ISSN 2709-9210

Journal of Service, Innovation and Sustainable Development

Vol. 3 (2022) No. 1, pp. 14-30
DOI:10.33168/SISD.2022.0102

The Application of Business Models in Trading

Companies

Aurelija Burinskienė
Vilnius Gediminas Technical University, Business Management Faculty, Saulėtekio
al. 11, LT-10223 Vilnius, Lithuania
aurelija.burinskiene@vilniustech.lt

Abstract. The study consists of two directions. The first is devoted to the analysis
of the concept of business model in enterprises and elements of its structure; the
second is the naming and application of specific business models in companies. To
complement the research of other authors, the study deals with single-level and
two-level business models and their application in trading companies. The author
systematized the business models presented in different sources, selected the
suitable ones for trading companies and proposed their classification. An analysis
of the evolution of the term "business model" has shown that the evolution of the
term is closely related to the dynamic development of trading companies.
Classification of business models was based on the directions of development of
the trade sector. The author identified more general business models, revealing the
fundamental differences between pre-existing companies, which are included in the
proposed classification in an aggregated way. During the empirical study, trends in
the application of two-level business models in trading enterprises were revealed.
Due to the scope of the article, the practical application of multi-level business
models has not been examined and could be considered in further studies. The study
has produced the following new results for management science: new insights into
the increasing susceptibility of trading companies to new business modes; business
models that reflect the fundamental differences between trading companies are
highlighted. Analysis, statistical, comparative and other methods were used during
the study.
Keywords: Business model, trade, concept, classification.

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1. Introduction
The global economy is undergoing significant changes affecting the conditions of
people's lives, businesses, and competition. New business models are of particular
importance in such conditions. Businesses and markets are no longer limited by
geographical borders, products, which have so far been realised in closed national
markets, are now not protected from international competition. With the lifting of
more geographical restrictions, the world has emerged from a 24/7 market for the
disposal of goods and services in the E.U. Because of the new challenges, companies
adapt differently. In response to competition challenges and increased competition,
companies may choose to adopt one or more business models.
The research presented in the literature, aimed at business models, can be divided
into two groups: studies that focus on the concept of business models and elements
of their structure, and studies that are aimed at naming specific business models and
their application. To complement the research of other authors, the article examines
the concept of business models and the elements of their structure in trading
companies and reveals the variety of business models in trading companies and trends
in the application of business models in trading companies (Gasparin et al., 2021).
An analysis of the literature revealed that the authors published 348 thousand
copies on the topic of business models: scientific papers published by Oxford
University Press, Cambridge University Press, Harvard University Press, Springer, M.E.
Sharpe, Routledge, and other publishing houses. However, only 0,3 % of the scientific
papers referred to concerned business models in trading enterprises. This shows that
the application of business models in trading companies determines the need to
identify and solve such key problems:
• the application of business models in trading companies is not widely studied;
• the existing theoretical knowledge is not adequate for the post-establishments
of trading enterprises.
The research aims to define the business model, and classification, to analyze
trends in the application of business models in trading companies.
The tasks of the study are:
- to define the business model, to examine the business model structure;
- to analyse and supplement the classification of business models proposed
by other authors by selecting business models that are suitable for trading
companies and reveal fundamental differences between them;
- analyze trends in the application of business models in trading enterprises;
- define the directions of further research.
The object of the research is the application of business models in trading companies.
The study is carried out based on knowledge accumulated both in the scientific
literature (literature-driven) and based on secondary sources (empirical-driven). The
focus is on single-level and two-level business models.
The research uses analytical, statistical, comparative, and other methods. The study

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consists of an introduction, four chapters and conclusions. In the first part of the
article "Characteristics of trade and enterprises engaged in these activities", the author
presents the concept of trade, in the retail activities, the essential differences between
retail and wholesale enterprises are identified; the next part of the article "The concept
of a business model" deals with the concept of a business model, elements of the
structure of the concept of a business model, identifies the main differences between
the company model and the business model, between the business model and the
business process. the evolution of the model, between the company's strategy and
business model; the section "Diversity of business models in trading companies"
presents the classification of business models and group business models suitable for
trading companies into main groups. Later, in the section "Study on the application
of business models to the disclosure of trading practices in enterprises", the
application of two-level business models in trading companies there are presented.

