What Is A Business To Consumer Example
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What Is A Business To Consumer Example? Things To Consider!

In this new age of eCommerce, various models have emerged to cater to the plethora of needs and requirements that arise from such a diverse market. Most of these models factor in the endpoint and the one who engages in the delivery of the products or service. One such model is that of the business-to-consumer model. It is one of the most commonly used business models in the world of eCommerce and encompasses a major chunk of our transactions. 

What Exactly Is Business-To-Consumer ECommerce?

Business to consumer commerce essentially refers to a transaction where the seller sells their products directly to a consumer, who is generally a part of the masses. In such cases, the product or service in question is being used directly by the end-users.

Business

Unlike most other types of business models, the products exchanged through such a type of eCommerce do not undergo any further stages of production, and see the endpoint in their product journey as soon as they reach the consumers. 

An Example

Let us consider the scenario of a supermarket to understand business-to-consumer commerce in its entirety. When you wish to make a purchase from a supermarket chain, be it online or through a physical store, you essentially approach the buyer, and exchange money for the worth of some products such as groceries or stationery products, et cetera. In this case, the products being purchased, are mostly for end consumption, which makes you the consumer, and the retail chain selling it to you becomes the business. 

Another example to understand a service that falls into this category can be social media apps. When a consumer makes use of this app just for recreation purposes, the exchange replicates a business-to-consumer model of commerce. This is because the consumer is simply making use of the service for no other purpose than for some form of satisfaction, and there is no furtherance of this service other than the time that it is being used. 

Some popular businesses that are associated with the business-to-consumer model are Amazon, Walmart, Alibaba, McDonald’s, Apple, Big Basket, Zara, Burger King, et cetera. Instagram, Tumblr, Facebook, et cetera also replicate the business-to-consumer model when the platforms are being used by non-business owners. 

Modes Used By Business To Consumer Firms 

Business to the consumer has various options laid out before them in terms of ensuring their products reach their end consumers. Some of the common modes that are common categories of B2C models are:

  1. Direct selling – As the name suggests, in such a case the sellers directly sell their products to the consumer without the employment of any intermediaries. 
  2. Subscription model – In the case of services, the subscription-based model is quite a popular way to impart services to the end consumer. It simply involves a small recurring fee or a membership fee, paid by the consumer to be a part of the service. 
  3. Online channels – The growth of the digital world has prompted online channels to gain lots of traction, wherein the business sells to the end consumer through the usage of an online platform or website. 
  4. Advertising-based models – In the case of businesses that can make use of the extra income from advertising and free content, the advertising-based model is a handy business-to-consumer mode of commerce. 

Conclusion:

We can find examples of business-to-consumer commerce all around us. Be it going on a shopping spree during the festivities, to surfing some social media app to watch cute cat videos, the business to the consumer model of commerce has truly established a prominent mark on our lives, and with the increasing reach of eCommerce, this growth is only set to increase. 

 

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