University:
California State University, Los Angeles
Course:
CIS 1200 | Information and Technology Literacy
Academic year:

2023
Views:

154

Pages:

2
Author:

Jithin J I

BUSINESS TO CONSUMER (B2C) E-COMMERCE MODELS Business to consumer is the first type of e-commerce that is also the most common one. It is also known as B2C model. In this type online business selling is offered to individual customers. The B2C model works by retailers and marketers that use clear data in various marketing tools so can sell their products to the internet users. The internet users can use the shopping cart for everything they need. Payment is mostly done through credit cards or by payment gateways like the PayPal. Direct interaction with the customers is the main difference with other business model. B2C normally deal with businesses that are related to the customer. The basic concept of this model is to sell the product online to the consumers. Advantages • Lower prices • Shop 24/7 • Anyone with a basic knowledge of the internet can set up and manage a B2C e commerce store under little supervision. • It involves selling to a wide range of audience with already known purchase patterns and behaviour. • It allows for flexibility since the platform is the channel for efficiently collating market demand in real-time. • It is easier to encourage B2C ecommerce shoppers to practice impulse buying since you can run ads targeted towards customers that are not even searching for what to buy. • The retailer is in charge of discounts and giveaways as opposed to the B2B model. • Shorter delivery times for digital products • Sharing of information with other consumers • Improved customer service • Easy to scale B2C venture Disadvantages • Delay in receiving physical products, plus shipping • In areas without high-speed Internet service, slow download speeds. • Inability to touch, feel, or even smell products priorto the purchase. • Unavailability of micropayments for purchase of small-cost products. • High Competition • The B2C space is highly competitive with most firms already boasting a majority of the market share. • Many buyers still prefer making purchases in-store rather than online. • The market is continually evolving and requires upgrades more frequently than in other models.