Different types of B2C E-commerce business models
Within B2C there are many different business models available. Consumers may not always know which kind of company they're working with, but for the owner of a store, selecting the best B2C model for your business is vital to your success.
Direct to Consumer (DTC)
DTC, a type B2C model that sells goods directly to the consumer, is what we have already described. Brands such as Cupshe and Allbirds are among the most popular examples of DTC brands.
Direct-to-consumer model that requires buyers to pay monthly, weekly or quarterly are known as subscription DTCs. This model is finding increased interest in the marketplace, with major brands like Tiege Hanley as well as BootayBag being the leaders in this field.
One important distinction is that DTC may include elements of subscription however it cannot be a subscription model. A subscription DTC is only available to those who have bought subscription plans.
White and private label
Private and white label businesses offer products made by third parties. White label products are non-exclusive items (think essential oils) which can be purchased by any brand. Private label items, on the other hand, are exclusive to a specific brand (think the Target brand Archer Farms).
The majority of E-commerce businesses source product lines from other brands to create stores with carefully curated merchandise. This is known as e-retail. It's the process of creating an online store that looks like a physical shop. In the past few years E-retail has been instrumental in helping create many successful brands such as goop or The Breakfast Pantry.
B2C wholesale is like an online version of Sam's Club or Costco. Swish and Alibaba are two of the most popular brands. They possess all the features of a business, but offer bulk-buy options to consumers.