Unit V

1. Explain different types of E-commerce.

2. Define E-commerce and features of E-market.
3. Explain internet and its impact on traditional business
4. Define E-commerce and scope of E-commerce.
5. Explain E-payment system and security threats with Ecommerce.
6. Explain the types of E-commerce.
7. Explain B2B and C2C E-commerce with suitable example.

E-commerce

Introduction :
E-commerce, or electronic commerce, refers to the buying and selling of goods and services
over the internet. It involves the use of electronic platforms, such as websites, mobile
applications, and social media, to conduct transactions between businesses and consumers or
between businesses. E-commerce has revolutionized the way businesses operate and has
created new opportunities for entrepreneurs and consumers alike.
One of the primary benefits of e-commerce is that it offers a more convenient and efficient
way to conduct business. Consumers can browse and purchase products from the comfort of
their own homes, while businesses can reach a global audience without the need for a
physical storefront. E-commerce has also enabled businesses to streamline their operations by
automating many of the tasks involved in the sales process, such as inventory management,
order processing, and shipping.
E-commerce has continued to grow in popularity and importance, particularly in light of the
COVID-19 pandemic, which has led to a surge in online shopping as people seek to minimize
in-person interactions. As a result, businesses that are able to adapt to the e-commerce
landscape are likely to have a competitive advantage in the years to come.
E-commerce is also known as Electronic Commerce, refers to buying and selling of products
or services over the Internet. Normally e-commerce is used to refer to the sale of physical
products online, but it can also describe any kind of commercial transaction that is facilitated
through the internet. The first-ever online sale was in 1994 when a man sold a CD by the
band Sting to his friend through his website Net Market, an American retail platform. This is
the first example of a consumer buying a product from a business through the World Wide
Web or e-commerce as we commonly know it today. After that e-commerce has evolved to
make products easier to discover and purchase through online retailers and marketplaces. All
freelancers, as well as small and large businesses, have benefited from e-commerce which
enables them to sell their goods and services at a scale that was not possible with traditional
offline retail.

Business Application of E-commerce:

• Conversational commerce: e-commerce via chat
• Digital Wallet
• Document automation in supply chain and logistics
• Electronic tickets
• Enterprise content management
• Group buying
• Instant messaging
• Newsgroups
• Online banking
• Online office suites
 • Online shopping and order tracking
• Pretail
• Print on demand
• Shopping cart software
• Social networking
• Teleconferencing
• Virtual assistant (artificial intelligence)
• Domestic and international payment systems

Features:

Product catalog: An e-commerce platform should provide an easy way to create and manage
a product catalog, including adding new products, editing existing ones, and categorizing
them.

Shopping cart: A shopping cart is a tool that allows customers to add products they want to
purchase and keep track of the items as they continue to browse the website.

Checkout and payment processing: A reliable checkout and payment processing system is
essential for e-commerce success. Customers should be able to complete transactions quickly
and easily using a variety of payment methods.

Shipping and order management: Once a customer places an order, the e-commerce
platform should provide tools to manage the order, including tracking information, shipping
options, and delivery status.

Customer accounts and loyalty programs: Many e-commerce platforms allow customers to
create accounts, which can help businesses build relationships and loyalty. Additionally,
loyalty programs can incentivize repeat purchases and encourage customers to refer others.

Marketing and analytics: An e-commerce platform should offer tools to help businesses
market their products, such as email campaigns and social media integration. Additionally,
analytics can help businesses track customer behavior, identify trends, and improve their
overall strategy.

Mobile optimization: With more people shopping on their mobile devices, it’s essential that
e-commerce platforms are mobile-optimized, with a responsive design that provides an
optimal shopping experience on smartphones and tablets.

Advantages of E-commerce:

• E-commerce enables fast and secure shopping.

• It is making digitalized world.
• E-commerce also enables to choose different goods and services according to your
choice.
• It is a simple way of selling and buying products and services.
• E-commerce replaced the paper work as all transactions are through internet today.
• It provides better management system, as it has a centralized database.
• E-commerce via internet covers a large number of customers worldwide.
 • E-commerce has several payment modes.

Disadvantages of E-commerce:

• E-commerce has no universal standard for quality and reliability.

