The internet has changed the way people buy, sell, hire, and organize business activities more than any other technology has in the history of business. Although the negotiated exchange of goods or services has been practiced in traditional ways for thousands of years, electronic commerce (e-commerce) is the application of new technologies. The most common sources for electronic commerce are (B2B) business to business and (B2C) business to consumer. This paper will discuss both forms of commerce and how the supply chain differs between the two entities.
Our textbook defines B2C or business-to-consumer as businesses that sell products or services to individual consumers (Schneider, 2004). The focus of a B2C is more on attracting consumers and changing them to retainable customers. The goal is to change a shopper into an aggressive buyer. The course of information through a typical B2C is through the internet. For example, Macy’s.com will be considered a B2C business to consumer organization.
Transactions conducted between businesses on the web, are called business-to-business (or B2B). Although the goal of B2B marketing is to convert prospects into customers, the process is longer and more involved. A B2B company needs to focus on relationship building and communication using marketing activities that generate leads that can be nurtured during the sales cycle. Business-to-business is all about product and materials procurement.
The supply chain is the vehicle through which business-to-business and all e-commerce is ultimately achieved (Schneider, 2005). The internet and electronic business are changing the history of supply chains, and altering how consumers learn about, select, purchase, and use product ...