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Lesson 4Selecting an eBusiness model for B2C
ObjectiveIdentify the various B2C models.

Selecting an eBusiness Model for B2C

There are as many business models in the B2C classification as there are novel and diverse ways of delivering products to the customer. eBusiness has given rise to many new and potentially revolutionary models on which a business can be based, so much so that some business models are now being patented.

What are the various B2C Models

There are several business-to-consumer (B2C) models that companies use to sell their products or services directly to individual consumers. Here are some of the most common B2C models:
  1. Direct-to-consumer (D2C) model: This model involves selling products or services directly to customers through a company's own website or physical stores, bypassing traditional retail channels.
  2. Retail model: This model involves selling products through traditional brick-and-mortar stores or online marketplaces. Retailers may purchase products directly from manufacturers or wholesalers, or they may work with distributors.
  3. Subscription model: This model involves selling products or services on a recurring basis, often through a subscription plan. Examples of subscription-based businesses include streaming services like Netflix and meal kit delivery services like Blue Apron.
  4. Marketplace model: This model involves creating a platform that connects buyers and sellers, such as eBay or Amazon. The marketplace owner typically takes a commission on each transaction that occurs through the platform.
  5. Freemium model: This model involves offering a basic version of a product or service for free, while charging for premium features or additional services. This model is often used in software or app development.
  6. On-demand model: This model involves providing services on-demand, such as ride-sharing services like Uber or food delivery services like Grubhub.
  7. Crowdfunding model: This model involves raising funds for a project or product by soliciting contributions from a large number of people, often through online platforms like Kickstarter or GoFundMe.

Overall, the choice of B2C model depends on the nature of the product or service being offered, the target audience, and the company's overall goals and objectives.

Applying the Models to B2B and B2C

Although we cannot discuss every flavor of B2C business model in existence, we can classify them into a few categories. These categories include:
  1. The Information Intermediary (Infomediary) model
  2. The Affiliate model
  3. The Merchant model
  4. The Web Community model
  5. The Utility model
The Slide Show below describes each of these models.

1)Information intermediary model: Infomediaries are a natural progression of e-Business. Information about consumers and consumer-buying habits is of great value to sellers and buyers alike. Infomediaries use various methods to collect and sell this information.
1) Information intermediary model: Information intermediary model: Infomediaries are a natural progression of e-Business. Information about consumers and consumer-buying habits is of great value to sellers and buyers alike. Infomediaries use various methods to collect and sell this information. Infomediaries can use this information to aid customers with recommendations and filters, and by acting as an agent. There are many issues concerning the trade of information and how it is obtained which can make this model complex.

2) The affiliate model is a combination of aspects of the brokerage and advertising models. It is well suited to the web and is growing rapidly in popularity
2) The affiliate model: The affiliate model is a combination of aspects of the brokerage and advertising models. It is well suited to the web and is growing rapidly in popularity. It involves the linking of businesses with Web presence and incentive program for customers or other affiliate sites based on usage. Variations of this include revenue sharing, banner exchanges, and pay-per click systems.

3) Merchant model is another growing and evolving model or eTailer. These may be businesses with a traditional brick and mortar approach to retailing that have adopted a web strategy to supplement or expand their business.
3) Merchant model:Merchant model is another growing and evolving model or e-Tailer.These may be businesses with a traditional brick and mortar approach to retailing that have adopted a web strategy to supplement or expand their business. Merchants can also operate exclusively via the Internet or have unique web-based digital products such as mp4 or software downloads.

4) This model is based on community concept. It may involve membership and subscriptions and can offer professional advice, classified advertisements. In some cases, the users contribute to the content. Some sites offer specialized news content
4) Web Community Model: This model is based on a community concept. It may involve membership and subscriptions and can offer professional advice, classified advertisements. In some cases, the users contribute to the content. Some sites offer specialized news content.

5) This model offers content on a metered or pay-as-you use approach.
5) The Utility Model: This model offers content on a metered or pay-as-you use approach.

  1. Information intermediary model: Infomediaries are a natural progression of e-Business.
  2. The affiliate model is a combination of aspects of the brokerage and advertising models.
  3. Merchant model is another growing and evolving model or e-Tailer.These may be businesses with a traditional brick and mortar approach to retailing that have adopted a web strategy to supplement or expand their business.
  4. Web Community Model: This model is based on a community concept. It may involve membership and subscriptions and can offer professional advice,
  5. Utility Model: This model offers content on a metered or pay-as-you use approach.

Selecting ebusiness B2C

Examples of B2C models

Information Intermediary model

In connection with use of their service, some sites using the Information Intermediary model collect Web site usage data and traffic pattern data with respect to activity both within and across Web sites. We will discuss eMarketing and privacy in a later lesson.
In the next lesson, we expand the Brokerage model and identify its more common variants.
ecommerce Business Model