• E-commerce works through internet, it is possible that navigation on internet itself
may be slow.
• Strong security is required in e-commerce as all transactions are through internet.
• There is high risk of buying unsatisfactory products through e-commerce.
• It uses public key infrastructure which is not safe.
• Customers also trap in banking fraud which is quite frequent.
• Hackers also try to get access of data or to destroy data in e-commerce.

Uses of E-commerce :

1. Online retail: One of the most well-known uses of e-commerce is online retail, where
businesses sell products directly to consumers through their online store, website, or
mobile app.

2. Digital products and services: E-commerce is also commonly used for the sale of
digital products and services, such as music, e-books, software, and online courses.

3. Business-to-business transactions: E-commerce can be used for B2B transactions,

where businesses sell products or services to other businesses.

4. Online marketplaces: E-commerce marketplaces, such as Amazon and eBay,

provide a platform for businesses and individuals to sell their products to a large
audience.
5. Auction sites: Online auction sites, such as eBay, allow users to bid on and purchase
items from other users.

6. Online banking and financial services: E-commerce is used extensively for online
banking and financial services, including payment processing, bill payment, and
money transfers.

7. Online booking and reservations: E-commerce is used for booking and reservations
of flights, hotels, rental cars, and other travel-related services.

8. Food delivery: E-commerce platforms are used for online ordering and delivery of
food from restaurants.

9. Online advertising: E-commerce is also used for online advertising, where

businesses can advertise their products and services to a large audience.
Scope in E-Commerce

The potential for e-commerce development is enormous. Now a days one can buy products
online through some sites like Flipkart and Amazon. In the age of e-commerce everything
from gym equipment to laptops are available online. E-Commerce is a super set of business
cases. It includes E-trading, E-Franchising, E-Mailing, E-Engineering etc. Scope of e-
commerce can be enumerated as follows:

1. Exchange of digitized information

2. Technology-enabled
3. Customers retention
4. Accounting
5. Supplier integration
6. Support the exchange

1. Exchange of digitized information: The digitized information exchange can represent

communications between two parties, coordination of the flow of goods and service, or
transmission of electronic orders. These exchange can be between organizations or
individuals.

2.Technology-enabled: E-Commerce is about technology-enabled transactions. Web

browsers are perhaps the best Know of these technology-enabled customer interfaces.
However, other interfaces including automated teller machines (ATMs) also fall in the
general category of e-commerce. Business once managed transactions with customers and
markets strictly through human interaction; In e-commerce, such transitions can be managed
using technology.

3. Customers retention: E-Commerce enables organizations to get classified and customized

market information that helps in retaining customers through fast order fulfillment and
effective customers relationship management (CRM). End-to-End supply chain management
in e-commerce provides the opportunity the overall flow of demand and supply and results in
fruitful customers retention.

4. Accounting: Financial accounting, treasury management and asset management are best
possible in e-commerce because of integrated database. Financial planning and strategy
determination become more convenient in e-commerce.

5. Supplier integration: For lowering inventory-carrying costs and broader availability of

material and opportunities suppliers network can be integrated through EDI to implement
just-in-time (JIT) inventory management.

6. Support the exchange: E-Commerce includes intra and interorganizational activities that
support the exchange. The scope of e-commerce includes all electronically based intra and
interorganizational activities that directly or indirectly support marketplace exchange. In this
sense, we are talking about a phenomenon that affects both How business organizations relate
to external parties customers, suppliers, partners, competitors, and markets and how they
operate internally in managing activities, processes and systems.

Impact of E-commerce on Traditional Retail Business

The impact of e-commerce on traditional retail business has been substantial and far-
reaching. With the rise of the internet and technological advancements, e-commerce has
gained immense popularity as a convenient and accessible way of buying and selling goods
and services. This shift in consumer behaviour has presented both advantages and challenges
for traditional retail businesses.
Rise of E-commerce
E-commerce has experienced exponential growth over the years. Factors, such as the
increasing prevalence of smartphones, improved internet connectivity, and changing
consumer preferences have contributed to its rise. Online marketplaces and dedicated e-
commerce websites have emerged as major players in the global retail industry. Companies,
like Amazon, Alibaba, and eBay have transformed the way people shop, creating a highly
competitive environment for traditional retailers.
For example, A traditional retail clothing store that has been operating for decades decides to
embrace e-commerce to reach a wider audience. They establish an online store where
customers can browse their product catalogues, make purchases, and have the items delivered
to their doorstep.

