{"id":26450,"date":"2020-09-08T06:36:02","date_gmt":"2020-09-08T11:36:02","guid":{"rendered":"http:\/\/www.hostgator.com\/blog\/?p=26450"},"modified":"2020-08-28T19:15:38","modified_gmt":"2020-08-29T00:15:38","slug":"ecommerce-website-types-business-models","status":"publish","type":"post","link":"https:\/\/www.hostgator.com\/blog\/ecommerce-website-types-business-models\/","title":{"rendered":"8 Types of eCommerce Websites & Business Models"},"content":{"rendered":"\n

You\u2019ve probably already heard that the eCommerce industry is thriving right now. <\/p>\n\n\n\n

It\u2019s true! Experts predict that retail eCommerce will reach $4.13 trillion this year<\/a> and that mobile commerce will take a 72.9% market share of eCommerce.<\/p>\n\n\n\n

With trends of consumers buying online and via their mobile devices, there is no better time than now to start an eCommerce business<\/a>.<\/p>\n\n\n\n

While you may have intentions of getting your online store up and running<\/a>, it doesn\u2019t come without a learning curve. And, the best place to start with your research is to look into the different types of eCommerce business models and websites.<\/p>\n\n\n\n

Once you know what business models are available, it will be easier to determine how you will run your online store, and how you will monetize your business. Let\u2019s take a closer look at the different types of eCommerce business models.<\/p>\n\n\n\n

What are the different types of eCommerce business models?<\/h2>\n\n\n\n

The first step in starting your online business is understanding the different eCommerce business models. Typically, eCommerce businesses fall into one of the following four categories. <\/p>\n\n\n\n

Let\u2019s take a closer look.<\/p>\n\n\n\n

1. Business-to-business (B2B)<\/h3>\n\n\n\n

The business-to-business eCommerce model is structured just like it sounds. It\u2019s where businesses sell products to other companies. Types of products include anything that enhances another company\u2019s business practices. <\/p>\n\n\n\n

One of the best examples of a B2B business is a software company. Think Salesforce, HubSpot, or SurveyMonkey. All of these products are for the benefit of a business, and it wouldn\u2019t make sense for the typical mom-and-pop consumer to invest in enterprise software.<\/p>\n\n\n\n

2. Business-to-consumer (B2C)<\/h3>\n\n\n\n

The business-to-consumer eCommerce model is also straightforward. It\u2019s when a business sells products online, or via a mobile device, directly to consumers.<\/p>\n\n\n\n

Business-to-consumer eCommerce companies are companies that you and I visit online every day to purchase things like clothing, books, makeup, etc.<\/p>\n\n\n\n

Top B2C eCommerce companies include giants like Amazon, eBay, and Alibaba.<\/p>\n\n\n\n

It\u2019s also critical to remember that B2C companies don\u2019t have to exist solely online like Amazon and eBay. <\/p>\n\n\n\n

B2C companies can also have a brick-and-mortar store and, if it makes sense, can start an eCommerce website. Examples of this include large fashion retailers like Nordstrom, J. Crew, H&M, and more.<\/p>\n\n\n\n

3. Consumer-to-consumer (C2C)<\/h3>\n\n\n\n

A consumer-to-consumer business model is when one consumer makes and sells a product to another consumer. <\/p>\n\n\n\n

One consumer may use a platform like Amazon, Etsy, or eBay to sell products to another consumer.<\/p>\n\n\n\n

With online eCommerce tools like WooCommerce<\/a>, consumers can even set up a C2C store on their personal website.<\/p>\n\n\n\n

4. Consumer-to-business (C2B)<\/h3>\n\n\n\n

The last type of eCommerce business model is consumer-to-business. This is where a consumer, or individual entrepreneur, sells their products or services to businesses.<\/p>\n\n\n\n

Good examples of C2B businesses would be a business consultant, a freelance graphic designer, or a social media influencer with a large audience.<\/p>\n\n\n\n

