NAME:- “Abdul Manan Awan”

ROLL NO:- “ 61”

PROGRAM:- “ BS IT”
SUBJECT:- “Information System”
SUBMITTED TO:- “ Sir Haider”
DATE:- “ 26 june 2022”

Ecommerce and Mcommerce

Ecommerce and mcommerce have different meanings, though both aim at

making customers’ lives easier. Simply put, ecommerce is an umbrella term for

selling and buying online, while mobile commerce, or mcommerce, is a

subcategory of ecommerce that focus on purchasing via mobile devices.

Despite their similar goals of buying and selling with the help of the internet, there

are many glaring differences between ecommerce and mcommerce.[1]

Models of E commerce:-

Electronic commerce, or eCommerce, is a business model that lets businesses and

consumers make purchases or sell things online. There are six major eCommerce
business models:

● Business to consumer  (B2C)

● Business to Business (B2B)
● Business to Government (B2G 0
● Business to business to consumer (B2B2C)
● Consumer to Consumer (C2C)
● Consumer to Business (C2B)

We’ll review each of these six business classifications in depth and dig into the five
primary delivery models that you will need to consider when launching or
expanding your online store.

Business to Consumer (B2C)

As the name implies, business to consumer (B2C) is when a company markets its
products or services directly to end users. It is the most widely known form of
commerce.  B2C ecommerce is fairly straightforward. You complete a B2C
transaction every time you purchase food from a grocery store, eat dinner at a
restaurant, watch a movie at a theater, and get a haircut. You are the end user of
the products and services these companies sell.

In eCommerce, there are five different B2C business models: direct sellers, online
intermediaries, advertising-based, community-based, and fee-based.

1. Direct selling is the most common model. It is when consumers buy

products from online retailers.

2. Online intermediaries are online businesses that bring sellers and

consumers together and take a cut of each transaction made.

3. In the advertising-based model, information is given away for free and

money is made from advertising on the site.

4. Facebook is an example of a community-based site that makes money from

targeting ads to users based on their demographics and location.

5. Finally, the fee-based model involves companies that sell information or

entertainment to consumers for a fee, like Netflix or subscription-based
newspapers.

In recent years, online B2C sales have been trending upward. Many traditional
brick-and-mortar retailers have either been closing, or pivoting and adding in
digital channels to their strategy as shoppers go online for the things they need.

This  hybrid approach  is when companies have both a traditional brick-and-mortar

presence and an online shopping platform. Many companies integrate these
approaches with an  omnichannel ecommerce strategy to maximize the customer
experience. For example, some companies now let you order your products online
and pick them up at one of their local stores. Many companies also allow
customers to return products they bought online to local stores for a quick and
easy refund or exchange.

To implement the B2C eCommerce model successfully, businesses must rely on

having a platform that can be adjusted quickly and adapt to new customer needs
without causing delays in service.

Business to Business (B2B)

As the name implies, business to business (B2B) is when a company markets its
products or services directly to other businesses. B2B ecommerce can be broken
down into two methodologies, vertical and horizontal.

Vertically oriented businesses sell to customers within a specific industry. With a

horizontal approach, you are selling to customers across a myriad of industries.
Each approach has their own pros and cons, such as industry expertise and market
depth (vertical) versus wide-spread market coverage and diversification
(horizontal).

Both can be a lucrative pathway, but your strategy will depend on your products
and customers, so consider them carefully.

Historically, B2B businesses had always been a few steps behind their direct-to-
consumer counterparts, especially when it came to commerce innovation and
digital sales. The problem lay in price negotiation and collaboration, and many
businesses were used to leveraging sales representatives as the primary revenue
generating channel.

The modern B2B buyer has gotten quite tech savvy though, and now shares many
of the same demands and buying habits as the average buyer. Convenience,
flexibility, personalization, and integrated experiences are expected and now
business-critical.

