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Types of online businesses

By Tiago Moraes 10 minutes reading
Types of online businesses
Image: illustration with various representations of online business types.
Virtual store, multi store, markplace; B2B, B2C, and D2C, among others, are all types of online businesses that you can start building right now. Image: @macrovector

Do you want to set up an e-commerce, but are in doubt about the different types of online businesses? If this is your case, then check out in this article five lists that classify the items that can be marketed, as well as their categories and niches, sales channels and much more! Follow up!

ONLINE BUSINESS TYPES: ELECTRONIC COMMERCE FORMATS

E-commerce is a sales modality carried out through electronic equipment such as desktop computers, notebooks, tablets, smartphones, totems and regular telephones, among others, not necessarily connected to the internet.

However, all commerce that takes place via the Internet can be called electronic commerce, since it requires the use of the aforementioned devices. This type of commerce specifically can be termed as “online business”.

Finally, online e-commerce can basically be classified into the following formats:

B2B:

Acronym for Business to Business, B2B is when a company sells to another company.

B2C:

Business to Consumer (B2B) is the format in which a company sells to the final consumer.

B2E:

Business to Employee (B2E) is when a company sells to its employees.

C2C:

Consumer to Consumer (C2C) is when one consumer (individual) sells to another.

B2G:

Acronym for Business to Government, B2G is when a company sells to the Government.

D2C:

Direct to Consumer is when the manufacturer sells directly to the consumer without intermediaries;

B2B2C:

B2B2C , short for Business to Business to Consumer, refers to when companies sell products to other businesses while simultaneously selling to end consumers.

Based on these formats, start choosing your place in the market. Afterwards, invest a little time to study the chosen format(s). That way, you will have more affinity to proceed when you are in the planning phase of your online business.

E-COMMERCE NOMENCLATURES

In addition to the formats already mentioned in the previous topic of this article, e-commerce has several nomenclatures that you should be familiar with in order to expand the knowledge that you will use to set up your online business. It is important to know, for example, what it is:

F-commerce:

The acronym F&A stands for Facebook Commerce, which refers to commerce within this social network and its partner networks such as Instagram and WhatsApp.

K-commerce:

Knowledge Commerce is when a company sells its aggregated knowledge, that is, its know-how.

L-commerce:

Location Commerce refers to regional online commerce that takes place with the aid of GPS and location technologies.

m-commerce:

The acronym for Mobile Commerce refers to sales made via mobile devices. Its main sales interface is the so-called Mobile First store.

P-commerce:

Participatory Commerce is a modality in which consumers participate in the product creation process by personalizing it.

R-commerce:

Relationship Commerce is when the merchant employs techniques that generate long-term relationships with customers, which turns them into customers.

S-commerce:

Social Commerce is the name given to e-commerce that takes place via social networks. In this context, it can employ resources such as VTEX Social Selling , for example.

T-commerce:

Television Commerce is when a company creates commercials that are aired on television channels specifically built for that type of programming.

U-commerce:

Ubiquitous Commerce is the name given to commerce that unifies online and offline channels to offer consumers a seamless and seamless shopping experience.

V-commerce:

Video Commerce is the production and publication of videos that expose features, qualities and advantages of services and products in order to convince consumers to buy them.

U-commerce: an omniscient, omnipresent, omnipotent e-commerce
U-commerce: an omniscient, omnipresent and omnipotent e-commerce

Okay, now that you know the basic e-commerce formats and nomenclatures, read on to find out what to sell online.

TYPES OF ONLINE BUSINESSES: WHAT TO SELL

There are basically four categories of items that you can sell online, they are:

Products

Products are tangible items, that is, physical objects that can be picked up by hand. Refrigerators, cars, food, electronics in general are in this category. Once purchased online, your deliveries to buyers must be made via freight.

Services

Services are intangible items, that is, they cannot be physically touched. They encompass actions performed over a period of time. Examples of services include " e-commerce development ," "business accounting," and "product shipping."

Infoproducts

Infoproducts are intangible items, that is, they only exist virtually. This category includes items such as spreadsheets, e-books and mind maps, among others, which can be sold and used online via electronic devices such as computers and tablets.

Knowledge

Knowledge encompasses accumulated experiences and knowledge that can serve educational, personal, corporate, etc. For example, in the aforementioned K-commerce, a company sells know-how (added knowledge) to other companies or consumers.

It is worth remembering, however, that this is a basic classification. On the internet it is certainly possible to find other classifications for what to sell online. However, from these four parameters it is possible to select what will be your focus and seek more knowledge about the topic before entering its planning phase.

