What is Ecommerce and its model of business?

Ecommerce Model
laptop and shopping bags, online shopping concept.

Ecommerce has taken a toll over the recent past. And in the last year or so, since the inclusion of Covid-19 into our lives, e-commerce has become the go-to industry for all fields, be it health, education, clothing, retail, or any other. Ecommerce has become a booming industry with a 3% increase in the share of retail sales in 2020 alone.

Healthcare, pharmacies, medicines, were the most sought-after commodities during the pandemic time, as well as daily-need commodities, groceries where every household ordered them online in a monthly fashion or weekly or even daily. So if e-commerce has grown this much, has its development increased as well?

Of course, it has. That is why top eCommerce development companies are at this moment, in high demand, designing and producing small and large scale platforms for eCommerce stores. So what does a company really do?

An eCommerce development company works to develop customized e-commerce platforms for its clients building engaging and sales-driven UI/UX. This means that all eCommerce platforms feature elements that either reflect the branding of the company or its idea. From icons to tabs, content to code, testing to deployment, having a thoroughly set eCommerce platform can make a company earn huge amounts of finances, as has been the case during Covid-19.

There are more than four types of eCommerce:

  1. Business to Consumer (B2C)
  2. Business to Business (B2B)
  3. Consumer to Business (C2B)
  4. Consumer to Consumer (C2C)
  1.       Business to consumer:

In business to consumer (B2C), the businesses sell directly to the clients or consumers. For example, if you buy anything from any online store like a matchbox, an iPhone, a piece of cake etc, is called B2C. The process of the B2C is much simpler as it is a layman’s world with the ability to choose between thousands of products and easily be able to add them to the cart and check out by paying.

  1.       Business to Business:

In Business to Business, the business sells directly to another business. In this case, a good example would be the acquisition of the Microsoft Office package, or a test management tool like TestRail or Kualitee etc. Due to the business’s scale, the sales team can reach out to other businesses to sell the products while introducing an online eCommerce platform.

  1.       Consumer to business:

In consumer to business, a consumer of any product sells to businesses. A good example would be freelancing platforms like Fiver, Upwork, etc. The C2B is good and can range beneficial for the general public since it does not require much infrastructure.

  1.       Consumer to Consumer:

In Consumer to Consumer, the consumer sells directly to other consumers by using an eCommerce platform.  It is also known as a common online marketplace. A good example of this is Craigslist, eBay, Daraz, OLX etc.  


These are 4 common business models used for eCommerce. Having the ability to sell online and purchase online without the hassle not only attracts customers but now has become a way of life. Most people rely on reviews from other customers or in B2B other businesses which can then help them in the buyer’s journey.,

Having the ability to develop a good eCommerce platform rests with top eCommerce development companies and it is imperative for businesses to choose the right team for it.

About the Author

Claire Mackerras, Senior QA Engineer & Editor associated with BugRaptors, one of the best software testing company in USA and India. She is passionate about writing technological trends for manual & automation software testing. She likes to share her knowledge, for the readers who are interested in exploring testing tacts and trends.