1. Increasing Competition:
Traditional retail businesses face intense competition from various sources, including online
retailers, e-commerce platforms, and big-box stores. These competitors often offer a wide
range of products, competitive pricing, and convenient shopping experiences, attracting
customers away from traditional brick-and-mortar stores.
For example, A local bookstore faces competition from online retailers like Amazon, which
offers a vast selection of books at competitive prices. Many customers choose the
convenience of online shopping and opt for digital books or e-books instead of visiting the
physical store.

2. Changing Consumer Behavior:

The shift in consumer behaviour towards online shopping and digital experiences has posed a
significant challenge for traditional retail businesses. Today, consumers increasingly prefer
the convenience of shopping from their homes, comparing prices online, and having products
delivered to their doorstep.
For example, A traditional clothing retailer faces challenges as more customers prefer to
browse and purchase clothes through online platforms. Consumers can easily compare prices,
read customer reviews, and order clothes without leaving their homes, reducing foot traffic to
physical stores.

3. Comparing Product Options:

As compared to traditional business, e-commerce provides customers with a wide range of
alternatives while shopping. It gives the customers an opportunity to check out the
merchandise and simultaneously compare similar products on different websites. By doing
so, e-commerce also helps customers in comparing prices which is not an easy process in
traditional business. Therefore, customers shift from traditional business towards e-
commerce.
For example, it is easy to compare clothes and their prices (including discounts) on different
websites like Flipkart, Amazon, Myntra, etc., then to go to a physical marketplace and search
for clothes at different shops.

4. Changes in Supply Chain:

With the rise in e-commerce, there have been numerous changes in the supply chain. It is
because retailers have had to adapt to the increased demand for efficient and fast shipping.
This change in the supply chain has resulted in new logistics and fulfilment challenges for
traditional retailers.

5. Opportunities for Integration:

Besides the negative impacts, e-commerce has also given traditional businesses some
opportunities. It includes integration between the online and offline channels. With e-
commerce, traditional retailers have successfully developed omnichannel strategies allowing
their customers to shop online and pick up products in-store or to order the product online,
and then return them (if required) at the physical store. Examples of businesses using
omnichannel strategy include Decathlon, H&M, etc.
In conclusion, the impact of e-commerce on traditional retail businesses has been profound.
Traditional retailers must adapt to the changing landscape, embrace e-commerce, and provide
a seamless online and offline shopping experience to thrive in the evolving retail industry. By
understanding the challenges and advantages of e-commerce, traditional retailers can position
themselves for success in a highly competitive market.

What is Electronic Payment System

Key Takeaways
• Electronic Payment System refers to making online transactions without cash or
cheques.
• The RBI regulates the electronic payment systems in India.
• Electronic Clearing services allow banks and non-banking institutions to debit or
credit money instantly.
• NEFT, IMPS, and RTGS allow cashless fund transfers between bank accounts.
• E-payment systems are safe, speedy and cost-effective alternatives to paper-based
payment systems.

The Reserve Bank of India keeps introducing modern and convenient methods of fund
transfers. Today, electronic payment systems have become extremely common in India,
paving the path for a cashless economy. This article explains the types and advantages of
electronic payment systems. Read on to know more.

What is Electronic Payment System?

Electronic Payment System (e-Payment) is a type of payment conducted via electronic or
online mediums. Online payment systems eliminate the need for cash or cheque payments. It
is a unique payment method that allows you to conduct online transactions via digital wallets,
bank cards and internet banking systems. The funds are directly debited from your bank
account.

Types of Electronic Payment System

The RBI has introduced various cost-effective payment solutions as an alternative to cash
transactions. The commonly used types of electronic payment systems include:
ECS Payments
For bulk and repetitive payments like salary credit, interest payment, dividend payments from
companies, etc., the RBI introduced the Electronic Clearing Service (ECS) credit scheme in
the 1990s. This system enables payers to credit a specific amount directly into the payees
account on a particular date. ECS enables recurring payments to banks, Mutual Fund
companies, service providers, utility companies, etc. The bank collects payment from your
account and passes it on to the relevant companies.

Electronic Fund Transfers: NEFT, RTGS, and IMPS

National Electronic Fund Transfer (NEFT), Real-Time Gross Settlement (RTGS), and
Immediate Payment Services (IMPS) are three modes of electronic fund transfers. With
NEFT, you can transfer any amount of money, while the minimum transaction limit for
RTGS is INR 2 lakhs. These transactions are cleared in half-hour batches, whereas IMPS
transactions have a daily limit of INR 5 lakhs and are instantly cleared.

