The 6 types of ecommerce business models

Many people search for what are the four types of ecommerce, yet there are six main ecommerce business models worth understanding. Knowing each type helps you choose the best way to sell, buy, or interact online.

The six main types of ecommerce are:

• Business-to-business (B2B)
• Business-to-consumer (B2C)
• Consumer-to-consumer (C2C)
• Consumer-to-business (C2B)
• Business-to-administration (B2A)
• Consumer-to-administration (C2A)

UK online retail remains significant, with trends tracked by the Office for National Statistics. See the latest ONS retail and ecommerce data.

Business-to-business (B2B)

B2B covers online transactions between companies. It includes wholesalers supplying retailers and service providers selling software to corporate clients. Examples include Booker Wholesale supplying convenience stores and Alibaba Business connecting UK buyers with overseas manufacturers.

Orders often involve bulk quantities, negotiated pricing, and contracts for ongoing supply. These transactions need accurate product data, reliable fulfilment, and strong after-sales support.

Advantages include higher order values, predictable sales cycles, and long-term relationships. Challenges include a smaller potential customer base and complex requirements.

This is one of the types of ecommerce business where efficiency and trust matter as much as price. Many ecommerce model types here integrate with buyers’ procurement systems to make repeat ordering seamless.

For a plain primer across models, see Investopedia’s ecommerce guide.

Business-to-consumer (B2C)

B2C is the most familiar and widely recognised form of ecommerce. In this model, businesses sell products or services directly to individual shoppers through online storefronts. Well-known UK examples include ASOS, Tesco, and John Lewis, all of which focus on making the buying process fast, convenient, and secure. Their sites combine clear navigation, secure checkout options, detailed product information, and delivery choices that meet a range of customer expectations.

Many people talk about the 4 types of ecommerce explained, yet there are six models in total. B2C is simply one part of the full picture, albeit the most visible to the average shopper. It covers a huge variety of sectors, from fashion and electronics to groceries and subscription-based services.

Success in B2C depends on building trust, offering quick and reliable delivery, and providing clear returns policies. With mobile devices now responsible for a significant share of UK online retail sales, mobile optimisation is essential to avoid losing potential customers. Many B2C sellers choose platforms like Shopify or WooCommerce for flexibility, scalability, and the ability to integrate with marketing tools, inventory systems, and customer support channels.

The advantages of B2C include access to a large and diverse customer base, scalability, and the ability to quickly launch and adjust product lines. The main challenges are heavy competition, constant pressure to keep prices competitive, and the need to deliver a consistently high standard of customer service to maintain loyalty.

Consumer-to-consumer (C2C)

C2C involves individuals selling to other individuals, usually through a third-party platform that provides the space, listing tools, and payment processing. Gumtree, Facebook Marketplace, and Vinted are well-known UK examples. These platforms make it easy for anyone to list an item for sale and connect with potential buyers.

These different types of ecommerce rely on secure payment systems, verified user accounts, and public ratings or reviews to build trust. Without these safeguards, buyers and sellers have little reason to transact with strangers online. Clear communication and accurate product descriptions also play a major role in successful C2C transactions.

C2C suits second-hand goods, collectibles, or one-of-a-kind handmade items. Sellers gain a route to market without having to manage inventory, pay for shop premises, or register a formal business. Buyers often find lower prices, rare items, or products not available in mainstream retail.

However, the risks are real. Scams, counterfeit goods, and misrepresented items can cause disputes. Unreliable communication or missed meet-ups also damage trust. This is why most platforms invest in verification processes, buyer protection policies, and dispute resolution services to reduce these issues and keep users engaged.

With more consumers looking for sustainable and cost-effective shopping options, C2C continues to grow as one of the main types of ecommerce, offering a way to recycle goods, reduce waste, and connect communities through commerce.

Consumer-to-business (C2B)

C2B reverses the traditional selling process by placing individuals in the role of supplier and businesses in the role of buyer. In this model, the individual sets the terms, whether that is a fixed rate, a commission, or a performance-based fee. UK freelancers use platforms like PeoplePerHour to connect with clients needing design, writing, or technical skills. Influencers and content creators work with brands to produce sponsored posts or promotional campaigns aimed at targeted audiences.

Many articles list C2B within the four main ecommerce business models, but the six-model view recognises it as a separate category alongside B2A and C2A. It has grown rapidly with the rise of the gig economy, remote work, and digital marketing strategies that depend on authentic voices and niche communities.

The advantages for individuals include flexible earning potential, control over workload, and the ability to monetise specialist skills or unique audiences. For businesses, the model offers access to talent and ideas without committing to long-term employment contracts. C2B can also be a cost-effective way to test new products or campaigns using small-scale partnerships.

The challenge lies in reliability. Quality can vary between providers, deadlines can slip, and expectations may not always be clear. This is why many businesses use platforms that provide vetting, ratings, and secure payment systems to ensure a smooth exchange. As more brands seek targeted outreach and authentic customer engagement, C2B continues to grow as one of the main types of ecommerce that connects businesses with individual expertise.

