B2C E-Commerce

Thomas Janovic
Info. Tech.
Professor Vengerov
10/30/11

Business to Consumer E-Commerce

Throughout the technological environment of the modern era a new form of commerce has emerged allowing people from all over the world to purchase goods and services over the Internet, or World Wide Web if you will, called E-Commerce. This new type of buying and selling has revolutionized the way consumers purchase goods and services, altering the whole aspect of how consumers and businesses interact. Business-to-consumer (B2C) e-commerce has come about due to this revolutionary idea of buying and selling online, in which “the conducting of commerce by companies, government agencies, and institutions is orchestrated with consumers over the Internet.”[1]
A typical example of B2C e-commerce is Amazon.com, which is one of the most highly competitive e-business in the world. Some other examples include Drugstore.com, Barnes and Noble.com, and InMotion.com. B2C e-commerce is not only commerce between businesses and people, but involves a whole array of procedures which includes customers collecting information on various types of products. There are two main categories of goods which can be sold online; physical or tangible goods (books, clothing, anything you can touch) and virtual goods (things which are sold electronically over the internet such as computer software, or e-books).
B2C e-commerce happens to be the earliest form of e-commerce as well as the second largest type of e-commerce. Purchasing tangible products or virtual products online aren’t the only benefits of B2C e-commerce. “The more common applications of this type of e-commerce are in the areas of purchasing products and information, and personal finance management, which pertains to the management of personal investments and finances with the use of online banking tools.”[2] The importance and economical values of B2C e-commerce are massive given that in the year 2000, $59.7 billion dollars was generated in revenue, which then climbed over $200 billion dollars by the year 2004.
There are numerous benefits to shopping online which may help consumers and businesses save crucial time and money, ultimately increasing the overall efficiency of the economy. B2C e-commerce helps to lessen transaction costs by allowing consumers to obtain information more quickly with less interference. Consumers are now able to compare the prices of different goods and services online to acquire the best price they are looking for with the click of a button, rather than traveling from store to store wasting valuable time and money. Benefits of B2C e-commerce not only apply to consumers, but also to businesses as well. The costs of creating an online store are much cheaper than building a physical brick and mortar structure, decreasing “market entry barriers.” The various online retailers who sell virtual or intangible goods are at an even higher advantage because they “save firms from factoring in the additional cost of a physical distribution network.”[3] For example, if an online distributor of applications software had to endure the process of creating physical storage devices to sell the applications software on and then distribute it to various locations, would be missing out on the benefits and reduced costs of allowing individual consumers to download the app. Software right from their web browser.
There are millions upon millions of products and services offered online, which metaphorically transforms your computer into the largest retail store imaginable, and it’s all made possible through e-commerce. B2C e-commerce has forever changed the way businesses and consumers interact, allowing both to save time, money, and valuable resources, which in turn improves the overall efficiency and speed of the economy.



Works Cited

1. http://www.digitsmith.com/ecommerce-definition.html
2. http://en.wikibooks.org/wiki/E-Commerce_and_E-Business/Concepts_and_Definitions
3. http://www.asaresearch.com/ecommerce/ecommerce_types.htm