Clearing Corporations
Clearing Corporations settle trades in money markets, foreign exchange markets and
government securities. Banks and other financial institutions set Clearing Corporation of
India Limited (CCIL) as an industry-wide clearing company across India.

Pre-Paid Payment Systems

These include the purchase of goods and services using bank cards. You can use internet and
mobile banking facilities, third party or bank digital and mobile wallets, and credit and debit
cards to make payments on domestic and international e-commerce websites.

Advantages of Electronic Payment System

Having explained what is e-payment system, here are its primary advantages.

Lower costs
E-payments eliminate the costs associated with paper cheques, cash and postage. Payments
conducted via electronic payment systems like credit card or debit card charges, processing
fees, internet fees, etc., are lower.

Highly accessible
You only need an internet-enabled device like a smartphone or computer to access the
various type of types of electronic payment systems from any place, any time.

Speedy transactions
You can buy the product within seconds, transfer money, pay your loan EMIs, get salary
credits, and more with electronic payments

Threat to E-Commerce
E-Commerce refers to the activity of buying and selling things over the internet. Simply, it
refers to the commercial transactions which are conducted online. E-commerce can be drawn
on many technologies such as mobile commerce, Internet marketing, online transaction
processing, electronic funds transfer, supply chain management, electronic data interchange
(EDI), inventory management systems, and automated data collection systems.
E-commerce threat is occurring by using the internet for unfair means with the intention of
stealing, fraud and security breach. There are various types of e-commerce threats. Some are
accidental, some are purposeful, and some of them are due to human error. The most
common security threats are an electronic payments system, e-cash, data misuse, credit/debit
card frauds, etc.

Security threats with e commerce

An estimated 32% of all organic traffic to e-retail websites has malicious intent (bots,
hackers, or suspicious users). The only way to keep an E-comm platform safe is to
understand what eCommerce security threats you're up against and implement proper
precautions to stop cyber-attacks targeting your page.
This article takes you through the most significant eCommerce security threats and
dangers currently plaguing the e-retail sector. We also explain the most effective ways to
protect your E-comm website, so jump in to learn everything you must know to keep your
online business safe

Financial Fraud
Criminals rely on various fraud strategies to steal money from E-comm shoppers and
websites. Here are the most common ones:
• Payment card fraud: Every eCommerce website processes online payments, which
makes these pages a go-to target for payment card fraud. Criminals often use stolen or
counterfeit credit card info for unauthorized transactions, leading to financial losses
for cardholders and the business.
• Account takeovers: A takeover occurs when an attacker gains unauthorized access to
a customer account on your eCommerce website. Once an intruder takes over the
account, the threat actor makes fraudulent purchases or exploits stored payment data.
• Chargeback fraud: Chargeback fraud (or friendly fraud) happens when a "customer"
makes a purchase, receives the product, and fraudulently attempts to get a refund
using the chargeback process from the issuing bank. If approved, the chargeback
cancels the transaction, but the person gets to keep whatever they ordered.

Social Engineering Attacks

Social engineering is an umbrella term for various forms of manipulation that enable a threat
actor to deceive victims and get them to either:
• Share sensitive info (e.g., login credentials or credit card details).
• Perform security-compromising actions (e.g., click on a file that installs malware).
Criminals using social engineering to target eCommerce customers usually rely on a
combination of the following tactics:
• Phishing: Phishing occurs when an attacker sends deceptive emails or messages to
customers, posing as a legitimate business or institution. Threat actors use phishing to
trick targets into revealing passwords or credit card details, after which criminals log
into the account and start shopping.
• Pretexting: This strategy involves creating a false pretext or scenario to trick the
target into disclosing info. For instance, an attacker might pose as somebody from
your customer support team and request a customer to share account details.
• Baiting: This social engineering tactic uses the promise of an award (such as a
giveaway or discount) to entice the victim. For example, a criminal may send one of
your customers a fake giveaway award and instruct the victim to log in on a fake
duplicate website that steals login credentials.
Click Hijacking
Click hijacking (also known as clickjacking or UI redressing) enables an attacker to overlay
or hide elements on a page to trick a user into clicking on a malicious element.
Clickjacking enables a criminal to trick customers into clicking buttons or links that perform
unintended actions, such as:

• Change account settings.

