Case Problems · Q8
Q.A stationery manufacturer in Nashik wants to start selling its notebooks and pens directly to individual households across Maharashtra through a mobile app, instead of only supplying wholesalers as it currently does. It is also considering letting other small stationery manufacturers list and sell their own products on the same app for a small commission.
(a) Which e-commerce model applies to the manufacturer selling its own notebooks directly to households?
(b) Which e-commerce model applies to allowing other manufacturers to sell through the same app?
Maharashtra MsbshseTextbookSubjectiveImportance★★★★★
24% · 9/37 Questions
✓ Free question
The case describes two related but distinct situations, and each needs to be classified by who is actually on each side of the sale.
- When the Nashik manufacturer sells its own notebooks and pens directly to individual households, the seller is a business and the buyer is an individual final consumer — this is a Business-to-Consumer (B2C) transaction, the same model used by most familiar online retail shopping.
- When other small stationery manufacturers list and sell their own products through the same app, each of those transactions is still, from the perspective of the actual sale, a business (the listing manufacturer) selling to an individual consumer — so it remains a B2C transaction as well. What has changed is only that the original manufacturer's app is now also acting as a shared marketplace/platform hosting multiple sellers' B2C transactions, rather than selling only its own goods — the app itself is providing a technology and marketplace service to the other manufacturers, but the underlying sale to the end household customer is still B2C in each case.
It is worth noting that if the app instead allowed individual households to resell used stationery to each other, that separate activity would be a C2C transaction — the case as described, however, only involves other businesses (manufacturers) selling to consumers, so B2C applies throughout.
✓Final answer
(a) B2C — the manufacturer (a business) sells directly to individual households (consumers). (b) B2C as well — every participating manufacturer is still a business selling to individual consumers; the app is simply acting as a shared marketplace platform for multiple such B2C transactions.
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