Business to Business Model

75% of future Net revenue is in business to business channels, then herein lies the greatest opportunity for e-commerce hopefuls. The B2Bs now publicly traded swim daily amid accusations of inflated value and short revenue. Investors jump onboard and offboard faster than passengers on tour cruise ship.

Regardless B2B e-commerce ventures will form the backbone of the new economy, which, like the industrial revolution, isn’t going away. If the publicly traded B2Bs are failing now, it’s only because the real gems have yet to be mined and brought to their initial public offering, the biggest opportunities are still in the napkin stages.

Because it offers such tremendous opportunity for specialization and capitalization, business- to-business models can be broken into several distinct forms. First, B2Bs often called “market makers” by investors – serve either vertical or horizontal markets.

Vertical markets 

Vertical markets are industry specific. E-commerce solutions in this category most frequently address the inefficiencies within a given industry, and hundreds of vertical market makers have already emerged in highly scattered, highly populated industries such as steel, chemicals, and paper.

Horizontal markets
Horizontal markets span across multiple industries by offering common information, goods and services. They provided a venue for the transfer of goods, and services, including the outsourcing of basic services; data collection and analysis, human resources and general office operating supplies, to name a few.

Each of four additional types of B2Bs –
Online catalogs
Auctions
Community markets
Exchanges
-can fall within either the vertical or horizontal marketplaces.
Business to Business Model

Consumer to consumer Business Model

The above type of model facilitates commerce between consumers, plain and simple. Revenue streams are typically fees for matching buyers with sellers and vice versa. Flat fees and commissions may apply.

The most famous consumer to consumer (C2C) company is eBay, the world’s largest personal online trading community, which - for a tiny fee – allows consumers to offer their goods directly to other consumers in auction format.

Ebay contends that its cocktail napkin moment was a conversation between Pierre Omidyar and his wife, who collects Pez dispenser.

She wanted to use internet as a tool to expand her collection, and Pierre expanded that idea to include a central location for the trade of all collectibles and launched eBay on Labor Day in 1995.

Today the secret to eBay’s profitability is volume – insane volume. Individual consumers use eBay to buy and sell in more than 4,320 categories, including automobiles, collectibles, antiques, sports memorabilia, computers, toys, books, magazines, music, pottery and glass, photography, electronics, and jewelry and gemstones.

Buyers are compelled to trade on eBay due to the large numbers of items available. Similarly, sellers flock to eBay because that’s where the most buyers are. As a result, more than 450,000 items are posted for sale in any given day, and eBay collects a fee on each transaction.
Consumer to consumer Business Model