Chapter 2 - Applications in B2C

Question- What are the types of e-commerce ? Discuss B2C application. Give its advantages and challenges.

Related Short Answer Questions
What are the types of e-commerce? Discuss B2C application.

Ans.

Types of E-commerce

These are as under-

1. Business-to-Business (B2B)
2. Business-to-Consumer (B2C)
3. Consumer-to-Business (C2B)
4. Consumer-to-Consumer (C2C)
5. Mobile Commerce (M-Commerce)
6. Business-to-Government (B2G).

B2C Application

B2C is a direct application from a seller of products to an end consumer of those products particularly the retail products. Amazon.com is a typical example. There are some different B2C models such as portals, online retailers, content providers, transaction brokers, market creators, service providers and community providers. B2C type of electronic commerce the sellers and consumers both benefit through the round the clock shopping accessibility from any part / of the world, with increased opportunity for effective direct marketing, customizations, and online customer service. The application of electronic commerce in the retailing segment has a seen it evolve from an online version of catalog selling to accepting orders and payments online and translating zero inventories into huge discounts on the prices of item. Existing businesses may use B2C for expanding the market space and revenues by utilizing the Internet as new channel to do business with customers. Mail-order catalogue businesses were the early players who took advantage of the web and internet as they set up their websites where customers could place orders for goods and services online. Also existing consumer merchandisers with established store channels adopt B2C e-commerce to augment sales through a new channel, as well as to make it easier to reach out to global customers.

Thus, Business-to-Consumer e-commerce-

(i) offers consumers the capability to browse, select, and buy merchandise on-line, from a wider variety of sellers and at better prices.

(ii) The two or more entities that interact with each other in this type of transaction involve one selling business and one consumer.

(iii) The selling businesses offer a set of merchandise at given prices, discounts, and shipping and delivery options.

Business to Consumer (B2C or B to C) is the method of doing commerce where businesses trade and transact with directly with end customers who buy the product for consumption. Business-to-Customer (B2C) is the exchange of services, information and products from a business to a consumer, as opposed to between one business and another. Business-to-Consumer electronic commerce is a form of electronic commerce in which products or services are sold from a firm to a consumer. In B2C the customers don't use the traded offering to step up their offering or to resell it to make profits. B2C is quite different from B2B.

B2C can be classified with an example. Take the case of a fast-food chain. This company is said to follow the B2C model since it is a business that serves consumers and individuals, not other businesses.

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