E-commerce

PREP BY :-MUDIT KALIA (81)NISHANT DESWAL(95)PRATEEK CHHABRA(105)PRIYANKA GULATI(111)RAJAT SHARMA(118)

What is E-business?

e-businessUsing internet technologies to

transform key business processes

WebUniversal AccessStandards

ITDataApplications Core business processesReliability, security

and availablitiye-business = Web + I/T

The digital firm :-ROUND-THE-CLOCK SERVICE: WEB SITES AVAILABLE TO CONSUMERS 24 HOURS A DAY

EXTENDED DISTRIBUTION CHANNELS: OUTLETS CREATED FOR ATTRACTING CUSTOMERS WHO OTHERWISE WOULD NOT PATRONIZE

REDUCED TRANSACTION COSTS: COSTS OF SEARCHING FOR BUYERS, SELLERS, ETC. REDUCED

E-Commerce Business Models

• Describes how the enterprise delivers a product or service

• Shows how the enterprise creates wealth

• 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

The Digital Firm Categories of e-Commerce

E-business types:

CONSUMERS

C2C

BUSINESS

B2B

ADMINISTRATION

C2A

B2C

B2A

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.

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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.

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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.

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.

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

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[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.

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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.

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One common example is online auctions, such as EBay, 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 is online classified advertising sites, such as Craigslist and Gum tree. Major online retailers like Amazon also 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.

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• 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

The Digital Firm: B2C

ManufacturerManufacturer Wholesaler/distributor

Wholesaler/distributor Retailer Retailer Consumer Consumer

(a) Traditional Value Chain

ManufacturerManufacturer Wholesaler/distributor

Wholesaler/distributor Retailer Retailer Consumer Consumer

(b) Intermediaries Eliminated (Disintermediation)

ManufacturerManufacturer E-Retailer

E-Retailer

Consumer Consumer

(c) New Intermediaries Introduced (Reintermediation)

Cost/

Sweater

Manufacturer Distributor Retailer Customer $49.95

Manufacturer Retailer Customer $40.34

~20% less

ManufacturerCustomer

$20.45

~60% less

The Digital Firm: B2CBenefits of Disintermediation to the Consumer

Digital Firm B2C: Personalization

• 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…

User Web site

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 consumer posts 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

Etc.

CONSUMER-TO-CONSUMER C2C UNIVERSITIES :

Becoming more popular amongst students in universities.

Because these are large communities in the same geographical region that are low on money.

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 can be considered as Consumer-to-Business (C2B)e commerce . Examples of such webs are eBay, PayPal etc.

When educations, training or examination 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 !!