Skip to main content

Types of E-Commerce

The several types of e-commerce models in use today are classified based on the nature of the interaction with players are:


Business-to-Consumer(B2C)
  • In B2C, businesses sell directly a diverse group of products and services to customers. In these cases, e-commerce supplements the traditional commerce by offering products and services through electronic channels. Wal-Mart Stores and the Gap are examples of companies that are very active in B2C e- commerce. 
  • Some of the advantages of these e-commerce sites and companies include availability of physical space (customers can physically visit the store), availability of returns (customers can return a purchased item to the physical store) and availability of customer service in these physical stores. 
  • Figure 1.2 illustrates a B2C relationship. (ISP- Internet Service Provider).




  • For example, the Amazon.com is B2C e-commerce is. This e-tailor acts predominantly as a goods marketer in e-space. Amazon.com also sells digital goods such as e-books and offers a platform for other retailers. 
Business-to-Business(B2B)
  • Business-to-Business e-commerce holds electronic transactions among and between businesses.
  • The Intermet and reliance of all businesses upon other companies for supplies, utilities and services has enhanced the popularity of B2B e- commerce and made B2B the fastest growing segment within the e- commerce environment.
  • Companies using B2B e-commerce relationship observe cost savings by increasing the speed, reducing errors and eliminating many manual activities.
  • In a B2B environment, purchase orders, invoices, inventory status, shipping logistics and business contracts handled directly through the network result in increased speed, reduced errors and cost savings. 
  • B2B e-commerce reduces cycle time, inventory and prices and enables business partners to share relevant, accurate and timely information. The end result is improved supply-chain management among business partners. The figure 1.3 illustrates a generic B2B relationship.



Consumer-to-Consumer (C2C) 
  • Using C2C e-commerce, consumers sell directly to other consumers using the Internet and web technologies.
  • Individuals sell a wide variety of services/products on the Web or through auction sites such as eBay.com and gittigidiyor.com through classified ads or by advertising. 
  • Figure 1.4 illustrates a general C2C e-commerce relationship. Consumers are also able to advertise their products and services in organizational intranets and sell them to other employees.



Consumer-to-Business(C2B) 
  • Consumer-to-Business (C2B) e-commerce that involves individuals selling to businesses may include a service/product that a consumer is willing to sell. Individuals offer certain prices for specific products/services. 
  • Companies such as pazaryerim.com and mobshop.com are examples of C2B. Figure 1.5 shows a C2B e-commerce relationship.



Business-to-Employee (B2E)
The transactions between the business and the employee are called business-to- employee services. Searching for a particular type of information from the vast information base of the company may be time consuming for an employee.

To overcome this, B2E application provides employees a self-service capability. The intranet-based business-to-employee applications are sometimes used for implementing improved employee relationship management initiatives. 

Business-to-Government (B2G) 
The transactions between the business and government over electronic network are termed as B2G. B2G e-commerce involves the use of internet for public procurement, licensing procedures, government-related formalities and filing of tax returns.

For example, when Classic Shoes Ltd., submits the tax returns to the income tax department through internet, then it is B2G e-commerce. .

Labels:

Comments

Post a Comment

Popular Post

What is COVID-19 ?

COVID-19 is a disease caused due to the infection of novel coronavirus. The first case of COVID-19 disease was founded at Wuhan, China in December 2019. It also named as severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). COVID-19 is the most widely spread disease ever in the world. In most cases it infects the respiratory system that causes fever, dry cough, and shortness of breath. Previous : What is the difference between coronavirus and COVID-19 ?
Post a Comment
Read more

EDI and Business

Organisation that Uses EDI     1) Wal-Mart : An EDI link between Wal-Mart and one of its suppliers, Seminole Manufacturing Co. cut the delivery time of Seminole slacks by 50%. This resulted in a 31% sales increase of these slacks in the first 9 months after the link was established.   2) General Motors : General Motors have integrated EDI Electronic funds transfer at 30% of its assembly plants. Shipping receipts are sent electronically from the GM plant to an Electronic Data System (EDS is subsidiary of GM) computer center where they are matched against electronic invoices and purchase orders.   Suppliers group the shipping receipts, and one payment is made. This single payment may represent dozens of different shipments to different plants. These payments are also performed electronically via Electronic Funds Transfers.   3) J C Penney : Sales of Stafford suits jumped 59% after JC Penney linked up with their supplier Lanier Clothes. EDI allowed Penney to quickl...
Post a Comment
Read more

EDI Maturity Model

The development of EDI within an organisation or a trade sector goes through a number of stages. Saxena and Wagenaar suggest a three stage EDI maturity model as a part of a three-way analysis of EDI development in organisations, trade sectors and nations.  Figure 2.20 shows the concept of EDI maturity with a six-stage maturity model, and links it to the opportunities for competitive advantage. The stages of EDI development as represented in the model are:  Stage 1:Discovery : The first stage in EDI development is the discovery stage. Discovery can be by an organisation choosing to adopt EDI to gain competitive advantage or to solve an administrative problem.  Stage 2: Introductory : This stage requires investment hardware and software but, atleast significant, will be the time commitment in establishing the parameters of the electronic trading relationship. This stage, on its own, does not result in any cost saving or efficiency gain. there are direct costs in computer ...
Post a Comment
Read more