2. Characteristics of Trade and Enterprises Engaged in

These Activities
Trade is the purchase and sale of goods and services. Trade is traditionally understood
as trade in the matter of commodities (tangible movable items), except electricity,
water and gas when they are not ready for sale in a limited volume or a fixed quantity.
Goods of intangible origin (digital goods) sales activities started to be carried out by
trading companies when it became possible to sell (i.e., order and supply) goods
online (Caputo et al., 2021). Goods in intangible form have become commodities that
had previously had a material form in traditional trade (examples of such goods can
be music, games, and books) (Diorio, 2001). The main difference is that goods of
intangible origin in the European Union are nevertheless classified as services.
Trade is a branch of the economy; with its development, goods go from production
to the sphere of consumption. The main activity of wholesale trade is the sale of goods
to professional consumers and companies. Before sale, goods may be sorted,
packaged, mixed, repackaged, and repackaged without changing the essential form
of the goods. One wholesaler sells goods from their warehouses and usually delivers
them to customers by their transport – this is called warehouse trade. Other wholesale
companies provide goods to customers directly from the manufacturers' warehouses
– this activity is called transit trade. Wholesalers include undertakings engaged in
buy-in trade. Mainly companies of this type are engaged in the purchase of
agricultural products and introductory secondary raw materials. Their most important
task is to buy from many manufacturers goods that are commonly used as raw
materials to produce other goods, which are sorted and completed for sale to the
processing industry.
The main retail activity is carried out in sales, but there are other forms of trade:
trade from trolleys on the streets, squares, where there is a large flow of buyers, etc.
Retail companies differ from wholesalers:

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• the retail company sells goods to customers in small quantities and often;
• the number of buyers of the retail company is much higher;
• relationships with buyers are usually anonymous, working hours are adapted
for buyers;
• at the retailer, the price of the item is more expensive than at the wholesaler;
• the retail company applies the same price policy to buyers, while large art
trading companies apply different price policies to different customers;
• a lot of attention is paid to the arrival of goods, and delivery to attract buyers.
According to the data of Statistics of Lithuania (2021), it was established that
Lithuanian retail companies purchase 60 % of their purchases from
wholesalers.

3. The Concept of a Business Model

The concept of a business model began to be used quite recently. The concept of
business model is analyzed in the literature on the topics of innovation management,
management, e-business, and company activity. The authors are still debating and
proposing different definitions of the business model. Most often, a business model
is described as creating value for the customer. It describes how it creates value for
the customer. In addition, the business model reflects the logic of the company's
business, shows what the company offers its customers, and what its relationship with
partners is. The business model is also a method of conducting a business, which
allows the company to survive.
The location of the business model in the company's business process and its links
with the organization of business without the strategy of the enterprise are still being
studied by scientists. The authors are looking for differences between the company's
model and the business model, between the business model and the business process
model, and between the company's strategy and the business model.
The literature identifies the following main differences: the company model is
mainly related to processes and activities, and the business model with value creation
and customer orientation.
In addition, the business model is usually understood as the creation and
commercialization of the value of the enterprise, and the business process model is
understood more as a business case and is implemented by changing the processes of
the enterprise.
It is more difficult to describe the difference between a company's strategy and a
business model. The main distinction would be that the business model is identified
from a practical point of view as a business system, and the company's strategy – as
the orientation of the business system to competition. This means that the business
model is part of the company's strategy.
An analysis of the evolution of the concept of business model has shown that it is
closely related to the dynamic development of trading companies. The origin and

