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.