Despite the slow adoption of digital strategies, B2B brands have focusing more
and more on ecommerce to keep up with consumers. A  recent report by Gartner
uncovered a recent dramatic shift with B2B digital commerce initiatives
surpassing B2C. Gartner assumes "By 2025, 75% of B2B manufacturers will sell
directly to their customers via digital commerce."

You can check out more of the top trends in B2B ecommerce  that you should
consider for your 2022 strategy here.

Business to Government (B2G)

Business to government (B2G) is when a company markets its products and
services directly to a government agency. This agency could be a local, county,
state, or federal agency.

An example of a B2G relationship is when an ammunition manufacturer sells

ammunition to the US Army. And an example of a local B2G relationship is when a
private engineering company sells its engineering services to a county
government to develop a new water and sewer system for the community. In
B2G, companies typically bid on projects when governments announce Requests
for Proposals (RFPs).

Interacting with government agencies is very different from working with other
businesses or consumers. Due to having to deal with bureaucracies, business
deals tend to move at a much slower pace than in other sectors. Ecommerce
companies can definitely bid on government contracts, the same as other
companies. Unlike many B2C transactions, however, many government agencies
will not go directly to an eCommerce website and place an order.

There are exceptions to this, of course.

A local government agency could, for example, place an order directly from an
eCommerce company for a part to repair a piece of equipment. It depends on a
variety of factors including the size of the agency and the need.

Business to Business to Consumer (B2B2C)

In B2B2C ecommerce, a company sells products to another company which are
then sold to consumers. An example of a B2B2C arrangement is when a wholesale
distributor sells merchandise to retail stores that then sell the merchandise to end
users. The B2B2C model is comprised of three parts: the first business (the
business of product origin), an intermediary, and the end user.
There are several different ways the B2B2C model can be used in eCommerce
applications. For example, a company could partner with another company to
promote its products and services, giving the partner a commission for each sale.

The primary advantage of the B2B2C business model for eCommerce companies
is the acquisition of new customers. This is an important consideration for new
eCommerce companies that need a way to rapidly grow their customer base.

Consumer to Business (C2B)

Typically, when we think of commerce strategies, we tend to think of them from
the starting point of the business. However, consumer-oriented models, like
Consumer to business, are growing in popularity.

In the C2B ecommerce business model, individuals sell goods and services directly
to companies. We see this most commonly in websites that allow individuals
(contractors or freelancers) to share work or services they’re skilled in. Often,
businesses will put in a request or a bid for that person’s time and will pay the
person through that platform.

One of the most recognizable examples of a C2B business is Upwork, a freelancing

platform that connects organizations directly with talent. It’s marketed is a
‘marketplace for work’ and gives businesses the ability to find and source project
support, ranging for anything from software development and content creation to
UX design and even financial needs for things like bookkeeping or filing tax
returns.

Another intriguing, newer example is that of influencer marketing platforms such

as Upfluence or GRIN. In a similar fashion to Upwork, both of these platforms
connect businesses with individuals selling services. In this case, people are
ultimately selling the ability expand a brand's reach and visibility by sharing across
their social media networks.

One of the key benefits of this business model is that it allows consumers to set
their own price and can also often help expand their individual reach by giving the
more visibility.
Consumer to Consumer (C2C)
Another model most people don’t typically think of is the consumer to consumer
business model. The rise of the digital landscape has really enabled the concept to
take off, with companies like eBay, Craigslist, and Esty leading the way.

In C2C ecommerce, consumers sell goods or services directly to other consumers.

This is most often made possible by third-party websites (such as the examples
we previously mentioned) or marketplaces, that facilitate transactions on behalf
of the buyers and sellers.

These ecommerce marketplace asllow smaller businesses, or even hobbyists, to

sell their products at their own pricing without having to maintain their own
online storefront.[3]

Top 5 Delivery Frameworks for your eCommerce Business

Once you have determined which model best fits your business, the next step is
to identify the delivery method that meets your needs and requirements. Not
every business manufactures their own products or maintains their own inventory
and warehouses.

