e business models

CLASSIFICATION OF E-COMMERCE

Classification of e-commerce

The classification of ecommerce is based: who orders, the goods and services to be

sold, who sold those goods and services and the

nature of transactions.

Classification of e-commerce (cont…)

Based on the above criteria, e-commerce are classified as;

I. Business-to-Business (B2B) e commerce

II. Business-to-Consumer (B2C) e commerce

III. Consumer-to-Business (C2B) e commerce

IV. Consumer-to-Consumer (C2C) e commerce

V. Peer-to-Peer (P2P) e commerce

VI. M-commerce

Classification of e-commerce (cont…)

VII. Business –to-Employee (B2E)VIII. E-Government IX. E-Learning X. Business-to-Business-to-Customer XI. Intra-business e commerce XII. Exchange-to-Exchange XIII. Collaborative commerce

Business-to-Business (B2B) e-Commerce

It is the largest form of ecommerce

Term commonly used to describe commerce transactions between

businesses

In this form the buyers and sellers are both business entities and do not

involve individual consumer.

Involves businesses focusing on selling to other businesses

This category of commerce typically involves suppliers, distributors,

manufacturers, stores, etc. .

Example - an automobile manufacturer buying tyres for its vehicles.

The additional purchases of glass for the windows, paint, and steel.

B2B Definition

Companies buying from and selling to each other online

While B2B exists both online and offline, the acronym is used to describe the online variety

B2B has evolved to encompass supply chain management as many companies outsource parts of their supply chain to their trading partners

Examples of B2B,B2C,C2C,C2B

B2b - Intel selling micro processors to Dell        - Heinz selling ketchup to Mc Donalds

b2c - Dell selling me a laptop        - Mc Donalds selling me a Big Mac

c2c - Mary buying an iPod from Tom on eBay       - Me selling a car to my neighbour

c2b - Me selling my old school books to a second hand book shop

Websites that are engaged in B2B ecommerce

commodityindia.com Indiaconstruction.com clickforsteel.comdell and sony etc.

2.Business-to-Consumer (B2C)e-commerce

In this e-commerce type, business and consumers are involved.

Business sell to the public typically through catalogs utilizing shopping cart software.

In Business-to Consumer (B2C) e commerce, business must develop attractive electronic market places to attract and sell products and services to the consumer.

B2C Definition

Business that sells its products or services to consumers over the Internet for their own use.– Online Retailers (Amazon.com)– Online Banking– Travel Services– Health Information– Real Estate

Difference between B2B and B2C

The customer (business vs. individual) B2B transactions are more complex B2C does not require:

– Negotiation for price, delivery, and product specifications

– Integration with other systems

Websites that are engaged in (B2C) e-commerce

Amazon.com, llbean.com, CompUSA.com, Travelocity.doc, hotels.com, chow.net, rediff.com, jaldi.com, indiatimes.com, indiaballs.com, schwab.com

3. Consumer-to-Business (C2B) e-commerce

Also called demand collection model. It enables buyers to name their own price, often

binding, for a specific good or services generating demand

A consumer posts his project with a set budget online and within outs; companies review the customers’ requirements and bids out the project.

Then the customer will review the bids and selects the company that will complete the project.

C2B e-commerce (cont…)

Generally, in the C2B ecommerce, the customer requests a specific service from the business.

EXAMPLE:

Mr. Leta, an Ethiopian, needs to travel India for his personal case. He requires a flight on the first day of January and he is willing to pay Br 500 only. Here this requisition will display in C2B webs. In addition, the Ethiopian Air Lines can be interested to take him to New Delhi, even the normal trip costs more than Br 500 rather than of flying with empty seats.

Websites engaged in C2B e-commerce

razerfinish.com, ReverseAuction.com, priceline.com,’Mercata.com, voxcap.com etc.

4. Consumer-to-Consumer (C2C) e-commerce

It facilitates the online transaction of goods or services between two peoples.

However, there is not visible intermediary involved, but the parties cannot carry out the transactions without the platform, which is provided by the online market such as eBay.

Examples:Advertisement of personal services over the internet.Selling of knowledge and experts online.eBay, monstor.com

CONSUMER-TO-CONSUMER C2C

o 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.

Examples of C2C:

eBay

Amazon.com

o Expected to increase in the future because it cuts out

the costs of using another company.

No quality control

No payment guarantee

CONSUMER-TO-CONSUMER C2C

C2C e-commerce (cont…) In the C2C e-commerce, the consumer lists items for

sale with commercial auction site. The participants in C2C ecommerce are unknown,

not trusted parties to sell goods and services to anther one.

Example of C2C ecommerce web is eBay, where consumers sell their goods and services to other consumers;

And PayPal (instead of purchasing goods and services directly from the unknown, entrusted seller, the buyer can send money to the PayPal.

Then the PayPal notifies the seller that they will hold the money for them until the goods have been shipped and accepted by the buyer).

Websites engaged in C2C

baazee.comICQ.comMSN.com ek.com.aucareeron.com.aubidorbuy.com etc.

