Types of E-commerce and How They Work

GogoApple

02/27/2025 · 2 min read

E-commerce is the buying and selling of products or services over the internet. Businesses and individuals use digital platforms to trade goods. Different types of e-commerce exist, and each works in a unique way.

1. Business-to-Consumer (B2C)

B2C e-commerce is the most common type. Businesses sell products directly to consumers. Online stores, marketplaces, and brand websites offer goods and services. Customers browse, select items, and complete purchases through digital payments. Companies like Amazon and Walmart operate in this model. Fast shipping, customer reviews, and personalized recommendations improve the shopping experience.

2. Business-to-Business (B2B)

B2B e-commerce involves transactions between companies. Businesses buy and sell products in bulk. Manufacturers, wholesalers, and suppliers use online platforms to trade goods. Orders are larger, and pricing is often negotiated. Websites like Alibaba and industry-specific marketplaces support B2B trade. Digital invoices and contract-based payments streamline transactions.

3. Consumer-to-Consumer (C2C)

C2C e-commerce allows individuals to sell products to other individuals. Online marketplaces connect buyers and sellers. People list used or handmade items for sale. Customers browse and purchase directly from sellers. Websites like eBay and Etsy operate under this model. Payment processing and delivery depend on platform policies.

4. Consumer-to-Business (C2B)

C2B e-commerce allows individuals to offer products or services to businesses. Freelancers, influencers, and independent creators sell their skills or content. Companies buy services such as photography, writing, and digital marketing. Platforms like Upwork and Fiverr connect freelancers with businesses. Payments depend on project completion or hourly work.

5. Direct-to-Consumer (D2C)

D2C e-commerce removes middlemen. Brands sell products directly to customers without retailers or wholesalers. Companies use their websites or social media platforms to reach buyers. Customers receive better prices and direct support from brands. Businesses control marketing and customer experience. Many fashion, beauty, and health brands use this model.

6. Mobile Commerce (M-commerce)

M-commerce refers to shopping through mobile devices. Apps, social media shops, and mobile-friendly websites support transactions. Customers use smartphones to browse, order, and pay. Digital wallets and one-click checkout make payments easier. Businesses optimize websites for mobile users to increase sales.

E-commerce includes different models, each serving specific needs. Businesses and individuals trade goods and services using digital platforms. Online shopping, bulk transactions, freelance services, and mobile commerce shape the modern economy.

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