There are numerous terms and definitions relating to electronic commerce. Terms such as electronic business, e-business, internet business, e-commerce, internet commerce and new economy are all treated as synonyms for electronic commerce.
In the Webster’s Dictionary defines e-commerce as ‘the conducting of business communication and transactions over networks and through computer technology’.
E-commerce can be done between businesses (business to business or B2B) or between business and consumers (business to consumer or B2C). Business-to-consumer (B2C) e-commerce focuses on direct transactions between businesses and end consumers.
B2C e-commerce can involve electronic transactions in marketing, ordering, and paying, after sales and service and in the case of intangible or virtual goods and services, even delivery.
In this form electronic commerce, business must develop attractive electronic marketplaces to entice and sell product and services to consumer.
B2C e-commerce is used by customers for the convenience of purchasing products or services over the web.
Many companies offer E-commerce websites that provide virtual storefronts and multimedia catalogs, interactive order processing, secure electronic payment system, and online customer support.
B2C e-commerce reduces transaction costs particularly search costs by increasing consumer access to inflation and lowering consumers to find the most competitive price for a product or service.
B2C e-commerce also reduces market entry barriers since the cost of putting up and maintaining a web site is much cheaper than installing a ‘brick and mortar’ structure for a firm.
Some of the key differences between B2C e-commerce and the other common form of e-commerce, B2B, include the volume of money traded and the transactional relationship of the parties involved.
B2C involves smaller amounts of money in each exchange compared with B2B and its objective is more to satisfy customer preferences and shopping habits.
E-Commerce: Business to Consumer or B2C
