Friday 10 July 2015

B2C - e-commerce

This blog does not contribute much to analytics, but I am writing it because this is a new thing i learnt during last few days. I knew about this concept, But i would love to shed a bit more light on it.Moreover, these are some things if you want to join retail analytics.

This blog will cover three things :

- Business to consumer as a concept
- Models of B2C
- Advantages of B2C


"Business-to-Consumer," usually abbreviated B2C, is a phrase attached to electronic business activities that focus on retail transactions rather than activities conducted between two businesses. These uses appeared along with Internet commerce in the 1990s and have been current since then. The usage has expanded so that, in the mid-2000s, B2C is also used as a handy abbreviation in talking about retail trade where electronics is just one component of the transaction and other cases where simply "retail trade" is meant. 

Let us focus on an incident that happened in 1886. 
          
In 1886, a jeweler in USA is unhappy with a shipment of watches. So he refuses to accept them.
A local telegraphy operator who worked in that shop decides to buy the unwanted shipment.
He inventively uses the telegraph to sell all the watches to fellow operators and railroad employees. He becomes so successful that he quits his job and starts his own enterprise, specializing in catalog sales. This man then goes on to become an owner of one of the larges departmental stores in USA called "Sears". 
Name: Richards Sears.

The point  I trying to state here is the medium has changed from Catalogs and telegraphs to  World Wide Web , but the concept is same . i.e. Business to Consumer . Moreover, this concept has a electronic backing making it a heart of e-commerce now a days.

Models of B2C :


B2C is divided into different models. We have to do this division to categorize different types of businesses. You cannot compare flipkart with cricbuzz. Can you ?

Types of Models :

1 . Portal :

Have you ever imagined what is your identity when you connect to world wide web. Let us leave aside a technical term called "IP Address".  as a user what is your identity ?
It is and has to be your email address. So websites that provide you your home base come under this model. for e.g. : yahoo.com , google.com etc. .

 2. E tailer :

It is an Online version of retail shop where customers can buy 24/7 with comfort.
for e.g. : flipkart.com , amazon.com etc. .

3. Content Provider : 


These are types of websites that keep you updated all the time with the recent happenings. They provide you with a lot of information. eg. : sportsonline.com, CNN.com etc..

4. Transaction Broker:


Processor's pf online sales transaction such as stock broker and travel agents that increase the productivity by helping users to do things in a better way. The sell other's product rather than their own product. they are similar to brokers who help user to do things faster and with ease . eg. : monster.com,e-trade.com, etc..

5. Service provider :


Companies that make money by providing users a service, rather than a product. for eg : Google drive, Windows updates etc..

6. Market creater : 


Web based business that brings buyers and sellers together.
eg : OLX,quckier,etc..

7. Community provider : 


Sites where individuals with particular hobbies can come together compare. This type is particularly any type of forum that revolves around same interests and idea.
e.g. : stackoverflow.com, ivillage.com etc. .



B2C Pricing models  :


Demand Sensitive Pricing :

                - Individual buyers to shop in large groups to obtain group discount.
                - the more people who buy a product in a single purchase, lower is the cost per person.
                - demandling.com,mercata.com

Comparison Pricing :

                - Allows customer to poll variety of merchants and find desired products.
                - Uses Intelligent agent technology such as customer ratings , group discussions etc. 


Advantages of B2C :

- Instantaneous communication : It helps to reduce "Time to market".
- Global Access : Access to larger market.
- Customization : Configure goods according to users need.
- Availability : Access to website 24/7, so that user can order goods any time.
- Elimination of middleman : Direct business with consumer without any distributer or agent.
- Collaborative processing : Support real time information exchange and automate transaction.  


There is much more detailed stuff about this topic , but I have tried to cover all the basics.To conclude this post i will define B2C as bricks-and-clicks. B2C is all about giving user a choice and being users choice.


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