Unit 3 types of e commerce
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This document discusses different types of e-commerce including B2B, B2C, and intra-organizational. B2B e-commerce involves business selling products to other businesses using technologies like EDI. B2C e-commerce is direct sales from businesses to consumers using websites. Key features of B2C include advertising, investments in technology, and customer support. The document also discusses disintermediation and re-intermediation in e-commerce supply chains.
Unit 3 types of e commerce
- 1. Unit III Types of E-Commerce Inter Organization (B2B) E- Commerce, Intra- Organisational ECommerce, Business to Consumer (B2C) E-Commerce.
- 2. B2B- Inter Organization e-commerce Website following the B2B business model sells its products to an intermediate buyer who then sells the products to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, it sells the end product to the final customer who comes to buy the product at the wholesaler's retail outlet
- 4. • B2B identifies both the seller as well as the buyer as business entities. B2B covers a large number of applications, which enables business to form relationships with their distributors, re-sellers, suppliers, etc. Following are the leading items in B2B eCommerce. • Electronics • Shipping and Warehousing • Motor Vehicles • Petrochemicals • Paper • Office products • Food • Agriculture
- 5. Key Technologies • Electronic Data Interchange (EDI) − EDI is an inter- organizational exchange of business documents in a structured and machine processable format. • Internet − Internet represents the World Wide Web or the network of networks connecting computers across the world. • Intranet − Intranet represents a dedicated network of computers within a single organization. • Extranet − Extranet represents a network where the outside business partners, suppliers, or customers can have a limited access to a portion of enterprise intranet/network. • Back-End Information System Integration − Back-end information systems are database management systems used to manage the business data.
- 6. Architectural Models • Following are the architectural models in B2B e- commerce − • Supplier Oriented marketplace − In this type of model, a common marketplace provided by supplier is used by both individual customers as well as business users. A supplier offers an e-stores for sales promotion. • Buyer Oriented marketplace − In this type of model, buyer has his/her own market place or e-market. He invites suppliers to bid on product's catalog. A Buyer company opens a bidding site. • Intermediary Oriented marketplace − In this type of model, an intermediary company runs a market place where business buyers and sellers can transact with each other.
- 7. B2C model – Intra-organizational e- commerce In B2C model, a business website is a place where all the transactions take place directly between a business organization and a consumer.
- 9. B2C model In the B2C model, a consumer goes to the website, selects a catalog, orders the catalog, and an email is sent to the business organization. After receiving the order, goods are dispatched to the customer. Following are the key features of the B2C model − • Heavy advertising required to attract customers. • High investments in terms of hardware/software. • Support or good customer care service.
- 10. Consumer Shopping Procedure Following are the steps used in B2C e-commerce − A consumer − • determines the requirement. • searches available items on the website meeting the requirment. • compares similar items for price, delivery date or any other terms. • places the order. • pays the bill. • receives the delivered item and review/inspect them. • consults the vendor to get after service support or returns the product if not satisfied with the delivered product.
- 11. Disintermediation and Re- intermediation • In traditional commerce, there are intermediating agents like wholesalers, distributors, and retailers between the manufacturer and the consumer. In B2C websites, a manufacturer can sell its products directly to potential consumers. This process of removal of business layers responsible for intermediary functions is called disintermediation.
- 13. • Nowadays, new electronic intermediary breeds such as e-mall and product selection agents are emerging. This process of shifting of business layers responsible for intermediary functions from traditional to electronic mediums is called re-intermediation.
- 15. Ecommerce Advantages and Disadvantages You Need to Know • #1: Low Financial Cost • #2: 24/7 Potential Income • #3: Sell Internationally • #4: Easy to Showcase Bestsellers • #5: Personalized Online Experience • #6: Affordable employees • #7: Easier to Encourage Impulse Buy • #8: Easy to Retarget or Remarket to Customer • #9: Customers Get a Less Invasive Experience • #10: Gain Access to Customer Data Easily • #11: Able to Process a High Number of Orders • #12: Can Scale Business Quickly • # 13: Can Grow Business Organically with Content
- 16. Disadvantages • #1: No One Can Buy During a Site Crash • #2: Customers Can’t Try Before They Buy • #3: Ecommerce Is Highly Competitive • #4: Customers Can Be Impatient • #5: You Need To Ship Your Products • #6: Physical Retail is Still More Popular Despite Decline