased.

12. Affiliate websites are a fantastic opportunity for
people who want to earn passive income while gaining
active income. The promotion or selling is not limited
to a single brand. You can explore various niches and
promote them on your website.
Previously, we discussed eCommerce models and websites.
Next, we will give you a synopsis of revenue models.
Also Read: 17 Top Technical Requirements For
Your eCommerce Websites
7 Revenue Models
For eCommerce Websites
Here are the proven revenue models to maximize your
eCommerce website’s profitability. Explore these
options to make an informed and wise decision for your
business.

13. 1. Dropshipping
Dropshipping allows customers to place orders from your
website digitally, although the original supplier will
take care of the shipping, storage, and procurement of

14. those orders. Generally, you get a certain amount of
revenue when a customer orders from your website.
Websites like Notebook Therapy, Until Gone are the best
examples of this revenue model.
2. Subscription
The subscription revenue model is like a recurring
payment model, where an individual or customer pays X
amount of money monthly to your website to access your
services. This model is primarily offered by businesses
that provide access to a wide variety of content,
software platforms, and so on.
Netflix, Adobe, Spotify, and Porsche Drive are a few of
the many examples of this revenue model.
3. Private Labeling
Private labeling refers to the process of making,
labeling and selling products under your brand name.
This type of revenue model does not involve any third-
party manufacturers or makers. All the operations and
development are conducted internally.
This revenue model is terrific for business owners who
want to outperform their competitors while offering
unique products to make a difference in the market.

15. Brands like Zara, Nike, AmazonBasics, and Up & Up by
Target are a few well-known brands synonymous with this
revenue model.
4. White Labeling
White labeling refers to the manufacturing or
purchasing of a product by a third-party manufacturer,
which is later sold by rebranding under your brand name.
The practice of white labeling is exercised by numerous
organizations such as cosmetics, consumer goods,
software, etc.
CVS Pharmacy, Walmart, Trader Joe’s, and many other
companies and brands engage in white labeling.
5. Wholesalers
Wholesaling refers to a wholesaler mediating between
the manufacturer and the retailer. Being the bridge
between these two parties helps the wholesaler gain a
certain amount of revenue from the manufacturer.
This model hugely depends on the wholesalers, as they
get to provide insights on which products are sold at
their peak and which are not generating enough revenue.
All these insights help the manufacturer plan the stock
accordingly.
Mckesson Corporation, Grainger, and Fastenal are some
of the leading distributors.

16. 6. Rent & Loan
This type of revenue model works by a customer or end-
user leveraging the product or service on rent or
borrowing it as a loan. End users can pay the money
after they have used the product or service.
Recognized brands, such as Car Rental, ZoomCar, and
many others, are ideal examples of this revenue model.
7. Freemium
Interesting name, right? The revenue model is equally
interesting. This type of revenue model is all about
utilizing the free version of products or services with
limited features. The main agenda of this model is to
get netizens to sign up and, hopefully, buy the premium
version.
Spotify, HubSpot, Zapier, Evernote, and many others are
some of the perfect examples fitting into this revenue
model.
Also Read: How Can You Make A Website Look More
Professional?
Frequently Asked Questions

17. 1. Does eCommerce Have A Future?
Absolutely! eCommerce has a bright future. This ever-
evolving industry will continue to thrive as a number
of netizens shift towards purchasing through eCommerce
websites.
Further, technological advancements, increased internet
penetration, and changing market dynamics will also
pave the way for the flourishing future of eCommerce.
2. Is eCommerce Profitable?
eCommerce is a lucrative business. However, it would be
best to consider certain factors such as business model,
competition in the market/industry, operational
efficiency, pricing strategy, and current market
conditions.
Once you crack this code, nothing can stop you from
maximizing profitability in your business.
3. Is eCommerce The Future Of India?
Indeed! According to experts at Bain in the industry,
the Indian eCommerce market is expected to grow by $170
billion by 2023. As for the customer base, IBEF says it
is estimated to reach 500 to 600 million by 2030,
becoming the 2nd largest global eCommerce market.
These numbers certainly reveal the future of eCommerce
in India.

18. 4. Which eCommerce Business Model Is
The Most Successful?
The most preferred and successful eCommerce business
model at the moment is B2C, as it falls under the
standard retail model. However, this does not
necessarily mean that this model is the right fit for
you.
Choosing a successful eCommerce business model greatly
depends on your industry, target market, offerings, and
business goals.
Different models have unique strengths and can be
successful in their niches. Although, you have to make
the right choice by considering every requirement of
your business.
Conclusion: Which Revenue
Model To Choose?
The choice of the revenue model is entirely dependent
on you!
That’s right.
Asking questions like what is your business, which is
your industry, who is your target market, what is your
competitive landscape, what are your offerings, and
what is the growth potential? will help you figure out

19. the right eCommerce revenue model for your digital
business.
Remember that your ideal revenue model can also shift
as your business grows. Hence, be adaptive to changes
for the foreseeable future.
Source - hostitsmart.com/blog/types-of-ecommerce-business-websites-and-
models/