Ecommerce (short for “electronic commerce”) refers to selling goods and services online.
The six major models for conducting ecommerce today are:
- Business-to-consumer (B2C)
- Business-to-business (B2B)
- Business-to-government (B2G)
- Consumer-to-consumer (C2C)
- Consumer-to-business (C2B)
- Consumer-to-government (C2G)
Use this guide to learn about each model’s features, opportunities, and challenges. You’ll also discover the best digital marketing tactics for all types of ecommerce businesses.
1. Business-to-Consumer (B2C)
B2C ecommerce happens when a business sells products directly to consumers.
Businesses can sell their own products (known as direct-to-consumer, or D2C), or they can sell products from other brands. Walmart, BestBuy, Amazon, and Alibaba are well-known B2C companies that resell other companies’ products on their ecommerce websites.
H&M, Adidas, and HelloFresh use a B2C model and also sell their own products under a D2C approach. Some B2C companies, such as ASOS (UK), sell both their own items and other brands’ products.
Some of the key traits of B2C ecommerce company are:
- Short sales cycles (the time it takes to attract a prospect and have that person complete a purchase)
- High transaction volume
- Low average transaction value
The B2C category can include several revenue models:
- Dropshipping: Sellers display third-party products in their online stores. When a customer buys, the seller purchases the item at a lower cost from a supplier that ships directly to the buyer. The process is often automated.
- Subscription services: Customers pay recurring fees for ongoing services or regular product deliveries. Spotify and pet product supplier BarkBox are common examples.
- Pre-owned/refurbished products: Sellers source secondhand items from consumers or other businesses. BackMarket, for instance, sells refurbished phones.
B2C often has low startup costs, which attract many entrepreneurs. As a result, competition is high.
2. Business-to-Business (B2B)
B2B businesses sell products or services to other businesses.
B2B companies may sell directly to end-user businesses or to companies that resell items to other businesses or consumers.
For example, Trello is a B2B ecommerce company that sells collaboration tools to businesses.
An auto parts manufacturer that supplies an automobile factory is another B2B example.
Semrush also follows the B2B model by providing marketing tools to companies and freelancers.
Wholesalers are also part of B2B. Faire, for instance, caters to resellers.
The key traits of B2B ecommerce are:
- Longer sales cycles
- Higher transaction values
- More recurring purchases
Subscription models are common in B2B, especially for software vendors. Sellers get regular, predictable income, and buyers can spread purchase costs to manage cash flow better.
White labeling is another frequent approach where a reseller buys an unbranded product and markets it under the reseller’s own brand.
3. Business-to-Government (B2G)
In a B2G model, businesses sell products or services to government organizations or public agencies. These entities can be federal, state, county, or local organizations.
For example, OpenGov sells software solutions to local government agencies.
Many B2G deals start with a request for proposal (RFP). The government agency invites businesses to compete by outlining their product or service.
The key traits of B2G ecommerce are:
- Long sales cycles
- High transaction values
- Strict compliance requirements
B2G contracts can create financial stability for suppliers because the contracts often last longer. However, government bureaucracy can slow the sales process.
4. Consumer-to-Consumer (C2C)
C2C transactions involve individual consumers. When one person sells to another, that is a C2C transaction.
Online marketplaces like Autotrader, Facebook Marketplace, eBay, Craigslist, and Vinted host these transactions and charge fees or commissions in return for listing services, payment processing, and dispute resolution. Some also generate revenue from ads.
C2C platforms add structure to sales that would otherwise be unregulated, which helps maintain quality and trust among peer-to-peer buyers and sellers.
5. Consumer-to-Business (C2B)
C2B describes situations where consumers sell goods or services to businesses. The business can be the end user or a reseller.
For example, an individual who sells a photo to a newspaper is engaging in a C2B transaction. The newspaper then uses the image in its publications. Similarly, Shutterstock buys content from individual contributors and resells it to customers.
Influencer networks also foster C2B. They connect businesses with social media users who have large followings. These users sell brands access to their audience for a fee.
6. Consumer-to-Government (C2G)
C2G transactions occur between individual consumers and government agencies. Any company that facilitates these transactions is a C2G ecommerce business.
An example is a utility company that delivers government-sponsored energy services, such as Dominion Energy, which allows customers to manage their services online and often provides price options that stimulate competition.
The key traits of C2G ecommerce are:
- Streamlined administration and payment processes
- Choice of products and service packages
- Enhanced consumer access to public resources
6 Proven Marketing Strategies for Ecommerce Brands
Here are six effective approaches that can improve customer engagement and boost online sales in ecommerce.
1. Search Engine Optimization (SEO)
SEO increases visibility in search engine results pages (SERPs). The primary goal is to rank high for keywords your ideal customers use.
For example, the direct-to-consumer B2C brand Trek ranks highest for “hybrid bikes. People searching for hybrid bikes will therefore be more likely to click on Trek’s page first.
Some key SEO tasks include:
- Keyword research: Find product-related keywords potential buyers search for.
- Site architecture: Organize your site so that Google can crawl it easily, and customers can find products fast.
