E-Commerce Business Models: B2B & B2C
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Definition of B2B Model (Business to Business):
The B2B business model is defined as a form of trading in which the buyer and different companies come together to make purchases and sales in an electronic environment (Yeoman, 2004). In this kind of trading on the electronic medium both the buyers and the sellers are business people or two organizations. The example of this trade can be when the wholesalers are selling their goods to the retailers through internet. Another example can be when the manufacturers advertise and sell their productions online to the wholesaler or to the retailer. In this kind of trade the end consumer of the product is not involved.
Definition of B2C Model (Business to Consumer):
Business to consumer model in electronic environment is very effective model in the study of commerce. This model has opened the ways to access to a wide market of customers. In this kind of trade there are more chances of involving the potential customers into sales. B2C model is defined as internet based trading that’s allows the different buyers (manufacturer, wholesaler or retailer) to communicate and sell its product to the end consumer. This model is also defined as all the e-commerce activities that take place to cater end consumer of the product (Coteanu, 2005). Unlikely B2B model the seller is the business person and the buyer is the individual consumer like any ordinary salaried person, a student, a house wife etc. From B2C e-commerce the customers can enjoy more variety of goods and can also take the advantage of arm chair shopping.
Comparing B2C and B2B business models in e-commerce view:
Following are some of the factors identified by Kaplan (2000) on the basis of which the above mentioned models of e-commerce differ from each other.