E commerce Chapter 2

Q#1: What are the main actors and stakeholder in the area of E commerce?
In the area of e-commerce, the main actors and stakeholders include:
Customers (Buyers):
Customers are at the heart of e-commerce. They are individuals or businesses that purchase
products or services online. Their preferences and decisions influence the success of e-commerce
businesses.
Suppliers (Producers or Manufacturers):
Suppliers are the entities that provide the products or services sold on e-commerce
platforms. They can include manufacturers, wholesalers, distributors, and individual sellers.
E-commerce Retailers (Sellers):
E-commerce retailers, often referred to as sellers, are businesses or individuals that operate
online stores. They list and sell products or services to customers.
Government:
Government entities, at various levels (local, national, and international), play a role in
regulating and overseeing e-commerce. This includes the formulation of laws and regulations
related to taxes, consumer protection, data privacy, and other aspects of online commerce.
Q#2: How the fundamental sales process and his 7 + 1 process step work
1. Prospecting:
Identify potential customers or leads who may be interested in your product or service.
2. Qualification:
Evaluate and qualify leads to determine if they meet specific criteria, such as their level of
interest, budget, and decision-making authority.
3. Preparation and Research:
Conduct thorough research on each prospect to understand their needs, pain points, and
background. This information helps tailor your sales approach.
4. Approach:
Make initial contact with the prospect through their preferred communication method (e.g.,
phone call, email, in-person meeting). The approach should be customized to the prospect's
preferences and needs.
5. Presentation:
Deliver a detailed presentation that highlights the product or service's features, benefits, and
how it addresses the prospect's specific needs. The goal is to educate and persuade the prospect.
 6. Handling Objections:
Address any objections or concerns raised by the prospect during the sales process. This
step involves providing solutions, addressing doubts, and overcoming objections to move the sale
forward.
7. Closing the Sale:
The final step is to secure a commitment from the prospect to make a purchase. It involves
asking for the sale, finalizing transaction details, and obtaining the prospect's agreement.
Plus One (Secondary Step):
8. Follow-Up and Post-Sale Service:
After the sale is closed, continue to maintain the relationship with the customer. Offer post-
sale support, ensure customer satisfaction, and explore opportunities for additional sales or
referrals.
Q#3: There are three basic types of software systems in the E Business: online
shop/marketplace/procurement Platform. Characterize them by the number of suppliers and
customers
the three basic types of e-business software systems - online shops, marketplaces, and
procurement platforms - can be characterized by the number of suppliers and customers involved:
Online Shop (e-commerce platform):
Suppliers: Online shops typically have a limited number of suppliers. These suppliers can
include the store owners themselves, manufacturers, distributors, or a single source for the
products or services offered. The focus is on selling their own products or services.
Customers: Online shops primarily serve individual consumers (B2C) or, in some cases,
small businesses. The number of customers can vary, but the primary objective is to sell products
or services directly to end-users.
Marketplace:
Suppliers: Marketplaces are designed to host multiple suppliers, often independent sellers,
retailers, manufacturers, or service providers. These suppliers contribute a wide variety of
products or services to the platform, creating a diverse marketplace.
Customers: Marketplaces serve a broad and diverse customer base. They attract both
individual consumers (B2C) and businesses (B2B). Customers on a marketplace have the option to
choose from products offered by numerous suppliers, providing a wide range of choices.
Procurement Platform (B2B e-procurement system):
Suppliers: Procurement platforms are tailored for businesses and organizations. They
typically involve multiple suppliers, such as manufacturers, suppliers, or service providers. These
platforms are used for sourcing, procurement, and managing supplier relationships.
Customers: The customers using procurement platforms are typically organizations,
corporations, government entities, and other institutions. These platforms serve the
 business-to-business (B2B) segment and are used for sourcing goods and services for their
operations.
Q:4: A basic technology of E-Business is abbreviated by TCP/IP. Was does this mean? What are
two functions, which are covered by this technology?
TCP/IP stands for "Transmission Control Protocol/Internet Protocol." It's a fundamental set of
networking protocols that underlies the operation of the Internet and serves as a cornerstone
technology for E-Business. TCP/IP consists of two main components, each with its distinct function:
Transmission Control Protocol (TCP):
TCP is responsible for ensuring the reliable and orderly delivery of data packets from the
source to the destination.
Internet Protocol (IP):
IP is responsible for routing data packets across networks. It assigns unique IP addresses to
devices connected to the Internet, allowing them to be identified and located.
Here are two key functions covered by TCP/IP:
1. Data Transmission: TCP/IP ensures reliable data transmission between devices.
The Transmission Control Protocol (TCP) handles segmentation, reassembly, and error
correction, ensuring data integrity during transmission.
2. Addressing and Routing: The Internet Protocol (IP) is responsible for addressing and
directing data packets to their destination. It assigns unique IP addresses to devices and
routes data across networks.
Q#5: Explain the two abbreviations B2C and B2B. Do you think it could make sense to define a
business type C2C? Why?
B2B (Business-to-Business): This model involves transactions between businesses. For
instance, manufacturers selling to wholesalers or wholesalers supplying retailers. B2B doesn’t
directly involve consumers, and the average order value tends to be higher.
B2C (Business-to-Consumer): In this model, businesses sell products directly to individual
consumers. When you buy from an online retailer, that’s B2C. It’s the most common type of e-
commerce.
C2C (Consumer-to-Consumer): C2C enables individual consumers to trade with each other,
often online. Think of platforms like eBay, Etsy, or Craigslist. People sell goods or services
directly to other consumers.
Now, about defining a C2C business type:
 While it’s less common than B2B or B2C, C2C has gained popularity due to the internet.
 C2C platforms allow individuals to buy and sell items directly.
 Challenges include quality control and payment guarantees.
 So yes, it makes sense to recognize C2C as a valid business type!