- On-page SEO: Optimize your site’s titles, meta descriptions, images, internal links, and markup to help search engines and users better understand your content.
- Technical SEO: Ensure Google can index all pages by fixing issues like duplicate content, slow load times, and broken links. Tools like Semrush’s Site Audit can help find technical issues.
Google prioritizes human experience, so you should always create relevant, high-quality content that meets search intent.
You can audit and optimize your store for better conversions with the Ecommerce Booster app. The app audits the main areas of page performance: visual and text content, user experience, page speed, and accessibility on your site.
The built-in AI also helps you generate product and meta descriptions, improve image quality, write alt texts, and remove image backgrounds.
2. Pay-Per-Click (PPC) Advertising
PPC is an online advertising model in which you pay each time someone clicks your ad. The more competitive the search term (keyword), the higher the fee.
Google Ads and Facebook Ads are common platforms.
Here’s why PPC is useful for ecommerce marketing:
- Ads usually appear above organic results, so users see them first
- You pay based on clicks, allowing better cost control
- PPC provides faster results than SEO, which helps with product launches or promotions
- You can target specific audience segments, improving the chances of conversion
Search engine PPC ads look like this:
The ads fill most of the page, taking attention away from the organic results that follow.
On Facebook, you’ll see sponsored posts like the following among friends’ content:
To drive significant returns from a PPC strategy, you need to understand:
- Where your audience is most likely to see your ad content
- Which relevant keywords to target (you’ll need to balance competition with affordability)
Most search engines and social media sites have ad platforms for running PPC campaigns, but some platforms suit ecommerce stores better than others.
Google Shopping ads are a great starting point because the platform allows you to serve product images straight onto the SERPs with clearly displayed reviews and prices.
3. Content Marketing
Content marketing involves creating and sharing useful, relevant material, such as blog posts, videos, and infographics. This content attracts and retains audiences.
Other popular content formats include:
- Emails
- Newsletters
- Ebooks
- Podcasts
- Social media posts
- FAQs
For example, B2C accessories brand Bellroy lets followers see behind the scenes with Facebook posts like this:
Engagement with the post (clicks, comments, likes, and shares) builds awareness and drives traffic to Bellroy’s product pages.
Consistently creating helpful content also boosts your site’s authority in Google’s eyes.
A good content marketing strategy includes specific goals, clear performance indicators (i.e., valuable metrics), and a process for iterative improvement. 80% of marketers who are extremely successful in content marketing have a documented strategy.
4. Influencer Marketing
Influencer marketing partners brands with well-known social media personalities. Businesses pay or compensate influencers to promote products, which gives the brand exposure.
For example, D2C ecommerce company Solovair collaborated with style influencer Albert Muzquiz (@edgyalbert) to promote the brand’s dealer boot on Instagram:
Muzquiz’s video got more than 17,000 likes, while the brand’s own post about the same product only received 86.
Influencer endorsements also build social proof, which encourages trust among potential buyers
5. Social Media Marketing
Social media marketing is using social media to grow your brand’s audience, improve its reputation, and increase revenue.
Common tactics include:
- Sharing relevant, helpful content
- Responding to customer questions
- Posting brand updates to appear more relatable
This approach builds trust and encourages loyal followers. For example, Asana uses LinkedIn to distribute content that helps users get more from their investments:
In this instance, LinkedIn gives Asana (a B2B ecommerce brand using a subscription model) the best chance of reaching its target audience of business users.
D2C businesses are more likely to find their audiences on Instagram and TikTok. Stroller brand Bugaboo is active on TikTok, for example:
Social media platforms are typically free, so you can start building your following immediately. Most platforms also offer paid ads for faster brand growth.
6. Email Marketing
Email marketing involves sending electronic content—newsletters, catalogs, promotions—to subscribers.
For example, this time-sensitive promotion from D2C tea brand August:
Email is direct, simple, and accessible. Billions of people worldwide check their inboxes multiple times a day, which means you can reach potential and existing customers almost anywhere, at any time.
Here’s how to start a basic campaign:
- Build an email list. Collect names and email addresses on your website. Provide incentives, such as exclusive content, to build your list faster.
- Choose email marketing software. Consider platforms like Mailchimp, Mailer Lite, or ActiveCampaign.
- Set goals. Align the goals with business objectives and track them using metrics such as open rate, click-through rate, or conversions.
- Create your strategy. Segment your email list and decide what type of content works for each group based on traffic, interactions, and purchases.
- Craft your content. Repurpose top-performing blog posts into email snippets with links to full articles.
- Test your email system. Send test messages to ensure they display correctly on multiple devices and browsers.
- Automate your campaign. Schedule emails at set intervals, such as a welcome message in the first week, followed by a discount code in the second.
Monitor performance in your email software and adjust elements like subject lines or content focus to improve results with each campaign
Organize Your Ecommerce Marketing Efforts with Semrush
All ecommerce businesses benefit from a data-driven marketing strategy. Semrush offers tools to manage SEO, content marketing, PPC, and more.
Start working toward your ecommerce goals. Sign up for a free Semrush trial to streamline your marketing activities and increase your online visibility and trust.