1.6. Snap Shot of Business-to-consumer E-commerce

This section contains the basic framework of the principles of E-Commerce. If you understand what actually is e-commerce and what are the principles that drive it, you will be a better & informed buyer. However, this section does not add much to the experience to improve your online shopping behavior but it will definitely help you identifying people in a market, which has or will become a part of your life.

This section has been included as some of the customers always want to know that how online shops are making money even though not all of them sell. There are some sites which direct you to the actual retailer. We have broadly classified all the players of the online arena to present you a clear picture.

If you are not interested in technicalities you can skip this section, more interesting and practical info follows in the subsequent sections. 

Business-to-consumer electronic commerce (B2C) is a form of electronic commerce in which products or services are sold from a firm to a consumer.

Five Classifications of B2C E-Commerce

Direct Sellers

Companies that provide products or services directly to customers are called direct sellers. These types of B2C companies are the most well-known. There are two types of direct sellers: e-tailers and manufacturers.

E-tailers

Upon receiving an order, the e-tailer ships products directly to the consumer or to a wholesaler or manufacturer for delivery.

Example: Amazon.com

Manufacturers

The manufacturer sells directly to consumers via the internet. The goal is to remove intermediaries, through a process called disintermediation, and to establish direct customer relationships. Disintermediation is not a new idea as catalog companies have been utilizing this method for years.

Example: Dell.com

Online Intermediaries

Online intermediaries are companies that facilitate transactions between buyers and sellers and receive a percentage of the transaction's value. These firms make up the largest group of B2C companies today. There are two types of online intermediaries: brokers and infomediaries.

Brokers

A broker is a company that facilitates transactions between buyers and sellers.

Types of Brokers:

Buy/Sell Fulfillment

A corporation that helps consumers place buy and sell orders.
Example: eTrade

Virtual Mall

A company that helps consumers buy from a variety of stores.
Example: Yahoo! Stores

Metamediary

A firm that offers customers access to a variety of stores and provides them with transaction services, such as financial services.
Example: Amazon zShops

Bounty

An intermediary that offers a fee to locate a person, place, or idea.
Example: BountyQuest (now defunct)

Search Agent

A company that helps consumers compare different stores.
Example: MySimon