UDE Technology
One Article to Help You Understand 10 E-Commerce Models
2023-03-11

As Internet technology keeps developing, China's e-commerce industry has grown rapidly, giving rise to many e-commerce models. Some have become mainstream; others are still in early stages. This article introduces 10 types of e-commerce models to help you better understand the industry.

I. Traditional e-commerce:

The traditional e-commerce model was the first to use online malls and shopping platforms such as JD and Taobao. It mainly sells all kinds of goods directly online, enabling online sales and delivery.

II. Social e-commerce:

At present, social e-commerce mainly takes four forms:

  1. Social content e-commerce: uses online entertainment content (microblogs, short videos, etc.) as the medium, with the merchant's products or services as the main marketing tool, to build its own social e-commerce platform.
  1. Social sharing e-commerce: promotes and sells by sharing links to goods or services on social platforms (WeChat Moments, microblogs, etc.). Sharers earn a commission.
  1. Social retail e-commerce: turns consumers into sales reps or distributors through virtual social groups (WeChat groups, QQ groups, etc.) so they can earn from the process.
  1. Social e-commerce service provider: helps merchants build social e-commerce platforms, mainly offering technical support and operations.
III. Fresh goods e-commerce:

The fresh goods e-commerce model uses Internet technology to sell fresh food online, such as fresh supermarkets and fresh delivery.

IV. Maternity and baby e-commerce:

The maternity and baby e-commerce model mainly sells goods related to infants, expectant mothers, and mother care through online shopping platforms, such as maternity-and-baby malls and maternity living zones.

V. Pet e-commerce:

The pet e-commerce model is mainly built on online shopping platforms that sell pets and their accessories, such as pet malls and pet supplies zones.

VI. Vertical flash sales:

This model centers on discounted group buying, often using limited-time deals and flash grabs so consumers can buy what they need at better prices.

VII. Shopping guide e-commerce:

The shopping guide model originated on Taobao. It mainly uses social platforms and e-commerce platforms to recommend suitable products to users through quality content and visuals, earning commissions.

VIII. Cross-border e-commerce:

The cross-border e-commerce model sells overseas goods globally through e-commerce platforms — for example, buying Korean cosmetics or Japanese proxy-purchased goods.

IX. Mini-app e-commerce:

The mini-app e-commerce model is a new format that builds shopping environments matching consumer habits and easy to use through WeChat, Alipay, and other mini-apps — for example, Xiaohongshu and Pinduoduo mini-apps.

X. Clearance distribution model:

The clearance distribution model has merchants sell seasonal or out-of-season goods, clearing inventory and reducing losses by selling leftover stock through distribution agents and similar channels.