Step 2. Vocabulary Practice: Business Models in E-commerce

Read the text again and answer the questions below.

ecommerce-website-design-company-1619790-639x608One of the most important steps when starting an online business is choosing the right business model. Each model has its pros and cons so you should make the best decision right at the beginning.

B2B (Business-to-Business) is a model where one business sells goods to another business.

The advantage of selling to other businesses is that order sizes are typically larger and repeat orders are more frequent. On the other hand, there are fewer companies than consumers and purchase decisions more often depend on price.

B2C (Business-to-Customer) refers to selling directly to the end consumer that will use the product. This is the most popular type of business model and what most people decide on when they set up their online stores.

C2C (Customer-to-Customer) is the oldest e-commerce type we know. The goal of this model is to let shoppers and sellers find each other easily. Shoppers benefit in two key areas. First, they benefit from high competition and secondly, they can easily find products that are otherwise difficult to find.

So what’s the best model for your new e-commerce business?

Step 2. Vocabulary Practice: Business Models in E-commerce