When conducting business over the Internet, there are several different transaction or business models that exist within the world of E-Business. One of the most common models in E-Commerce is the Business-To-Consumer (B2C) model. In B2C transactions, online transactions are made between businesses and individual consumers. Businesses sell products and services through electronic channels directly to the consumer (Bidgoli, 2002, p.50).
B2C E-Commerce involves what is known as electronic retailing or e-tailing.
E-tailing involves online retail sales. E-tailing makes it easier for a manufacturer to sell directly to a customer, cutting out the need for an intermediary (retailer). With B2C transactions there is no need for retailers and therefore, no need for a physical store from which to distribute products. An electronic or Web storefront refers to a single companies Web site where products and services are sold. Customers can browse online catalogs or electronic storefronts when it best suits them (Turban et al. 2002, p.82). Amazon.com is an excellent example of a B2C company. Here, customers can browse catalogs when they want, place an order and the product of service will be delivered directly to them.
According to Turban (2002, p.83) the main things which are browsed and sell well over the Internet include:
1. Computer hardware and software: While hardware is most popular, more and more people buy software online as well. Dell and Gateway are the major online vendors of computer hardware and software, with more than $15billion sales in 2002.
2. Consumer electronics: The second largest product category sold online. Digital cameras, printers, scanners, and wireless devices (mobile phones) are some of the electronics bought online.
3. Sporting goods: It is difficult to measure the exact figure as there are only a few e-tailers that sell sporting goods exclusively online.
4. Office supplies: Sales of office supplies at officedepot.com alone reached over $2.3billion in 2002. B2C sales of office supplies are increasing rapidly, all over the world.
Other things which sell well over the Internet include:
5. Books and music
6. Toys
7. Health and beauty
8. Entertainment
9. Apparel
10. Cars
11. Services
12. Others
According to Bidgoli (2002, p.59) there are five major activities involved in conducting B2C E-Commerce. These are:
1. Information sharing: A B2C E-Commerce model may use some or all of the following applications and technologies to share information with customers:
2. Ordering: A customer may use electronic forms similar to paper forms or e-mail to order a product or service.
3. Payment: There are a variety of options. These include:
4. Fulfilment: The fulfilment function could be very complex depending upon the delivery of physical products (books, videos and CD's) or digital products (software, music, electronic documents). Fulfilment is responsible for physically delivering the product or service from the merchant to the customer.
5. Service and support: Is more important in E-Commerce than traditional business because E-Commerce companies lack a traditional physical presence and need other ways to maintain current customers. Examples include:
These five activities all need to be used in conjunction with one another for a B2C business to be successful.
According to Patton (2001), the main reason that there is such a hype about B2C businesses is that they are quickly gaining in size and market capitalization and therefore, pose a threat to traditional brick and mortar businesses. "In many ways, these dotcoms seemed to be rewriting the rules of business �? they had the customers without the expenses of maintaining physical stores, little inventory, unlimited access to capital and little concern about actual earnings" (Patton, 2001).
E-Commerce and in particular, B2C businesses, have proven to be extremely successful over the past few years. Not only do the actual businesses reap the benefits, but so do the potential customers. With the every increasing number of E-Commerce B2C businesses evolving, the future for traditional, physical businesses is not looking positive. As the possibilities created by E-Commerce continue to expand, so will the number of emerging B2C businesses.
===Reference List:===
1. Amazon.com 2004. http://www.amazon.com/exec/obidos/subst/home/home.html/102-3454156-3210563 (accessed October 2, 2004).
2. Bidgoli, H. 2002. Electronic Commerce: Principles and Practice. USA: Academic Press. ISBN 0120959771.
3. Dell.com 2004. http://dell.com/ (accessed October 2, 2004).
4. Officedepot.com 2004 http://www.officedepot.com (accessed October 2, 2004).
5. Patton, S. (2001, August 27). The ABCs of B2C. The E-Business Research Ctnter. http://www.cio.com/ec/edi/b2cabc.html (accessed October 15, 2004).
6. Turban, E. King, D. Lee, J. and D. Viehland. 2002. Electronic Commerce: A Managerial Perspective. 3rd Ed. USA: Prentice Hall. ISBN 0131230158.
7. WIKIPEDIA: The Free Encyclopedia. 2004. www.wikipedia.org (accessed October 2, 2004).
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Melanie Mackrodt 21:11, 27 Oct 2004 (EST)
