Opening up and operating an ecommerce business can be quite satisfying, when it is done in a proper way. However, while the prospect of making a passive income can be quite promising, you need to factor in many important things in order to raise your ecommerce venture off the ground and earn more and more customers and revenues over time. The business type as well as the business running model matters a lot – when it comes to running an online business. Online businesses are generally operated by two models – the B2B model or the D2C model, two of the most wonderful new ways of running ecommerce businesses.
B2B Model
The business to business model has been there for a really long time. Here, businesses are there as customers, and buying from other businesses. For instance, many big and small businesses buy Windows and other software applications from Microsoft.
Many online businesses make bulk sales or extend special discounts to bulk buyers. For instance, ecommerce fashion businesses can sell their garments at low costs to customers and fashion boutiques looking for excellent deals.
But this business model helps sell only to businesses and not to individual customers. This makes brands lose out on selling to a giant market section – as much as 75%.
D2C Model
It is the newest ecommerce trend that is being adopted by an increasing number of companies.
The D2C or direct-to-customer model aims at getting products to customers directly, without any middle-man. It ensures a stress-free, personalized shopping experience. This business model helps boost revenues significantly, and is loved by many customers. In the
D2C model, consumers have to share more personal details but get a better customer service and a more personalized experience.
In this business model, the customer is put at the front and center, which shows in business running operations as well as revenues that are earned. It can be implemented easily, particularly in case of online businesses. You can enjoy a reliable customer base, which can be very assistive if growth is minimal or stagnant for your ecommerce business.
However, this business model has been around for only a short time. Thus, the pitfalls and possible issues associated with this model are not as clear as in case of other business models, such as B2B. That has, however, not stopped many businesses from opting for it already. Its adoption is likely to be even more widespread in the coming years.