• Add a product to the cart.
• Execute a fraudulent transaction.

For example, a hacker might compromise your E-comm website and set a hidden element on
top or underneath the "PLAY" button on your home page's video. If a logged-in user clicks
on the button and has the 1-click ordering enabled, the criminal can make a transaction
without having to hack the customer's account or steal credit card data.

• Disclosure of secret data.

• Passing or demolition of data.
• Mutation of data.
• Denial of services.
• Inaccuracy in software.
• Repudiation.

Types of E-commerce model:

There are types of e-commerce models that can describe almost every transaction that takes
place between consumers and businesses.

1. Business to Consumer (B2C): When a good or service is sold to an individual

consumer by a business, e.g., we buy a pair of shoes from an online retailer.

2. Business to Business (B2B): When a good or service is sold by a business to another

business, e.g., a software-as-a-service is sold by a business for other businesses to use.

3. Consumer to Consumer (C2C): When a good or service is sold by a consumer to

another consumer, e.g., we sell our old furniture on eBay to another consumer.
4. Consumer to Business (C2B): When a consumer’s own products or services is sold
to a business or organization, e.g., an authority offers exposure to their online
audience in exchange for a fee or a photographer licenses their photo for a business to
use.

5. Business-to-government (B2G): In this model, businesses sell products or services

to government agencies through online portals or marketplaces.

6. Government-to-business (G2B): In this model, government agencies sell products or

services to businesses through online portals or marketplaces.

7. Government-to-consumer (G2C): In this model, government agencies provide

products or services directly to consumers through online portals or marketplaces.
Business to Business (B2B):

B2B (business-to-business), a type of electronic commerce (e-commerce), is the exchange of

products, services or information between businesses, rather than between businesses and
consumers (B2C).

A B2B transaction is conducted between two companies, such as wholesalers and online
retailers. In most B2B business models, each organization benefits in some way and typically
has similar negotiating powers.

B2B is conducted via different categories of websites, such as the following:

• Company websites. The target audience of a company website is the business clients
and employees of other businesses. Think of B2B websites as round-the-clock mini-
trade exhibits. Sometimes, a company website provides an entrance to an
exclusive extranet, available only to customers or registered users. Some company
B2B sites sell directly from the B2B website to other businesses.
• Product supply and procurement exchanges. These exchanges allow a company
purchasing agent to shop for supplies from multiple vendors, request proposals and, in
some cases, bid on products. At times called e-procurement sites, some serve a range
of industries while others serve a niche market.
• Specialized or vertical industry portals. These portals provide dedicated
information, product listings, discussion groups and other features for specific
businesses. Vertical portal sites have a broader purpose than procurement sites,
although they may also support buying and selling.
• Brokering sites. These sites act as an intermediary between service providers and
potential customers that need their specific services, such as equipment leasing.
• Information sites. Sometimes known as infomediaries, these sites provide
information about a particular industry to companies and their employees.
Information sites include specialized search sites and those of trade and
industry standards organizations.

How does B2B work?

In B2B, one business sells a set of products or services to another business. Typically, there is
a group or department that uses the vendor's products and services. Occasionally, a single
user on the buyer side makes a transaction in support of the company's business goals. And
some B2B transactions involve the entire company's use of the products, such as office
furniture, computers and productivity software.

For larger or more complex product purchases, the B2B product selection process is handled
by a buying committee, including:

• a business decision-maker, such as the person responsible for the budget;

• a technical decision-maker, or someone who evaluates the capabilities of the
prospective products; and
• influencers, such as individuals who provide input on the decision.
Large purchases might involve a request for proposal, in which the buyer invites prospective
vendors to submit proposals detailing their products, terms and pricing.

Types of B2B companies

There are several types of B2B companies, including the following:

• Producers design, create and manufacture their own products. Producers may sell
their products directly to businesses or indirectly through retailers or resellers.

• Retailers and resellers sell products and services made by other companies directly
to businesses. Retailers and resellers may sell online, from physical stores or both,
including B2B e-commerce vendor

• Agencies and consultants provide advice, oversight and subcontracted work to

businesses. For example, an advertising agency manages and executes a multimillion
dollar advertising budget for a consumer brand

Benefits of B2B

The following are benefits of B2B:

• Large average deal size. A B2B company can grow sales with a smaller number of
high-value deals compared to a B2C company, which may require thousands or even
millions of individual sales. Since B2B companies sell and buy in bulk, the average
B2B transaction is about $491, as opposed to $147 for a B2C sale.