Here are 5 of the most common approach businesses are using today:

1. Drop Shipping
Drop shipping is an order fulfillment method in which a business’s products are
stocked, packaged, and shipped by a third-party supplier (i.e., you sell someone
else's products through your store). 

With drop shipping businesses, the team that stands up the storefront doesn’t
have to worry about managing inventory, stocking warehouses, or handling
shipping. They can focus on their front-end customer experience and building
their customer network.

One of the biggest caveats to this approach that you need to consider before
adopting the process, is that your business will have absolutely no control over
the supply chain. Should products arrive damaged or late, or if the quality is lower
than expected, it will reflect poorly on your brand. While the onus is on the drop
shipper to deliver, you’re the one that is in direct contact with the end consumer
and ultimately responsible for handling support requests and managing the
relationship.

2. Subscriptions services
With a subscription model, you are committing to continuously sending your
products to customers over an extended period of time at consistent, pre-
determined intervals. There are many different type of subscriptions, like
product discovery or unlimited services, so pricing, billing, and account
management will depend on your business, your products, and your customer’s
consumption behaviors.

Take ButcherBox for example. ButcherBox is a subscription company that sends

consumers farm fresh, organic meat and seafood products on a monthly cadence.
Customers can pick from a list of curated boxes or customize their own, and can
choose from a couple of different box sizes that will send differing amounts of
food.

Food is one of the most prevalent categories of consumer goods that tends to
perform well with subscriptions, along with fashion, beauty, or even pet products.

While ecommerce subscriptions can prove to be fairly lucrative and have a

number of benefits, they are not for every business.

3. Wholesaling
Businesses that leverage wholesaling manage everything apart from the
manufacturing of the product. You will order goods directly from the supplier, and
are responsible for the warehouse, managing inventory and stock, and tracking
customer orders and shipping. You tend to see wholesale ecommerce a lot in the
B2B space, but it can be leveraged as part of a B2C ecommerce strategy as well.

4. Private labeling
In private labeling, a business will hire a third-party manufacturer to create their
desired products based on their own unique ideas and designs. This will save you
from having to build your own factory and manufacture your own products, but
give you exclusive rights to sell your own goods.
Once the goods are manufactured, you can either have the manufacturer ship
directly to the customer, to an online marketplace, or back to you for you to
handle. Initial costs can vary, but should you have the product designs and
finances to get started, private labeling can be a great way to get started or test
new ideas.

5. White Labeling
With white labeling, you are branding and selling a product under your own name
and logo, but it’s manufactured and purchased from a third-party distributor.

You tend to see this in the fashion and health industries, commonly with
cosmetics, essential oils, and companies that sell CBD online.

White labeling can boost your brand visibility, keep you from having to
manufacture your own products, and allow you to take advantage of the
knowledge and expertise of the distributor.[2]

How to Choose Your eCommerce Business Model?

Now that you’ve familiarized yourself with the various models and product
management and delivery methods, you can start the groundwork for actually
choosing your model. There are three key criteria that will impact how you move
forward.

1. Understand your customer. Who are they? What are their buying habits
and purchasing behaviors? What are their pain points? Building your ideal
customer profile (ICP) with this information is a great first step in choosing
the right eCommerce business model.

2. Understand your value proposition. What makes you different and in what

areas do you exceed compared to the competition? Is it your pricing,
customer service, product selection? Also ask yourself, “What do you not
 do well?” Knowing where you excel and when you’re not a good fit is vital
to your business strategy, and being honest about it with potential
customers will only built trust and brand loyalty.

3. Sell your product in a way that makes sense for your customers. This is
where you choose your delivery method. A good way to look at this is from
the point of view of a manufacturer versus a distributor. If you create your
own products then you’ll probably want to consider wholesale or a
subscription service. If you’re selling someone else's goods, you’ll need to
focus more on building your brand and customer base.

