What Are the Three Types of E-commerce? Learn How E-commerce is Changing Business

Explore how e-commerce is reshaping the business world and why it keeps growing.
Luna Qin
Reading time: 9 minutes.

Online shopping

E-commerce has exploded over the past few years and shows no signs of slowing down. In 2020, global online sales hit around $4.2 trillion — and by 2025, they’re expected to climb past $6.8 trillion (EXPLODING TOPICS).

Online shopping is also taking a bigger piece of the retail pie. In 2023, nearly 1 out of every 5 retail purchases happened online, and by 2027, that number could reach almost 1 in 4 (Statista).

It’s clear — e-commerce isn’t just growing, it’s becoming a huge part of how we shop worldwide.

With more and more consumers choosing to shop online, retailers are working hard to meet them wherever they are. Brick-and-mortar stores aren’t just competing with online shops anymore — they’re adapting, evolving, and finding new ways to stay relevant in today’s digital world.

Read more: How To Create a Digital Order Form?

What are the three types of e-commerce?

What are the three types of e-commerce?

E-commerce simply means buying and selling products or services online. But did you know there are actually three main types of e-commerce businesses? Let’s break them down:

B2C (Business-to-Consumer)

This is the most common type. It’s when businesses sell directly to individual customers — like when you buy clothes from an online store or order food through an app. Examples: Amazon, Zara, or your local bakery selling cakes online.

B2B (Business-to-Business)

Business-to-Business

This is when businesses sell products or services to other businesses. It could be a software company selling tools to a marketing agency, or a wholesale supplier selling office furniture to a corporate office. Examples: Shopify, Alibaba, or companies selling bulk supplies.

C2B (Consumer-to-Business)

This one’s less famous, but it’s growing fast! It’s when individuals offer products or services to businesses — like influencers promoting brands on social media or freelancers offering design services to companies. Examples: A photographer licensing photos to a brand, or a YouTuber creating sponsored content.

Thanks to the internet, it’s easier than ever for businesses to sell — whether they have a physical store or not. And with so many ways to connect buyers and sellers, e-commerce just keeps growing!

The story of e-commerce

ecommerce

Believe it or not, e-commerce has been around since the 1960s! Back then, businesses used a system called Electronic Data Interchange (EDI) to send documents to each other electronically — not exactly online shopping as we know it today, but it was the start.

Fast forward to 1994, and history was made with the very first online purchase — a compact disc sold between two friends on a website called NetMarket. It may sound small, but that one sale kicked off the massive online shopping world we know today.

As the internet grew, giants like Amazon, eBay, Alibaba, and Etsy popped up, giving people easy ways to buy pretty much anything from the comfort of their homes. Suddenly, traditional stores had to step up their game to keep up.

Now, thanks to smartphones, apps, and digital wallets, shopping is literally at our fingertips. Whether it’s chatting with a brand through social media, grabbing deals during flash sales, or enjoying free shipping, online shopping isn’t just convenient — it’s part of our everyday lives.

The pros of e-commerce business

E-commerce has become a powerful tool for small businesses looking to expand their reach. Here’s why:

1. Easy to start

Launching an online business in 2025 is simpler than ever. No need for a physical storefront or huge upfront investments. With platforms like Shopify, WooCommerce, and Etsy, you can be up and running with minimal capital. All you need is a great idea, an internet connection, and a killer product.

2. Reach a global audience

Forget geographical limitations — with e-commerce, your market isn’t confined to just your town or city. You can reach customers globally, all from your laptop or phone. Plus, with mobile shopping on the rise, your store is open 24/7, and it’s always just a tap away for customers.

3. Lower overhead costs

No need for expensive storefronts, large inventories, or high maintenance costs. E-commerce allows businesses to operate with minimal overhead, and thanks to advanced logistics networks, shipping is more affordable and efficient than ever.

The cons of e-commerce business

While e-commerce offers many advantages, it does come with its challenges. Here’s what to keep in mind:

1. You’re in charge of everything

Running an e-commerce store might feel like a one-man show. You’ll need to juggle everything — from inventory management and accounting to customer service and shipping. If you’re not an expert in these areas, you’ll either need to invest time learning or hire the right people.

2. It can be hard to stand out

The online space is crowded. With the rise of social commerce, marketplaces, and brand competition, getting noticed can be tough. It’s not just about having great products; you need to make your brand unique and use digital marketing strategies to catch your audience’s attention.

3. Slow returns at first

While e-commerce can offer great potential, it’s not always an instant money maker. The ROI (return on investment) can be slow, especially in the early stages. Building brand recognition, a loyal customer base, and mastering your sales funnel takes time.

4. The competition is fierce

As e-commerce business continue to gain fame, so its number of growth. With the increasing number of people who get into e-commerce business, the industry now becomes more crowded than ever. With a hectic online competition, customers can have tons of options to choose from, more deals to consider.

