The structure of the broadening market of e-commerce
The Structure of the Broadening Market of E-Commerce
The decision to open up an e-commerce business opens the door to many more result-altering decisions. One of the most important things a business starter must decide is which type of business to open. There are many different kinds of businesses, but three main ones stick out. There are Business to Consumer (B2C) companies, Business to Business (B2B) companies, and finally Consumer to Consumer (C2C) companies. After deciding on which type of business model to pursue, the next important question is how consumers to a place where they can buy things. This is where e-commerce and m-commerce come into play. No matter the business model, companies must successfully utilize e-commerce and m-commerce if they wish to be successful. Luckily, there are plenty of examples of B2C, B2B, and C2C companies that successfully harness the power of e-commerce and m-commerce.
When speaking of business models, the B2B business model is probably thought of. It is commonly thought of because of its huge success. According to statista.com, “Global B2C e-commerce sales reached 1.2 trillion dollars in 2013, of which 29.7 percent were generated by the United States”. Scholars have come to define B2C businesses as any business or organization that sells its products or services to the consumer directly for the consumers own use (Nemat, 2011). Retail stores are commonly known examples of B2C business models, like a retail store that sells a shirt to a consumer for the consumer’s personal use. E-commerce B2C stores are quickly growing. However, their growth is slowed because lack of trust. With e-commerce, there is a lack of social presence. It has been found that “this lack of social presence may impede the growth of B2C by hindering the development of consumer trust in the service provider. Human interaction, or at least the belief that the system has characteristics of social presence, is believed to be critical in the creation of trust” (Gefen, 2003). Despite that setback, certain B2C’s have achieved monumental success is relatively short periods of time.
One of the most successful and trusted C2C businesses is eBay. According to statista.com, the website eBay has been leading the C2C e-commerce industry since it first launched in 1995. There are multiple reasons why eBay can be considered the best in its class. For starters, it fosters not only a place where sellers can set the price for the good they are trying to sell, but even more, it creates an option where sellers can choose to create an auction for the product with a starting bid price. The auction allows the seller to get the maximum amount for the product. As mentioned before, the option of customization greatly enhances the likeability of a website. Along with eBay’s marketplace options, it also does well in creating an environment that is safe for buyers and sellers. The buyer’s protection policy that eBay operates under works to prevent both fraudulent buyers and sellers. If the product is not like its description and therefore the customer is unsatisfied, eBay will require the buyer must return the product and he will be refunded. However, according to thebalance.com, the buyer must have a “good faith dispute with the seller”. That means, if the product is as it was described, the buyer usually will not get a refund. This good faith dispute protects the sellers from shady buyers who just want to take advantage of the system. Because eBay works in favor of both the buyers and the sellers, more people are willing to use eBay for their business transactions, which makes eBay a great example of a C2C business model.
M-Commerce
Mobile-commerce (m-commerce) is a very unique part e-commerce that is undoubtedly on the rise. While e-commerce began in the 1970’s m-commerce had much later start in the 1990’s. E-commerce uses devices like computers and laptops to promote business, while m-commerce uses mobile devices like cellphones and tablets to promote business transactions. E-commerce is conducted through store’s online websites, while m-commerce brings in the whole new world of applications. Apps are popular tools that businesses use to get customers to think about their company more often. Once an app is downloaded on a person’s phone, a person will be reminded of that company nearly every time they glance down at their phone. M-commerce can also be done through a company’s website using the internet. M-commerce has a lot of pros because people can take companies with them wherever they go. However, it also comes with cons, like the high cost of creating and maintaining an app, as well as the cost of mobile optimization. If a company does not have a mobile friendly website, then customers will quickly choose a different website to shop from.
