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Types of eCommerce business models
ECommerce is an online form of buying and selling goods and services. This transactional trade evolution has revolutionized how consumers shop, providing access to a world of goods beyond the limits of location or store hours. ECommerce allows merchants to expand their market, reaching customers across multiple nations while often simplifying and streamlining the purchasing process.
Whether looking to buy a new set of headphones from China or selling homemade art from your living room, eCommerce offers a unique platform for anyone with internet access. With its continuing growth, it’s no wonder so many people are jumping on board this digital marketing revolution.
eCommerce business models
There are many business models to choose from; the ideal one for you will depend on what type of business your run. Let’s explore what eCommerce business models there are to choose from.
Business to Consumer (B2C) model
The Business Consumer (B2C) model involves selling goods and services directly from a business to its customers. This is one of the most common eCommerce models, enabling businesses to interact with consumers individually, providing personalized services and products. With this model, businesses can easily target their customers through direct email campaigns, targeted advertisements, and other marketing initiatives.
Business to Business (B2B) model
The Business to Business (B2B) eCommerce model involves selling goods or services directly between two businesses. This eCommerce model is often used by wholesalers or suppliers that specialize in providing products and services to other companies. It can also be used by retailers who want to purchase items from a more significant supplier in bulk at a discounted rate. The primary benefit of the B2B model is that it allows businesses to quickly and efficiently meet their customer’s needs without having to stock large quantities of inventory on-site.
Consumer to Consumer (C2C) model
The Consumer to Consumer (C2C) eCommerce model is based on a peer-to-peer network where individuals can buy and sell goods directly. This eCommerce model is often used for selling secondhand items or for products that are difficult to find in stores. Sites like eBay and Craigslist are two famous examples of C2C eCommerce models. The primary benefit of this business model is that it allows individuals with unique needs or wants to find exactly what they’re looking for without having to contact multiple businesses.
Affiliate marketing
Affiliate marketing is an increasingly popular form of eCommerce that involves promoting a business’s product or service on behalf of another company. This model is often used by bloggers and influencers who promote products and services to their followers in exchange for a commission when someone makes a purchase. Affiliate marketing has become a popular way to monetize blogs and social media accounts, offering content creators an additional source of income.
Consumer to Government (C2G) model
The Consumer to Government (C2G) eCommerce model involves the online selling government services and goods. This eCommerce model is standard for taxes, licenses, permits, and other governmental processes. The primary benefit of this type of business model is that it allows individuals to quickly and conveniently take care of their government-related tasks without having to visit a physical facility.
Business to Government (B2G) model
The Business to Government (B2G) eCommerce model is similar to the B2B model. Still, this type of business model involves selling products and services directly to government entities instead of selling goods and services to other businesses. Companies that provide government contracts for goods or services often use this eCommerce model.
Getting started
Getting started in eCommerce can be surprisingly straightforward. First, it’s essential to consider what products or services you aim to provide online and then make a plan for how to reach your target customer base. Establishing an attractive and informative website and setting up payment processing such as PayPal or direct debit is critical, thankfully it’s just one click away.
You’ll also need to create processes for receiving orders, stocking inventory, monitoring the delivery of orders, and ensuring customer satisfaction. But most importantly, remember that the success of any eCommerce business requires patience and perseverance while also staying ahead of the curve in terms of trends and developments in the industry.
With that said
As you can see, several different types of eCommerce business models are available depending on what best suits your particular needs. From B2C to C2G models, understanding the different types of eCommerce business models can help ensure that you select the right one for your venture. With the right choice, you’ll be well-positioned to provide your customers with the best shopping experience possible.
Regardless of your chosen model, it’s important to remember that customer service is always vital to successful eCommerce businesses. Take the time to understand how each model works, and focus on providing exceptional customer satisfaction with every transaction. With the right approach, you can build a thriving eCommerce business that meets the needs of both your customers and your bottom line.