What are the different types of eCommerce websites?<\/h2>\n\n\n\n

No matter what type of eCommerce business model you choose, they all have one thing in common. All eCommerce stores run on the internet. This means you need a website. <\/p>\n\n\n\n

Here are the different types of eCommerce websites to consider.<\/p>\n\n\n\n

1. Single brand website<\/h3>\n\n\n\n

An individual brand website is a site that only sells the products or services of one business or person. <\/p>\n\n\n\n

It\u2019s also the most common type of website for people starting an eCommerce store, and probably the type of website you will start.<\/p>\n\n\n\n

An example of a single brand website would be Patagonia<\/a>.<\/p>\n\n\n\n

If you go to the Patagonia website, you aren\u2019t browsing every type of outdoor apparel. You will only find Patagonia products.<\/p>\n\n\n\n

\"patagonia<\/figure>\n\n\n\n

It doesn\u2019t matter what eCommerce business model you have. If you only plan on selling your own products, you\u2019ll want to build a vendor-specific website.<\/p>\n\n\n\n

For example, if someone navigates to the B2B Salesforce website, they will only see Salesforce products. <\/p>\n\n\n\n

Similarly, my business is a C2C business. I sell freelance writing guides<\/a> and products to other freelance writers. I built a single brand website to suit my eCommerce needs.<\/p>\n\n\n\n

\"c2c<\/figure>\n\n\n\n

2. Online retailers<\/h3>\n\n\n\n

The next type of eCommerce website is also common, especially for large retailers. Online retailers are bigger stores that typically wholesale other brand\u2019s products. <\/p>\n\n\n\n

For example, Dick\u2019s Sporting Goods is a place where you can buy different types of sporting goods and outdoor apparel from different brands. Let\u2019s stick with the Patagonia example, but apply it to an online retailer situation.<\/p>\n\n\n\n

If I navigate to the Dick\u2019s Sporting Goods website, I can set my filters to find Patagonia products. Dick\u2019s Sporting Goods doesn\u2019t make Patagonia products. The brand\u2019s buyers purchase large quantities of Patagonia products directly from Patagonia and sell them at a higher retail price on the website.<\/p>\n\n\n\n

\"dicks<\/figure>\n\n\n\n

You\u2019ll also notice that Patagonia isn\u2019t the only brand Dick\u2019s Sporting Goods sells on its website. Consumers can also buy products from competing brands like Columbia, NorthFace, and Nike.<\/p>\n\n\n\n

3. Affiliate websites<\/h3>\n\n\n\n

Retail isn\u2019t the only way to make money with an eCommerce website where you sell other brand\u2019s products. Another option is to set up an affiliate website.<\/p>\n\n\n\n

An affiliate website<\/a> is where someone sells other brand\u2019s products on their website in exchange for a commission.<\/p>\n\n\n\n

If you build a website and attract a large following, setting up an affiliate website is an awesome way to generate additional revenue.<\/p>\n\n\n\n

4. Marketplaces<\/h3>\n\n\n\n

Another type of eCommerce website is a marketplace. A marketplace is a website where individual entrepreneurs can list their products for sale. <\/p>\n\n\n\n

The most popular examples include Amazon and Etsy. Etsy and Amazon provide an online marketplace for vendors to list and sell their products. <\/p>\n\n\n\n

While Etsy and Amazon are the largest online marketplaces, it doesn\u2019t mean there isn\u2019t room for smaller marketplaces, especially niche marketplaces. <\/p>\n\n\n\n

StockX is an example of a smaller, niche marketplace for people to sell shoes. <\/p>\n\n\n\n

\"stockx<\/figure>\n\n\n\n

If you have an idea for an online marketplace you know would be successful, there is no better time than now to get your website up and running.<\/p>\n\n\n\n

How do you make money with an eCommerce website?<\/h2>\n\n\n\n

Since eCommerce is all about providing a product or service and making money, it\u2019s important to understand different revenue models. <\/p>\n\n\n\n

As you are setting up your new eCommerce website, you can choose one or more of these revenue streams. Here\u2019s a quick rundown of various ways to make money with your eCommerce website:
<\/p>\n\n\n\n