Ecommerce Business Models | 10 Topmost Best Hybrid Store Picks

Before talking about Ecommerce Business Models, it’s good to note that there are approximately 110,000 eCommerce websites generating revenue of meaningful scale on the internet. Whereby, more than 12% of the 100,000 highest-traffic websites are ecommerce based. Not to mention, the density clearly declines to about 10% for the long tail.

eCommerce Websites are the most important online tools that your business needs. In fact, it’s your Online Shop. For instance, research has it that buyers are shifting to online shopping. Given the huge number of people who have access to smartphones and computers. As such, you’d want to learn how to handle inventory management and sourcing products.

But, choosing the best eCommerce platform is not an easy task. The market is wide and there are many factors to consider. Your choice has a lot of impact on your online business, so it’s important to give it enough thought before signing up.

Important to realize, that trading, be it barter exchange or buying and selling of goods and services has been prevalent for centuries. Of course, no one can be self-sufficient. This brings out the need for demand and supply of goods and services.

What Are Ecommerce Business Models?

Ecommerce Business Models of all types are thriving. Sales from online stores are expected to increase 385% this decade. It’s easy to get caught up and excited in the latest ecommerce trends, but unless you know the fundamentals, you’ll hit a profitability wall without knowing it.

A booming ecommerce business takes intuition, knowledge of your market, a solid business plan, and careful research into products and business models. But, one of the biggest hurdles most newcomers to the space face is easy to solve.

Resource Guide: The Ultimate List of Business Analysis Models | With Editable Templates

Many would-be ecommerce business owners just don’t know how ecommerce businesses are set up. They also do not know what different types of ecommerce are available to them. If you want to ease into an ecommerce juggernaut, I’d suggest you start a hybrid ecommerce, affiliate store.

You’ll need to familiarize yourself with each type of business model before you start your ecommerce business. You’ll also need to identify an ecommerce platform that suits your preferred business model’s needs.

The Main Types of Ecommerce Business Models

As of today, the role of Ecommerce Business Models is a must for the survival of eCommerce Websites. But, What are eCommerce Websites? I know you may ask yourself that question too. Well, eCommerce websites are online portals that facilitate online transactions of goods and services through means of the transfer of information and funds over the Internet.

In the early days, e-commerce was done partially through emails and phone calls. Now, with a single website, anything and everything that a transaction needs, can be executed online. Whether online or offline, transactions have been going on all over the world for centuries. May it be, locally, and or even across locations. Use the same concept to think electronic.

e-Commerce, also known as e-Business, or electronic business, is simply the sale and purchase of services and goods over an electronic medium, like the Internet. It also involves electronically transferring data and funds between two or more parties. Simply put, it is online shopping as we commonly know it. Below are the key Types of Ecommerce Business Models.

1. Business-to-Business (B2B):

Electronic transactions of goods and services between companies. Example: A business sells SAS products to other businesses.

2. Business-to-Consumer (B2C):

Electronic transactions of goods and services between companies and consumers. Example: You buy a new t-shirt from an online store.

3. Consumer-to-Consumer (C2C):

Electronic transactions of goods and services between consumers, mostly through a third party. Example: You sell your old smartphone on eBay or Olx to another consumer.

4. Consumer-to-Business (C2B):

Electronic transactions of goods and services where individuals offer products or services to companies. Example: A Social media influencer offers exposure to their online audience in exchange for a fee.

5. Business-to-Administration (B2A):

B2A takes place between companies, public administration, or government agencies. In this e-commerce business model, there are dealings between companies and public administration using the internet.

6. Consumer-to-Administration (C2A):

C2A e-commerce encompasses all electronic transactions between individuals and public administration. The C2A e-commerce model helps the consumer post their queries. And also, request information regarding the public sector directly from their local governments/authorities.

7. Business-to-Government (B2G):

B2G is a business model that refers to businesses selling products, services, or information to governments or government agencies. Its networks or models provide a way for businesses to bid on government projects. Or even products that governments might purchase or need for their organizations.

8. Government-to-Business (G2B):

This is the online non-commercial interaction between the local and central government and the commercial business sector. More so, with the purpose of providing businesses with information and advice on e-business best practices.