ONLINE BUSINESS TYPES: CATEGORIES, NICHES AND SUB NICHES

Print from the Webshoppers Report website, which periodically presents the performance of the main e-commerce categories today. It's worth following up.
Print from the website of Webshoppers Report, which periodically presents the performance of today's main e-commerce categories. It's worth following up.

Think of the market as a room. Inside this room there are cabinets, which we will call segments or categories. Imagine that inside each closet there are multiple drawers, which are the niches. Within each niche, finally, there are divisions that we will call sub-niches.

In this way, we can say that in the great “room” of the market there is the “closet” (segment or category) of “Fashion”. In “Fashion” you will find the drawer (niche) called “Moda Praia”, among others. And in "Beach Fashion" we have the "divisions" (sub niches) such as "Surf Fashion", "Women's Beach Fashion", "Men's Beach Fashion", etc.

The same concept can be applied to other market categories. In fact, there are numerous. Currently, the main ones are:

  • Home appliances
  • Cell Phones
  • Electronics
  • Computer Technology
  • Decoration
  • Moda
  • Cosmetics
  • Books
  • Sport
  • Automotive
  • Department
  • Beverages
  • Self-service
  • Farmácia
  • pet shop

Category lists like this one can be very helpful for anyone who is in doubt about what to sell online. Just take a look and choose a segment. Subsequently, one should research the main niches and sub-niches until one finds one in which it is worth creating an online business.

TYPES OF ONLINE BUSINESSES: MAIN SALES CHANNELS

Right after choosing category, niche, sub-niche, e-commerce and business type, among other things, start choosing the most promising online sales channels as well. There are several, including these:

Virtual store

Virtual Store is the most modern online sales interface of modern times. It has a homepage, categories and sales pages with “Buy” buttons. It integrates with shipping, payment and other resources. It is created and managed via e-commerce platform.

Mobile Store

Mobile Loja is a virtual store for mobile devices. Generally, a typical online store adapts to screens of all sizes. However, there are e-commerce platforms that allow creating the so-called Mobile First, which prioritizes mobile technologies.

Marketplace

Online shopping mall where multiple companies sell to end consumers or to other companies. A marketplace works through the payment split, which distributes the amounts between the parties involved in the business. The owner in the marketplace earns commission on sales.

Seller

A seller is a vendor who operates within a marketplace. You can list your brand as a seller on as many online marketplaces as you like. Take advantage of this opportunity to list your company as a seller on at least one niche marketplace.

Multi Store

Multi Loja is a sales channel in which you can centrally create and manage, through a single panel, several virtual store fronts, each with a different brand and name. Ideal for those who work with disparate categories, niches and sub-niches.

hotsite

Hotsite is an online sales channel in the form of a website, within which you sell only one product, service or infoproduct. This site has a homepage, presentation page of the item for sale, as well as pages of cases and testimonials, among others.

Landing Page

Like a microsite, a landing page serves to sell only one item. The difference is that it's a single page. Furthermore, it features effective sales arguments developed from a neuromarketing perspective and using Cialdini 's persuasive methods.

Squeeze Page

In the same form of a single page and persuasive arguments as a Landing Page, a Squeeze Page serves to convert visitors into subscribers. The objective is not to sell immediately, but to capture the consumer's email to convince him to buy via Email Marketing.

Social Media

Social networks like Facebook and Instagram, for example, allow you to create online product showcases. Consumers can view these windows and close sales via messenger apps or be redirected to an online store of the same brand.

e-commerce blog

Website that serves for the publication of content related to a brand, product or service. The content attracts visitors, who are directed to purchases on a specific page within the blog itself or in an integrated virtual store.

Many entrepreneurs start in sales channels like social networks or marketplaces like Mercado Livre. Later, they can expand the business by creating an online store, multi-store, mobile first store and so on.

Image: Several shopping carts and baskets represent the multi-store, one of the types of online businesses
Multi-store is the best way to sell products from different niches, but from the same company. It is one of the most promising types of online business.

HOW TO BUILD YOUR BUSINESS ONLINE

Now that you are familiar with some of the most common types of online businesses, let your development process begin. Planning comes first, of course. Use tools such as the Business Model Canvas and the Business Plan to do so.

Open a micro-enterprise, small business, or e-commerce business (MEI) so you can issue invoices and buy from more qualified suppliers. Take care of the bureaucratic aspects and then choose a sales channel to start with.

If you prefer to start with an online store, then the first step is to choose the best e-commerce platform for your type of business. Once you have an online store, invest in digital marketing daily to attract visitors and generate sales.

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