Are you thinking of setting up your own online business in Malaysia? Putting up an ecommerce platform can be challenging and stressful, most especially if you are a newbie in the digital landscape. You need to choose and implement your strategies carefully.
If you want your venture to flourish in the long run, you need to research on the right concepts.
One of the things you need to focus on is applying the correct ecommerce business model for
your online business ideas. Know the best model that fits your capabilities, resources and niche.
Here are the 4 primary ecommerce classifications that you must know about.
1. B2B, or Business-to-Business
B2B, or business-to-business ecommerce, pertains to digital transactions between businesses.
The organizations involved in this business model are distributors, manufacturers and wholesalers.
Important questions you must ask yourself before starting a B2B business:
o Can you enumerate your competitive advantages?
o Do you know if your target market prefers ordering in bulk?
o Do your customers require specific materials, sizes and other specifications?
2. C2B, or Consumer-to-Business
C2B, or consumer-to-business ecommerce, is more intuitive than B2B and B2C. In this business model, consumers sell services and products to a business. The most popular C2B businesses out there are Fiverr and Upwork.
3. B2C, or Business-to-Consumer
B2C ecommerce is a traditional business model that most people are familiar with. In this B2C, online retailers sell and market products directly to their end customers. While business-to- business can be more complicated, business-to-consumer is as basic as ordering a camera or book online. Online retailers dealing with the B2C model serve a vast range of audiences, and implements strategies such as influencer marketing and ads-based marketing.
4. C2C, Consumer-to-consumer
Consumer-to-consumer ecommerce businesses takes care of transactions between customers. In these platforms, people can buy, sell and exchange services and goods. They can earn a profit by charging transaction and listing fees. Unlike B2C and B2B, C2C deals with third-party businesses in order to protect customers, facilitate transactions and handle quality control.