What is Business Model? Briefly explain different business models in E-Commerce

 

# Business Model : A business model is the plan implemented by a company to generate revenue and make a profit from operations.The model includes the components and functions of the business as well as the revenues it generates and the expenses it incurs.Business models are used to describe and classify business especially in an entrepreneurial setting but they are also used by managers inside companies to explore possibilities for future development.Business models are also referred to in some instances within the context of accounting for purposes of public reporting.

Briefly explain different business models in E-Commerce .

# E-Commerce or Electronic Commerce business models can generally categorized in following categories :

1. Business - to - Business(B2B)

2. Business - to - Consumers(B2C)

3. Consumers - to - Consumers(C2C)

4. Consumers - to - Business(C2B)

5. Business - to - Government(B2G)

6. Government - to - Business(G2B)

7. Government - to - Citizen(B2B)

# Business - to Business(B2B) :

                                                        Website following B2B business model sells its product to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment sells the end product to final customer who comes to buy the product at wholesaler's retail outlet.

# Business - to - Consumer(B2C) :

                                                            Website following B2C business model sells its product directly to a customer. A customer can view products shown on the website of business organization.The customer can choose a product and order the same website will send notification to the business organization will dispatch the product/goods to the customer.

#  Consumer - to - Consumer(C2C) :

                                                             Website following  C2C business model helps consumer to sell their assets like residential property, cars, motorcycles etc or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.

# Consumer - to - Business(C2B) :

                                                         In this model, a consumer approaches website showing multiple business organization for a particular service. Consumer places an estimate of amount he/she wants to speed for a particular service.

# Business - to -Government(B2G) :

                                                              Business - to -government  model is a variant of B2B model. Such websites are used by government to trade and exchange information with various business organization.Such websites are accredited by the government and provide a medium to business to submit applications forms to the government.

# Government - to - Business(G2B) :

                                                               Government uses B2G model website to approach business organizations. Such website to approach business organizations. Such website support auctions, tenders and application submission functionalities.

# Government - to -Citizen(G2C) :

                                                             Government uses G2C model website to approach citizen in general. Such website support auctions of vehicles, machinery or any other material.