shopify ecommerce business model
eCommerce Insights

7 Types Of Ecommerce Business Models To Start On Shopify

Every eCommerce store has a business model of their own. Many of them attract visitors to their websites. If they choose a suitable Shopify eCommerce business model, they can attract a huge audience and generate good revenue.

Earlier, people used to purchase from brick-and-mortar stores. The internet revolution introduced eCommerce businesses enormously by building competitive eCommerce stores.

The eCommerce 2022 market has generated $4.2 trillion per year by being one of the rapidly growing segments of the global market. We have been delivering some of the best eCommerce business stores worldwide. Hence, we will help you to choose the best one for you!

What is an eCommerce business model?

An eCommerce business model describes how online retailers sell products and services. It would help if you defined whom you want to sell to and at what position. It will make you figure out your eCommerce business model and attract customers to your products.

What kind of products do you want to sell?

It is advisable to start with a small range of products while starting a Shopify eCommerce store. You can sell physical products, digital products, or provide services.

Physical products

They are the most commonly sold commodities in eCommerce stores. Physical products almost achieve higher sales.

Digital products

Are you a web designer, content writer, or artist? You can deliver your services to the customer online by creating your digital products.


You can provide professional service if you have experts or groups in areas like beautifying, house cleaning, carpentering, etc.

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shopify ecommerce business model

7 types of eCommerce business models 

Shopify ecommerce business models are a global business phenomenon supported. The good thing is that you can choose one or more models for your venture.

Business-to-Business- B2B

B2B businesses involve selling products and services to other companies. A wider audience is needed to be reached by conducting network marketing by firms. The main motive of B2B is a longer-sales cycle, higher-order value, and recurring orders.

B2B is often heard as B2C and is the most common eCommerce model used today. In the US alone, there is more than 1. B2B companies for every B2C company. Some successful businesses following this model are Alibaba, General Electric, Media Lounge, etc.

If you think your business budget and products will run well, go for this model.

Business-to-Consumer- B2C

It involves a business and a consumer. It is a popular product where a company sells products or services directly to customers. The products or services consumers purchase online are considered a B2C transactions.

The business following this model has a shorter sales cycle, lower-order value, and fewer recurring orders. If you are willing to target a specific audience, you should adopt the B2C model for your business. You need to do a good marketing pitch to reach an audience.

Some people use the attribute D2C- Direct to Consumer in terms of B2C. DTC is best understood rather than B2C or is equal to it. The consumer must browse the entire website and purchase from the store. The best B2C companies are Amazon, Target, Portugal Footwear, etc.

Consumer-to-Business- C2B

It is less popular than other business models but is growing its attention among many customers. The consumer sells goods or services in this kind of business. C2B can be known for serving a range of companies alone. The consumer has complete control over what to sell, whom to sell, and at what rate.

Most of these clients are freelancers or commercial units. Freelance marketplace, affiliate marketing, and reverse auction websites are part of this business model. It involves many legal issues; hence, this model requires detailed planning.

Business-to-Government- B2G

Business to Government, also known as Business to Administration, is a model where businesses sell products, services, or information to the Government. A government usually issues a project for any required assistance, and the Shopify eCommerce Business with the best tenders gets selected. 

Usually, a government agency doesn’t come to order on your website, while some local government bodies use it according to their needs. The most famous example is a SaaS company that maintains the entire data of the Government for a specific period.

Consumer to Government- C2G

This model is known as the administrative model and is like B2A. In this model, a consumer has a direct transaction with the Government with specific details on the website. Some examples are paying bills for water and electricity or offering feedback to Government for particular services.

Business-to-Business-to-Consumer- B2B2C

This model has three sellers involved. A business sells the product to another company or a local business, selling it to the consumer online. A local or partnered business purchases the products, take the commission in the middle and sells the product by revising the rate. This model is usually used for new customer acquisition. 

The customers are already familiar with the products to be purchased from but need help ordering due to hefty prices or location issues and many others—the mediator business person purchase in a bulk or wholesale order and sells at retail counter rates.

Consumer-to-Consumer- C2C

C2C is entirely different from B2C or B2B. It is discussed with an increase in the number of consumers in eCommerce. In the C2C model, the consumer is connected by an e-commerce marketplace that allows them to buy, sell or trade products or services in return for some commission.

Some of the popular businesses for C2C are eBay and Craigslist. Due to a lack of business planning in this model, many sites have failed due to legal issues in this model. Additionally, they must invest much in quality control to maintain the technology for a smooth consumer experience.

How to choose the suitable model for the Shopify eCommerce store? 

We have covered most of the well-known Shopify e-commerce business models. You have to conduct deep research to understand the problem well for the target audience and think of a better solution for them to be provided.


A wise decision would be choosing a Shopify eCommerce Business Model that goes well with your business. Remember to reach out if you still need clarification on which business model to decide. We are a professional and certified Shopify eCommerce website development company. 

Our highly talented team of developers for creating big eCommerce 2023 sites for clients worldwide. We understand your requirement and will help you select the model that integrates well with your website to reach a wider audience and become successful.