Taking A Closer Look on E-Commerce and Its Business Models

 Taking A Closer Look on E-Commerce and Its Business Models

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E-Commerce has directly transformed the way people globally make purchases online. In McKinsey's words (2025), e-commerce is acquiring items or skills through a website. In 2024, the overall revenue globally generated from e-commerce was $6.09 billion or nearly 20% of the worldwide total retail sales.

What is E-Commerce?

E-Commerce is an umbrella expression to which all forms of buying and selling via the internet fall (Investopedia, 2025). From the transfer of funds electronically to transferring data to process purchases between two businesses (DHL, 2024), are both transferable forms of e-commerce.

E-Commerce Models

B2B E-Commerce

B2B (Business to Business) e-commerce is the model in which businesses trade with one another rather than directly with the consumer (Clarity Ventures, n.d.) Alibaba and IndiaMART are examples of B2B e-commerce and can connect wholesalers with retailers for product purchases.

B2C E-Commerce

B2C (Business to Consumer) e-commerce model is the most recognizable of the e-commerce models as this is when a company sells its product line over the internet to an end-user (Salesforce, n.d.). Companies displaying their products are most often referred to as B2C retailers and are represented by companies such as Amazon and Walmart, which sell their goods to consumers via the web.

C2B E-Commerce

C2B (Consumer to Business) e-commerce reverses the old way of thinking, allowing consumers to transfuse their product or service offering to businesses via e-commerce sites (DHL, 2024). Freelancers posting employment opportunities for their services are an example of C2B sites such as Upwork. 

C2C E-Commerce

C2C (Consumer to Consumer) e-commerce refers to the ability of consumers to sell items or services to other consumers through an e-commerce enabled website (Crystallize, 2023). eBay, Etsy, and Poshmark are all examples of C2C e-commerce.

B2G E-Commerce

B2G (Business to Government) e-commerce refers to a business that can provide goods or services to government entities via an electronic procurement system (BigCommerce, 2025). Many local and worldwide businesses can offer their goods/services to government agencies via a public online bidding process.

D2C E-Commerce

D2C (Direct to Consumer) e-commerce refers to manufacturers selling their product directly to the consumer without the involvement of Intermediates (Magneto IT Solutions, 2025). When manufacturers sell using the D2C model, they retain control over the consumer relationship as well as the pricing.

Final Thoughts

All entities having an online presence need to incorporate an awareness of the e-commerce models (IBM, n.d.) as each model provides its stakeholders (industry and customer) with additional value in meeting an unfulfilled need in the digital economy.

 References

BigCommerce. (2025). Ecommerce business models (Types + What to select). https://www.bigcommerce.com/articles/ecommerce/types-of-business-models/

Clarity Ventures. (n.d.). What is B2B eCommerce? Definition, types, & examples. https://www.clarity-ventures.com/ecommerce/what-is-b2b-ecommerce

Crystallize. (2023). The ultimate guide to eCommercebusiness models (B2B, B2C, C2C). https://crystallize.com/blog/ecommerce-business-model

DHL. (2024). What is e-commerce: Definition and types. https://www.dhl.com/discover/en-global/e-commerce-advice/e-commerce-best-practice/what-is-e-commerce

IBM. (n.d.). What is ecommerce? https://www.ibm.com/think/topics/ecommerce

Investopedia. (2025). E-commerce defined: Types, history, and examples. https://www.investopedia.com/terms/e/ecommerce.asp

Magneto IT Solutions. (2025). Top 8 eCommerce business models in 2025. https://magnetoitsolutions.com/blog/top-ecommerce-business-models

McKinsey & Company. (2025). What is e-commerce? https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-e-commerce

Salesforce. (n.d.). B2C ecommerce: Definition, types, & examples. https://www.salesforce.com/commerce/b2c-ecommerce/guide/