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.

CONSUMER-TO-CONSUMER C2C UNIVERSITIES

CONSUMER-TO-CONSUMER C2C UNIVERSITIES

5. Peer-to-Peer (P2P) e-commerce It is a technology in itself that helps people to directly

share computer files and computer resources without having a central web server.

To use this, both the peers should have to install the software so that they can communicate on the common platform.

Examples:Sharing of music’s, videos, and other digital files

electronically Linkshttp://www.bx.com/dictionary/ecommerce/Peer-to-

Peer.cfm

Example of Peer to PeerSAN FRANCISCO, CA. October 15, 2006– Tamago (www.tamago.us), a San Francisco based company, launched the world’s first peer-to-peer commerce system allowing people to sell every type of digital media directly from their computers to customers all over the world. People who publish music, videos, photos, e-books, etc. earn royalties, while buyers earn commissions for distributing media to others.When someone buys a song, a picture, or other digital media, Tamago pays the members, whose computers deliver the data, directly to the buyer. This eliminates the need for central server farms. “In Tamago’s new world, customers are not just consumers, but distributors also,

Napster most well-known example until put out of business for copyright infringement

Today, Kazaa is the leading P2P software network, although also under attack for copyright infringement

6. M-commerce

It refers to the use of mobiles devices for conducting the transactions.

The mobile device holder can connect each other and can conduct the business.

This is not really a type of e commerce but a mechanism in transaction.

Many M-Commerce applications involve internet enabled mobile devices. If such transactions are targeted to individual, to specific location, at specific times, they are referred as location base ecommerce (L- Ecommerce).

Major Types of E-commerceTable 1.3, Page 17

7. Business –to-Employee

This is the subset of the inter-business category in which the business organization delivers goods, services, information to individual employees.

Examples:Mobile employee in field representatives

(B2ME).

Business –to-Employee

uses an intrabusiness network which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes.Examples of B2E applications include:Online insurance policy management Corporate announcement dissemination Online supply requests Special employee offers Employee benefits reporting

BUSINESS-TO-EMPLOYEE (B2E)

Examples of B2E applications include:

Online insurance policy management

Corporate announcement dissemination

Online supply requests

Special employee offers

Employee benefits reporting

8. E-Government

In E-Government a government departments buys or sells goods, services or information to business (G2B) or to the individual citizens (G2C) or to other government entity (G2G).

In E-Government; intranets, extranets and the internet all are applied.

BUSINESS TO GOVERNMENT (B2G)

Referred to as a market definition of "Public Sector

Marketing”.

Encompasses marketing products and services to

the Government.

Does it through Integrated Marketing

Communications techniques such as strategic

public relations, branding, advertising, web-based

communications to the Business.

BUSINESS TO GOVERNMENT (B2G)

GOVERNMENT-TO-BUSINESS(G2B)

o Online non-commercial interaction between local

and central government and the commercial

business sector.

Does not happens with private individuals.

For example http://www.dti.gov.uk is a government

web site where businesses can get information and

advice on e-business.

GOVERNMENT-TO-BUSINESS(G2B)

GOVERNMENT-TO-GOVERNMENT G2G

Online non-commercial interaction between

Government organisations, departments, and

authorities and other Government organisations,

departments, and authorities.

Common in the UK, along with G2C, the online non-

commercial interaction of local and central

Government and private individuals.

GOVERNMENT-TO-CITIZEN G2C

Online non-commercial interaction between local

and central Government and private individuals.

Not with commercial business sector.

For example Government sectors become visibly

open to the public domain via a Web Portal.

Thus making public services and information

accessible to all.

One such web portal is Government Gateway.

9. E-Learning

When educations, training or examination are provided online, it is called E-Learning.

It is practiced in Universities and organizations, government departments. When organizations give training to their employees, it is called E-Learning.

10. None-Business e-commerce

The users of this e-commerce are academic institutions, religious institutions, social organizations, government agencies and non-for profit organizations.

Those none-business organizations use e-commerce to reduce their expenses, to improve their general operation and customer services.

11. Business-to-Business-to-Customer

In this a business provides some product or service to a client business.

The client by maintaining its own customers, which can be own employees, to whom the product or service is provided with out adding any value to it.

Here the client customer acts as intermediate.

12. Intra-business e-commerce

Includes all internal organizational activities that involve the exchange of goods, services or information among various units and individual in that organization.

It is usually performed using intranets with in the organization (business).

13.Exchange-to-Exchange

It describes a public electronic market with many buyers and sellers.

Also, it is a formal system that connects exchanges to one another.

14. Collaborative commerce:

This is the process of communicating online between individuals or groups.

Examples: designing a product together using screen

sharing, forecasting demand of products.

CONCULISION

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, PyaPal etc.

CONCULISION

When educations, training or examination are provided online, it is called E-Learning.

And Business-to Business (B2B) e commerce is also called the EDI, which is commonly used and largest form of e commerce. In this, both the buyers and sellers are companies such as manufacturers and wholesalers