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evolution of the term "business model" are associated with the appearance of specific
products (such as example, a printer and refill printing cartridges) in the first half of
the 20th century, McDonald's restaurants opened in the 1950s, the introduction of Wal-
Mart supermarkets in the 1960s, the opening of Home Depot's first stores in 1980 on
eBay; and the beginning of Amazon.com in 1990. Since the mid-1990s, as the
importance of technology, especially information technology, has increased, more
and more scientists have become interested in the concept of business models. In
addition, when running over the years, business models have become more and more
complex.
The practical application of the business model is always associated with the
company. In theory and practice, the business model is used to identify the main
aspects of business: organizational structure (Sundaram et. al., 2020), trade practices
and business processes.
One of them is the process (Trzmielak et al., 2018). It is a consistent process that
meets the expectations and satisfaction of customers in the case of each business
model chosen. As for the process as an element of the structure of the business model,
several actions in various areas of activity (from raw materials to the final customer)
need to be defined as an element of the structure of the business model, which will
be carried out in the creation of value for the client (Sjödin et al., 2020). In addition,
it can be mentioned that the process can also be reversed (when it comes to buying
containers or raw materials). The sale-sale process is also different for each
participant (buyer and seller) (Kristensen et al. (2019). In the literature, the following
stages of the process of buying and selling goods as a process are distinguished:
• filling in and placing an order (Kwilinski et al., 2019);
• payment for goods (Kwilinski et al, 2019). Payments for goods are made by paying
by card, wire transfer, or cash at the time of purchase or delivery of goods;
• delivery of goods. Delivery of the goods to the buyer can be carried out in several
ways: the delivery is carried out by the company itself (seller) or by the buyer
himself (Li, 2018);
• provision of post-acquisition services (Bohlin, 2004) (e.g., provision of a service
related to the guarantee provided to the goods).
Some companies apply business models focused on goods or services, depending
on which one is more dominant. In the concept of the business model the product
(commodity of material origin) or service (a product or service of non-commercial
origin) (Trzmielak et al., 2018) takes the place. The business model is the architecture
of goods and services and the flow of information between various business entities,
including their roles (Liu, 2022). Among the trading companies, some companies use
business models focused on goods (product-centric business model) to gain a
competitive advantage in the markets in which they compete. Some companies use
business models that are service-oriented when it comes to the main activities of
trading companies (service-centric business model or service-based business model).

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Such companies tend to establish closer relationships with their customers than
commodity-oriented companies do (Kindström, 2010). Linder and Cantrell (2000)
refer to the intermediate business model as "commodity plus" (commodity plus
business model). On the other hand, the income of the enterprise, first, depends on
the structure of the goods and services that the company offers to its customers.
Since the business model is the creation of value for customers, it is necessary to
mention elements of the value chain offered by M. E. Porter in 1985 (Porter, 1985).
Elements identified by M. E. Porter such as services, sales, and marketing, have to be
incorporated into the structure of the business model concept.
The elements of the structure of the concept of business model marketing and sales
are associated with a specific market for the realization of a trading company. The
organization of the sale of goods in the markets is more complicated than in the local
market, therefore, when exporting goods to different foreign markets, a separate
network of trading partners can be formed for each market. Organizing the sale of
goods in the virtual market is more complicated than in the physical market. For
marketing tools used to increase sales in the virtual space, until a critical mass of
buyers is formed, companies spend 8-13% of their sales. "Amazon.com" allocated
such funds for the first five years.
Other elements of Porter's value chain, such as logistics, operations, and
transactions, are included in the structure of the concept of the business model
indirectly, but as part of the process. The remaining elements identified by M. E.
Porter – the development and infrastructure of technology – are dependent on the
technology applied by the company and the chosen business mod. The last element
of personnel management – is included in the structure of the concept of the business
model, thinking about the role of employees in applying the chosen business model
in practice.
The elements of the structure of the concept of the business model employees,
process, and technology are associated with the specific internal capabilities of the
trading company.
Technology does not determine the choice of business model, but with the
emergence of a new technology, a new business model may be formed. Jean et al.
(2021) classified business models for electronic markets based on two dimensions:
the innovation dimension (low, high innovation) and the functional dimension (one
function, many integrated functions). Technology is an important element in the
structure of business models, especially those based on information technology (Alt
et al., 2010). If a new technology is emerging on the market, it will take time for the
technology to become faster, cheaper, more convenient, easier, and more widespread.
In addition to using the technology in the company, employees need to know about
it, test it and make the necessary improvements to business processes (Edvinsson et
al., 2022).
In the literature, several-level business models are also distinguished. A situation

