Effective impact of information technology on C2B and C2C business models

The business model used in e-commerce has taken digital trading to a new level. In this article, we will review three categories of business models in e-commerce C2B, C2C and B2C. Before continuing, PNN Soft offers to read the list of basic features for online commercial websites.

• Responsive interface
• Comparison and product filter options
• Search feature and optimized cart
• Geolocation and advanced payment function
• Content and FAQ pages
• Rating system, comments

What is C2C?

Online shopping is rapidly developing, expanding its capabilities and reach. C2C marketplace websites offer near-endless opportunities. Client-to-client (C2C) is a business model in which people use a digital trade platform to provide their services and products to other people. In this case, the site acts as an intermediary between individuals who are not entrepreneurs or businesses. Consumer-to-consumer examples are Shopify, eBay, Etsy and BlaBlaCar.

Like any other digital marketplace, consumer-to-consumer solutions have functionality without which it isn’t competitive. When developing a platform, it is important to implement account creation and management functions. It is necessary to ensure the security of personal data of both sides and to adjust the quality of communication between buyer and seller. When creating an e-commerce site, an essential aspect plays, the aspect of assessments and reviews. Rating systems, commenting and filtering on these indicators are integral attributes even for C2C e-commerce sites. In addition, do not forget about the payment system. For the C2C model, the connection of payment systems is not a mandatory attribute. But it allows the platform to be more competitive and reliable.

What is the difference between B2C and C2B?

What is the business to consumers? B2C is directly a model of the company’s work when the created product is designed for the end user, solving his tasks. It is the most popular form of e-commerce today. One of the most popular B2C e-commerce examples is Amazon. However, any custom websites or applications of specific companies or brands can be an example. They offer their services directly through the developed platform or mobile app.

Consumer-Business Interaction (C2B) is a business model in which an end user or consumer creates a product or service.  C2B helps facilitate transactions between consumers and businesses. The C2B model sometimes caters to independent workers and freelancers who accomplish paid tasks for a business. C2B examples are Google AdSense, UpWork, Amazon Associates, CJ Affiliate, and Commission Junction.

The C2B approach has evolved as a result of the active growth of consumer media and content in various consumer segments. For instance, websites, blogs, podcasts, videos and social networks. C2B provides businesses with the opportunity to sell a product or service on a paid basis on a consumer’s website or blog. During this pace of work, the website owner is paid to view the product or service. In most cases, paid advertising space is also available on the consumer’s website.

How can e-commerce benefit you over a traditional store?

B2C

• Globalisation. B2C companies usually have a massive target audience. Thus, advertising and marketing campaigns can reach millions of potential customers.
• Choose the best type. There are typically five types of business to consumer e-commerce model: direct sellers, online intermediaries, advertising-based B2C, community-based and fee-based.
• Customer personalisation. B2C companies directly sell and communicate with customers. It allows to personalise offers and to build target marketing.
• Automation. The consumer can place an order and pay for it at any time, which will be read and processed by systems without the participation of the seller directly.

C2B

• Best value because of the perfect competition. There is an option to select from alternatives based on factors. For instance, price, quality, delivery time, supply, and other factors.
• The opportunity for sellers to acquire valuable work experience with diverse businesses across multiple projects.
• It creates employment opportunities and unique work experience. The platform, as an intermediary, can receive a percentage of transactions between the consumer and the business.

C2C

• Increased profitability. The C2C e-commerce business model does not involve intermediaries. Thus, it reduces the cost of the offered product or service, increasing profitability.
• The e-commerce marketplace provides an opportunity to facilitate direct communication and transactions between the seller and the buyer.
• The possibility of increasing the customer base. The C2C e-commerce market increases the likelihood of receiving more visits and transactions.
• Special Offer. On the platforms with this model, the seller can appear with a unique product in high demand. It can be sold at an attractive price.