Generally, the business to customer model thrives on digitalization. It is because technology has bridged the gap between B2C sellers and customers. Due to the great extent of globalization, each country has developed, and technology and the use of mobile phones have expanded. There are mainly five categorizations of these models, which lead to the smooth flow of business transactions between customers and companies. These types cannot be directly compared as no company is dependent only on one type of business-to-customer model.
At first, direct retailers come in this context. These direct sellers are online retailers who purchase these goods through online media. These companies portray their goods on different websites, and the customers place an order there. The retailers directly send these goods to the end customers. The shipment of the products takes place on the note of the B2C seller. The manufacturers even market their products using catalogs, websites, telephonic conversations, and so on. Secondly, the online intermediaries who act as the bridge between customers and manufacturers come in. These online intermediaries get a commission on each unit of product sold by using the inputs of that company. These intermediaries work through technology and even market the products to the customers as per their tastes and preferences. Thirdly, these online intermediaries offer some special tagged service to the customers. In this, the customers get goods at even lower prices. For instance, the company offers a prime subscription to the customer in which the customer gets the priority of attaining goods at the lowest possible prices. Fourthly, the community-based model is also a popular form as in this model, the whole selling of goods is done based on social marketing and networks. For instance, some groups are made and based on social networking, the span of the sales rises. At last, fee-based models, sometimes consumers get a free subscription for surfing online movie content and so on, on the purchase of few goods.
Advantages of Business to Customer Model
This model enables companies to market their competitively priced goods of high quality compared to their competing firms in an easier manner. Therefore, it contributes to shrinking the span of the competition. Customers also get unlimited access to various vendors, and they can easily make their decisions about purchasing after comparing prices and other offerings. The elimination of middlemen leads to more savings for the consumers and optimal profit margins for the producers. Also, the firm is in direct connection with their customers, so that there can be a timely delivery of goods. It also generates employment opportunities such as in call centers, delivery services, and so on.
The disadvantage of Business to Customer Model
The catalog serves a different purpose for each customer, and it cannot contain all information. Sometimes, it cannot meet the know-how standards of the consumers. Sometimes, customers also get some limited exposure to products as they surf a few brands, which restrict the opportunities of smaller companies.
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