When talking about e-commerce platforms like Amazon and Alibaba, we are very familiar with them. These platforms have dramatically changed our lives. Nowadays, more and more people choose to start businesses from home by entering e-commerce. Today, I’ll explain the different types of e-commerce with examples. Then, you’ll discover which one might be the best fit for you.
What are the 4 types of e-commerce?
B2B, B2C, C2B, and C2C are the four most common 4 types of e-commerce. Here, “B” stands for business, and “C” stands for consumer. It’s easy to understand that these types are categorized based on whether the transaction parties are consumers or businesses. Follow me to explore each type with examples and find out which one suits you best for making money.
1.B2C e-commerce and examples
B2C e-commerce, or Business-to-Consumer e-commerce, refers to the online transactions and sales between a business (seller) and individual consumers (buyers).
For example, well-known platforms like Amazon, eBay, Walmart, and AliExpress are typical B2C e-commerce platforms. These platforms rely on their operational capabilities and traffic to attract various brands and merchants to set up shops, and consumers to shop. It’s like moving offline supermarkets and mall booths online. Some e-commerce platforms also sell their own brand products, such as Amazon’s smart home devices like Echo and Alexa.
Many B2C e-commerce sellers buy Chinese products at low prices and then sell them to make a profit, just like many Amazon sellers. Different e-commerce sellers have different business profit models.
Typically, new and small sellers start their e-commerce business with dropshipping.
AliExpress is the most commonly used platform, supporting dropshipping with a vast array of Chinese retailers. It offers a wide range of products and allows market testing at a minimal cost, often just a few dozen dollars. Additionally, AliExpress has favorable buyer protection policies and customer service.
Those B2C platform sellers with a certain budget may choose to wholesale to lower their product sourcing costs.
Small-scale wholesale purchases starting from a few hundred dollars can be made directly through DHgate, where many suppliers support buying a few items, about ten or more per style. In such cases, you cannot meet Alibaba’s high minimum order quantity, which are usually over a thousand dollars.
2. B2B e-commerce and examples
Business-to-business e-commerce, or B2B e-commerce, refers to online transactions between businesses, rather than between businesses and individual consumers. This type of e-commerce typically involves larger order quantities and more complex supply chain management, contracts, and negotiations compared to B2C e-commerce.
Typical B2B e-commerce examples include Alibaba, Made-in-China, DHgate, ThomasNet, and similar wholesale platforms.
If you are an e-commerce seller looking to wholesale products from China, be sure to contact JingSourcing. We are a reliable Chinese B2B platform. Compared to Alibaba, we can do more:
Product prices are at least 10% lower than Alibaba’s, and our MOQ is more friendly to small e-commerce businesses.
We have our own networks of factories that are willing to help us handle small orders. Meanwhile, we can obtain lower product quotes. 80% of suppliers on Alibaba are trading companies, not real factories. We suggest you get quotes from suppliers on Alibaba, as many of our clients do, and then compare them with our prices to ensure you can get a competitive quote from us.
We check product quality to ensure it is satisfactory.
Quality is key in e-commerce. For your first purchase from a supplier, make sure to arrange a quality inspection. Alibaba uses third-party inspection companies. In contrast, we check a higher percentage of products for free and offer a full review to reduce the defect rate to zero.
We help you manage your supply chain in China.
As mentioned, B2B transactions involve complex supply chains, especially when sourcing products from overseas. For example, if you are wholesaling products from China, you need to find and select suppliers, negotiate product production, arrange inspections, and manage shipping to your location.
Managing the entire supply chain can be time-consuming. We can handle these tasks for you and keep you informed at every step. For any issues, we proactively resolve them and provide solutions in time. This is something Alibaba, as a supplier directory platform, cannot offer, as the specific transactions depend on your communication and negotiation with the selected suppliers.
3. C2C e-commerce and examples
C2C e-commerce refers to consumer-to-consumer transactions through online platforms. It’s like selling items on a second-hand trading platform. For example, in Europe, there is a platform called Vinted where ordinary consumers can sell their second-hand clothes. eBay, which started as an auction site, has now evolved into a platform primarily focused on buying and selling.
Additionally, the ride-sharing platforms we use in daily life are also forms of C2C e-commerce. For instance, in the USA, Uber connects private car drivers with passengers, both of whom are individuals, not companies. Similarly, the rental platform Airbnb allows consumers to rent vacation homes, while individual homeowners can list their properties on the platform.
4. C2B e-commerce and examples
C2B (Consumer-to-Business) e-commerce refers to a business model where individual consumers offer products or services to businesses in exchange for payment or other forms of compensation.
Examples include the freelance platform Upwork. With the rise of social media, more and more consumers are earning income through their personal social media platforms. They can make money by posting content, endorsing products, or participating in brand activities. This C2B model allows consumers to earn money through their influence and personal branding.
If you’re looking to earn some extra cash, you just consider C2B or C2C models based on your skills and existing resources.
What are B2G, and C2G e-commerce and examples?
B2G e-commerce and examples
B2G (Business-to-Government) e-commerce refers to businesses providing goods or services to the government. B2G e-commerce is typically government-led, where procurement of goods and services is openly conducted through electronic bidding. Companies can participate in bidding to secure government contracts.
