B2C e-commerce is defined as the practice of businesses selling directly to consumers. B2C e-commerce has a market value of USD 3.67 trillion in 2020, and it is anticipated to increase at a CAGR OF 9.7% from 2021 to 2028.
And a lot of businesses, like Amazon, have already taken advantage of B2C e-commerce by selling their product straight to customers. You decide to launch an e-commerce company after considering the size of the market.
However, you must be aware of both the benefits and drawbacks of B2C e-commerce before beginning. You will learn about the opportunities and difficulties while conducting B2C campaigns. Let us start discussing the advantages and disadvantages of B2C eCommerce:
Advantages of the B2C eCommerce
The following are some of the top advantages of the B2C eCommerce:
1. The inflexibility of the catalog
The direct “link” has the potential to display content data and other visual elements that are already prevalent on websites owned by a variety of clients. You no need to beg the marketing consultancy agency.
2. Shrinks Competition Gap
The low cost of marketing and advertising creates opportunities for us to compete with well-known enterprises in terms of the cost, quality, and accessibility of the items.
3. Unlimited Market Place
By allowing customers to browse and shop at their convenience, it displays an unlimited market. Online stores no more need a marketing consultancy agency.
4. 24-Hour Store with a Shorter Sale Cycle
There is no need to send lengthy emails or place an excessive number of phone calls.
5. Lower Cost of Business
The B2C model has decreased the cost of doing business across a range of areas, including hiring staff, purchasing expenses, mailing confirmations, telephone conversations, clerical work, and the need to open physical locations.
6. Eliminating Third Party Clients
We are free to sell our items straight to clients without engaging any third parties in the transaction.
7. Business Administration Made Simpler
Compared to the conventional methods of business administration, it has become simpler to record store inventories, shipments, logs, and all other business operations.
Disadvantages of the B2C eCommerce
The following are some of the top disadvantages of the B2C eCommerce:
1. Lack of Catalog Flexibility
However, it’s crucial to rearrange the catalog after adding new data and merchandise, correspondingly.
Even though it has a huge customer reach and overcomes cultural boundaries by addressing everyone on the same channel, the truth still stands.
Since there are thousands of online stores and services, the rivalry is indeed fierce and could jeopardize our company’s consumer base. Some online stores have been able to keep a sizable portion of the market, allowing them an opportunity to endure over time.
4. Product Exposure Limits
It is important to note that e-commerce has limited the amount of product exposure available to purchasers online, although it provides them with easy accessibility and a special degree of product customization.
5. Entering a Cut-Throat Competition
Without conducting market research and B2C Campaigns, many people are influenced to launch a B2c e-commerce business. As a result, they begin to cater to the market or special segment where numerous e-commerce companies are already created to serve the public.
6. Shipping Charges
Whether you sell in large or little quantities, transportation fees are a reality. Additionally, clients demand free shipping in the modern e-commerce industry.
7. Security Concerns
The transactional data from your site can be hacked by a lot of cybercriminals. After that, they are free to use someone else’s name to purchase anything they want.
The above advantages and disadvantages of B2C eCommerce help you in understanding the establishment of the B2C eCommerce business in detail. So, write up your business plan while considering all of the above opportunities and challenges.