E-commerce has revolutionized the retail landscape, offering diverse business models tailored to urban and rural consumers. While urban markets benefit from advanced infrastructure, digital literacy, and high-speed internet, rural markets present unique challenges such as logistical constraints, limited digital penetration, and consumer trust issues. Addressing these disparities is crucial for developing inclusive e-commerce strategies that cater to both demographics. Despite the rapid expansion of e-commerce, businesses often struggle to optimize their models for rural consumers, leading to inefficiencies and lost opportunities. Urban-centric strategies fail to accommodate the distinct purchasing behavior, accessibility issues, and preferences of rural customers. The lack of research on effective e-commerce models that bridge this gap highlights the need for a comparative study. This research analyzes existing e-commerce business models, including Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), and Social Commerce, to assess their effectiveness in urban and rural settings. A mixed-method approach is adopted, utilizing surveys and case studies from both market types to evaluate consumer behavior, logistical efficiency, and digital adoption rates. Additionally, technology-driven solutions such as mobile-first strategies, localized supply chain models, and digital financial inclusion are explored. Findings indicate that urban e-commerce thrives on convenience, personalized marketing, and tech-driven logistics, whereas rural markets benefit from hybrid models integrating local intermediaries, cash-on-delivery options, and mobile-commerce solutions. Social commerce, leveraging trust-based networks, emerges as a viable approach in rural areas. Tailoring business models to regional needs enhances market penetration and ensures sustainable growth in both sectors.
K. Dharani, M. Reshma
University of Calicut, India
E-Commerce, Urban Marketing, Rural Commerce, Business Models, Digital Inclusion
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| Published By :
ICTACT
Published In :
ICTACT Journal on Management Studies
( Volume: 11 , Issue: 1 , Pages: 2027 - 2031 )
Date of Publication :
February 2025
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