Describe Business-To-Consumer E-Commerce

question 23

Essay

Describe business-to-consumer e-commerce.Provide examples of companies that are involved in this type of e-commerce and explain the difference between "pure play" companies and "brick-and-mortar" companies with an online sales presence.

---

Definitions:

Margin Ratio

A financial metric that compares a company's gross profit margin to its revenue, indicating the percentage of sales revenue that remains after accounting for the cost of goods sold.

Contribution Margin

The amount by which product sales revenue exceeds variable costs, showing how much contributes to covering fixed costs and generating profit.

Fixed Costs

Business expenses that do not change regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.