2-Business

Models
of
E-Commerce

Business-to-business
(B2B)
B2B stands for Business to
Business. It consists of largest
form of Ecommerce. This model
defines that Buyer and seller are
two different entities. It is similar
to manufacturer issuing goods to
the retailer or wholesaler.

Important business
applications

Supplier management
Inventory management
Distribution management
Channel management
Payment management

Business-to-consumer (B2C):
It is the model taking businesses and
consumers interaction. The basic
concept of this model is to sell the
product online to the consumers.
B2c is the direct trade between the
company and consumers. It provides
direct selling through online.

Nature of B2C transaction

Purchasing product and
information
Personal finance management
Disintermediation

Benefits of B2C

Lower marketing cost

Lower order processing cost
Better customer service
Lower customer support cost
Wider markets

Business-to-Employee
(B2E)
Business-to-employee
(B2E)electronic commerce
uses an intrabusiness
network which allows
companies to provide
products and/or services to
their employees. Typically,
companies use B2E networks
to automate employeerelated corporate processes.

Consumer-to-consumer (C2C)
There are many sites offering free
classifieds, auctions, and forums
where individuals can buy and sell
thanks to online payment systems
like PayPal where people can send
and receive money online with ease.
eBay's auction service is a great
example of where person-to-person
transactions take place everyday
since 1995.

Influencing factors of successful ecommerce

Mode of payment
Adequate stock
Order confirmation
Select suitable mode of delivery
Easy searchability
Exhibit information clearly
quickness
9

Reasons for the failure of ecommerce

Poor management
Inadequate resources
Poor channel integration
Ignoring customers
High cost
Poor planning
10

Application of e-commerce

1. Electronic commerce and

Banking
2. Electronic commerce and
retailing
Product
Process
Price of product
Payment modes
Market penetration issues
Type of software
3. Television retailing
4. CD-ROM based shopping
11
5. Online based shopping

Steps to e-commerce

Generating demand
Ordering and Fulfilment
Process payment
Service and support
Security

12

Managing e-business
infrastructure
Internet

13

Internet protocols
Transmission control
protocol/internet protocol
(TCP/IP)
File transfer protocol FTP
Hyper text transfer protocol
(HTTP)
telnet
Gopher
Wide area information services
(WAIS)
14

Intranet and extranet

INTRANETS

15

Advantages of intranet

Ease of use
Publishing ease
Low cost
Easy software distribution

16

Drawbacks of intranet
Short term risk
Less back-end integration
Performance limitation

17

Extranet

18

Voice over IP (VoIP)

19

VoIP Techniques- 3 methods

1. using a normal telephone
with a VoIP adapter

2. Using a VoIP telephone

3.Using a
computer with
speakers and a
microphone

 Low cost

Benefits
ofphone
VoIP
Eliminating
lines
Increased function
ability and
reliability
Eliminating long
distance charges
Number portability
Computer
telephony

Service oriented
architecture SOA

Rules of SOA

Needs for SOA

Reusability
Interoperabilit
y
Scalability
Flexibility
Cost efficiency

INTERNET ACCESS

Dial up
connection
Direct
connection

DIAL-UP CONNECTION

DIRECT
CONNECTION

NEW ACCESS
DEVICE

CELL PHONE

NEW ACCESS
DEVICE

MOBILE
INTERNET
DEVICE

NEW ACCESS
DEVICE

TWO-WAY
PAGERS

NEW ACCESS
DEVICE

PERSONAL
DIGITAL
ASSISTANTS

FUTURE OF
INTERNET

GLOBALISATION
COMMUNITIES
VIRTUAL RALITY
BANDWIDTH
WIRELESS
GRIDS
INTEGRATION

PROS AND CONS

OF
E-COMMERCE

PROS

 No checkout queues
Reduce prices
You can shop anywhere in the world
Easy access 24 hours a day
Wide selection to cater for all
consumers

CONS

 Unable to examine products

personally
Not everyone is connected to the
Internet
There is the possibility of credit card
number theft
On average only 1/9th of stock is
available on the net

Future of E-commerce in
India
According to business world estimate
near about Sixty thousand new jobs will
be created for the internet world alone in
the next two years
e-Commerce transactions are expected
to cross the Rs. 3500 crore milestone in
2010-11, a jump of around 350 percent
from the 2008-09 figure of Rs. 1000 crore
eBay said that consumers were trading
goods worth almost three crore rupees
everyday, across the globe.