Most popular types of e-commerce in the Arab world with examples

Since its boom, e-commerce has completely changed the rules of the game, as consumers can now shop and buy online by simply going through a few simple steps without the need to spend a lot of time and effort in traditional stores, making it the main pillar of nations' economies in the modern era.

The types of e-commerce are numerous in order to meet the needs of the market and the changing behavior of consumers, which requires a precise understanding of the different types and business models of e-commerce to choose from them to achieve growth, prosperity and sustainable success for your commercial activity online.

In this article, we will review in detail the different types of e-commerce, focusing on real examples and practical models that contribute to a deeper understanding of these types, and then we will move on to analyzing how to achieve profit from them.

First, what is e-commerce?

It is simply the process of buying and selling different types of goods and services online with the aim of enabling consumers to shop anytime and anywhere, which enhances comfort and efficiency, as well as giving businesses the ability to enter multiple markets without being restricted by geographical boundaries and thus reaching a wider audience and reducing operating costs compared to traditional trade.

E-commerce includes different patterns and forms that vary depending on the business model, participating parties, and others, which we will review below.

First: Types of E-commerce by Participating Parties

• Business-to-Consumer E-commerce (B2C)

It is one of the most common types of e-commerce, in which sales are made to consumers through online stores on the Internet, such as Amazon and Noon, and others, which are a simulation of physical stores on the ground.

This type allows consumers to shop and compare to get the best products at appropriate prices according to the allocated budget, and follow customer reviews on products and services to form an impression about them without exerting any effort compared to the traditional way of buying.

👈 As an example of this type of e-commerce, we mention Banafea Oud Store, which specializes in selling incense, perfumes, and essential oils to consumers, targeting individuals specifically.

• Business-to-Business E-commerce (B2B)

This type of e-commerce is concerned with commercial transactions that take place between two or more companies with the aim of exchanging goods or services in large quantities. Transactions between companies are common in the typical supply chain, where manufacturing companies buy components and raw materials from other companies for use in manufacturing processes and then deal with wholesalers to sell these products after manufacturing is completed.

👈 The "Alibaba" platform is the most prominent example of this type, as it allows corporate buyers to find suppliers from all over the world with ease.

• Consumer-to-Consumer E-commerce (C2C)

This type of e-commerce is concerned with transactions that take place from one consumer to another who sells him a new or used product through specialized websites.

Anyone can subscribe to these sites and list products for sale or search to buy a specific item. It is worth noting that most C2C sites make profits by charging fees or commissions on sellers to list items for sale through the site.

👈 Among the most famous examples of this type of e-commerce are eBay and Haraj website, which is the largest Saudi online store for the exchange of goods between individuals.

• Business-to-Government E-commerce (B2G)

This type of e-commerce is concerned with transactions conducted between companies and governments, including the supply of goods and services to government institutions or their affiliated agencies.

👈 For example, a store may specialize in selling notebooks, papers, and office tools and deal with government or private teaching or educational bodies and undertake the supply of their needs periodically according to the agreed contract, and so on, applying the same to all other requirements that any government body may need.

Second: Types of E-commerce by Business Model

• Direct Sales or Retail Model

Retail is a vital part of the supply chain that connects producers to consumers, as this model aims to provide goods and products and sell them directly to consumers through retailers through several channels such as physical stores, online stores, and various sales outlets.

It is one of the common e-commerce models, especially in B2C transactions, as it allows selling products and services online without the need for intermediaries or traditional stores.

In this model, the merchant deals directly with the end consumer through the company's own online store or mobile application. Applying this model allows companies to reduce costs associated with intermediaries, increase profit margins, and have greater control over all operations affecting the customer experience.

👈 As an example of this is the Lozan Abayas company store, which specializes in selling modern-designed women's abayas, where sales are made directly from the store to the end user of the product.

• Wholesale Model

Wholesale e-commerce is the process of buying and selling products in large quantities online, where suppliers deal with sellers or retailers instead of end customers. This type of trade helps merchants buy products at lower prices as a result of buying large quantities, which enables them to achieve greater profits when reselling them to end customers.

