B2C Literature Review: eCommerce Impact on Automotive Industry

This report conducts a literature review on the impact of B2C eCommerce on the automotive industry, focusing on how digitalization and globalization have reshaped store distribution and supply chains. It highlights the benefits of B2C eCommerce for wholesalers, including enhanced customer reach, streamlined inventory, and reduced channel conflicts. The report emphasizes the importance of eCommerce in improving supply chain efficiency, reducing costs, and providing customers with more product information. It also explores how eCommerce facilitates better product tracking, quick comparisons, and overall customer satisfaction. The analysis references key sources like Tradegecko and Christopher (2011) to support the claims, concluding that B2C eCommerce is essential for maintaining competitiveness and fostering growth in the automotive market. The report also points out the importance of implementing total quality management (TQM) and Just in Time (JIT) to improve the supply chain.

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Influence of B2C e-commerce over stores distribution
Globalization and digital transformation acted as the cornerstone in reshaping the
automotive industry. Due to this, the automotive aftermarket as well as secondary and primary
market attained a serious alteration in its paradigm. Digitalization not only assisted in the change
of the selling process but also altered the stores distribution and supply chain. This helped the
organizations operating under the umbrella sector of automobile to retain its competitiveness
despite of extreme distress.
The global automotive market is extremely viable. Therefore, in order to maintain a
strong foothold the wholesalers tried to implement B2C eCommerce within its distribution
systems. With the use of this procedure, the wholesalers may easily transfer the products to the
end users. At the same time, the consumers would become overwhelmed with the presence of
numerous choices within the stores through the websites. In support to this, Tradegecko (2017)
signified that B2C ecommerce is considered as the catalyst for the automotive players since it
helped in delivering the products in exact time. Due to this, the faith and trust of the interested
consumers also enhances considerably and that may be recognized by their repeat visits in the
websites. Moreover, with the help of B2C ecommerce, the wholesalers may also identify the
types of demographic and product facts desired by the target individual. Contrary to this,
Christopher (2011) described that without the presence of ecommerce, the retail or wholesalers
would not attain the requisite information. Therefore, it would create discrepancies in satisfying
the changing needs and the position of the automobile brand would get lowered.
On the other hand, B2C eCommerce would also useful in minimizing the level of
channel conflicts. The clashes within the internal sales team along with the distribution or store
partners may be easily mitigated through internet or eCommerce. In contrast, Euractiv (2011)
denoted that in case eCommerce is not implement, conflict would lead to rivalry and the growth
of the business might get hampered. Thus, it may be revealed from the above points that B2C
eCommerce would not only amplify customer reach and also trim down channel variances.
Furthermore, B2C eCommerce may also streamline the inventory or store distribution
process. Both B2B and B2C sales may be easily examined and presented through reports to the
higher authority. This may prove advantageous for the top-level management to develop
strategic plans for strengthening the future growth of the business.

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Finally, it may be determined that B2C eCommerce is quite challenging, but it would
present a clear picture about the requirement of the products in each and every store. On
that basis, the demand of the products may be identified and distributed accordingly. This would
increase the product sale and profit-margin of the brand in the global perspectives as compared
to many other rival players. Thus, due to these causes, B2C eCommerce is extremely beneficial
as it offered an optimistic effect over the store distribution process.
Impact of B2C eCommerce on supply chain
Euractiv (2011) spotlighted supply chain as the procedure to deliver the products from the origin
to the consumption point. However, in doing so, most of the entrepreneurs or organizations
experience huge level of discrepancies, since a third party concern is involved within the entire
procedure. As a result, there arises a gap within the buyers and the sellers resulting in the
downfall of the trust and faith over the brand. Due to this, the brand image and consistency of the
concern diminishes within the eyes of the end users leading to switchover to other competing
brands. This proved extremely stressful for the existing players to attract new customers.
Therefore, to retain the existing consumers, the policy of ecommerce is inculcated within the
supply chain system. Doing so, the entire process of supply chain became crystal clear in front
of the consumers and the divergencies also reduced. Apart from this, eCommerce also
condensed the amount of cost since the retailer or distributor or third party utility is entirely
eliminated. In lieu of this, the profit margin as well as the net income of the entrepreneur
amplified consistently in the coming age.

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Figure 1: eCommerce supply chain
Source: Tradegecko, 2017
Consequently, eCommerce is recognized as the boon for the supply chain process of the
organization. This is due to the fact that eCommerce assisted in offering the product quicker
than the stipulated time. This strategy helped in increasing the dependency and confidence over
the brand, thereby amplifying the level of sustainability. Through eCommerce, the interested
clients may easily compare the features of the products with other brands in order to attain
the best one (Christopher, 2011). Against the latter statement, it is stated that quick assessment is
not possible in the physical supply chian process. Since, it is extremely time-consuming and
tiring as well. Therefore, in this aspect, it may be discussed that eCommerce is considered as the
key stone for a enterprise to create a strong presence in the market. Despite of saturation, the
demand of the products and services would get augmented leading to improvement in total sale.
Additionally, eCommerce also assisted in offering varied types of information, facts
and figures about the products to the customers in order to boost their conviction. But, it may
not be possible to attain such types of facts without the presence of eCommerce. Hence, the
controlling power or tracking facility of the products ordered became more easier and
simpler with the use of eCommerce in supply chain. Contrary to this, Bienstock et al. (2015)
focused that inadequate supervision and monitoring resulted in eCommerce. And it made the
entire process of supply chain or delivery smooth by implementation of total quality
management (TQM) and Just in Time (JIT). Hence, eCommerce is a combination of TQM and
JIT and therefore, it improved the survival power and prosperity of the brands. Similar concept
need to be introduced by the automobile associations in order to diminish the gap within the
manufacturer and the final user. Then, the growth curve would get swelled and its performance
might attain a significant hike in this time of crisis.

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References
Bienstock C., Mentzer J.T. & Bird M.M. (2015), Measuring physical distribution service quality,
Journal of the Academy of Marketing Science, 25(1), pp. 31-44.
Christopher,C. G. (2011). The economic impact of e-commerce. Retrieved from:
http://www.supplychainquarterly.com/columns/scq201102monetarymatters/
Euractiv, (2011). B2C trading in the automotive industry: the internet is primarily a source of
information. Retieved from: https://www.euractiv.com/section/uk-europe/opinion/b2c-
trading-in-the-automotive-industry-the-internet-is-primarily-a-source-of-information/
Griffin J. (2014), The Internets expanding role in building customer loyalty, Direct Marketing,
59(7), pp. 50-53.
Tradegecko, (2017). Why Wholesalers should add B2C eCommerce to their distribution
channels. Retrieved from: https://www.tradegecko.com/wholesale-library/wholesalers-
b2c-ecommerce-distribution-channels