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What is Business-to-Consumer E-Commerce? - Definition & Examples

What is Business-to-Consumer E-Commerce? - Definition & Examples
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  • 0:01 Business-to-Consumer…
  • 1:12 Benefits
  • 3:28 Lesson Summary
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Lesson Transcript
Instructor: Tara Schofield
Business-to-consumer E-commerce has changed the way customers buy products from stores and businesses. This lesson discusses the benefits of business-to-consumer E-commerce. A short quiz follows the lesson.

Business-to-Consumer E-Commerce

It's 2:00 AM and Annie, one of your customers on the East Coast, is perusing your men's clothing website, looking for a new outfit for her husband. She has been so busy with work, the kids, her husband, and all aspects of life that she doesn't have time to go shopping at a brick and mortar store. Because you have all of your inventory available online, she can select her husband's entire outfit, pay for it, and have it shipped without ever leaving her home.

Business-to-consumer E-Commerce is the process of individual customers buying from a company online. E-commerce has drastically changed how businesses interact with their customers. It provides an opportunity to sell to customers around the world, 24-hours a day, 7 days a week. The characteristics of traditional business change when they operate online. Instead of relating to customers face-to-face, the interaction is less personal through E-commerce. Customers must email or call with questions or problems, which can cause more frustration or concern when communication challenges arise.

Benefits

There are many benefits to companies offering online sales:

1. Convenience. Customers can shop at their convenience, in their own home. Customers are not bound by your business hours or when they can make time to go to your store. They can get online whenever they have time, wherever they are, and make purchases. This allows customers to buy at any time, day or night.

Annie is benefiting from the convenience of your online store, allowing her to shop in the middle of the night.

2. Your customers are not limited by geography. They might live around the corner or across the world. When you offer online sales, you can ship your products anywhere. This removes geographical barriers and allows you to target a much larger audience.

Annie is located across the country from your West Coast store. She isn't limited to stores within driving distance and she can purchase easily and quickly, having the items shipped directly to her doorstep.

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