E-commerce

P R E PARE D BY :- SU B H AM D U TTA (H P GD /AP 15/ 222 0)

 What is E-business?

Web

Universal Access

Standards

e-business
Using internet technologies to
transform key business processes

IT

Data

Applications

Core business processes
e-business = Web + I/T
Reliability, security
and availability
 The digital firm :-
ROUND-THE-CLOCK SERVICE: W E B S IT E S AVAIL AB L E
TO C ON S UM E R S 24 H OUR S A DAY

EXTENDED DISTRIBUTION CHANNELS:

OU TL E T S C R E AT E D FOR ATTRAC TI N G C US TOM E RS W H O
OTH E RW IS E W OUL D N OT PAT RON IZE

REDUCED TRANSACTION COSTS: C OST S OF

SE ARC H IN G F OR B U YE RS, SE L L E RS , E TC . RE D UC E D
E-Commerce Business Models

Describes how the enterprise delivers a product or

service

Shows how the enterprise creates wealth

 The Digital Firm
Categories of e-Commerce
Business-to-customer (B2C): Retailing of
products and services directly to individual
customers

Business-to-business (B2B): Sales of goods

and services among businesses

Consumer-to-consumer (C2C): Individuals

use Web for private sales or exchange
E-business types:

C2C B2B
B2C

CONSUMERS BUSINESS
C2

A
B2
A

ADMINISTRATION
What is Business to
Consumers (B2C) ?

[ Refers to businesses selling products or services to end-

user consumers.

[ B2B stands for transaction activities involving two business

entities (business-to-business transaction). B2C stands for
transaction activities involving a business and a consumer
(business-to-consumer transaction).

[ Electronic commerce comprises commercial transactions,

involving both organisations and individuals. From the
technical point of view e-commerce is the processing and
transmission of digitised data. E-commerce decreases the
distance between producers and consumers. Consumers
can make their purchase without entering a traditional
shop.
[ For example, someone buying a television set from an electronics
retailer would be a B2C transaction. The transaction preceding
this, e.g., the purchase of components, screens, plastics etc. by
the manufacturer, and the sale of the set from the manufacturer to
the retailer would be B2B transaction.

[
Many B2C transactions now take place online, e.g., the purchase
of books from amazon.co.uk, CDs/DVDs from play.com,or even
doing the weekly shopping online at Tesco.
What is Business to
Business (B2B) ?

B2B stands for "business-to-business," as in businesses

[ doing business with other businesses. The term is most
commonly used in connection with e-commerce and
advertising, when you are targeting businesses as opposed
to consumers.

[ On the Internet, B2B (business-to-business), is the

exchange of products, services, or information between
businesses. B2B is e-commerce between businesses. B2B
Communication using XML over HTTP B2B - the basics

Business-to-business electronic commerce (B2B) typically

[ takes the form of automated processes between trading
partners and is performed in much higher volumes than
business-to-consumer (B2C) applications.
[Far more B2B transactions take place than B2C transactions,
largely because a number of B2B transactions are required to
produce an item which is finally sold in a single B2C transaction .

[ For example, a soft furnishings manufacturer may have to make

several B2B transactions to buy wood, fixings, covering and
stuffing materials and springs in order to produce a three-piece
suite that is sold as a single B2C transaction.
What is Consumers to
Consumers (C2C) ?

Abbreviation for consumer-to-consumer commerce; that is,

[ commerce with no middle business people. The most notable
examples are Web-based auction and classified as sites. Most
large venues for such models (for example, eBay and
Classifieds2000) are quickly permeated by consumers who
participate so actively and regularly that they become small
businesses for them.

C2C stands for consumer to consumer electronic commerce.

[ The Internet has facilitated new types of C2C although it is
important to note that this kind of commerce -- in the form of
barter, yard sales, flea markets, swap meets, and the like -- has
existed since time immemorial. Notably, most of the highly
successful C2C examples using the Internet actually use some
type of corporate intermediary and are thus not strictly "pure
play" examples of C2C.
[ One common example is online auctions, such asEBay, where an
individual can list an item for sale and other individuals can bid to
purchase it. Auction sites normally charge commission to the sellers using
them. They act purely as intermediaries who match buyers with sellers
and they have little control over the quality of the products being offered,
although they do try to prevent the sale of illegal goods, such as pirate
CDs or DVDs.
[
Another popular area for customer to customer transactions isonline
classified advertising sites, such asCraigslistandGum tree. Major online
retailers like Amazonalso allow individuals to sell products via their sites.