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Cut Costs, Not Features with This Microsoft Bundle Deal
Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.
Software subscription fees can quickly add up, and for small-business owners, entrepreneurs, or freelancers, these costs can eat into profits. Businesses spend approximately 29% of their IT budgets on software, according to a 2023 survey by Gartner.
For business professionals who are looking to streamline workflow without paying steep subscription fees, the Ultimate 2019 Microsoft Bundle might be the perfect solution. For just $71.94 (regularly $927), this comprehensive four-part bundle offers Microsoft Office Professional Plus 2019, Windows 11 Pro, Project 2019, and Visio 2019.
While it’s not the newest version of Microsoft’s software, it can deliver tremendous value for anyone seeking tools to manage their business, boost productivity, and work efficiently. The bundle offers a lifetime license, meaning you’ll get all the functionality you need without the recurring costs associated with subscription services like Microsoft 365.
However, it does come with Windows 11 Pro, which includes the recent AI updates. Windows 11 Pro delivers a modern, intuitive interface with enhanced security features such as biometric login and Smart App Control, making it ideal for professionals who prioritize privacy and usability. It’s also equipped with tools that support multitasking, such as Snap Layouts and Virtual Desktops.
For companies looking to reduce overhead without compromising essential functionality, making a one-time purchase of slightly older software is a smart financial move. This includes Office’s most popular productivity tools, Word, Excel, PowerPoint, and Outlook.
Project 2019 is a must-have for anyone who is managing large or small projects. It helps track tasks, timelines, and resources, making it easier to stay on top of deadlines and ensure your team moves in the right direction. Project 2019 gives you the tools to streamline processes and manage tasks efficiently.
Visio 2019 is ideal for creating professional diagrams, flowcharts, and organizational charts. It’s particularly valuable for visualizing complex data or workflows, which is essential for business owners looking to improve operational efficiency.
If you need a productivity boost without eating into savings, take a closer look at this bundle.
Get the Ultimate 2019 Microsoft Bundle with Office, Project, Visio, and Windows 11 Pro for $71.94 (regularly $927).
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3 Trends That Will Change the Future of Entrepreneurship
Opinions expressed by Entrepreneur contributors are their own.
The most recent data from the new Global Entrepreneurship Monitor report reveals a powerful trend for the future of entrepreneurship.
Young adults, aged 18-24, had both the highest entrepreneurial activity and entrepreneurial intentions in the United States, according to the Global Entrepreneurship Monitor 2023-2024 United States Report. With similar results in 2022, this is not just a minor shift — it’s a fundamental change that could have lasting impacts on the economy and society.
I serve as the chair of the board for the Global Entrepreneurship Research Association, the entity that oversees GEM, which was founded in 1999 as a joint venture of Babson College and the London Business School. As the GEM U.S. team co-leader and a professor of entrepreneurship at Babson, I see firsthand the impact of the research created by the Global Entrepreneurship Monitor.
Here are three entrepreneurship trends from the new GEM report that are changing the landscape for the future.
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1. Young entrepreneurs on the rise
For years, entrepreneurship has been dominated by older, more experienced individuals, but this year’s report shows that the youngest adults are now at the forefront. According to GEM, 24% of 18- to 24-year-olds are engaged in some form of entrepreneurial activity, a higher rate than any other age group. What’s driving these young entrepreneurs is equally remarkable: They aren’t just starting businesses to make money; many are deeply committed to making a positive impact on society and the environment.
These young entrepreneurs make sustainability a key priority. They are more likely than entrepreneurs from older generations to build businesses with sustainability as a core focus — whether that means reducing their environmental footprint or focusing on social causes. This shift toward impact-driven entrepreneurship isn’t just anecdotal. GEM data shows a significant number of young entrepreneurs taking real, measurable steps to create businesses that align with their values. With sustainability as their north star, young entrepreneurs appear to be simultaneously pursuing societal impact as well as profits.
