Types of E-Commerce and How to Build It

E-commerce is the process of buying and selling goods and services through the internet. Before creating your e-commerce website, it is important that you acknowledge and understand the types of e-commerce models.

There are four main e-commerce types in the market that explain the activity between business and consumer.

  • B2C (Business to Consumer)

Business sells good or service to individual consumer.

Example: you buy clothes from online retailer.

  • B2B (Business to Business)

Business sells good or service to another business.

Example: A business sells software for other businesses to use.

  • C2C (Consumer to Consumer)

Consumer sells good or service to other consumer.

Example: Selling shoes on eBay to other consumer.

  • C2B (Consumer to Business)

Consumer sells good or service to a business.

Example: A social media influencer offering service to promote products.

Another thing to be aware of is how the products are being sold:

  • Retail

The sale of goods and services directly to customer, without any intermediary.

  • Wholesale

The sale of goods and services in bulk. This type of business often sells to retailer, which then will sell it to individual consumers.

  • Drop shipping

The sale of goods and services that are manufactured and shipped by third party.

  • Crowdfunding

This type of sale occurs to raise funding from the customers before selling the item. The purpose is to raise the capital necessary to manufacture the product.

  • Subscription

Automatic recurring purchase of goods or services – can be monthly or yearly – until the customer chooses to cancel.

Now that you understand the basic knowledge of e-commerce, you can decide what kind of e-commerce business you are going to run and start creating the website. A lot of web design Malaysia agencies offer services to build e-commerce website for you. But first and foremost you need to know what kind of marketplace you are trying to establish, what kind of payment method you are going to offer, and so on. If you are still unsure, most web design Malaysia agencies offer professional consultation service to help you decide on various options in the market. You can also consult of the design and user experience that can attract the customers. To conclude, know your business before creating your e-commerce website.