Advantages of E-Commerce

1.Overcome Geographical Limitations

If you have a physical store, you are limited by the geographical area that you can
service. With an e-commerce website, the whole world is your playground.
Additionally, the advent of m-commerce, i.e., e-commerce on mobile devices, has
dissolved every remaining limitation of geography.

2.Gain New Customers with Search Engine Visibility

Physical retail is driven by branding and relationships. In addition to these two
drivers, online retail is also driven by traffic from search engines. It is not unusual
for customers to follow a link in search engine results and land on an e-commerce
website that they have never heard of. This additional source of traffic can be the
tipping point for some e-commerce businesses.
3.Lower Costs
One of the most tangible positives of e-commerce is the lowered cost. A part of
these lowered costs could be passed on to customers in the form of discounted
prices. Here are some of the ways that costs can be reduced with e-commerce:

● Advertising and marketing: Organic search engine traffic, pay-per-click, and

social media traffic are some of the advertising channels that can be cost-
effective.
● Personnel: The automation of checkout, billing, payments, inventory
management, and other operational processes lowers the number of
employees required to run an e-commerce setup.
● Real estate: This one is a no-brainer. An e-commerce merchant does not
need a prominent physical location.

4.Locate the Product Quicker

It is no longer about pushing a shopping cart to the correct aisle or scouting for
the desired product. On an e-commerce website, customers can click through
intuitive navigation or use a search box to narrow down their product search
immediately. Some websites remember customer preferences and shopping lists
to facilitate repeat purchase.

5.Eliminate Travel Time and Cost

It is not unusual for customers to travel long distances to reach their preferred
physical store. E-commerce allows them to visit the same store virtually, with just
a few mouse clicks.

6.Provide Comparison Shopping

E-commerce facilitates comparison shopping. There are several online services
that allow customers to browse multiple e-commerce merchants and find the best
prices.

7.Enable Deals, Bargains, Coupons, and Group Buying

Though there are physical equivalents to deals, bargains, coupons, and group
buying, online shopping makes it much more convenient. For instance, if a
customer has a deep discount coupon for turkey at one physical store and toilet
paper at another, she may find it infeasible to avail of both discounts. But the
customer could do that online with a few mouse-clicks.

8.Provide Abundant Information

There are limitations to the amount of information that can be displayed in a
physical store. It is difficult to equip employees to respond to customers who
require information across product lines. E-commerce websites can make
additional information easily available to customers. Most of this information is
provided by vendors and does not cost anything to create or maintain.

9.Create Targeted Communication

Using the information that a customer provides in the registration form, and by
placing cookies on the customer's computer, an e-commerce merchant can access
a lot of information about its customers. It, in turn, can be used to communicate
relevant messages. An example: If you are searching for a certain product on
Amazon.com, you will automatically be shown listings of other similar products.
Also, Amazon.com may email you about related products.

10.Remain Open All the Time

Store timings are now 24/7/365. E-commerce websites can run all the time.
From the merchant's point of view, this increases the number of orders they
receive. From the customer's point of view, an "always open" store is more
convenient.

11.Create Markets for Niche Products

Buyers and sellers of niche products can find it difficult to locate each other in the
physical world. Online, it is only a matter of the customer searching for the
product in a search engine. One example could be the purchase of obsolete parts.
Instead of trashing older equipment for lack of spares, today we can locate parts
online with great ease.
 
Limitations or Disadvantages of Electronic Commerce
Though e-commerce offers many advantages to customers, business, society and
nation, there are still some areas of concern that need to be addressed. The
following are some of the limitations or disadvantages of e-commerce.

1. Security
The biggest drawback of e-commerce is the issue of security. People fear to
provide personal and financial information, even though several improvements
have been made in relation to data encryption. Certain websites do not have
capabilities to conduct authentic transactions. Fear of providing credit card
information and risk of identity limit the growth of e-commerce.[4]

2. Lack of privacy
Many websites do not have high encryption for secure online transaction or to
protect online identity. Some websites illegally collect statistics on consumers
without their permission. Lack of privacy discourages people to use internet for
conducting commercial transactions,

3. Tax issue
Sales tax is another bigger issue when the buyer and seller are situated in
different locations. Computation of sales tax poses problems when the buyer and
seller are in different states. Another factor is that physical stores will lose
business if web purchases are free from tax.