How to be successful in your e-commerce business?

There’s no denying it—e-commerce is one of the fastest-growing industries today. With more people glued to their phones and the internet becoming a daily essential, online shopping has become second nature. But with great opportunities comes fierce competition. So, how do you make sure your e-commerce business stands out and thrives? Here are some key tips to help you succeed:

Trust is everything

It’s the foundation of every successful online business. After all, if customers don’t trust you, why would they buy from you? Building that trust isn’t just about having a nice website—it’s about showing customers you’re the real deal. Be transparent, highlight real reviews from happy customers, and show off what makes your products or services special. And don’t forget top-notch customer service! Whether it’s answering questions quickly or solving problems with care, every positive experience helps strengthen that bond of trust.

Use the right tools

Running a successful e-commerce business isn’t just about great products—it’s also about working smarter, not harder. The right tools can save you time, reduce stress, and help your business grow faster. Start by thinking about your industry and which parts of your workflow you’d love to automate. For example, if you’re constantly handling invoices and payments, invest in software that streamlines those tasks so you can focus on growing your store.

And let’s not forget one of the most important tools—your forms. From order forms to customer inquiries, web forms play a huge role in your online shop. That’s where PlatoForms comes in. Instead of building forms from scratch, PlatoForms lets you turn your existing PDFs into easy-to-fill web forms. Whether it’s an order form, customer agreement, or product catalog, you can transform it into a user-friendly online form in just a few clicks. Less hassle for you—and a smoother experience for your customers.

Read more: Business Startup Tools You Should Know

Boost your SEO

With online shopping becoming part of everyday life, the competition in e-commerce is only getting tougher. That’s why nailing your SEO (Search Engine Optimization) is more important than ever—it’s how your customers will actually find you among the sea of online stores.

Business-to-Business

If you’re not an SEO expert, don’t worry! You can always team up with an experienced SEO agency to help you stay ahead of the pack. But there’s also a lot you can do yourself to improve your organic search rankings. Here are a few tips to get you started:

  • Create valuable, helpful content — Blog posts, product guides, or even fun behind-the-scenes stories can all help attract visitors.
  • Grow your social media presence — Active social accounts signal trustworthiness to both your audience and search engines.
  • Don’t forget email marketing — It’s not just for promotions! Sharing content and updates with your email list helps drive traffic back to your site.

Investing time in SEO doesn’t just help you show up on Google—it helps build your brand’s authority online and, ultimately, brings in more sales and a better return on investment.

Make social media the heartbeat of your business

Your social media presence isn’t just a side project—it’s the pulse of your online marketing strategy. It’s where your customers are hanging out, talking about your products (and your competitors), and sharing their opinions in real time. Best of all? You don’t have to wait for them to visit your website to know what they think—you can see it all unfold right there.

Social media

Even if you hire someone to manage your accounts, you should stay involved. After all, no one knows your brand’s voice better than you. Create a clear social media plan and strategy, stay consistent, and most importantly, engage with your audience. The more authentic and responsive you are, the more trust (and sales) you’ll build.

Provide an A-list user experience

One of the biggest challenges for online stores is that customers can’t touch, try, or feel your products before buying—and that’s not changing anytime soon. But that doesn’t mean you can’t wow them in other ways!

Focus on making every step of the shopping experience smooth, enjoyable, and hassle-free. Offer competitive pricing, throw in free shipping whenever possible, and keep the checkout process simple—the fewer clicks, the better.

Remember, the easier and more pleasant you make it for your customers to shop, the more likely they’ll stick around, come back, and recommend you to others.

Pro tip: Help your customers save time by sending out easy-to-use online forms for them to fill out. Learn how to create web form and PDF fillable form with PlatoForms here.

Keep in touch with your customers

Business-to-Business

In the world of e-commerce, your connection with customers lives online—so keeping that relationship strong is key. Don’t just disappear after a sale!

Stay on their radar by sending regular newsletters with product updates, special deals, or helpful tips. You can even invite them to share their opinions through quick surveys—it’s a great way to show you care while gathering insights to improve your business.

When customers feel heard and valued, they’re much more likely to come back and spread the word about your store.

Pro tip: PlatoForms lets you create and convert your PDFs to web forms for a better survey experience. Learn how to build your own form here.

Turn your e-commerce PDFs into easy-to-use web forms with PlatoForms

Ready to simplify your business forms? PlatoForms makes it easy to transform your PDFs into web forms that are super simple for your customers to fill out. Say goodbye to clunky PDFs and hello to a smoother, hassle-free experience for both you and your clients.

Sign up today and start turning your PDF forms into user-friendly online forms with PlatoForms!


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