Do you know how many business models exist within electronic commerce? At Amphora Logistics, we analyze the different ecommerce business models by classifying them according to the parties involved in the transaction. As you’ll see, these models appear in almost every everyday scenario.
E-commerce Business Models
We can establish a general classification of ecommerce business models based on the legal status of the parties involved in the transaction (service provider and recipient). This leads to three main types of ecommerce:
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B2B (Business to Business)
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B2C (Business to Consumer)
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C2C (Consumer to Consumer)
Below, we analyze the differences between B2B, B2C, and C2C. As mentioned earlier, these ecommerce models are widely used today.
The B2B Model
The definition of B2B ecommerce comes from its English acronym: business to business. In these transactions, both parties are companies with legal entity status—both the seller and the buyer are businesses.
B2B ecommerce models are characterized by the absence of end consumers in the transaction. All operations take place between two legal entities, not individuals.
A clear example can be found in supply chains between companies. Retailers—both small stores and large chains—place orders with their suppliers or wholesalers.
B2B models are usually associated with commercial synergies. These are not one-off purchases, but long-term supply strategies involving negotiation to create a win-win scenario for both parties.
As a result, B2B businesses often rely on consultative selling, aligned with strategies that benefit both companies in long-term relationships.
In B2B transactions, both parties charge and pass on VAT. Unlike final consumers, companies act as intermediaries of the tax, applying it successively on invoices until the product reaches the end customer, who ultimately pays it.
A special case occurs when a self-employed professional acts as the buyer. If the purchased goods are necessary for their business activity, the transaction is still considered B2B. Although freelancers are legally individuals, they can deduct VAT on business-related purchases and therefore do not act as final consumers.
The B2C Model
In B2C (business to consumer) ecommerce, transactions take place between a company and a private consumer—that is, between a legal entity and an individual. This is the most common ecommerce model and is seen daily on platforms like Amazon or AliExpress.
For this reason, B2C ecommerce has the greatest visibility among consumers. A simple online search can easily lead users to an ecommerce platform where they can purchase a product.
Sales in B2C ecommerce are usually driven by immediate consumer needs rather than long-term strategies or synergies. The goal is simply to satisfy a specific demand.
As a result, relationships between the supplier and the consumer are often short-lived. Customer loyalty is built not through consultative selling, but through emotional appeal, promotions, or discounts.
In this model, the company manages the ecommerce platform—website maintenance, order management, support, and warranty—while the final consumer purchases the product and pays the applicable VAT.
The C2C Model
In C2C (consumer to consumer) ecommerce, transactions occur between two private individuals. According to VAT regulations, these transactions are not taxable events, meaning no VAT is charged or paid.
Where do we see C2C models? On platforms like Wallapop or Vinted, where consumers sell second-hand products. Users register on these platforms and list items they no longer use.
These platforms also allow users to ship products, rather than relying solely on in-person exchanges.
Final Thoughts
This classification of ecommerce business models covers nearly all online purchasing scenarios. At Amphora Logistics, we recommend outsourcing logistics services for your ecommerce business—whether you sell to consumers or work with other companies.