An example of this type of e-commerce is Jomlty store, which specializes in selling products to wholesale merchants.

• Dropshipping Model

It is a business model that allows companies or individuals to sell products without the need to own or store products in warehouses. Instead, a contract is made with a supplier or another merchant to display and sell their products through your online store. Once a purchase is completed by the consumer, the supplier or manufacturer ships the product directly to the customer without intervention from you as a store owner, and you receive a commission for selling the supplier's or other merchant's products.

The most prominent example of this model is the AliExpress website, which you can link to your online store, choose the products you wish to sell on your store, and sell them directly from your store, and AliExpress officials or their suppliers will deliver the order to customers.

• Subscription-based E-commerce Model

The Subscription-based E-commerce model is one type of e-commerce that relies on a periodic subscription system to regularly provide customers with products or services, whether weekly, monthly, or annually.

In this model, customers register with the store to receive products or services periodically, and fees are collected at the agreed times.

👈 One of the most prominent examples of this model are stores that provide food, grocery products, or pre-prepared meals for individuals who follow healthy or special dietary regimes.

Third: Types of E-commerce by Construction Method

• E-commerce via Online Stores

It is one of the common forms of e-commerce, in which products and services are bought and sold online through online stores built by e-commerce platforms using the SaaS system or websites. In it, the consumer goes through several stages such as: browsing, choosing products, placing them in the shopping cart, and completing the payment process.

One of the most prominent examples of this type of e-commerce is the Noon store, which offers consumers a wide range of products from various categories.

• E-commerce via Mobile Applications (M-Commerce)

It is an advanced pattern of e-commerce that came as a result of the spread of mobile phones and tablets among users and their reliance on them in shopping and purchasing operations, which prompted brands to develop mobile applications with the aim of providing a comfortable and enjoyable shopping experience for consumers.

Perhaps one of the most famous mobile shopping applications is the Amazon app, which allows easy shopping and ordering of products from Amazon via their smartphones, and the Shein app, which specializes in fashion and offering clothes and accessories for women, men, and children.

• E-commerce via Social Media (Social Commerce)

This form of e-commerce represents a recent trend in digital shopping, as it aims to integrate traditional e-commerce elements, mobile applications, and social media platforms such as Facebook, Instagram, Snapchat, TikTok, and others to display and sell products and services directly to users.

Examples of this pattern include:

• Facebook and Instagram Shops, which are features that allow brands to create stores directly on Facebook and Instagram to sell products, and tag products in posts and stories to enable customers to purchase directly from the application.

• TikTok Shops

• Major Electronic Marketplaces

They are electronic platforms managed by a third party that allow buyers and sellers to interact and trade virtually, as they provide a digital environment through which individuals and companies can display their products and services for sale, as well as search for and purchase the products and services they need.

These marketplaces are famous for their ability to transcend geographical boundaries, allowing users to access a wide range of options regardless of their geographical location.

Amazon is the most famous example of this type of store.

And perhaps an important question now comes to your mind

Is it possible to build an online store that combines more than one type of e-commerce?

Yes, it is possible to build an online store that combines more than one type of e-commerce, and this approach can be useful for enhancing business diversity and increasing revenues. For example, a store specializing in selling products to individual consumers (B2C) using the retail system can be built on one of the e-commerce platforms, and a linked mobile application can be provided, in addition to selling through one of the social media platforms. Some products can also be sold using the dropshipping system.

One of the most prominent examples of this is "Amazon," which is a practical model that combines several types of e-commerce. It:

• Sells products directly to consumers (B2C).

• Allows companies to sell their products wholesale to consumers and other companies (B2B).

• Provides a platform for consumers to sell their products to each other (C2C).

• Offers subscription services such as "Amazon Prime."

• Operates through a website and a mobile application, and benefits from social media for promoting its products.

The matter is certainly not limited to major brands, but small merchants can also create an online store that adopts more than one e-commerce model, but we advise here to start with one type and gradually expand by introducing other types or business models.

