chapter 2- Business models of e-commerce

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2-BusinessModels

ofE-Commerce



(B2B) • B2B stands for Business to

Business. It consists of largestform of Ecommerce. This modeldenes that Buyer and seller aretwo dierent entities. It is similarto manufacturer issuing goods tothe retailer or wholesaler.



Imortant !usinessalications

• "ulier management

• In#entory management

• $istri!ution management• Channel management

• %ayment management

&



Business-to-consumer (B2C):

• It is the model ta'ing !usinesses andconsumers interaction. The !asicconcet of this model is to sell theroduct online to the consumers.

• B2c is the direct trade !etween thecomany and consumers. It ro#idesdirect selling through online.



(ature of B2C transaction

• %urchasing roduct andinformation

•

%ersonal nance management

• )$isintermediation*

+



Benets of B2C

• ,ower mar'eting cost

• ,ower order rocessing cost

• Better customer ser#ice• ,ower customer suort cost

• ider mar'ets



Business-to-Employee(B2E)• Business-to-emloyee

/B2E0 electronic commerceuses an intrabusiness

network which allowscompanies to provideproducts and/or services to

their employees !ypically"companies use B2E networksto automate employee-

related corporate processes



Consumer-to-consumer (C2C)

• There are many sites oering freeclassieds1 auctions1 and forumswhere indi#iduals can !uy and sell

than's to online ayment systemsli'e %ay%al where eole can sendand recei#e money online with ease.eBays auction ser#ice is a greate3amle of where erson-to-ersontransactions ta'e lace e#erydaysince 455+.



In6uencing factors of successful e-

commerce

• Mode of ayment

• 7de8uate stoc'

•

9rder conrmation• "elect suita!le mode of deli#ery

• Easy searcha!ility

•

E3hi!it information clearly• 8uic'ness

5



:easons for the failure of e-

commerce

• %oor management

• Inade8uate resources

• %oor channel integration• Ignoring customers

• ;igh cost

• %oor lanning

4<



#pplication o$ e-commerce

• % Electronic commerce and

Bankin&• 2 Electronic commerce and

retailin& – 'roduct – 'rocess

– 'rice o$ product

– 'ayment modes

– arket penetration issues

– !ype o$ so$tware

!elevision retailin&

* C+-, based shoppin&

. nline based shoppin&44



0teps to e-commerce

• =enerating demand

• 9rdering and >ullment

• %rocess ayment

• "er#ice and suort

• "ecurity

42



Managing e-!usinessinfrastructure1nternet

4&



1nternet protocols

• !ransmission controlprotocol/internet protocol(!C'/1')

• ile trans$er protocol !'

• 3yper te4t trans$er protocol(3!!')

• telnet

• 5opher

•

6ide area in$ormation services6#104?



Intranet and e3tranet

• I(T:7(ET"

4+



#dvanta&es o$ intranet

• Ease of use

• %u!lishing ease

•

,ow cost• Easy software distri!ution

4



$raw!ac's of intranet

• "hort term ris'

•,ess !ac'-end integration

• %erformance limitation

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E4tranet

4A



oice o#er I% /oI%0

45



oI% Techni8ues- & methods

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2. sing a oI% telehone



sin& acomputer with

speakers and amicrophone



Bene;ts o$ 9o1'

<ow cost

Eliminatin& phone

lines

1ncreased $unction

ability and

reliability

Eliminatin& lon&

distance char&es

=umber portability

Computer

telephony

" i i t d



"er#ice orientedarchitecture "97



:ules of "97



=eeds $or 0#

• ,eusability

• 1nteroperabilit

y

• 0calability

• le4ibility

• Cost e>ciency



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• (o chec'out 8ueues

• :educe rices

• Dou can sho anywhere in the world

• Easy access 2? hours a day

• ide selection to cater for allconsumers



C9("



• na!le to e3amine roductsersonally

• (ot e#eryone is connected to theInternet

• There is the ossi!ility of credit cardnum!er theft

• 9n a#erage only 45th of stoc' isa#aila!le on the net

f i



>uture of E-commerce inIndia• 7ccording to !usiness world estimate

near a!out "i3ty thousand new Fo!s will!e created for the internet world alone in

the ne3t two years• e-Commerce transactions are e3ected

to cross the :s. &+<< crore milestone in2<4<-441 a Fum of around &+< ercent

from the 2<<A-<5 gure of :s. 4<<< crore• eBay said that consumers were trading

goods worth almost three crore rueese#eryday1 across the glo!e.



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chapter 2- Business models of e-commerce