This paper is a review of three companies currently utilizing the use of the B2C models. Business to consumer commerce (B2C) is any business organization that sells products and services to individual customers over the Internet (www.cio.com). B2C commerce is rapidly growing and expected to grow from a 38 billion dollar industry to a 184.5 billion dollar industry by 2004 (www.cio.com). Why is B2C becoming so popular? Business to consumer commerce provides an organization with the opportunity to sell it's products and services without the expense of maintaining a physical store and storing a mass quantity of inventory, while allowing the company potential access to unlimited capital. Business to consumer companies do not have to integrate with their customers, they can easily place a catalog online allowing customers to choose products that fit their needs while allowing them to shop at their own convenience.
Although business to consumer commerce transactions take place at a virtual venue, B2C organizations utilize the same tools used by the brick and mortar companies to structure customer relationships. For example, marketing research has to be conducted to determine the target market. It is essential for B2C businesses to focus on customer service, order fulfillment and on the competition.
Every organization needs a business model and B2C organizations are no different. B2C companies may operate using one of three business models: auctions, online stores and online services. To explore the different opportunities and challenges offered by each model let's review the web site of three companies currently using B2C models.
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Amazon.Com.
Amazon.com operates under all three B2C commerce models. Beginning it's business in July of 1995, Amazon.com has grown from being the largest Internet site for purchasing books to a virtual shopping arena providing consumers with the ability to purchase anything they desire online (www.