However, it’s not all smooth sailing. While young people are leading the way in starting businesses, they are also discontinuing them at higher rates than their older counterparts. The discontinuation rate for 18- to 24-year-olds is 15%, the highest among all age groups. This is not surprising, given the challenges of inexperience and more limited access to capital. Starting a business is tough, and sustaining one is even more challenging. But despite these hurdles, the enthusiasm and energy that young people bring to entrepreneurship are undeniable, and with the right support, this generation has the potential to drive substantial change.
2. Tech gender gap narrows
One of the most promising findings in the GEM report is the narrowing gender gap in the technology sector. Historically, tech startups have been dominated by men, but 2023 saw a record-low difference in the number of men and women starting tech companies. The gap has narrowed to just 1%, with 8% of women compared with 9% of men launching businesses in the Information and Communication Technology (ICT) sector.
This is a significant step forward and reflects broader efforts to support more women technology startups. Still, it’s important to recognize that while progress is being made, continued focus on providing equal opportunities is essential to ensuring this trend continues.
3. Optimistic outlook for Black and Hispanic entrepreneurs
Another highlight from the report is the optimistic outlook among Black and Hispanic entrepreneurs. These groups showed stronger confidence in their entrepreneurial abilities and lower fear of failure compared to their white counterparts. Black respondents, in particular, demonstrated high levels of resilience and self-assurance, which is vital in overcoming barriers faced in starting and sustaining businesses. This optimism is encouraging, but there’s still much work to be done in assuring ecosystems offer equal opportunities for all aspiring entrepreneurs, regardless of their background.
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A promising future
Reflecting on the key findings of this year’s GEM report, it’s clear that the entrepreneurial landscape is changing in meaningful ways. The rise of young, sustainability-driven entrepreneurs signals a future where business is not only about profit but also about making a difference. These young entrepreneurs are launching businesses at a time when the world is looking for solutions to some of its most pressing challenges — climate change, poverty and economic recovery.
Yet, to fully realize the potential of this next generation, there must be more focus on addressing the challenges they encounter. Young entrepreneurs need access to the right resources — whether it’s funding, education or mentorship — to turn their innovative ideas into sustainable businesses. The narrowing gender gap in tech is encouraging, but we must continue to foster environments that support women and other underrepresented groups in entrepreneurship.
The GEM report paints a picture of an entrepreneurial future driven by purpose, diversity and innovation. But it also reminds us of the work that lies ahead in making entrepreneurship more accessible and sustainable. If we can provide young entrepreneurs with the tools and support they need, we will not only see more businesses being created — we’ll see businesses that are making a lasting, positive impact on the world.
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These Are the Top Side Hustles to Work Less, Make More Money
In the best-case scenario, a side hustle could turn into a multimillion-dollar business that generates a passive income stream — but at the very least, starting a side gig could help pay some bills.
A new survey from personal finance software company Quicken shows that almost half (43%) of Americans with a side hustle, or an extra source of income added to a primary income, make more money and clock in fewer hours overall than those without a side hustle.
The three most popular side hustles pursued by those who work less and make more money were personal assistance (20%), cooking and baking (16%), and caregiving (16%). One in five people with side hustles said they were business owners, too, selling products online or offering services like photography.
The majority of people with side hustles (82%) said starting a side gig helped them financially, and kept them from living paycheck to paycheck. Most with side hustles (57%) had savings equal to at least four months of living expenses.
The survey also found that, for younger side hustlers, a way to an extra income doubles as a path to becoming more employable. 44% of Gen Z (born between 1997 and 2012) choose to start a side hustle in order to obtain skills for long-term careers, much higher than the overall 18% of Americans who started a side hustle with the same motivation.
Quicken conducted the survey online, gathering responses from more than 1,000 Americans.
Additional research on side hustles, released in August by NEXT Insurance, showed that three out of five people bring in less than $1,000 monthly in side income, while 22% make $1,000 to $10,000 a month, and 15% make more than $10,000.
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