Vocabulary Practice: E-commerce Site Types

Read the text and answer the questions with some of the words in bold.

Choosing the best e-Commerce site for your business depends on the type of services you provide, the products you sell, and your target audience. A B2B online retailer has different needs than a C2C online marketplace. Having said that, it is customary for e-Commerce websites to be used for multiple purposes.

The most popular sites are:

transactional sites
These sites make it possible for users to purchase various products over the Internet. The buying and selling of goods or services involves a financial transaction between the buyer and the seller. Sensitive financial information is exchanged between the parties and a banking institution’s website. Companies that own a brick and mortar store and a transactional site are known as “click and mortar” retailers.

online marketplaces
A marketplace is a website which facilitates transactions between multiple customers and sellers. Although the marketplace processes transactions it does not control any of the products. A ranking system is used to rate sellers, their products and the customer’s shopping experience. Amazon.com and Alibaba.com are examples of marketplaces.

subscription-based sites
Subscription-based companies offer products and services for a monthly fee. Customers choose a subscription model and pay a fixed price for the duration of the subscription. Hosting providers or Birchbox are good examples of subscription-based websites.

Third parties known as brokers connect buyers with sellers who then conduct transactions. Brokers may bring together customers with retailers via online auctions or customers with other customers via classified ads.