What kind of e-commerce platform is best suited to support c2c transactions?
It is a good idea to understand the world of e-commerce if you want to reach more prospective clients and generate more sales and revenue. Knowledge is power, and therefore, you need to understand the meaning of different terms and concepts such as B2B and B2C.
Show Do you know what e-commerce is? Ecommerce, electronic commerce, is any business transaction that occurs on the internet, that is, over an electrical network. Three main types of e-commerce are B2B, B2C, and C2C. This review gives you insight into these concepts to help you generate more sales. However, it takes more than understanding basic concepts to generate more revenue. For instance, you can create interactive videos to keep visitors engaged and interested in your products and services. To understand the difference between these concepts, let's look at what each means and entails. B2B Business to Business is the basic form of transaction that involves two businesses, a transaction involving a manufacturer and a wholesaler, or a business between a wholesaler and a retailer. This transaction involves two companies rather than the usual deals between companies and consumers. These Business to Business transactions occur when;
You'll notice that in the B2B business transactions, both parties have comparable negotiating power and they involve lawyers when making these deals. The main disadvantage of this business model is that large companies have greater advantages than other small ones. When considering the context of communication, the B2B transaction involves employees from different companies interacting through the various social media platforms. Also, the company can use its website to allow the other optimization to learn more about their products and services before initiating contact. The Business to Business model is easy to understand as it is divided into;
You can easily apply the vertical B2B model in manufacturing or business. This model can either take the upstream or downstream direction. The upstream direction involves producers and retailers working with upstream suppliers such as manufacturers. A vertical B2B website makes it easier for the upstream suppliers to promote their products effectively to retailers. This way, the seller gets the ideal platform to advertise their products and introduce new releases most conveniently.
The horizontal B2B model involves a transaction pattern that concentrates similar transactions of different industries in one commonplace. This model presents a unique trading opportunity for the interested parties since it involves parties that do not own or sell the products. However, it presents an opportunity for purchasers and sellers to come together. Business to Business transactions feature delicate deals, and therefore, they require proper planning to be successful. These transactions rely on the account management team to establish healthy business client relationships. Therefore, they need to get nurtured through professional interactions before making any sale. Note that B2B transactions feature various challenges and obstacles more often than the B2C and C2C options. Therefore, organizations need to rely on appropriate contractual and relational techniques to overcome the challenges. Firms can also implement various contracts and norms that influence the nature and dynamics of the negotiations. B2C B2C refers to the Business to Customer transaction that involves selling goods and services from a business to a customer. This is the commonest business transaction where the consumers are the end-users. These companies that offer their products and services directly to the customers are called B2C Companies. A good example of such a transaction is a web user buying shoes from the Nike online store. Or a person using the Uber app to seek transportation services. The B2C business transactions vary as companies might adopt a combination of models to maximize their profits. There are five types of B2C models big brands use to target customers.
Companies using the B2C models fall under one of the following given categories. Some companies adopt different combinations of these options to drive traffic to their sites and record more sales. The Direct Seller model is the commonly used strategy by most e-commerce businesses. Benefits of using B2C models in e-commerce Companies using any of the five B2C models boast of various potential benefits such as:
C2C The C2C, Customer to customer, model involves a transaction between private individuals, where consumers conduct business with each other. The goal of such a transaction is to facilitate and enable buyers and sellers to locate one another. An auction or the classified feeds section is are good examples of this transaction, where a customer sells goods to another consumer. To illustrate the C2C transaction better, think of the farmer's market where farmers sell their farm produce to consumers. Then translate this idea to an online market space where the willing sellers have to purchase a spot on an online platform to sell their goods. The C2C business model is ideal for small and individual sellers who lack an established brand or business identity. Such transactions are usually short-term since the sellers have limited goods or services to offer. Advantages of C2C e-commerce Individual sellers benefit from the C2C model in various ways such as;
The sellers register more profits since there are no intermediaries involved. They don't have to pay extra costs, such as salaries and rent, to conduct their business. This is because the C2C marketplace offers a direct communication channel between the two parties, without the seller incurring any hidden costs.
A seller without an established business will find it hard to attract customers if they were to use a physical shop. However, with the C2C market platform, they can easily reach billions of web users and sell their products. Their services become accessible to the worldwide market and this increases their reach and chances of making a sale.
One challenge that most unestablished brands face is a lack of trust from the online audience as it limits their chances for conversions. C2C e-commerce platforms remedy this as individual sellers utilize space on an existing and well-established platform. This saves them the hassle and effort of creating and building their platform. They benefit from these deals as they can share the credibility of the C2C market platform. The buyers also benefit from this transaction in the following ways;
The main advantage of buying through the C2C transactions is that there are no intermediaries involved. Removal of intermediaries, retailers, and other third-party stores keeps the product prices minimum.
C2C offers buyers the convenience of choosing their ideal seller. The marketplace features various sellers to choose from. Buyers can also choose their best option using the different search criteria available. B2B VS C2C The main differences between the B2B and C2C e-commerce models are;
B2B Vs. B2C
B2C Vs. C2C
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