E-commerce: Basic Business Models Explained

Just like there are millions of regular businesses, there are millions of e-commerce businesses too. In fact, regular businesses do involve e-commerce at one level or another. So the best option you have is to keep your business and e-commerce business together. 

However, what kind of e-commerce business should you pursue? What business model should you go for? Well, there are typically four e-commerce models. You can pick from either of them based on your needs, priorities, affordability, and choices. 

  • Business to Consumer Model (B2C)

It is the most traditional and the most widely adopted e-commerce business model. When you go to a store and buy household supplies, you are a part of this model at that moment. This is also relatively simpler than other models since it doesn’t involve big companies.

This model involves shorter sales cycles and is thereby more affordable. These businesses typically involve less investment. B2C businesses are good both for products and services. 

  • Business to Business Model (B2B)

In this model, your customer is another business or company. In some cases, there is a buyer at the end, but in almost 90% of cases, the buyers resell to consumers. 

Since this is a much bigger model, it typically involves longer sales cycles. But, this model of business also involves more recurring purchases. 

  • Consumer to Business Model (C2B)

Here the consumers sell stuff to businesses. However, the consumers still don’t have complete control since the big businesses decide what’s worth buying and for how much. 

However, this model allows ordinary people to start their own businesses from scratch, and they can, later on, upgrade their business model to B2C and even B2B models. 

  • Consumer to Consumer Model (C2C)

Here ordinary people sell ordinary stuff to ordinary people. They can use any online platform for that and receive and make payments through any platform. This is a very simple model and very helpful for ordinary people to grow. 


There are many e-commerce business models that you can select and start your own business from scratch. However, whichever model you select, you should also make sure every transaction you make is safe and doesn’t cost you too much. 

If you don’t have any prior experience, you should consult the nordex merchant processor because they will ensure safe transactions for you, along with minimal as possible processing payment fees. 

You would need a lot more than just a plan, such as merchant accounts, e-commerce services, terminal options, and services, as well as virtual and mobile transaction services. For that, you would definitely need the help of established companies like Nordex Solutions