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in which consumer hearing in a retail company is linked to the delivery of goods from
the manufacturer is known as a classic two-level business model. Depending on
which distribution channel participants are involved, business to business (B2B) and
business to consumer (B2C) models are allocated (Age, 2018; Alazab et al., 2020;
Lahkani et al., 2020). The business model of the business also reflects the form of
wholesale trade, and the business model of the business usually reflects the form of
retail trade (Bilińska-Reformat et al., 2018). Sustainable development concept and
creation of innovative business models by retail chains. International Journal of Retail
& Distribution Management.). The authors mention that in practice there are trading
companies that apply technologies that allow combining several two-level business
models, for example, business for business and business for consumer (Zhao et al.,
2019; Lyu et al., 2022). There are also three-level (or multi-level) business models for
business to "business-to-business" (B2(B2B) when more participants in the distribution
channel are involved (for example, in the case of a traditional distribution channel)
(Brotspies et al. 2019). The above-mentioned multi-level business models can be a
combination of various of them: one for many, many for one or many for many. In
this case, the business model can be perceived as creating the value of individual
business entities. This type of model is visible under circular business model which
involves various stakeholders (Moggi et al. (2021).
This section discusses multi-level business models and business models focused
on goods and services. The author identifies the following main groups of business
models: business models focused on different markets and corporate roles (market
and role models: intermediary business model, direct sales business model); business
models focused on revenue generation (revenue models: fixed and variable price
model, supply chain coordinator model, business model of an intermediary offering
product search in online stores); business models focused on sectors and industries
(sector and industry models: e-platform business model, auction business model,
online store business model, T.V. trading business model).
Other authors divide business models into traditional and electronic business. Jean
et al. (2021), mentioned in the previous section, presents eleven models of e-business,
and classifies them according to their degree of innovation and functional integration.
Aktymbayeva et al. (2018) introduces four categories of digital business models:
infrastructure operator model, distributor model, web integration model, and product
or service developer model. Barry et al. (2018) distinguishes mobile business models
into a separate category. Models for both traditional and electronic and mobile
businesses are still classified by the author according to the type of users (Ukaj et al.,
2009). Most often, the main business models are named according to the type of
variants, such as business for business and business for consumer. Based on their
thoughts that the ongoing processes of globalization, the development of information
technologies, the constantly increasing scale of the activities of companies, promote
the change in the processes of organization of the company, the perception of

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traditional and electronic business models, more attention is paid to e-business models
during the empirical research.

