Business-to-consumer – B2C | Part 2

Business-to-consumer – B2C | Part 2

Models of B2C

There are three types of B2C models, such as auctions, online stores and services online.

Auctions

The electronic auction (the Internet) provides an electronic bidding application and may be accompanied by a multimedia presentation of the merchandise.

Advantages of online auction

Convenience: It gives convenience to the participants to remain in their home or office, and participate in the contest, as in the traditional auction. Furthermore, it is also more convenient for a candidate to find out more about the goods auctioned.

Flexibility: Traditional Auctions allow the timing of bidding requiring all bidders participating simultaneously. In contrast, the Internet allows auctions at different times, lasting bidding, which can last days or weeks, which offers more flexibility for bidders.

Global Access: The potential reach of an Internet-based auction site is global and therefore the market of goods auctioned is very large.

Economic to operate: These auctions are cheaper to implement the expenditure relating to the lot of infrastructure not requiring a conventional auction system.

Disadvantages of Internet auction

Inspection of goods: In an Internet auction, you can not physically inspect the goods. Candidates have to rely on the information provided or you may have to rely on some images of electronic goods at auction.

Potential for fraud: The Internet bidder has to trust that the seller is really good to send the payment. Payments are normally made by providing credit card information over the Internet, which is usually safe for the consumer.

Online Stores

Online stores refers to a marketing company’s products over the web. This can be done in promoting the company, products and services or to actually sell the products / services through this web store. One of the best examples of an e-store is Amazon.com, which began selling books online and gradually expanded to other product categories.

Benefits to society

  • The increase in demand;
  • A lower-cost route for global reach;
  • Cost reduction and sales promotion;
  • Reduced costs.

Benefits to customers

  • Lower prices;
  • Greater choice;
  • Better information;
  • Convenience;

The completion of these purchases through online stores is rapidly gaining popularity and acceptance. Although the majority of revenue is sales in the B2B, B2C sales also tend to improve in coming years. However, for this to occur, the online stores need to assign more value to their customers while at the same time find new ways to generate revenue.

Ways to attract customers

  • Traders have to try to find ways to gain competitive advantage on other factors than just price;
  • Online stores need to provide a shopping experience that addresses all customer requirements. They should also try to provide an environment that is easy to explore;
  • Expanding the range of services;
  • Cost-effectiveness, finding ways to increase the volume of purchases of its customers, thus generating higher revenues;
  • Rates of adherence for new customers.

Online Services

This is another area where companies can exploit the Internet. Many companies use the Internet to provide services to clients. Some of the examples is located in the sector of banking and stock trading. Companies such as e-Trade.com brought the ease of trading shares for the client computer. Another interesting example is Makethemove.com. One of the missions of these services is to simplify the lives of Internet users, creating functional, giving interactive services that will make life easier and better.

Such services may also provide:

  • Insurance, Internet-based;
  • E-commerce infomediary;
  • Solutions for enterprise and consumer markets;
  • Transfers;
  • Cancel utilities such as gas, electricity and local phone;
  • Cable TV,
  • Telephone calls via the Internet;
  • Newspapers;
  • Magazines, etc.

B2C logistics

Initially, the concern of this type of business was to get more fans, gaining critical mass. Today, concerns are focused on the service, so the spotlight falls inexorably on the logistics system. The certainty of delivery of goods ordered via the Internet, in good condition and when promised, is a key point of the virtual marketplace. In electronic commerce, logistics structure is essential to the success of organizations. In the new digital age, it is important to recognize that even the perception of logistics performance becomes different for the client, as the requirements tend to become higher given the ease with which one perceives the existence of the product will be ordered and paid for – although only in virtual terms. Accordingly, the client can move from one provider to another more frequently, looking for a supplier that offers more benefits and provide better levels of performance in terms of actual service (Carvalho, 2006, p.42).

In B2C transactions, when the number of orders starts to rise to interesting values for the business, which is frequent, the costs of picking and packing also rise. These costs are so effects which can be ‘breakers’ in terms of logistics and associated costs. Postpone the operation to the pallet or box, with multiple sub-dialogs to spend an operation to drive the business makes, especially when there is heterogeneity of weights and volumes logistics in the products concerned, very often subject to large errors. Logistics, again, find new challenges and ways of addressing costs, chain and set routes (Carvalho, 2006, p.44).

C-2-C or C2C

The Inter consumers trade exchange or “consumer-to-consumer” or “customer-to-customer (C2C), refers to all trade in goods and services between several consumers without going through an intermediary. This form of economic exchange, which may be related to barter, is nevertheless an important component of the modern economy.

Advantages and disadvantages of C-2-C Trade or Inter Consumers Trade

Benefits of C-2-C trade or Inter Consumers Trade:

  • The elimination of intermediaries in transactions, which constitutes the basis of the C2C and incidentally very low prices.
  • The accessible market is extremely broad, more limited than the traditional economic exchanges.
  • The high turnover and constant supply available
  • Simplification of payments through systems such as receiveandpay (dot) com

Disadvantages of trade Inter Consumers Trade

  • Lack of quality control and assurance of payment.
  • These two points justify the importance of trust in exchange Inter Consumers Trade.
  • The use of certain difficult means of payment such as credit cards, etc.

Inter Consumers Trade exchanges and Internet

Internet plays a major role in C2C, insofar as it serves as an information and communication between different actors in the transaction. C2C will take the form of exchange between people who share common interests, such as antique cars, stamps, or vinyl collection. For the individual, whose goal is to sell its products, the Internet allows the overcoming of geographical barriers or fixed by the market.

The development of online social networks, communities also offers its users various options for trade in services. We can not however say that these social networks make up full-fledged economic exchanges. In this area, websites such as eBay or PriceMinister are major players in the C2C.

The role of trust in C2C

Direct exchanges between consumers have a greater risk of conflict if one of the actors of economic exchange is evading its obligations. To this extent, Inter relations and consumers must be based on a relationship of trust between two actors in the exchange.

Continued.

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