Business model of ecommerce companies(B2C) – How ecommerce websites make money


Hey friends Today we will be talking about business model of ecommerce companies Like amazon, Flipkart, Snapdeal, Jabong and myntra These companies follow B2C business model means business to consumer It provides such market place where many local sellers can come and list their product and finally can sale anywhere For this, these companies charge some commission on every sale which differ on every type of product usually 5-20% These companies don’t have their have own inventory But inventory is owned by those sellers who sell on these sites Now, Lets take an example Lets say, Ram has a toy shop But now he is only able to selling his locality So, for increasing his sale He decides to tie-up with amazon and list his products on its site Now when any customer would buy ram’s product on amazon then some commission will be charged by amazon and Ram will get remaining money . And customer will get his order either through amazon logistic service or directly through seller So this was the business model, now we will talk about revenue model These companies earn through 4 methods First is commission We have talked about commission before They charge commission on every sale and generate revenue from same Their second revenue generation method is product launch You must have seen many smartphones like xiomi and motorola which get lauch and sell online So they charge brands on every launch and generate revenue Now third method is Ads These companies do ads of many brands on their website, Newspaper and Banners And in return charge some money for revenue generation Now fourth and last method is Logitics Like, Flipkart logistic service is E-Kart and amazon logistic service is easyship So, from charging delievery from customers and sellers, they generate their revenue This was the revenue model of ecommerce companies Subscribe, if you don’t want to miss my video Like, if you liked this video Comment your thinking And share with your friends and family thnks for watching Being Entrepreneur

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