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In the domain of ecommerce, even when it all started with B2C (Business-to-consumer) and B2B (Business-to-business) business models. The variety with which we can explore the opportunities is proliferating. Time being, different business models are coming up and making their pace in the market. After the expansion of the C2C business model, now C2B (Consumer to Business) business model came up. It is flourishing at a quick pace and giving growth opportunities to consumers as well as businesses.

Consumer-to-Business (C2B) business model is the opposite of the B2C business model. In the C2B model, consumers contribute to the business to make a profit along with the business. The Internet made it possible for the end-users (individuals) to connect with the business and benefit from the same.

In all such cases, individuals or customers are known to create value towards business either by contributing as a service provider or by imparting their knowledge. For better understanding, affiliate marketing is one of the best examples of C2B business models. But, let me tell you that that’s not the only way such a model can be implemented. In this blog, we will cover different user-cases of ecommerce along with its pros and cons.

Use-cases of C2B in Ecommerce Business:

  • Affiliate marketing: It is one of the aptest implementations of the C2B business model. Social media influencers and other individuals can easily connect with businesses and generate content based on different product categories. When you are selling on the marketplaces, you will receive mail from several people to promote your product on the commission basis. Amazon’s affiliate marketing is the same sort of service that allows influencers to register and leverage its network to sell the product of other businesses. The business will be rewarded with sales, and registered affiliate marketers will get commission fees for the same. It’s a win-win situation for both customers as well as individuals.
  • Google Ads:
    Google Ads
    Be it the bloggers or website owners, both are trying their best to get the approval for Google AdSense. It gives the site owner permission to market the products or services of other businesses on their website. When the visitors on your website, click through them and convert, the site owner will get the commission fees. It’s one of the amazing ideas to generate extra income. The best thing is, you can update the settings of Google AdSense about the ads that you like to show on your website. When the links relate to your business niche, people more likely to interact with your ads. Such an idea helps you as a business and create extra revenue as well.
  • Refer and earn scheme: The refer and earn business model is another implementation of the C2B model. Though it’s a marketing approach, it gives a lot of new customers from satisfied ones. This approach is fantastic for quick conversion without any holdback.

Pros and Cons of C2B Business Model:

Like every business model, C2B has its pros and cons. If you are planning to implement a C2B business model and B2C and B2B, it will be better to know everything about it, in advance.

Pros of implementing C2B model:

  • Improves market reach: We listen to the like minds only, and people listen to the advice of other people than to the brand. Well, that’s the main reason behind businesses giving so much attention to product reviews and ratings.The C2B business model gives the opportunity for individuals to connect with businesses and share their value. The majority of these individuals are initially the customers of your business. They do share their experience with your offerings. These happy customers may or may not get the monetary benefits for sharing this knowledge. It will increase the reach of your business and improve the trust of your customers.
  • Understanding of consumer demographics:
    Understanding of consumer demographics
    In the C2B business model, you will be able to interact with the consumers, which will definitely give you a better idea about your product. The ideas that they will be implementing to market your product will give you knowledge about their approach to look for the product. Considering all these ideas, you can upgrade your catalog as per the needs of the customer.
  • Interactive sales:
    Interactive sales
    People are always afraid of sales representatives. We don’t read all those promotional emails; instead, put them in junk every now and then. But, you don’t avoid all those advice and interesting blogs from customers. All thanks to the Internet for letting people sell in the conversational tone that never ever happened before.
  • Amplification of sales: When so many people are talking about your business, your brand awareness will automatically increase. This will automatically improve the trust upon your business and invite more referral customers than the direct ones. This will definitely amplify the sales of your ecommerce business.

Cons of adapting C2B model:

  • Novel technology: When B2C and B2B have been surviving for quite a long time now. The C2B business model came up with the digitization of businesses. Since it came up with the novel technology, it is quite unstable. You can’t rely upon this business model single-handedly, and you need to be aware of the changes that may come.
  • Negative reviews: When you are counting on the positive approach of contributors, you must be ready for negative experienced customers as well. Indeed, negative thoughts spread more quickly than positive ones. Such words, when shared with the community, you need to be extra cautious about handling such cases. When dealing with a digital medium, your word and response make a long term impact on the case.

How Can You Implement C2B Business Model?

When the pros outweigh the cons of the C2B business model, we are sure that you are excited to adopt this model. Don’t be in a hurry; start slow.

Keep the windows open for reviews and words from customers. Do surveys, ask people, enquire about business, explore different horizons, and interact personally. This will give you clarity about your business niche and the changes that you need to make in your business.

It would be best if you widen your mentality about growth. When planning to scale your business, community building is one of the best approaches to realize growth. Just be ready for that and assign a team of specialists to help you manage backend dealings. Set a policy at first, especially when you are planning to give monetary benefits to your end-users.

Before planning on anything else, you must have an ecommerce store of yours. If you are yet to create your store, we recommend you to build one with Builderfly; as it will be easier for you. With our DIY ecommerce platform, you can register your business and design your store easily, for any queries you can write to us at support@builderfly.com.

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