B2C e-commerce is the acronym for Business to Consumer e-commerce. It is the type of e-commerce where business that sell a product or service can complete transactions electronically, namely through the internet. To the layperson, Business to Consumer e-commerce is what occurs any time an individual makes a purchase online. This can be from companies that exist only in the online space, like those that sell on amazon.com. However, e-commerce sales are not limited only to internet companies. Many companies that have brick and mortar locations also have a branch of e-commerce. A great example of that is a company that sells on target.com or any other retailer that hosts a website as well as a physical location.
Business to consumer e-commerce is an extraordinarily easy way for a company to conduct sales, as it allows them to reach consumers from all across the world without ever meeting them face to face. A company may sell on homedepot.com for example, to many different countries, and that allows an individual to browse their selection and inventory, make a purchase, submit payment and receive their item delivered to their doorstep without having to make any phone calls or leave the comfort of their own home.
Business to Consumer e-commerce can also save a business thousands of dollars in operating expenses. In the traditional commerce model, a business must first have their item manufactured and then find a wholesaler to purchase their goods (known as B2B or Business to Business commerce.) The wholesaler will then send the item to a distributer (which is another B2B transaction) and then the distributer places the goods in a retail location. The consumer then visits that specific retail location and purchases the goods. This type of commerce can be costly for many reasons. In addition to finding an appropriate wholesaler and distributer, as well as securing space in a retail location, the company or business must pay the cost of manufacturing a large amount of products before they ever have any kind of guarantee that their goods will be purchased. It is kind of like a game of high stakes gambling, and many businesses often lose that bet.
With online selling or the e-commerce model, a business can put their product in front of the consumer before the items are even manufactured. This allows them to produce their product based on the demand for it. It also cuts out some of the costly middle men, as they can manufacture and ship their products directly to the door of their customer. This saves them money on buying retail space, as all of their items are digital. Often the highest cost for an e-commerce business is the marketing money they spend to get the name of their product or service in front of the eyes of the right consumer. They also must make sure that they are ready and equipped for the online retail space by making sure that they can begin manufacturing as orders are received and provide customer service as needed.