eMarketing Differences between B2C and B2B Business Models
Doing business over the internet continues to expand at a very rapid pace In fact, it is estimated that over $269 Billion dollars worth of sales will occur over the internet during 2005 (Jupiter Research, 2005). Just as with traditional 'brick and mortar' operations, the internet business owner needs to be able to determine how best to reach desired customers and supply the services the customers what. To do so, requires that the business establish how it wants to conduct business, for instance will it sell directly to consumers or to other vendors. The business will also need to establish the most efficient and effective means to promote itself in a virtual environment.
Business-to-Consumer or B2C commerce refers to the buying and selling of products and services online from the retailer to the customer. It involves the "consumers shopping for and buying personal and household products.
It also requires businesses to use online marketing and merchandising techniques to attract and retain customers as well as to promote products and services to them (eCommerce Program, 2005)." An example of a successful Business-to-Consumer website would be Target.com. Just like the regular brick and mortar store, consumers can log onto the site and shop for personal and household items. There are no intermediaries to go through, the consumer just adds items to his or her shopping cart and when finished, checks out with a credit card or online check. In a Business-to-Consumer environment, most functions of the company are handled or are available to the consumer via the internet from sales to customer support. One of the advantages to online B2C method is the unlimited availability of the site; as long as you can log in, you are free to browse and purchase.