C2B ECOMMERCE

BUSINESS MODEL
ADITYA KUMAR(19PGP234)
NAG BHUSHAN OJHA(19PGP262)
SARANG KHEMKA(19PGP249)
V N S KISHORE(19PGP254)
What is C2B business model?
C2B is a business model in which consumers (individuals) offer products and
services to companies and the companies pay them. This business model is
a complete reversal of traditional business model where companies offer
goods and services to consumers.

C2B business models like most of C2C models are based on 3 players: a
consumer acting as seller, a business acting as buyer and an intermediary
dealing with the connection between sellers and buyers.
This kind of economic relationship is qualified as an inverted business model.
The advent of the C2B scheme is due to major changes:

•Bidirectional networking - Connecting a large group of people to a

bidirectional network has made this sort of commercial relationship possible. The
large traditional media outlets are one direction relationship whereas the internet
is bidirectional one.

•Decreased cost of technology : Individuals now have access to technologies

that were once only available to large companies ( digital printing and acquisition
technology, high performance computer, powerful software)
C2B model Advantages and Disadvantages:
Advantages:
• A consumer can provide value to a business by offering to promote a
business products on a consumers blog or social media platforms.
• Businesses gain in C2B from the consumers willingness to negotiate price,
contribute data, or market to the company.

• Consumers profit from direct payment of the reduced-price goods and services
and the flexibility of the transaction the C2B market created.

Disadvantages:
• Consumer to business markets have their downfall as well. C2B is still a relatively
new business practice and has not been fully studied.
 How C2B came to the forefront

The advent of the C2B scheme is due to major changes:

 Connecting a large group of people to a bidirectional network has made
this sort of commercial relationship possible. The large traditional media
outlets are one direction relationship whereas the internet is bidirectional
one.
 Decreased cost of technology : Individuals now have access to
technologies that were once only available to large companies ( digital
printing and acquisition technology, high performance computer, powerful
software)
CLARIFYING C2B

 Some models are mistakenly associated to C2B.

 This is the case of some price comparison sites
like Kelkoo, froogle and even Priceline.com.
 They offer a different type of consumer and company
relationship than a traditional B2C model provides but cannot
be clearly defined as true C2B business models.
 Carpooling apps are C2C
EXAMPLES OF C2B COMPANIES

 Google Adsence
Business model-The AdSense business model is a
straightforward form of revenue generation based on something
called contextual marketing
Revenue model- Advertisement
Contextual marketing is techno jargon way of saying that if you
allow google to display ads on your website, blog or YouTube
channel, then they'll pay you when your visitors click on those
ads
UPWORK

-Was the first business to start C2B business.

Business model-Businesses with Upwork profiles can get their
work done by freelancing their tasks and without necessarily
hiring professionals at their premises.
Revenue model-The platform charges a freelancer service fee
on earnings done on Upwork. It is charged as a sliding fee
based on lifetime billings with each client.
ANOTHER WAY TO LOOK AT C2B

In this mode, consumers who have different consumption

abilities and brand preferences can actively participate in
product design, production and pricing activities to satisfy
individual demands
PROBLEMS

 Individuals are required to bill and receive money legally

 Transaction takes places with a heterogenous group
 Fees paid to aggregator
 High transaction fees
 Diverse payment methods
 Credibility of Work
SOLUTION

 Standardizing the payment method

 Using payment methods like Pay pal
 Ratings
HOW BIG DATA ANALYTICS DRIVE C2B

 Consumer can provide data, inputs or ideas to the seller regarding

the product and service preferences
 Big data analytics processes huge amount of product related data
generated by the consumers.
 Predictive analysis enables businesses to determine how customer
preferences change in future
 Companies like google are using big data analytics to provide
information and allowing customers to make informed decisions
 EX:- Movie review sites is an example of C2B Ecommerce(YELP)
CONCLUSION

 C2B is a new and growing segment of the business market

that can function as an entire business model.
 Company's success will depend on your thorough
understanding of the marketplace and willingness to pursue
new technologies that make reaching your customers easier
than ever.
 Pursuing a C2B approach is a strategic choice and requires a
commitment to involving the consumer in business
decisions. This takes extra effort, resources and discipline to
avoid being internally focused, but it is critical for a business
to succeed in a consumer-driven marketplace