Regardless of the type of e-commerce you follow, the question remains: How can you achieve profit?

Important Factors for Achieving Profit from E-commerce

To achieve success in the field of e-commerce and gain more profits, the following factors must be taken into account:

Factor 1: Building a sound business plan

To begin the journey of profiting from e-commerce, a clear and integrated business plan must be built that includes the goals to be achieved and the strategies that will be followed to achieve success. The process of building the business plan includes several elements, the most important of which are:

• Target Market Identification:

This is one of the crucial elements when building your business plan, so you must conduct an accurate market study by collecting and analyzing data to understand the needs and preferences of potential customers to help determine the type of products or services you will offer, as well as how to market them effectively.

• Choosing the appropriate business model:

Based on the target market and the nature of consumers, choose the business model that suits your goals and resources. Will you sell your own products or will you act as an intermediary between companies and customers? Will you rely on direct selling or other approved business models?

• Designing an effective marketing strategy:

Marketing products and services is the key to success in e-commerce, so you must design an effective digital marketing strategy that includes search engine optimization (SEO), social media marketing, paid advertising, email marketing, content marketing, etc.

• Improving customer experience:

A good customer experience is a distinctive sign between one commercial activity and another, so you must ensure that your website is easy to use, and that the purchasing process is smooth and secure.

Factor 2: Choosing the right e-commerce platform

This is one of the pivotal factors that should be taken into account when thinking about launching a business online, as your choice of the appropriate e-commerce platform plays a major role in determining how your products are displayed, order management, customer experience, and even the growth of your business in the long term.

The process of choosing the ideal e-commerce platform depends on a set of important factors such as the size of your business, the type of products or services offered, the available budget, in addition to the features and functions you need to support your business operations.

When choosing and comparing different e-commerce platforms, a number of things must be taken into account:

• Ease of Use: Make sure that the chosen e-commerce platform is easy to use and provides good technical support.

• Features and Integrations: Check the features provided by the platform, such as supporting various payment options, inventory management, and integration with marketing tools.

• Cost: Compare the costs of subscription, maintenance, and additional fees that may result from using the platform to choose the most appropriate according to the available budget.

• Flexibility and Scalability: Make sure that the chosen e-commerce platform is able to accommodate the future growth of your business efficiently and without complication.

Factor 3: Relying on strategies to increase sales and achieve profits

To profit from e-commerce, you need effective strategies to increase sales and maximize the use of available opportunities, for example:

• Search Engine Optimization (SEO):

Working on search engine optimization helps increase the visibility of your site in search results on Google and other search engines, which leads to attracting more potential customers and converting them into actual customers, thereby increasing the return on investment.

To benefit from search engine optimization for your business, use these tips:

• Use relevant keywords for your products or services.

• Work on optimizing page elements such as titles, description, and internal links.

• Make sure your website loads quickly, and you can use tools like Google PageSpeed Insights to analyze your site speed and discover weaknesses and work to improve them.

• Make sure your store is responsive to all devices used, especially mobile phones.

• Using social media:

It is one of the most powerful digital marketing tools that you can rely on to promote the products or services you offer and work to attract more potential customers and urge them to make purchases to increase sales.

For example, you can use platforms like Facebook, Instagram, and X to interact with customers, share engaging content, and promote your products and services. You can also use paid ads on these platforms to increase reach to a wider audience.

• Offering deals and discounts:

Deals and discounts encourage customers to buy, you can offer limited-time discounts, buy-one-get-one-free offers, or incentives for buying in larger quantities.

• Building customer relationships:

Good relationships with customers contribute to enhancing their loyalty and repeating purchases, so you must communicate with your customers periodically, provide useful content, and always be ready to listen to their feedback and inquiries.

Factor 4: Dealing with E-commerce Challenges and Risks

Like other areas of trade, there are many challenges and risks that must be paid attention to and dealt with professionally and effectively, including:

• Data security and protection:

This is one of the vital issues in e-commerce, so you should use SSL certificates to secure customer transactions and protect their personal data from theft and fraud, and be keen to implement good security practices such as two-factor authentication and updating security systems periodically.