[
C2C is expected to increase in the future because it minimizes the costs
of using third parties. However, it does suffer from some problems, such
as lack of quality control or payment guarantees and there can sometimes
be difficulties in making credit-card payments.
The Digital Firm: B2C
Disintermediation: The removal of organizations or
business process layers responsible for certain
intermediary steps in a value chain

Benefits include: greater ordering convenience, lower

cost, easier information and price gathering
 The Digital Firm: B2C
(a) Traditional Value Chain
Wholesaler/
Wholesaler/
Manufacturer
Manufacturer Retailer
Retailer Consumer
Consumer
distributor
distributor

(b) Intermediaries Eliminated (Disintermediation)

Wholesaler/
Wholesaler/
Manufacturer
Manufacturer Retailer
Retailer Consumer
Consumer
distributor
distributor

(c) New Intermediaries Introduced (Reintermediation)

Manufacturer
Manufacturer E-Retailer
E-Retailer Consumer
Consumer
 The Digital Firm: B2C
Benefits of Disintermediation to the Consumer Cost/

Sweater

Manufacturer Distributor Retailer Customer $49.95

Manufacturer Customer $40.34

Retailer
~20% less

Manufacturer $20.45
Customer
~60% less
Digital Firm B2C: Personalization

User Web site

Provides suggestions based on observations e.g :-

Welcome back, User Based on your recent queries and

purchases, here are some book and movies we think
that you will like
Business-to-Business e-Commerce
B2B e-commerce is the wholesale and supply side of the
commercial process, where businesses buy, sell, or
trade with other businesses.

All factors for building a successful retail website also

apply to wholesale websites for B2B e-commerce.
B2B Business Models
Net marketplaces
E-distributor
E-procurement
Exchange
Industry consortium

Private industrial network

Single firm
Industry-wide
 B2B Models: E-distributor
Supplies products and services directly to individual businesses

Owned by one company seeking to serve many customers

Revenue model: Sales of goods

B2B Models: E-procurement
Creates and sells access to digital electronic markets
Includes B2B service providers, application service
providers (ASPs)
Revenue model:
Transaction fees, usage fees, annual licensing fees
 B2B Models: Exchanges

Electronic digital marketplace where suppliers and

purchasers conduct transactions
Usually owned by independent firms whose business is making a
market
Usually serve a single vertical industry

Revenue model: Transaction, commission fees

Create powerful competition between suppliers
Number has dropped dramatically
 B2B Models: Industry Consortia
Industry-owned vertical marketplaces that serve
specific industries (e.g., automobile, chemical)
More successful than exchanges
Sponsored by powerful industry players
Strengthen traditional purchasing behavior
CONSUMER 2 CONSUMER

Involves the electronically facilitated transactions between

consumers through some third party .
Example-the online auction, in which a consumerposts an
item for sale and other consumers bid to purchase it.
The third party generally charges a flat fee or commission.
The sites are only intermediaries , just there to match
consumers.
They do not have to check quality of the products being
offered.
Websites engaged in c2c :
Bazee.com
ICQ.com
MSN.com
Ek.com.au
Carreron.com.au
Bidorbuy.com
Flipkart.com
CONSUMER-TO-CONSUMER
C2CUNIVERSITIES :

Becoming more popular amongst students in

universities.
Because these are large communities in the same
geographical region that are low onmoney.
So they are looking for deals very often and these
kinds of websites offer this.
Universities themselves set up places for students to
sell textbooks and other stuff to other students.
Conclusion
The classification is based on orders in the web and the
transaction partners. By this, when an individual orders to
sites for selling of certain goods and services, and one
company, by looking on the web lets to buy those goods
and services, then this canbe considered as Consumer-to-
Business (C2B)e commerce . Examples of such webs are
eBay, PayPal etc.

When educations, training orexamination are provided

online, it is called E-Learning.
 And Business-to Business (B2B)ecommerce is also
called the EDI, which is commonly used and largest form
of ecommerce. In this, both the buyers and sellers are
companies such as manufacturers and wholesalers.
THANK YOU !!