2010

Assignment Report on B2B E-Commerce Model at

(www.bazara2z.com)

Subject: E-Business Date of Submission: 2nd August, 2010

Submitted By: Sandeep Sayal

Roll no 421 MBA(Tech)-Telecom. (Mumbai)

TABLE OF CONTENTS

S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

TOPIC INTRODUCTION BUSINESS MODEL CUSTOMER VALUE PROPOSITION REVENUE GENERATION MODEL MARKETPLACE & COMPETITORS MARKET STRATEGIES COMPETITIVE ADVANTAGES CONCLUSION APPENDIX REFERENCES

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INTRODUCTION BazarA2Z.com is the first Indian Business to Business (B2B) E-Commerce Portals with EndTo-End Transaction Processing Facility. It is a subsidiary of Ace Info Banc Pvt. Ltd which has achieved excellence in Internet business in India. Ace Info Banc Pvt. Ltd also introduced infobanc.com, which is one of the first B2B portals in India in 1997 Since years, BazarA2Z.com has helped thousands of businesses throughout the country. Over the years it has developed robust databases of customers, huge market research databases, network of international buyers and high degree of professional competence. BazarA2Z offers convenient, hassle-free service for buying Indian products at wholesale rates. It helps in catalyzing a business deal between buyer and seller who may be meeting for the first time over Internet. BazarA2Z tries to minimize the uncertainty and anxiety on both sides on each other's capability and tries to improve relative trust that needs to be strengthened for a successful business transaction to occur. Its management team includes professionals having knowledge of international trade, website design, content development, marketing, research and information service, software, editing etc. They are a group of individuals with skills, vision and a dream and determination to achieve their goals. Using BazarA2Z, one can place order online, pay online or via banks and track the transaction till ordered products are delivered at buyer's door-step. BazarA2Z.com has tie-ups with a number of shipping carriers, the major ones being FedEx and EMS, for transporting goods to the buyers location.

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BUSINESS MODEL BazarA2Z.com operations follow B2B Hub model of E-Business. It acts like an electronic market place where suppliers and commercial buyers can conduct transactions. BazarA2Z closely emulates a wholesale market place where prices vary depending upon order volume. Higher the order, lower is the price. It acts as a catalyst between buyers and sellers, pacing the transaction process and ensures safe and hassle-free wholesale B2B transactions, leading to a better understanding, greater mutual trust and repeated trade between buyer and seller. Besides providing a platform, BazarA2Z offers the sellers an interactive pricing tool like facility for analyzing different situation and making the suitable adjustments. Sellers can feed in their base price and base discount and the BazarA2Z tool calculates prices depending upon the quantity slab. For sales in domestic Indian market, it also provides domestic sale price (Rs.) calculation.

Process

1.

Buyer places order After logging with a valid ID, buyers can select from a variety of products and can decide the quantity they require. This gets added to his Cart for placing all the orders together. On the basis of the above feed, BazarA2Z automatically calculates the total price incurred by the customer based on the quantity that has been ordered plus the transportation/shipping cost to the buyers door step. (Ref. Appendix 1-b)

2.

Buyer pays BazarA2Z After selecting the products to be purchased, the buyer has to pay the amount calculated to BazarA2Z either through PayPal or through Credit Card. Money can also be sent off-line through Bank Transfer. BazarA2Z ensures that the buyers money remains with it, until the ordered products are delivered to the buyers door step and is approved by him/her.

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3.

Seller ships package After confirming the order from BazarA2Z, the seller ships the ordered products through a reliable international carrier such as FedEx, EMS etc. Once the products have been shipped, the buyer can track and monitor its location. Buyer Receives package After reaching the buyers doorstep, the international carrier delivers ordered products at shipping address specified by the buyer. Buyer approves package On receiving the ordered products and after checking for its quality and quantity, the order gets approved by the buyer. BazarA2Z pays buyer On buyers approval, the order gets 'closed' and BazarA2Z releases the withheld seller's payment and the buyer is asked for his feedback on the sales process and the seller.

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CUSTOMER VALUE PROPOSITION

1.

Protecting Buyers Interest BazarA2Z buyers find it an extremely safe and convenient option for placing orders for Indian products at wholesale rates. They protect their buyers interests in a way that the seller is paid only after the buyer receives and approves the delivered product.

2.

Protecting Sellers Interest BazarA2Z sellers find it to be a simple but reliable way of collaborating and transacting with buyers who are overseas. The BazarA2Z system takes care of the complex processes like wholesale rate, diverse shipment costs and other issues which may arise. Also, the seller's payment is ensured secure as BazarA2Z pays them as soon as the buyer approves the delivered product.

3.

Networking BazarA2Z provides effective networking - sellers can contact buyers directly and as many times as each wants. During their first transaction through BazarA2Z, sellers receive buyer's complete contact details. This enables them to develop long-term business relationships and higher mutual trust with the buyer.

4.

Secure transactions BazarA2Z mitigates the risk between buyer and seller. Buyers find a risk-free way of ordering quality products at wholesale rates and sellers, in turn, find a simple yet effective system that relieves them of the complexities of a B2B e-commerce transaction.

5.

Ease of Payment BazarA2Z offers its buyers and sellers multiple payment options - both online and offline. Thus the buyers have a wide variety of mode of payments to choose from Eg: Credit cards, PayPal services, paying offline via banks.

