Wow! Initially there were just 7 ecommerce business models but now as of this writing, the internet continues to create even more choices for new ways to provide goods and services to the consumer. How does selling to your own private and captive audience sound? Consider the newest addition, Business to Employee (B2E) marketing. Those company T-shirts, clocks, and personalized golf clubs could go flying out the door without too much effort on company’s part, to a stable fan base! A business model is how a company makes it’s money; who are the people that compose its customer base, how is the product or service delivered to the customer, where does the company get its supplies? Things of that nature; the practical everyday tasks of doing business and making a profit. The most commonly known models are the standard 7:
1. Business to Business (B2B)- These giants are in the biggest revenue market; The Boeing Company, Airbus International, and other companies such as Office Max, Grainger, and McMaster-Carr, have mastered the “pull” art of marketing. The customer places the order and then it is filled, no warehousing costs to eat into the profit margins.
2. Business to Consumer (B2C)- Companies like Costco, Home Depot, and Amazon, the consumer sees what they want online or in the store and can order exactly what they want, when they want it, even at 3AM in their pajamas!
3. Consumer to Consumer (C2C)- This market is more along the lines of “social connections,” companies such as Craigslist, EBay and dating sites. Individual people put up their ads, and other consumers respond making their own transactions on their own terms.
4. Consumer to Business (C2B)- Often called a “reverse auction” these types of companies bid for the consumers’ business, Priceline and Lending Tree come to mind. The consumers name their price and companies seek them out if they can make a profit.
5. Business to Government (B2G)- Commonly known as “public sector marketing” includes things like an IT company contracting with the government to keep all its computers up to date. If the government had to hire people to do this, its costs would go up as these people would now qualify for benefits.
6. Government 2 Business (G2B)- Government resources to help start businesses of all sizes with grants, loans, credit reports; Start-up America Partnership, the SBA, Small Businesses Administration, and Grants.gov.
7. Government to Citizen (G2C)- How the government communicates with its citizens; and supplies goods and services such as licenses and permits, accessing public information, and submitting information. The official United States web portal, USA.gov
Now, the next time you are at a BBQ, you can impress the all guests with your knowledge!
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