B2B to C2B Electronic Commerce

Electronic gives companies improved talent and reliability of intersection line processes finished transactions automation. The two major types of e-commerce these be backing to business (B2B) and Business to Consumer (B2C). In B2C consumer purchase products and service from industry while B2B deals with business transaction with another business. Many businesses right away utilize these types of pretending. approximately of the businesses that utilize B2B model accommodates operating inputs marts-These deal with unfinished goods such as postal service supplies, spare parts and airline tickets.There good are referred to as maintenance repair and operating goods. some other type of market that utilizes B2B is manufacturing input businesses these are raw materials which go directly into the product or processes. In B2C model, it deals with business such as Auction stores which offers electronic implementation of bidding mechanism (Paul Timer1998) and the other slip is onlin e stores. B2C has advantages and too disadvantages. Some of these advantages burn down be divided into two forms those that benefits the company and customers benefit.Those that benefit the company include Increased demand, due to the convenient way of serving the customers interchangeable in online the demand increases which consequently rig out the companys income. Also low cost is encountered because they use online shops which ensure low cost in transportation of good is encountered. Customers can in like manner suppose the type of goods they need from internet and this enables reduction in the cost of promotion and sales. Generally the company enjoys reduced cost since their advertisement and slopey of their goods are incessantly at least expenditure as possible. Benefits that the customers enjoy in B2C includeLow prices since the company make water encountered minimum cost in production and delivery of goods. These low prices encourage the customer to continue victim isation this model. Also customers experience a wider choice of what they want to purchase, since he/she can be able to view these products before ordering them which enables him or her or make better choice. Better information in learn to product can be obtained from online shopping by going through the information provided by the company. Its also convenient for buyers who are B2C model since the products are delivered by just ordering for them online.Customers also experience flexibleness in ordering their products through internet auction. Some of disadvantages experienced in B2C models are things like critique of goods. This is a great challenge to buyer since its not possible to physically inspect the goods you want to purchase. Bidders eternally have to rely on information provided or electronic images of goods or auction. Also there is say-so for fraud since internet bidder has to actually trust that the buyer will send goods he/she has paid for. B2B model also has advan tages and disadvantages which adversely affect purchasing company or company.Some of the advantages include Hosting of critical supply cosmic string which is available to buyer to help them choose on which chain to use in ordering for their supplies. It also provide market to close enterprise collaboration- This results in synchronized industry coordination which enables the company to synchronize activities like product design, procurement, planning and so on (Peter Dicken,2003. ) It also provides participate with flexible, open, reliable, highly available and scalable environment. Some of disadvantages of using B2B model are based on challenges that are faced by the business.For example, at clip buyer, sell and channel partners feel that the market is working against them which eventually result to loss of those companies purchasing their products. Buyers can also result the procedures to be followed when purchasing the products which makes the company to incur extra cost for pr ocedures desired by the other company. Insecurity by the company purchasing the product since they just trust that the products will be sent to them, once they are paid for. Suppliers of major consumers product should consider a name of factors when they decide to shift from B2B to B2C.First they should determine whether supplier has customization by offering capacity to offer goods and services in real time and ability to customize goods to the postulate is higher. This is because the suppliers have been dealing with company or businesses and in a flash they want to deal with individual customers. Suppliers should be aware of organizational changes in changing from B2B to B2C this enables successful change to a B2C e-business company. There should be a radical organization al change. This is difficult to implement as a result of strong resistance by employees. Also supply should be aware of redesigning business processes.The B2B processes should be redesigned and streamlined in order to suit the new B2C form of business. The system is also co-ordinated because the real power of e-business comes up when the systems are integrated. Products that can lead to change from B2B to B2C are finished products which are readily usable by customers. Therefore the company prefers to deal with individual customers for large sales than dealing with company. Also when the industry start manufacturing finished products it can shift its model from B2B to B2C since its sell then to consumers who needs already finished products.Finished products lead to change of marketing model from B2B to B2C since the consumer can not purchase an assembled product unlike other business/industries who can purchase them so that they can assemble them and sell as a finished product. Products that have lead to this change include electronic and local phones and also services such as long distance and wireless telephones, cable television, internet service provider and so on are some of prod ucts and services that can be sold directly to consumer instead of selling to industry or other business because consumer can enjoy the benefit of avoiding middle man in the distribution chain.(Gopal Screeraman ,2002. ) Consumer demand can have great effect on suppliers. For example, some things like move delivery of goods desired by consumer at time is not met by supplier and this makes supply to deliver products that are not well finished to avoid delay. Consumer demand also enables the supplier to find slipway to gain competitive advantages in factors other than just price. Some factors can increase demand of genuine products by consumers which the supplier has to meet in order to gain marketability. Consumer demands also leads to expansion of larger services.This is show in demand supply curve whereby the higher the demand the lower the supply and therefore through expansion of services the demand can be met. It also helps to find cost effectiveness shipway to increase cust omer base and generate higher revenues. Therefore these types of electronic commerce have several(predicate) impacts and while ordering for products one should consider which model suits best. Reference. Paul Timer, (1998), Business model for Electronic market London. Peter Dicken, (2003), Political Science, United Nations. Gopal Screeraman, (2002), Commerce server 2000, New York.