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REVENUE GENERATION MODEL BazarA2Z has a very limited source of generating revenue from its operations. This is so because they dont charge any registration fee from its buyers or sellers. Apart from that BazarA2Z provides free listing service to the sellers, i.e. sellers do not need to pay any fee for listing their products on their website. BazarA2Z is a commission based B2B e-commerce company and so its their major source of revenue generation. Sellers pay BazarA2Z a small percentage (usually 5-10%) as commission on successful sales. Cost of transaction such as bank charge, credit card discount, escrow charge, system maintenance costs etc. are recovered through this commission on successful sales. BazarA2Z has tied up with a number of shipping carriers, the major ones being FedEx and EMS, hence they receive commission for every order that BazarA2Z gives to them. Though BazarA2Z.com doesnt charge any listing price from the merchants/sellers, it makes sure it utilizes the home web page space that it has got to receive payments for Advertisements. BazarA2Z generates advertisement revenue from merchants wishing to publicize their product on the home page of the website. Billing Process:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Buyer orders a product and pays to BazarA2Z. The money remains with BazarA2Z during order processing and shipment. BazarA2Z simply holds the payment for few days during order processing. The money so held either goes to seller (on successful sale) or gets refunded to buyer. Seller receives order and confirms his/her acceptance. In case seller refuses to confirm - order gets cancelled and Buyer receives full refund from BazarA2Z. Seller confirms and ships ordered products through a well-known shipping company. Seller informs tracking number of the package so that buyer can track it online Buyer receives ordered product and approves it. BazarA2Z sends the seller his payment within 7 days through crossed multi-city cheque drawn in favour of your company. It could be through PayPal in appropriate cases. In case buyer does not approve the product, he/she returns it to seller and gets full refund.

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MARKETPLACE & COMPETITORS BazarA2Z.com acts like a B2B HUB. It can also be referred to as a market place or an exchange. It is an electronic marketplace where buyers and sellers/merchants can conduct transactions. BazarA2Z.com is a type of a wholesale market in which sellers/merchants can put up large amounts of products for sale and buyers can purchase products in large quantities. The advantage of buying in wholesale is that the price/unit falls with increasing quantity. It is a type of horizontal marketplace which does not focus specifically on one industry but is open to different business sectors. For example, BazarA2Z.com deals in wholesale transaction of apparels, books, electronics, grocery, jewellery, household/office supply, etc. Overseas market is the focus of BazarA2Z. They target people from outside India, as they are more probable buyers of Indian Products online. It faces tough competition from some of the other B2B e-commerce companies in the wholesale market, some of them being: www.alibaba.com www.tradekey.com www.indiamart.com www.tradeindia.com

MARKET STRATEGIES Overseas market is the focus of BazarA2Z. They target people from outside India, as they are more probable buyers of Indian Products online. The Unique Selling Proposition (USP) under which BazarA2Z.com markets itself is Zero listing prices. Sellers dont have to pay any cost for listing their products on the website and hence are attracted from across the nation to use this platform. BazarA2Z markets itself on characteristics such as trust and quality of service. They assure the sellers of < 5 minutes listing of products on the website. They do not publicize themselves on any other forum thus leading to a poor marketing practice.

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COMPETITIVE ADVANTAGES 1. On-Line Order Tracking / Transparency On shipment of the product, the seller enters the carriers name and given tracking number in BazarA2Z system. The buyer receives both an email and a message about the date of dispatch, carrier name and tracking number which enables both the buyer and the seller to track shipment till it is delivered. 2. Safety First BazarA2Z system guarantees full refund of paid amount in case the buyer does not receive ordered products and/or does not approve of its quality. The seller gets paid after the buyer approves ordered products, thereby ensuring delivery of quality products. Till then, the buyers payment remains with BazarA2Z system. 3. Freedom to Transact BazarA2Z does not impose any restrictions on buyers or sellers to deal via them, plus buyers are free to contact sellers and transact directly. 4. No Additional Charge on Online Payment Usually, payment gateways charge a fee (3% - 7% of gross transaction amount) on online payments, which is usually more what bank charges for offline payments. BazarA2Z absorbs all payment gateway charges due to online transaction allowing the buyers not to pay any extra amount for online payments made.

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CONCLUSION After observing the e-business strategies of BazarA2Z, one can easily realize the objective of such a set up, when there were already thousands of traditional wholesale markets. In the anonymous world of Internet, where buyers and seller are geographically located thousands of miles apart and are also separated by cultural and language barriers, in-person meetings are rare. Trust is the bedrock of any business relationship and BazarA2Z aims to develop a trusted relationship between buyer and seller through a successful transaction that makes way for better understanding, greater trust and repeated trade between same buyer and seller in future. BazarA2Z solves many practical hurdles for sellers such as on-the-fly calculation of shipping rate based on variables such as destination, weight/dimension of shipment, shipping service provider, etc. It offers Buyers, protection program for ensuring safe transaction environment, on-line and off-line payment options, order tracking, door step delivery, etc. With the continuous advancement in technology and in a rapidly growing nation like India, the impact of electronic form of business is already visible and has huge scope in the future. The set up of such e-businesses has made the life of the customers much more advanced yet simplified with the ease of transactions at a mouses click sitting at home geographically located miles away from the area of production.

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APPENDIX Appendix 1-a

Appendix 1-b

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REFERENCES

www.bazara2z.com www.infobanc.com www.google.com www.howsmb.com

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