What does Consumer-to-Business (C2B) mean?

Consumer-to-business (C2B) is a business model where an end user or consumer makes a product or service that an organization uses to complete a business process or gain competitive advantage. The C2B methodology completely transposes the traditional business-to-consumer (B2C) model, where a business produces services and products for consumer consumption.

C2B flips that entire concept on its head. C2B is when consumers have products or services of value that can be consumed by businesses. The ''C'' represents the consumer, while the ''B'' represents business. In this model, it's not consumers investing money in something, but the organization.

 What is Business-to-Consumer (B2C)? 

Business-to-consumer – “B2C” – refers to commerce between a business and an individual consumer.In the B2C model, a consumer goes to the website, selects a catalog, orders the catalog, and an email is sent to the business organization. After receiving the order, goods are dispatched to the customer. Following are the key features of the B2C model −

• Heavy advertising required to attract customers.
• High investments in terms of hardware/software.
• Support or good customer care service.

                    Models of B2C Sales                   

In online business-to-consumer sales, there are generally five business models.

1. Direct Sellers

This is the type most people are familiar with – they are the online retail sites where consumers buy products. They can be manufacturers such as Gap or Dell or small businesses that create and sell products, but they can also be online versions of department stores selling products from a wide range of brands and manufacturers. Examples include Target.com, Macys.com, and Zappos.com.

2. Online Intermediaries

These “go-betweens” put buyers and sellers together without owning the product or service. Examples include online travel sites such as Expedia and Trivago and arts and crafts retailer Etsy.

3. Advertising-Based

This approach leverages high volumes of web traffic to sell advertising which, in turn, sells products or services to the consumer. This model uses high-quality free content to attract site visitors, who then encounter online ads. Media outlets that have no paid subscription component, such as the Huffington Post and Observer.com, are examples.

4. Community-Based

This model uses online communities built around shared interests to help advertisers market their products directly to site users. It could be an online forum for photography buffs, people with diabetes, or marching band members. The best-known example is Facebook, which helps marketers target ads to people according to very specific demographics.

5. Fee-Based

These direct-to-consumer sites charge a subscription fee for access to their content. They typically include publications that offer a limited amount of content for free but charge for most of it – such as The Wall Street Journal – or entertainment services such as Netflix or Hulu.

WHAT IS BUSINESS TO BUSINESS E COMMERCE? 

B2B eCommerce is the selling, buying, and trading of goods and services through an online sales portal between businesses. Since both parties involved are business entities, the transactions are more rational than impulsive. Furthermore, the relationship between the companies involve long-term interests.

Trading online has several benefits such as the expansion of business, the rise in the number of customers, and increased brand-awareness. In this article, we’ll try to cover all the aspects you need to know about B2B eCommerce.

 Basic Models in B2B E Commerce

1. Supplier Oriented Marketplace (eDistribution)

In this type of model, there are many buyers and few suppliers. The supplier provides a common marketplace. This market is used by both individual customers as well as businesses. For the success of this model, goodwill in the market and a group of loyal customers is very important.

2. Buyer Oriented Marketplace (eProcurement)

In this model, there are few buyers and many suppliers. The buyer has his/her own online marketplace. It then invites suppliers and manufacturers to display their products. Buyers search in electronic stores in malls and markets for similar service providing products and compare them.  

3. Intermediary Oriented Marketplace (eExchange)

In this type of model, there are many buyers and many suppliers. An intermediary company runs a marketplace where business buyers and sellers meet and do business with each other.

However, B2B eCommerce enjoys economies of scale and the long-term personal relationships behind each buyer and seller means that the future is clearly B2B.

E-Commerce business models

To start any business online one must learn the different e-commerce models. There are 4 Major e-commerce business models which are as follows:

• B2C Model
• B2B Model
• C2C Model
• C2B Model

B2C Model:

The B2C sector is what most people think of when they imagine an ecommerce business. This is the deepest ecommerce market, and many of the names you’ll see here are known quantities offline, too. B2C sales are the traditional retail model, where a business sells to individuals, but business is conducted online as opposed to in a physical store.

B2B Model:

B2B, or Business to Business, is the largest e-commerce model. In this model, both the sellers and buyers are business entities. This model describes the transactions between a retailer or a wholesaler, or a wholesaler and manufacturer. A B2B ecommerce business typically requires more startup cash.

C2C Model:

The C2C or consumer to consumer business model involves a transaction between two consumers. It is also known as a citizen to citizen. A common example of this model would be an online auction, where a customer or visitor posts an item for sale and other customer bids to purchase it. However, the third party generally charges a commission.

C2B Model:

Customer to business, known as C2B, involves customers selling their services or products to business. It is roughly the same as a sole proprietorship serving a larger business.The one thing that differentiates C2B from other business models is that the consumers create the value for the products. Also, the model caters to the need of freelancers, who work on tasks given by the clients.

E-Commerce Industry

"E-commerce is a powerful means to connect the unconnected to global trade."  -Arancha Gonzalez

 What is E- commerce?

Ecommerce is a shortened version of the phrase “electronic commerce” which essentially describes any type of exchange of currency for goods or services online.

Ecommerce refers to commercial transactions conducted online. This means that whenever you buy and sell something using the Internet, you’re involved in ecommerce.

Fate of E-commerce in India

·         The e-commerce has transformed the way business is done in India. The Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. 

·         India’s E-commerce revenue is expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51 per cent, the highest in the world.

 E-commerce Sector Composition

Currently there are 1 to 1.2 million transactions per day in eCommerce retailing.  Given below is the split of sectors according to popularity:

For futher details: https://www.ibef.org/download/Ecommerce-March-2018.pdf