4. Diversity of Business Models in Trading Companies

The analysis of the scientific literature revealed that there are different business
models in the scientific literature. Among the presented business models are those
that are named as intended for certain branches of the economy. Trading companies
choose, evaluate, transfer, and imitate business models. They are inseparable from
the strategic decisions of companies. Therefore, the author systematizes the business
models presented in different sources, selected the suitable ones for trading
companies and proposed their classification. The classification was based on the
following cases of the concept of development of trading enterprises and the
directions of the development of the company: the possibility of introducing new
goods or their characteristics that were not known to the consumer; a more advanced
form of trade; to sell the goods on a new market to which the trading undertakings
have not entered, whether the market existed or not; to distribute goods where the
distribution of goods is unique (there is no such famous). The classification of
business models is also guided by the following criteria: firstly, the scope of the
business model is examined at the company level – it is part of the company's strategy
(multi-level models are not considered); secondly, the business models supporting
each stage of the company's life cycle and the business models associated with a
specific stage of the life cycle of goods and services are not addressed; thirdly, the
dynamic application of business models (adaptation factors and duration of business
models) is not addressed; fourthly, more general business models are identified,
revealing fundamental differences between trading companies (but in no way shining
every difference between a particular trading company).
In general, it can be noted that the proposed business models respond to current
issues, the development of trading companies, especially high competition, and the
importance of technologies, especially information technologies.
The literature for identifying the diversity of business models contains thirteen
methods, which differ in rating and popularity. It is a method of literary analysis, case
studies, interviews, an overview of secondary data, synthesis of research carried out,
a variety of arguments and views not based on empirical research, conceptual models
based on research, etc. When systematizing the business models indicated in different
sources, methods of literary analysis and observation of secondary data are applied.
Different business models are analyzed by changing the level of detail or removing
elements of the structure of the business model, but most authors present business
models as "black boxes", without naming the elements of their structure, other authors,
if the name, are not individual elements of the structure, but their groups. In this case,
because business models reflect the logic of the company's business, they are included
in the proposed classification in an aggregated way; naming a business model suitable

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for a particular product or service would normally be too small a unit for such an
analysis.
The author suggests classifying business models for trading companies into such
main groups:
• Business models related to the distribution of goods: (1) business model of trade
intermediary’s broker business model (when trading operations are carried out
through an independent one from intermediaries and agents or wholesale dealers
without the transfer of ownership of the goods). According to the U.S. Census
Bureau (2009), it was revealed that 10.4 % of the total sales of U.S. wholesalers
are sales when this business model is applied. (2) Business model for the
exclusion of participants in the distribution channel cutting out the middleman
model (instead of traditional distribution channels, companies use new
distribution channels to reach consumers in a straight-line way (without
intermediaries or distributors)) (Wigand, 2020).
• Business models related to the form of trade: (3) collective business model (3)
collective business model (when a company merges into a business system
consisting of more companies, for example when it comes to "store-in-store")
(Haridasan et al., 2018); (4) "fast fashion" business model for the sale of fashion
goods. (5) Cash & Carry business model (goods sold from a wholesale
warehouse and the buyer, not the seller, is responsible for their further
transportation) (Hu et al., 2021); (6) The "self-service" business model (a rapidly
growing business model that reduces expenditure on pre-existing acquisitions).
The essence of self-service that is a faster and cheaper still the topic of
discussions of buyers (Leavy, 2010). Briefly about each business model:
• The business model of "Shop in store" is applied in the market of a trading
company that replaces not only well-known but also new brands.
• The business model of "fast fashion" is associated with the trading network "Zara".
The business model of "fast fashion" is simple: i.e., a narrower assortment, which
increases the turnover of goods, the exclusivity of goods and reduces the risk of
brand failure. The model is special in that Zara changes the range twice a week
(Aftab et al. 2018; Lee et al., 2018; Dos Santos et al., 2021).
• Cash & Carry business model. Shoppers (retailers, professional consumers,
institutional shoppers, etc.) pay the bill in cash at the place of purchase and
continues to transport the cargo themselves. Cash & Carry is different from the
"classic" output of the wholesaler. The main differences are that the customer pays
for the goods in cash immediately (i.e., does not receive a deferral of payment)
and carries out the transportation of the goods himself (Seufert, 2019).
• "Self-service" business model. Examples of this model could be self-service fuel,
self-service containers, self-service precious metal sales equipment, self-service
drinks and snack sales machines, automatic ice cream sales machines, as well as
automatic fresh juice pressing and trading apparatus.