9. Government-to-Citizen (G2C):

The Government-to-Citizen business model rethinks the location and design of the federal workplace to maximize an agency’s service to the American people. G2C also empowers an agency to make data-driven location decisions. More so, that can optimize front/back-office processes, reach talent and provide efficient public service.

10. Revenue-Based Ecommerce Business Models:

In general, they include Drop Shipping, Wholesaling, and Warehousing, Private Labeling and ManufacturingWhite Labeling, Subscription, etc.

Overall, the most common type of all Ecommerce Business Models is B2C. In eCommerce, there are five different B2C models: direct sellers, online intermediaries, advertising-based, community-based, and fee-based. Direct selling is the most common model. It is when consumers buy products from online retailers.

Learn More: 10 Types of Ecommerce Business Models That Work Right Now

Another big question is; what is an “eCommerce platform”? An eCommerce platform is a piece of software that allows you to build an online store and run a business online. It gives you the tools to create and manage your site, including products and day-to-day operations.

Electronic commerce encompasses all online marketplaces that connect buyers and sellers. The internet is used to process all electronic transactions. The first thing to think about is the type of business transaction you’re going for. When you think about the business you want to run, who do you see yourself selling to? Is your business B2B, B2C, C2C, or C2B?

Do you have an idea for a type of ecommerce business that you’ve been thinking about for a while? Do those acronyms make your head spin? You can take a look at the most common ways online transactions occur in detail.

What Do eCommerce Websites Entail?

E-business can comprise a range of functions and services. For example, ranging from the development of intranets and extranets to e-services. In addition to the provision of services and tasks over the internet by application service providers. Today, major corporations continuously rethink their businesses in terms of the internet, specifically, its availability.

Notably, wide reach and ever-changing capabilities. Not to mention, businesses are conducting e-business to buy parts and supplies from other companies. In addition, collaborate on sales promotions and conduct joint research.

Most if not all, eCommerce builders use drag and drop functions. Here’s the good news – you don’t need to be a web developer to create a good-looking online shop. There are many different reasons to use e-commerce platforms, but here are the most important ones:

Easy (For Beginners)

In the past, if you wanted an online store, you had to build the functionality yourself. Later there were shopping carts, but you still had to have developer skills to integrate them into your site. Now we have plugins. With eCommerce platforms, you get everything in one hand and can get started right away.


E-commerce platforms are not super expensive, some of them even cost nothing. While you definitely have expenses when running an online shop, it’s a lot less than developing your own solution from scratch. Plus, the more you play, the more of your business can you usually hand over to technical solutions.

One solution fits all

Especially when going with a hosted solution, you are able to let go of more parts of running your site. No need to deal with web hosting, security, updates, and the likes. Instead, you are able to simply concentrate on growing your business.

Customer support available

Additionally, with a commercial solution, you benefit from the support structure. Open-source solutions such as WordPress are often community driven and you are therefore dependent on that community to provide support. While that can also work very well – if you are in desperate need of help at 3 am on a Sunday, it’s nice to have a guarantee it will be there.

How Is eBusiness Different From eCommerce?

As eCommerce Websites have accelerated, so are stringent security protocols and tools. Including and not limited to; encryption and digital certificates. Whereby, they are adopted to protect against hackers, fraud, and theft.

Nonetheless, security and data privacy remain big concerns for companies and individuals conducting business on the internet. With the security built into browsers and with digital certificates. And now available for individuals and companies businesses. Such as Verisign, a certificate issuer, some of the early concerns have abated.

More so, about the security of business transactions on the web. Always remember that Ecommerce and e-business are similar. E-commerce refers to buying and selling products online. However, e-business defines a wider range of business processes by including various aspects.

Such aspects can include:

In reality, designed to help the company operate more effectively and efficiently. And, as a matter of fact, an E-commerce website, remarkably, adds advantages to your business. Such as, increased productivity, abilities, accessibility, reach, customers, marketing, analysis, and branding.

1. Business Boost
  • Ecommerce Websites are your Online store
  • Easy to commence and run – Once the website has been designed and set up, you can easily manage it with just a bit of training.
  • Less overhead cost – The cost of running Ecommerce websites is very low.
2. Economical Productivity
  • Decreased managerial cost – This is simply because you can manage the website by yourself.
  • Automatic branding at a low cost
  • Save operational cost
3. Abilities

Generally speaking, Ecommerce Websites have high functionalities and abilities. Above all, with this kind of website, you’re able to do the following easily.