4. Fear
People fear to operate in a paperless and faceless electronic world. Some of the
business organizations do not have physical existence, People do not know with
whom they are conducting commercial transactions. This aspect makes people
to opt physical stores for purcha Product suitability
People have to rely on electronic images to purchase products. Sometimes, when
the products are delivered, the product may not match with electronic images.
Finally, it may not suit the needs of the buyers. The lack of ‘touch and feel’
prevent people from online shopping.
6. Cultural obstacles
E-commerce attracts customers from all over the world. Habits and culture of the
people differ from nation to nation. They also pose linguistic problems. Thus,
differences in culture create obstacles to both the business and the consumers.

7. High Labour cost

Highly talented and technically qualified workforce are required to develop and
manage the websites of the organization. Since internet provides a lot of job
opportunities, business organizations have to incur a lot of expenses to retain a
talented pool of employees,

8. Legal issues
The cyber laws that govern the e-commerce transactions are not very clear and
vary from country to country. These legal issues prevent people from entering
into electronic contracts.

9. Technical limitations
Some protocol is not standardized around the world. Certain software used by
vendor to show electronic images may not be a common one. It may not be
possible to browse through a particular page due to lack of standardized
software. Insufficient telecommunication bandwidth may also pose technical
problems.

9. Huge technological cost

It is difficult to merge electronic business with traditional business. Technological
infrastructure may be expensive and huge cost has to be incurred to keep pace
with ever changing technology. It is necessary to allocate more funds for
technological advancement to remain competitive in the electronic world.
ses.

Advantages of mobile commerce(mCommerce)

 
  #1. Provides Easy Store Access

MCommerce makes easy to discover the products available in the market by

utilizing wireless devices. With mobile commerce, customers need not travel to
the store to purchase their needs, rather, they can buy their products online. So,
this decreases their effort, money and saves their time. In addition, one of the
advantages of mobile commerce is that you can continually make updates and
deliver your eCommerce site better than ever before.
 

  #2. Better User Experience

User experience really matters in eCommerce. Today, people are well familiar
with how smartphones and tablets work. And the customers are already know
how to navigate to desired products in several clicks. Additionally, the customers
sharing their enjoyment of acquired goods with friends, or request for advice
from a community of compulsive shoppers. Therefore, a smooth user experience
equals better conversion rates & income.
To succeed in your eCommerce business, your mobile app should be:

● Fast
● Convenient
● Interactive
● Exclusive

#3. Creates a New Marketing Channel

Including, another advantage of mobile commerce is that you build a new

marketing channel. Using mobile apps, you can quickly sell your goods and
products to end-users. Besides, it serves multiple functionalities such as it can give
general information, search features, news feeds, product prices, and so on.
Although, one of the biggest advantages of having a mobile app for your business
is that all the information you like to provide your clients is available at their
fingertips. This involves special sales and promotions. By push notifications, you
can become even closer to a direct interaction with your buyers. So, you can
easily remind your consumers about your products & services whenever needed.
 

 #4. Location Tracking & Personalized Notifications

Location tracking can benefit from providing assistance to consumers in

navigating directions or helping them discover the expected transportation
service, etc. Therefore, once a client subscribes to your brand, you can send them
location-based push notifications with personalized discounts and increase your
sales. This brings in a greater possibility of easy conversions. According to the
research by Responsys, the personalized push notifications are liked by people &
provide with two times higher conversion rates as related to the ones made by
marketing emails.
 