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• Business models related to the application of information technology. There are

more than 10 business models in this category. The peculiarity of these models
is that they include the conclusion of international and national transactions in
an electronic way, various agreements, and forms of business cooperation. The
following are the most important of them: (7) a business model that includes
processes on the website and in-store - bricks and clicks business model (a chain
of stores that allows the consumer to order goods online, but he collects his order
at the local store) (Jimenez et al., 2019); (8) a business model for buying online
e-shop business model (e-shop is an expanded online presentation of goods and
goods. Information about the goods becomes available potentially without
defining a certain number of buyers. On the Internet, buyers realize their need to
serve themselves) (Simakov, 2020); (9) An e-shop operating in the vicinity of
other e-shops (E-shops on e-mall) (when there is an e-department store in the
virtual space) (Hoyer et al., 2009); (10) Auction Business Model (10) e-auction
business model (when the seller demonstrates his goods, meets the buyer to
coordinate the conditions of trading and enters into a transaction in the virtual
space) (Xia et al., 2021); (11) Digital business model (11) digital business model
(for the healing of the rights of a license, rights to intangible products (rights to
listen, to watch a copyrighted work) or to the intangible goods themselves –
digital books, video films, music, etc. Companies selling intangible goods differ
in their nature: for example, they invest in information technology databases,
they do not need to invest in the stock and physical storage of goods) (Tian et
al., 2008);(12) The business model of the electronic platform (E-platform) e-
procurement business model (a third-party platform that helps the buyer meet
with the seller and exchange electronic purchase documents when the same
standards for data exchange are used) (Chang et al., 2020). Based on the data of
Edisoft, it was revealed that 420 trading companies use electronic platforms in
the Baltic States for the transmission of purchase documents (Edisoft, 2021).
According to the U.S. Census Bureau (2009), 11.1% of all U.S. wholesalers'
sales come from sales using this business model.
• Business models that allow shoppers to buy goods while staying at home (2006)
home shopping): (13) direct sales business model direct sales model (where
goods are shown and sold to consumers of goods and delivered directly in person)
(Sarkar et al. 2022); (14) Business model for television trading T.V. shopping
business model (the seller shows the goods on television, enters into a transaction
with the buyer on the national market, and, upon its conclusion, delivers the
goods to the specified address) (Jimenez et al., 2019). According to the U.S.
Census Bureau (2009), it was revealed that 2.2% of all sales of U.S. retailers are
sales using the business models named in this category.
These models also include the above business models 8, 9 and 11, where the
purchaser is a consumer who not only orders goods of material and intangible origin

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while at home but also receives them directly to the house.

• Business models focused on revenue generation: (15) franchise business model
franchise (franchise is an alternative to the chain of stores used by the company
to distribute goods through the distribution channel while avoiding significant
investments and liabilities) (Miranda, 2020); (16) Open Access Business Model
(2006) open-access business model or limited free content (the company delivers
goods of intangible origin on the Internet or allows you to download a certain
amount of information (book section, film series, video clip, etc.) free of charge,
but requires an additional reward for sending more information (Bogers et al.,
2019).
To remain competitive in an ever-changing business environment, companies need
to be able to adapt business models to the external and internal factors that affect
them. In conclusion, the presented list of business models is not exhaustive, but the
systematized business models mentioned in different sources are considered suitable
for commodity-boss companies. In addition, the presented classification of business
models is unique, adapted to trading companies and complements the classification
of business models proposed by other authors. Furthermore, the article's author did
not examine how the main parameters of trading companies changed with the
introduction of one or another business model. This could be the direction of further
research.

