Online shopping looks simple from the outside, but the orders behind it can be very different. A clothing retailer might buy 500 jackets from a supplier, while a small electronics shop restocks phone accessories. Another business could be ordering snus pouches in bulk to keep its shelves stocked.
Then there are the everyday purchases. You buy a pair of headphones from an online store. Someone else sells a used jacket on Vinted. All of these are e-commerce transactions, but they work in different ways.
The difference comes down to who’s buying and who’s selling.
E-commerce business models
There are three familiar models:
- B2B (business to business).
- B2C (business to consumer).
- C2C (consumer to consumer).
All three shape how orders, payments, and customer relationships work.
The B2B model
B2B means one business sells to another. Think of a wholesaler supplying a local shop, or a software provider selling to a team.
Business buyers care about more than the price of one item. Stock levels, delivery schedules, volume discounts, and payment terms can shape a deal.
Buying can take time. A retailer might request samples, compare suppliers, and negotiate before placing regular orders. If deliveries arrive on time, both sides have a reason to keep working together.
Online B2B stores help make repeat orders simpler. Business customers may log in to see custom prices, check stock, reorder products, or pay on agreed terms.
They still expect an easy online experience. Nobody wants to email a spreadsheet every time they need more boxes. And a late bulk delivery can leave a whole store short on stock.
Even a freelancer or sole trader can be a B2B buyer when purchasing for work.
Tax rules need a closer look. VAT may apply, but the way it’s charged depends on where the buyer and seller are based and whether they’re VAT-registered. Cross-border B2B sales can follow different rules from domestic sales.
Where the rules allow it, VAT-registered businesses can reclaim VAT on eligible purchases. Private shoppers generally can’t.
The B2C model
B2C happens when a business sells to someone buying for personal use. It’s the model behind a skincare order from a brand’s website, a pair of headphones from Amazon, or a grocery delivery placed through an app.
The journey is often quick. A shopper sees a product, checks its price and reviews, and decides whether to buy.
Clear photos, simple checkout, accurate delivery times, and easy returns can make that decision easier. A vague return policy can lose a sale before checkout.
But one sale doesn’t have to be the end of the relationship. Brands build loyalty by keeping promises, answering questions quickly, and making the next order feel effortless. Discounts can help, but reliable service tends to matter more once the first purchase is made.
When a brand sells its own products straight to shoppers, that’s direct-to-consumer (DTC) selling, a type of B2C. Others use marketplaces such as Amazon or AliExpress.
The seller handles product details, orders, support, and duties around returns or warranties. It may also need to collect VAT or sales tax, depending on local rules.
The C2C model
C2C is the person-to-person side of e-commerce. Someone sells a jacket they no longer wear, and another person buys it. Neither needs to run a store.
Platforms such as Vinted, Wallapop, and eBay make these exchanges easier. Sellers add photos, describe the item’s condition, and choose a price.
Buyers can message them, pay through the platform where available, and arrange shipping or pickup. Shipping also means two people can trade without living in the same city.
Trust matters here. A clear listing, honest photos, secure payment options, and a shipping method both people understand can prevent awkward surprises. Marketplace fees and buyer protection vary by platform.
An occasional private sale usually has no VAT added. But buying and reselling for profit may bring tax and business duties. A professional seller on the same platform isn’t automatically C2C.
A marketplace can host both private sellers and professional shops. A purchase on eBay could be C2C or B2C, depending on who’s selling. The website doesn’t decide the model; the people behind the sale do.