author: Denitsa Dimitrova
The first form of e-commerce is defined by the direct relationship between the seller and the buyer. The seller familiarizes the buyer with the good or service so that it can be sold. The second form of electronic commerce is indirect communication. That is, lack of direct contact and communication through an intermediary (phone, Internet, etc.)
Very often, a physical clothing store does not have such a vast area to display all of its items and merchandise. Then comes the benefit of e-commerce and their online store site. There is no limit on how many products you can upload on the site, and thus the seller does not harm his customers due to a lack of products. Through online shopping, acquiring products becomes an idea faster and cheaper.
- Business to Customer (B2C) – it is an e-commerce platform that consists of a seller company and an individual buyer. The seller company invents, manufactures and carries out the production and sale of its products, targeting many but independent individuals. They buy this type of product or service because they themselves need it. Examples of businesses that use this type of trading are restaurants, cinemas, bars, drugstores, etc. B2C companies have very good management and direct contact with the customer. This is how they accelerate their sales and profits. Such companies are Ali Express, Nike, Amazon, etc.;
- Business to Business (B2B) –it is an e-commerce platform that allows buyers and sellers to do business online in one place. On this platform, sellers are brands, manufacturers, suppliers and traders, and buyers are other companies (not individuals). The seller company has a physical and online catalog with its products and offers for the buyer company. Through an operator, after viewing this catalog, requests for orders are made and their delivery and sale is carried out. The buyer buys these goods not for personal use and need, but for the need of his company to continue working.
| Wholesale (B2B) | Retail (B2C) | |
| Pricing | More often individual, depending on the status of the customer or the terms of delivery | Universal, subject to incoming supplier prices, promotions and seasonal sales |
| Catalogue | Simplified: article, name, technical specifications, photo | Detailed: detailed product description with all features, photo and video content |
| Price lists | Selection of assortment and export of price list in xls-format. | Selection without a price list, through the catalog |
| Catalog navigation | By types of goods or services, article. Advertising and technical catalogs in PDF format | A beautiful user-friendly online catalog with a separate page for each product with automatic product recommendation algorithms based on behavioral factors |
| Product recommendation | Blocks with similar products | Blocks with complementary products, cheaper and more expensive analogues, recently viewed |
| Payment | Cashless payments | Card, cash on delivery, cash on delivery, online payment |
| Warehouse logistics | Accounting for packages, pallets, boxes in different warehouses with deadlines for delivery of new goods | Piece reporting for goods in stock, possibility of delivery to order |
| Delivery | Freight transport | Courier services |
| Marketing | Focused on Internet presence for key requests and offline communication | Focused on the massive attraction of the target audience while minimizing the cost of attracting an order |
| Document flow | Agreement, Attachments, Invoice, Deed, Invoice | Check, warranty card |
| Complaints | Development of a mechanism for returning low-quality goods to the manufacturer | Resolving return issues on an individual basis |
They are one of the largest B2B markets : Alibaba.com, Amazon Business, EWorldTrade, Global Sourcing, ThomasNet, EC21.
- Customer to Customer (C2C) – an electronic commerce scheme between end users (customers) where the buyer and seller are not entrepreneurs in the legal sense of the word. Usually, a third party is involved in such commercial relationships - an intermediary who organizes an electronic trading platform, for example, an Internet auction, a site with announcements of purchases and sales, etc. In addition, the intermediary may be the guarantor and/or executor of the payment itself. The intermediary is not a guarantor of the receipt of the goods, but in some cases can influence the resolution of disputed situations. Also, the intermediary does not participate in the actual movement of the goods, the seller deals with this independently. The features of the C2C scheme include low transaction costs and lower prices of goods. The negative feature is that there is an increased likelihood of fraud. To combat this, platforms are introducing reputation rating systems.
- Business to Government (B2G) – This is business to the state, which is the real customer. The process of selling goods and services by businesses whose customers are government agencies. These are: schools, kindergartens, polyclinics, fire department, police, court, etc.
- Direct to consumer (D2C) – The D2C model allows brands to build a real relationship with their end user. This gives you, as a seller, the opportunity to introduce and present your product yourself so that the customer immediately buys it. Everything is in your hands. But the goal of this type of marketing is not just to sell your product. As a seller, you have to win over the customer, give him what he really needs and get him to look for you again. The customer must be consistent and satisfied.
© 2023 Iliana Dechkova