• Shipping and logistics management:

Efficient and reliable logistics and shipping management are an essential part of the customer experience, so orders must be handled efficiently, and products must be delivered on time. To do this easily and without complication, you can rely on shipping gateways such as Oto Shipping Gateway, the integrated logistics platform leader in the Arab world for shipping, managing, tracking, analyzing, and retrieving your orders through a simple and smooth control panel.

After creating a free account in Oto, you will be able to link and deal directly with more than 250 local and international shipping companies and ship with them at competitive prices and with discounts of up to 90%, as well as linking with more than 20 Arab and international e-commerce platforms.

• Dealing with fierce competition:

Competition in the e-commerce field is fierce, especially with many companies offering the same products and services, so you must look for ways to enhance the competitive value of your brand in the market such as improving the quality of the products offered, providing excellent customer service, and giving customers diverse shipping options, etc.

A collection of the most common questions about e-commerce?

How can I know the right type of online store for me?

Knowing the right type of online store for you requires considering several factors:

• The nature of the products or services you will offer.

• The target audience and their purchasing needs.

• The budget, which will play an effective role in determining whether you will design your store from scratch or rely on any of the e-commerce platforms.

• The features and characteristics you desire.

Is it possible to combine two or more types of e-commerce?

Yes, it is possible to combine two or more types of e-commerce according to the nature of the business activity and market needs. For example, an online store can combine Business-to-Business (B2B) and Business-to-Consumer (B2C) e-commerce, where it sells wholesale to merchants and offers the same products to individuals at a retail price. Combining more than one type of e-commerce requires:

• Smart and accurate planning of the business model and operating mechanisms to ensure seamless fulfillment of the needs of different customers.

• Designing a flexible online store that supports customizing prices and offers based on the type of customer, whether a merchant or a consumer.

• Effective inventory management to ensure product availability in quantities suitable for each category.

• Developing a multi-level marketing strategy that targets each category in a way that suits it to achieve the desired goals and increase profits.

• Integrating technical systems so that all operations, from ordering and payment to shipping and customer service, work smoothly and efficiently, which enhances the user experience and ensures maximum possible benefit.

Is e-commerce successful?

Yes, as it is witnessing continuous growth thanks to technological developments and the changing consumer behavior towards digital shopping as a result of the spread of the Internet and the increased use of smartphones, which contributed to facilitating customers' access to online stores, thus opening up huge opportunities for companies and emerging projects. The flexibility of e-commerce, in terms of reducing operating costs and the possibility of targeting a wider audience without geographical restrictions, also makes it a profitable option for many commercial activities. But success in the field of e-commerce requires:

• Providing a distinguished user experience.

• Providing high-quality products and services.

• Following unique pricing strategies to give the commercial activity a competitive value.

• Providing reliable payment and shipping methods.

• Implementing effective marketing strategies to attract and retain customers.

How can I start in e-commerce?

To start in the field of e-commerce, you must:

• Analyze the market and the target audience to understand purchasing needs and preferences.

• Then determine the products you will sell so that they meet the requirements and needs of this audience and provide them with real value.

• After that, choose the method you will sell with, whether you will create your own online store, or rely on any of the available e-commerce platforms.

• Then work on determining payment and delivery methods to ensure a smooth and comfortable purchasing experience for customers.

• And work on implementing effective marketing strategies using social media, paid ads, and search engine optimization (SEO) to reach your target audience.

• Finally, constantly monitor the store's performance and analyze data to know the strengths and weaknesses, and develop your strategies based on that to ensure growth and continuity in the market.

A Final Word

Profit from e-commerce is not easy, but it is also not impossible, as it requires a combination of well-thought-out strategies, appropriate tools, and a commitment to continuous improvement.

Know that your success in the field of e-commerce requires continuous dedication and effort with good planning and effective management, to be able to face challenges, exploit opportunities, and build a strong foundation for the success of your e-commerce and achieve the maximum possible returns on investment.