#5.  Benefits with Traditional Retail Sales

One of the main advantages of mobile commerce is that it can assist with

traditional retail sales. Remember, how a retail store would look if it
had thoroughly all the aspects of products that are accessible. Not only would it
be a trouble for staffs who have to manually update that data, however, it would
be cluttered and clumsy for everyone from the staffs to the customers to have to
purchase. Hence, mobile commerce is growing and it will continue to evolve,
taking a more leading place in the retail trades.
 

  #6. Cost Reduction and Productivity

Through reaching your customer faster with a mobile app you certainly reduce
marketing campaign expenses. So, the mobile apps decrease the costs of SMS
messages, paper newsletters, and brochure. If your eCommerce app
has social commerce integration, customers will do their part too in spreading the
word. Besides, you can earn from placing ads within your app later on. It also
simplifies client communications by utilizing secured, instant and direct messages.
Moreover, it has cut down the crew workload as they don’t have to send
information requests and phone calls anymore.
 

  #7. Attracts New Consumers

In eCommerce, there is always the potential to bring in new consumers. An

optimized eCommerce website is not just one that holds your existing customer
base, but it’s also one that attracts new buyers who come over your online store
and find it appealing. Besides,  mobile searches are one of the essential ways that
consumers are going to discover your website and the higher the chances are that
you will get more business.
Additionally, mobile re-targeting, which displays ads to those who have recently
visited your eCommerce website to attract them to go back and buy items they
looked at, can be a hugely helpful tool for your business.
 
Don’t forget to check out various software tools that can help you build your
business
 

  #8. Higher ROI

According to the research by Google, 67 % of people said they would be more

probably to purchase from a mobile-friendly eCommerce site, and 61% said that a
website that was not mobile-friendly would make them want to move away. So,
your products converse for themselves, although word-of-mouth can be a robust
tool. When a consumer wanders about a product & how great of a purchasing
experience they held, and that’s really free marketing for you. Despite, an order
from one consumer could already pay you back for the time & money you paid on
upgrading your eCommerce site.[5]
 
Disadvantages of M-commerce
 
Now, let's glance at some disadvantages of mobile commerce.
 
1. Absence of services in rural areas- In rural areas there is still a
dearth of availability of mobile phones and Internet connection. Even
 there are people who are totally unaware of all these facilities. So, you
can think that still, mobile commerce is unknown to several people.
2. Fraud risks and security concerns- Still there are fraud risks in
mobile commerce and there are marketers who are not even
prepared to handle it. Also, the security issue is still present and there
are people who had a fear of losing their personal information.
3. Connectivity issue- If your net connection is poor then you will face
an issue and also get irritated in m-commerce. The massive obstacle
for M-commerce is the internet connection issue.
4. The habit of people- You must have heard of the people who don't
want to come out of their comfort zone or you can say that they are
not ready for the change. There are people who deny getting into
modern technology and some take too much time in adopting new
technologies.

 REFERENCES
[1] Asghar Afshar Jahanshahi, Alireza Mirzaie “MOBILE COMMERCE
BEYOND ELECTRONIC COMMERCE: ISSUE AND CHALLENGES”. Asian Journal
of Business and Management Sciences- Vol. 1 No. 2 , ISSN: 2047-2528

[2] Niranjanamurthy M, Kavyashree N, Mr S.Jagannath “MCOMMERCE:

SECURITY CHALLENGES ISSUES AND RECOMMENDED SECURE PAYMENT
METHOD” - IJMIE Volume 2, Issue 8 ISSN: 2249-0558 -2012

[3] Prof .Waghmare G.T. "E-commerce; A Business Review And Future

Prospects In Indian Business." - Indian Streams Research
JournalVol.2,Issue.IV/May; 12pp.1-4-ISSN:-2230-7850

[4] Suresh Chari, Parviz Kermani- "Security Issues in M{Commerce: A Usage

Based Taxonomy" -Springer-Verlag Berlin Heidelberg 2001
 [5] A.Koponen "E-COMMERCE, ELECTRONIC PAYMENTS" from Helsinki
University of Technology, Telecommunications Software and Multimedia
Laboratory