E-COMMERCE

BUSINESS MODELS

Dr S RAJESWARI
ASSOCIATE PROFESSOR
 What Is an E-Commerce Business Model?

A business model is a company’s core framework for operating profitably

and providing value for customers. Features of an effective business
model explain the customer value proposition and pricing strategy. The
model identifies the products and services a company offers, its target
market, and future expenses.
 Eight Key Elements of a Business Model

1. Value proposition
2. Revenue model
3. Market opportunity
4. Competitive environment
5. Competitive advantage
6. Market strategy
7. Organizational development
8. Management team
Eight Key Elements of a Business Model
 Eight Key Elements of a Business Model

1.It is the description of what your product or service does to fulfill

the customers’ needs. 
2. How you plan to make money from your business through
revenue and producing a good return on capital invested. 
3. determined that you have a large target audience.
4. By knowing who your competition is, what they offer, and how
much they charge, you can work to differentiate yourself from
them. 
5. Attract more customers and grow its market share.
6. How you plan to enter the market and attract customers, so it’s
important to know how you will make your first impression.
7. How your business will run to avoid chaos and keep things
streamlined. 
8. This business model aspect will explain the experiences and
background (Company Leader)
 TYPES OF E-COMMERCE BUSINESS MODELS

● Business-to-Consumer (B2C)
● Business-to-Business (B2B)
● Consumer-to-Consumer (C2C)
● Consumer-to-Business (C2B)
 1. Business-to-Consumer (B2C) Model

● A website following the B2C business model

sells its products directly to a customer.
● A customer can view the products shown on
the website.
● The customer can choose a product and order
the same.
● The website will then send a notification to the
business organization via email and the
organization will dispatch the product/goods
to the customer
 1. Business-to-Consumer (B2C) Model

Customers can browse and

Example: Amazon
02 purchase items online, and
the businesses handle
fulfilment and delivery.

01 03
In this model, businesses sell
B2C is the most common
products or services directly
type of E-commerce
to individual consumers.
04 model.
 2. Business-to-Business (B2B) Model

● A website following the B2B business model

sells its products to an intermediate buyer
who then sells the product to the final
customer.
● As an example, a wholesaler places an order
from a company's website and after receiving
the consignment, sells the end product to the
final customer who comes to buy the product
at one of its retail outlets.
 2. Business-to-Business (B2B) Model

B2B transactions often

Example: Alibaba
involve large quantities
01 and long-term contracts.

04 02

In this model, businesses Alibaba is a popular B2B

sell products or services 03 platform connecting
to other businesses. manufacturers with
wholesalers and retailers.
 3. Consumer-to-Consumer (C2C) Model

● A website following the C2C business

model helps consumers to sell their assets
like residential property, cars, motorcycles,
etc., or rent a room by publishing their
information on the website.
● Website may or may not charge the
consumer for its services.
● Another consumer may opt to buy the
product of the first customer by viewing
the post/advertisement on the website.
 3. Consumer-to-Consumer (C2C) Model

eBay allows people to buy and

Example: eBay
sell items, with the platform
01 providing payment and dispute
resolution services.

04 02

C2C platforms facilitate

In this model, consumers transactions between
03
sell products or services individuals, acting as
to other consumers. intermediaries.
 4. Consumer-to-Business (C2B) Model

● In this model, a consumer approaches a website

showing multiple business organizations for a
particular service.
● The consumer places an estimate of amount he/she
wants to spend for a particular service.
● For example, the comparison of interest rates of
personal loan/car loan provided by various banks
via websites.
● A business organization who fulfils the consumer's
requirement within the specified budget,
approaches the customer and provides its services.
 4. Consumer-to-Business (C2B) Model

C2B platforms enable

Example: Upwork 02 individuals to sell their
skills or expertise to
companies.
01 03
In this model, consumers Upwork connects
offer products or services freelancers with clients
to businesses. 04 seeking specific services.
THANK YOU