eCommerce Business for Sale? – What you Need to Know in 2018!
Ecommerce Business Classification in 2018!
So, what is ecommerce business classifications anyhow?
Ecommerce business is the commercial transactions of online business,
going through electronically over the Internet.
The Ecommerce industry is not an exact industry, so no specific SIC code
is established for business identification.
So, how do you know if you are looking at the right questions when
you embark on your eCommerce business project?
Compare, Research and Review – Strategized your Business Plan
This is a great strategy point for your ecommerce business website.
This is because, different SIC codes can be established based on
the definition and description of the business.
For example, a SIC code 5961, would include the
catalog and mail order houses for conducting online transactions.
This means, establishments that are mainly involved in the
engagement of the retail sale of products from the following sources:
- Television order
- Mail order
Other SIC Types
There exist, another type of SIC code for this industry group, which is E-commerce.
This code, looks at the electronic shopping realm of an ecommerce business website.
This means, that the United States industry, is complied with establishments
that are engaged in all types of merchandising, using the Internet as their means to do business.
There is another way to identity the SIC code of an Ecommerce Company.
This would be done through the target of the Retail Trade Industry, categorized in pages 52-59.
This is considered the retail trade industry, and if you decide to look at
these buying prospects, then you will target the companies in this industry niche who have websites.
It can be a challenging feat to handle the basis and purpose of these types of businesses.
This is because they can become tricky and need clarity through organization of categories.
There are similar patterns that can be analyzed through category
segregation, in order to find these ecommerce categories.
Through this process of close examination, and analysis,
2 parameters become evident in this type of business model.
This type of analysis is important to follow through on, because,
it provides business insight into the model and a financial model of the enterprise.
So, through classification of the ecommerce business brand, other areas of sold goods become relevant.
This is because, ecommerce businesses are in the business to sell!
This is true!
Think of all the different product types your
drop shipping ecommerce website offers its buyers.
For example – 3 Types of Goods Sold:
- The actual physical goods of the product. For example, appliances, furniture or other gadgets.
- Digital goods such as computer software. These items come in the form of, eBooks, music, images, video.
- Services included, such as, insurance and tickets.
Positive Side of the Financial Model of Ecommerce
Keep in mind about the logistics and delivery of physical goods for your ecommerce business.
Make sure to consider the types of goods or products to sell,
before you buy or sell an ecommerce drop shipping business.
This is because, the actual logistics of delivering the physical goods,
can be cumbersome in relationship to the selling of digital goods.
Think about buying a physical, tangible book, verses one that you can
download directly on your kindle or other online reader platform.
The transportation of the two are different, since one is based in software,
while the other is based on the physical realm.
So, you can see the huge advantages of selling digital based merchandise and products online.
There are other positives about having digital products or digital
merchandising in comparison to the tangible aspect of ecommerce.
For example, think of online tickets.
You may need to purchase online tickets for a concert, or main event,
or just air tickets for your next big vacation.
These digital products, also have other external factors,
that can affect them in real time.
What are some of these factors?
Some of these factors to consider with digital products, are airplane tickets, and its availability.
This can be achieved through the intuitive software that is being discussed in this article piece.
Such as finding the best location for airplane seats, or if you want a certain meal preference, you have that option.
But keep in mind, the refund-ability options when it comes to digital ticketing and product purchasing.
Now that you have a good basis of digital goods versus tangible goods,
and online distribution, let’s look at the nature of business brand participation.
Classification of Ecommerce Businesses
There exist, 3 common participants in the ecommerce trade.
Now, that we have established this business trait,
let’s look at the 6 primary ecommerce types.
This overview will help find the best ecommerce types
for your investment or business needs, today!
6 Ecommerce Types for Business Consideration
Business to Business – Business Type
So, the first one is B2B.
This is known as the business to business model.
This is where both the players involved are businesses.
Thus, business to business, ecommerce type.
An example of this type of model, is a business who manufactures gadgets,
and uses their ability to enhance other online components.
So, this type of model will focus on the products that are provided from one business to another,
but this will also attract a niche type business, for example, service providers.
Software companies for example, would be included in this model of business for ecommerce.
Deeper Examination of the Process
Now that you understand the focus of a B2B Model, which is the product exchange
between one business to another, let’s look at niche marketing within this isolated group.
You will find that many of the ecommerce business types in this niche group, are service providers.
This means, you will also find software companies.
You will also find other types of businesses, such as:
- Office Furniture
- Supply companies
- Document Hosting Companies
- And So many more!
Empirical Business Evidence Include:
- ExxonMobil Corporation
- Archer Daniel Midlands
This means, these corporations have a custom enterprise ecommerce platform,
that can work directly with other businesses.
These business relationships are created and formed in a closed
environment for security and other related reasons.
This type of business model, would normally take more startup cash than other business types.
So, lets examine other business models in the ecommerce arena,
you may just find your next new ecommerce purchase.
Business to Consumer – Ecommerce Model
The next type of business classification, is considered, business to consumer or B2C.
This means that a business sells goods and products online to their customer base.
Amazon, is a definite example that comes in the minds of many who
think of this definition and business model.
This is, what most people will think of when they imagine an ecommerce business model.
This model is considered to be the deepest ecommerce market on the online marketplace.
This is in part due to its integration of both the brick and mortar and click to mortar establishment approach.
This is because this type of business model, unlike others,
also incorporates the traditional retail model of business.
Empirical Examples of this business classification are:
Majored B2C Ecommerce Business Models include brands like:
- And the list continues as you can image.
Benefits of B2C
This type of business model, eliminates the need for a retail or physical store,
since most of it’s logistics is done through online methods.
This is where the cost of doing business, can strengthen the business
model and foundation of an ecommerce business.
The next type of ecommerce business type, is the
Consumer to Business Model description.
Consumer to Business – C2B Business Model
This type of ecommerce model, puts the initiative in the consumers hand.
This means for example, that an online consumer can engage
and participate in the business fulfillment process.
This fulfillment process can include, applying for a job, on a company job site or more.
This can be expanded through multiple job site forums, or
company website pages, encouraging online user participation.
The next business models look at the relationship between
the consumer to the business, back to the consumer ecommerce.
C2B2C – Ecommerce Model
This type of business model allows consumers to sell other consumers products or goods.
eBay is a business that participates in this business model.
The next type of business model, is called the B2A.
What is Business to Administration – B2A Ecommerce?
The definition of administration in relationship to this business
model description, relates to the public administration or government entities.
This means that an e-government exists on the marketplace of ecommerce.
This can be seen with countless branches of government or entities that are dependent on these e-services or products.
The business can supply their forms or other needed documentation through an electronic base.
There exists another type of business ecommerce, and the last of the 6 description types.
Consumer to Administration – Ecommerce Business Type
This type of business operation allows consumers to be involved in the equation process as well.
Even though the government rarely buys products and services from individuals,
an electronic mean to transmit payments or file tax returns, does exist.
There is a special occurrence for employees of these business types.
They are seen or regarded as a special type of consumer, and have that label assigned to their role.
This new approach and view on these employee types, can also give
rise to a new developing type of ecommerce, B2E.
Also, known as Business to Employee Ecommerce.
So, as you can see, with the onset of new web technologies,
the creation of business models is beginning to ferment.
Here are some industry examples of these ecommerce business models:
- Mobile Ecommerce
- Bricks and clicks
- Ecommerce website
- Storefront or retail locations
- Piggybacking Method of Ecommerce
There are many different types of ecommerce business models as you have learned and discovered.
Finding the best one for your current needs and industry, is your first step.
Let a business broker, trained in this area of expertise, guide you in your next business transaction!