L3 Ecommerce

Business Model

is a structured plan that explains how a company generates value by creating, delivering, and capturing it. It details the products or services provided, the target audience, and the methods used to earn revenue and profit.

B2A (Business-to-Administration)

refers to transactions between businesses and government agencies or public administration. In this model, companies provide products, services, or solutions to government institutions, such as IT services, infrastructure projects, consulting, or security systems.

B2B (Business-to-Business)

refers to transactions between companies rather than between a business and individual consumers. In this model, businesses sell products or services to other businesses, which may use them for production, operations, or resale.

B2C2B (Business-to-Consumer-to-Business)

This model involves a business providing products or services directly to consumers, who then act as intermediaries to facilitate business transactions.

B2C2B (Business-to-Consumer-to-Business)

This model is commonly used in software-as-a-service (SaaS), freemium business tools, and consumer driven enterprise solutions.

B2B2C (Business-to-Business-to-Consumer)

In this model, a business collaborates with another business to reach the end consumer. Typically, a company provides products or services to an intermediary business, which then sells them to consumers.

B2C (Business-to-Consumer)

The B2C model refers to businesses that sell products or services directly to consumers for personal use. This model is widely used in online retail, subscription services, and digital marketplaces.

B2G (Business-to-Government)

pertains to the commercial transactions and interactions between businesses and government entities. It encompasses a wide range of activities, including procurement processes, contracts, regulatory compliance, and the provision of goods and services to public sectors at various levels of government.

C2B (Consumer-to-Business)

The consumer-to-business (C2B) e-commerce model allows businesses and consumers to have a mutually beneficial relationship. In this relationship, the consumers create value that an organization uses to engage in a business process or gain a competitive advantage.

C2C (Consumer-to-Consumer)

is a business model where one consumer sells goods or services to another, often online as eCommerce. A third party facilitates transactions for a commission while ensuring acceptable quality control. This model enables individuals to buy and sell directly with ease.

C2G (Consumer-to-Government)

Consumers interact with the government via online services. Consumers (Citizens) initiate the transaction so that they can access government services or comply with government requirements.

D2C (Direct-to-Consumer)

businesses sell products or services directly to consumers, bypassing middlemen like retailers or wholesalers. Companies handle the entire customer journey, from marketing to sales and delivery.

G2C (Government-to-Consumer)

Government provides services directly to citizens online. The government initiate the transaction so they can deliver services, disseminate information, or provide support to citizens.

P2P (Peer-to-Peer)

This business model refers to the interaction between two individuals that buy and sell goods or services directly with each other without the intervention of a third-party or middleman.

Affiliate Marketing

A business model that employs revenue-sharing marketing method where businesses compensate third-party publishers (affiliates) for promoting or leading to their products or services through advertisements in social media.

Crowdsourcing

refers to gathering of ideas, suggestions, and information from a large group of audience on social media platforms. This will allow an individual, a business, or an organization to aid them in decision-making upon seeing the public’s opinion and response.

Crowdfunding

is the process of collecting and raising funds, usually in small amounts. Entrepreneurs or companies ask or request their audience for funding to help start their business or finance them for a new project.

Dropshipping

is a retail fulfillment method where online stores sell products without keeping them in stock. When a customer places an order, the store forwards it to a drop shipping supplier who ships the product to the customer.

Freemium Model

A combination of the words “free” and “premium” freemium is a type of business model that offers basic features of a product or service to users at no cost and charges a premium for supplemental or advanced features.

Marketplace

is a type of eCommerce platform that connects multiple buyers and sellers. The marketplace offers a platform where the two sides can interact and tools to facilitate transactions between the two parties.

Types of Online Marketplace:

1. Consumer to Consumer (C2C) - In this online marketplace business model, anyone who has products to sell or wants to buy goods can do so. You simply need to list the goods you’re selling or use the search bar to find what you’re interested in.

2. eCommerce and retail sites (B2B and B2C) - An online retail store is the essence of eCommerce--physical products being sold through a website. Business owners look for (or make) popular goods, list them on their website, and sell them to target markets. (e.g.Lazada, Shopee, DataBlitz, EasyPC, etc).

3. Wholesale Marketplace - A wholesale marketplace is where businesses sell supplies, raw materials inventory, or other products to businesses or consumers. (e.g. Shopee, Lazada, Tiktok Shop) 18.

Subscription-Based Model

is when customers pay a recurring fee to receive products or services over time. Subscriptions are a traditional revenue model in industries like print media, cable TV, software, landscaping, and grocery services. Recently, subscriptions have also become a popular e-commerce payment method.

Types of Subscription Models

A. SaaS Subscription Model - best for software that customers continuously use and that is often updated. o Examples: Google Workspace, Microsoft 365, Adobe

B. Subscription Box Business Model - best for companies selling physical products that are replenishable or curatable. o Examples: Amazon Subscribe & Save, Cratejoy, Birchbox

C. Streaming Service Subscription Model - best for media sold over the internet. o Examples: Netflix, Spotify, Disney+, HBO Max

D. Content Subscription Model - best for selling access to continuously produced content. o Examples: Medium, Patreon, CourseHero

E. Usage-based Subscription Model - best for quantifiable services that allow users to pay for what they actually use. o Examples: Google Cloud, Microsoft Azure, Dropbox

White Labeling

is when one company buys its product from another company and rebrands it as their own. The company which sells the final product to the consumer is usually not involved in the manufacturing process.