5. Study on the Application of Business Models to the

Disclosure of Trading Practices in Enterprises
The empirical study aims to reveal trends in the application of two-level business
models in commodity sales companies. For this purpose, the Planet Retail database
and information published by statistical authorities are used.
Based the Planet Retail (2021) database (www.planetretail.net, which covers 2,910
retail companies (140 countries around the world), it assesses how companies apply
business models. All companies included in the Planet Retail database are engaged
in traditional retail trading. The database also includes 20 Lithuanian trading
companies, whose total turnover, according to the author's calculations, accounts for
23% of the total turnover of Lithuanian trading companies. To avoid inaccuracies in
the study, the practice of applying business models is examined in the countries with
the highest number of pre-existing companies included in the Planet Retail database.
Non-random selection is used during the study. The size of its sample shall be
determined by statistical analysis. The confidence interval of the results of the
investigation (which is assessed against trading companies in the European Union)
was found to be 3.14 %.
The investigation found that 12.9% of retailers (377 companies out of 2910
companies) use the business-to-consumer model for online sales.
It also assesses how retailers apply the business-to-business model. The analysis

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showed that this model is used by 8,4 % (244 companies out of 2910 companies,
among 244 companies 190 companies are owned by multinationals as branches).
Most often, the business-to-business model is used in trade with professional
consumer-them, i.e., offices and catering establishments.
Among national retailers, 12% (54 companies out of 440 companies) apply the
business-to-business model. Among multinationals engaged in retailing, 19 % of the
groups of companies (57 groups of companies from 300 groups of companies) apply
the business-to-business model, while among branches of multinationals, 32.4% of
branches (190 branches from 586 branches belonging to 57 groups of companies)
apply the business-to-business model. This indicates that international branches of
companies are taking over the business model already applied by the mother
companies.
An analysis of the application of the business-to-business model in retail
companies has shown that the business of an international company engaged in retail
trade – applies the model more actively to business than national companies,
including business to business – application between branches of international
enterprises.
According to the U.S. Census Bureau (2009), it was also revealed that 4.4% of all
U.S. retail sales are sales when the business model translates to online sales.
When examining the application of the two business models together, it can be
noted that businesses will translate the model together with the business model for
online sales (2012) emerging business models, applied by 45 retail companies out of
2910 included in the Planet Retail database, representing 1.5%.
According to the data of statistical institutions, it is assessed what business models
are applied by wholesalers. It has been established that Lithuanian wholesaler apply
the business model to the consumer (their direct sales to the population account for
5% of trade revenue) (Statistics of Lithuania, 2021). In addition, it is noticed that in
Lithuania the model for online sales (when goods are sold directly to the population)
is applied by wholesalers such as Sanitex, Acme, GNT Lithuania, and Ratanas. Also,
according to the U.S. Census Bureau (2009), it was revealed that 16.5% of all sales
of U.S. wholesalers are sales when the model business is used for online sales.
There has been a trend showing that the boundaries between wholesale and retail
are gradually blurring wholesalers that applying the business model to the consumer
and selling goods to end-users online; business – a business model and sells goods to
other companies (usually offices and catering companies).
In addition, it is noted that much attention should be paid to business models based
on several business models in the future.

6. Conclusions
In order to complement the research of other authors, the article examines the
definition of business models and the elements of their structure in trading companies.

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The author notices that trading companies are geared towards change – the
application of new business models promotes the dynamic development of trading
companies. International trade companies (parent companies and their branches) have
benefited from particularly dynamic development.
The results of the empirical study showed that cross-border retail companies are
more active in using two-level business models than national companies, including
the application of business models in branches of multinationals.
The empirical study concludes that the gap between wholesale and retail trade is
narrowing. In trading companies, several business models are more often used, which
until now was not typical for trading companies. For example, U.S. wholesalers use
at least three business modes: business for business, e-platforms, and business for the
consumer. On this basis, it is proposed in the future to pay greater attention to business
models that are emerging based on several business models.
Further research should extend these studies to the following directions: firstly, in
the direction of practical examination of multi-level business models, where they
involve the participants of the distribution channel from producer to consumer; on
the basis, the direction of emerging several business models; fourthly, in the direction
of identifying business models suitable for specific goods or services, both
concerning specific goods and services and their life cycle; other directions, both in
the analysis of elements of the structure of the business model and in the classification
and application of business models.

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