Famous examples include Boeing, one of the world’s largest aerospace companies, which provides civilian and military aircraft, satellites, defense systems, and related services to governments. Deloitte provides audit, consulting, financial advisory, and risk management services to government clients.
Additionally, we JingSourcing, a leading sourcing company in China, have received and managed inquiries for government procurement projects.
For example, we recently received an inquiry for a Mexican government procurement project, including canvas backpacks and bags with custom logos and texts. The order quantity is large, with millions of canvas pencil bags, for instance. The requirement is for products to be affordable and production lead times to be strictly adhered to. Failure to meet the specified deadlines may result in significant penalties.
We’ve liaised with numerous factories, selecting those capable of fulfilling such large orders while guaranteeing timely delivery, and accompanied clients on factory audits to secure government procurement contracts.
C2G e-commerce and examples
C2G, or consumer-to-government, e-commerce refers to the process in which consumers interact and transact with the government electronically. This model is typically used to provide public services, process applications, and offer information, among other functions. Here are some examples of C2G e-commerce in daily life:
Online tax services – Governments provide individual income tax declaration, payment, and inquiry services through e-commerce platforms.
Vehicle management services – Vehicle owners can apply for vehicle registration, update driving licenses, pay vehicle taxes, schedule vehicle inspections, and other services through e-commerce platforms.
C2G e-commerce primarily aims not to generate profits but to provide services and convenience to citizens. It serves as a supplementary tool for government services, aimed at enhancing service efficiency and quality.
What is D2C e-commerce? Any difference with B2C?
D2G e-commerce and examples
Over the past couple of years, when it comes to e-commerce, the concept of DTC (Direct to Consumer) has been undeniably prominent. As the name suggests, DTC refers to a model where brands sell products or services directly to consumers without intermediaries. For example, well-known e-commerce platforms like Shein sell various clothing items under their brand name. Other examples include eyewear retailer Warby Parker and pet brand BarkBox.
D2G e-commerce features
Sell directly to customers under the brand name via indepent platforms
The D2C model emphasizes selling products directly to customers under the brand name via their own platforms, often referred to as standalone websites. Nowadays, it’s relatively easy to set up independent e-commerce websites using common tools like Shopify. Initially, running a website may only require 1-2 individuals, especially with the assistance of various AI tools such as Sora for basic video editing, and so on.
Choose to customize products for business branding and sustainability.
Typically, D2C e-commerce companies opt for white-label or private-label products instead of regular on-stock products. This allows them to sell at higher prices and facilitates brand building. When it comes to product selection, many aim to find winning niche products. However, this is an ongoing process that requires continuous product market testing and optimization to find breathtaking items for consumers.
Just like many D2C e-commerce startups we serve, they choose a few products and adopt simple and affordable customization methods such as printing logos, custom packaging, etc., to differentiate their products and quickly test the market. They place great importance on collecting customer feedback and continuously optimizing and adjusting products to better meet customer needs.
This approach makes it easier for consumers to remember your products and brand, thereby building customer trust and generating more repeat purchases and referrals. After accumulating market experience and capital, you can begin making more complex adjustments for product innovation and differentiation, providing consumers with higher added value, and enhancing brand value. In summary, the DTC e-commerce model is profitable and beneficial for brand building, achieving sustainable growth and profitability.
Startups should note that it’s not advisable to develop entirely new products from the start, as this involves significant molding fees and a longer time to launch products. Additionally, it’s uncertain whether consumers will be willing to pay for these new products, risking wasted time and money invested upfront.
D2C vs B2C
DTC is actually a special form of B2C rather than a completely opposing concept. Under B2C, e-commerce sellers can sell products to consumers through various channels, including third-party e-commerce platforms like Amazon, their own standalone websites, etc. However, D2C e-commerce is limited to selling products solely on their own website or platform.
DTC e-commerce is a strategic model for brand building and sustainable business development. Imagine B2C e-commerce platforms as shopping malls with many stores, each representing a brand. Customers can browse through these malls and buy from different stores.
On the other hand, DTC is like a brand opening its own boutique store, exclusively selling its own products. Customers don’t need to compare; they can directly purchase what they need. Through this approach, brands can communicate more directly with customers, understand their preferences, and provide better service. Like planting a tree, it may require more time and effort initially, but over time, it will grow strong and bring continuous returns to the brand.
As a startup, if you want to leverage existing traffic and trust and focus on marketing and selling products, then selling on third-party platforms like Amazon may be more suitable. Although building a standalone website is easy, it means starting from scratch to attract customers and managing various aspects like payments and logistics on your own.
Depending on your resources and demand, you can choose the mode that best suits you, or combine both. For example, selling on third-party platforms to gain traffic and revenue, then establishing your own standalone website to foster brand loyalty, achieve broader market coverage, and ensure robust business growth.
Bottom line
Reach out to JingSourcing to source profitable Chinese products at good prices. Whether you’re a novice seller, an experienced wholesaler, or involved in government procurement projects, we can provide tailored solutions to optimize your China sourcing supply chains and reduce procurement costs.
Our services encompass finding high-quality suppliers, sampling, monitoring bulk production progress, quality control, and arranging logistics for delivery to your location. Not only do we offer the most competitive product prices, but we also ensure timely delivery and top-notch quality for your products.
We are the only sourcing company to offer 1-on-1 product inspections, thereby reducing product defect rates to zero and providing added security for your e-commerce business.