Business-to-administration (B2A)

B2A covers online transactions between businesses and public sector bodies. It applies to a wide range of services and goods, from supplying IT systems to councils, to providing office furniture, catering, or specialist consultancy to government departments. Businesses engaging in B2A often work through formal procurement channels that ensure compliance, transparency, and value for money.

In the UK, the government’s Contracts Finder platform lists opportunities for suppliers. Browse Contracts Finder. HMRC and NHS procurement systems are other examples of how B2A works in practice, with many transactions now handled entirely online to streamline administration and record-keeping.

This model offers steady demand, long-term agreements, and the credibility of working with public sector clients. For many companies, securing a B2A contract can provide predictable revenue and a strong reference for winning future work. It can also help diversify income streams beyond traditional private sector sales.

The process, however, can move slowly due to regulation, tender requirements, and compliance checks. Proposals often require detailed documentation, proof of capability, and adherence to strict quality and security standards. Businesses considering B2A need to be prepared for rigorous vetting, clear contractual obligations, and the ability to deliver at scale while meeting public accountability requirements.

Consumer-to-administration (C2A)

C2A enables individuals to manage their interactions with public services online. This includes submitting self-assessment tax returns through HMRC, booking NHS appointments, renewing licences, applying for benefits, or accessing local authority services from home. These services are designed to be available 24/7, reducing the need for in-person visits and cutting down on administrative delays.

• HMRC online services
• NHS services and appointments

By moving these processes online, C2A systems improve convenience for citizens, reduce paperwork, and increase accessibility for people who cannot easily travel to government offices. They also allow public bodies to automate routine processes, reducing operational costs and freeing up staff for more complex cases.

While adoption is high, barriers remain. People with limited digital skills or unreliable internet access can be excluded, creating a need for offline support options. Data protection and privacy are critical in this model, as sensitive personal and financial information is often shared. Public sector organisations must comply with strict security standards to maintain trust and meet legal obligations.

C2A continues to grow as one of the main types of ecommerce for non-commercial transactions, shaping how citizens interact with essential services and how governments deliver them efficiently in the digital age.

Advantages of e-commerce

Ecommerce supports all types of online business models, from large-scale B2B supply chains to local C2C marketplaces. It removes geographic limits, letting buyers compare suppliers and products from anywhere in the world, and enables trading around the clock without the restrictions of physical opening hours.

It improves access to customers by reaching audiences through search engines, social media, and targeted email campaigns. Communication is faster, with enquiries, orders, and support handled in real time. Offers can be tailored to individual buying behaviour, increasing the likelihood of repeat business. Cost savings are significant, as automation reduces manual processes, digital marketing reaches audiences more efficiently, and businesses can operate without the expense of large retail premises.

For consumers, ecommerce offers more choice, easy price comparison, and access to reviews before committing to a purchase. For sellers, it provides data on customer preferences and trends, helping refine products and marketing strategies over time.

Disadvantages of e-commerce

Reliance on technology means downtime or system failures can halt sales instantly. Online fraud, phishing, and data breaches can damage trust and result in financial loss for both buyers and sellers. Without the ability to physically inspect goods before purchase, customers may receive items that do not meet their expectations, leading to higher return rates.

Many markets still lack clear legal coverage for online transactions, creating uncertainty in disputes. Privacy concerns grow when personal data is shared across multiple platforms and third parties. Logistics can also present challenges, with delivery delays, lost parcels, or high shipping costs affecting customer satisfaction.

Some shoppers prefer in-person service and the tactile experience of traditional retail. For these customers, ecommerce needs to work harder to build loyalty, using strategies such as clear product photography, detailed descriptions, and generous return policies to replicate the confidence of an in-store purchase.

Choosing the right model for your business

The four pillars of ecommerce — market, product fit, budget, and delivery method — remain useful when planning, even though there are six main types of ecommerce to choose from. Thinking through each pillar helps define where your business fits and how to reach your target audience effectively.

Some businesses focus on one model from the start, while others combine approaches to broaden their reach. Niche, high-value products often suit B2B or B2A, where longer sales cycles and stable contracts are common. Consumer-focused industries like fashion or consumer technology fit naturally with B2C, where brand visibility and fast delivery are priorities. Service providers with specialist skills or unique audiences may find C2B offers the best route to monetisation.

Blending models can work well. A retailer using B2C to reach the public may also sell wholesale to other businesses through B2B, while supplying products or services to public sector bodies via B2A. The choice depends on your goals, resources, and the channels most likely to connect you with your ideal customers.

Why knowing all six ecommerce models matters

Understanding ecommerce model types makes it easier to match your business objectives with the right structure. It also helps identify opportunities to diversify, adapt to market changes, and reach new customer groups. From small retailers investing in ecommerce web design to large organisations managing multi-channel operations, the right model or combination of models can influence revenue, customer loyalty, and long-term growth.

Knowing how each model works in practice allows you to anticipate challenges, from platform choice and marketing strategies to fulfilment and compliance requirements. By aligning your approach with the main types of ecommerce, you put yourself in a stronger position to compete effectively, whether you focus on one channel or operate across several at the same time.