  • Buying and selling – People can buy from your site or use your site to sell their products as they pay you.
  • Electronic fund transfer – Your customers have different options for safe electronic payments when they buy from your platform.
4. Accessibility And Availability
  • 24/7 – Given that this is an online platform, people can buy, sell and transact anytime. The platform does not go to sleep.
  • Anywhere – Your customers are able to buy from the platform no matter where they are located.
  • Mobile app and system – eCommerce websites can be integrated with mobile applications and even online systems.
5. Outreach
  • Global customers – If you are in Kenya for instance, people all over the world can place orders on your platform.
  • Any physical location – As I mentioned earlier, eCommerce platforms are not limited by geographical locations.
  • Domestic territories – You are able to serve all your local customers with a lot of ease.
6. Customer Friendly
  • Products Delivery
  • Services Delivery
  • Information Delivery
7. Real-Time Shopping Experience
  • Pictorial information
  • Textual data/testimonies/reviews
  • Video displaying products/ service’ quality
8. Easy To Analyze Business
  • Display of total sale
  • Promotion and competitors
  • Real-time data of products/service(s)
9. Brand Awareness
  • Through search engine visibility
  • Through social sharing
  • Loyalty builds up

How To Build An eCommerce Website

Selling products through an online shop is the best way to make a bit of extra money. Through an ecommerce website, you can easily introduce your products to a large number of customers at once.

There are so many benefits of ecommerce websites over physical shops. And that is the reason why many traders are inclined to take their business to the next level by creating an ecommerce website. You don’t need to be a tech geek to build a website for your business. You can easily create your own ecommerce website with the help of various ecommerce platforms.

eCommerce platforms are the quickest way to build an ecommerce website. That said, below are some of the top ecommerce website builders that you can consider for developing your ecommerce website.

  1. WooCommerce
  2. Shopify
  3. Magento
  4. Wix
  5. BigCommerce

SEO Ready Sites

Believe it or not, eCommerce Websites or stores have become the future of our shopping. Equally, ushering in the rise of Online Shopping and Ecommerce Websites. And this is the reason why more and more people are moving towards Shopping and Selling Online rather than in physical shops.

However, whether it’s just the presentation of fashionable clothing or the latest electronic products, people just seem to love seeing things that are beautifully designed. And this goes the same way for your website design. Whereas if you fail to present visitors with an attractive website and user-friendly experience nicely, then you’re leaving money on the table.

In other words, an attractive web design can be a pivotal factor in successful online sales and marketing. Here, we’ve listed the top 10 eCommerce websites. In that case, to help you create or redesign your online presence. Hopefully, they can give you ample design inspiration. You can also learn how to Analyze Enhanced Ecommerce data in detail.

Takeaway Notes:

Now that you know what ecommerce businesses, product options, platforms, and business classifications exist, you’re ready to get started. Take a look at your business plan. No matter what eCommerce business model you choose, chances are you are going to need outside funding at some point in order to scale your business.

Funding solutions like Payability specialize in eCommerce businesses and offer both accelerated daily payouts when marketplaces pay on terms and capital advances based on future eCommerce sales. If you found this article useful, please give it a share. Keep reading our blogs for more tips to help you succeed in e-commerce.

From choosing your online platform to marketing your products and site. Maybe you want to know how to find your niche. If there’s a topic you would like to see covered that you don’t see in our archives, you can let us know or comment below.

More Related Web Resource Reads:
  1. BigCommerce | 5 Reasons Why Its Your Best Store Builder
  2. Shopify | The No #1 Website Design Tool For Online Stores
  3. Online Store | 9 Simple Steps to Start Selling your Products
  4. Why Your Business Needs an E-commerce Website
  5. 21 Web Directories That Still Have Value in 2019
  6. Selling Products Online | Everything Starters Should Know

Finally, if you are looking forward to having a beautifully designed and developed website, don’t hesitate to Consult Us and let us know how we can sort you. Likewise, feel free to air out your opinions, thoughts, suggestions, contributions, recommendations, or even more related questions in our comments section.

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