• Higher switching costs. B2B customer loyalty is likely if they are satisfied with the
product and service. In contrast, B2C customers can be finicky and not loyal, resulting
in large churn rates.

• Large market potential. B2B companies can target enterprises across many
industries and geographies, resulting in a big playing field. Or they can specialize in
one industry, such as technology, and become leaders in that field.

• B2B organizations advertise their products and services and conduct business online,
making it easy for clients to place bulk orders via an efficient digital transaction
model.

• Faster delivery. Because B2B e-commerce tools make the sales process efficient for
sellers, they accelerate the process for buyers. Integrated systems enable the
transacting companies to sync data across channels, automate fulfilment and
inventory updates, and manage complicated orders.

• Built-in order management Cloud-based e-commerce platforms easily integrate

with back-end systems or order management systems. This enables B2B sellers to
synchronize order inventory and customer data across every channel.
Example – Alibaba, Amazon.

What Is Business to Customer(B2C)?

A B2C business model is one in which a company offers a service or product directly to a
customer. Amazon, eBay, Walmart, and other B2C enterprises are well-known examples of
companies where individual consumers are the end-users of a product or service.
The business-to-consumer model is an alternative to the business-to-business (B2B) model.
B2C is a business strategy that often comprises a larger number of clients but has lower
revenue per client and shorter sales cycles.

In a word, the B2C business model is the process of selling services or products directly to
customers without any middleman. This type of business is conducted between the business
owners and the customers, who are the end-users of the products or services.

Typical Channels in B2B Market

B2C Companies Examples

As B2C companies continue to grow in popularity, there will invariably be successful

businesses that have come from it. So far, most examples of b2c include:
• Amazon
• Google
• Facebook
• Tencent
• Walmart
• Target
• Alibaba
• Priceline Group
• eBay
• Netflix etc.

Many online retailers selling products or services directly to customers are examples of B2C.
Many entrepreneurs follow this model to run a business with low investment.

SaaS companies like Restora POS, Salesforce, etc., are examples of B2B businesses. In the
automobile industry, the B2B business is considered the backbone.
Samsung, Apple, Microsoft, and other companies are also examples of B2B businesses
because they need to connect with Intel, Panasonic, and semiconductor producer Micron
Technology.

Besides, medical equipment and industrial manufacturers also follow the B2B business
model.

Types of B2C Models

With the B2C model being a large and complex model, let’s look at a few popular and
mainstream types –

Product-Based B2C Model

In the product-based B2C model, businesses sell products to consumers. The business may
act as a supplier and sell customized products to individuals either via their own physical or
online stores.

Service-Based B2C Model

A company with a service-based B2C model functions exactly as its namesake – it helps
provide services to its consumers. A service-based B2C company earns revenue by providing
services instead of selling physical products.

Software-Based B2C Model

Software-based B2C companies can be placed under either “product” or “service” based B2C
model. While the latter deals with providing software services to consumers, the former
provides software solutions and products

What is B2B2C?
In the business-to-business-to-consumer (B2B2C) model, businesses sell products to retailers
while gaining valuable data directly from the customers who purchase those goods. B2B2C
businesses are present all around us, in our shelves and closets — from Mondelez, the maker
of classic snack brands like Chips Ahoy, to Unilever, which manufactures diverse products
like Dove and Hellmann’s.

Because manufacturers partner with a retailer, they can take advantage of a B2C business’s
investment in customer experience and marketing, ultimately reaching new markets at scale
with greater revenue opportunities.

The B2B2C model hinges on successful relationships to deliver exceptional customer

experiences.
B2B vs. B2C vs. B2B2C

When it comes to ecommerce, know the differences between these business models to make
the right choice for your organization.

B2B — business to business

In a B2B model, businesses sell to other businesses through a process that can include a
combination of a sales force, channel partnerships, and ecommerce. Within this model, there
are three common business categories.

B2C — business to consumer

Business to consumer is a business model where businesses sell directly to consumers. B2C
businesses may manufacture the products themselves, like Nike or Apple. They can also buy
products wholesale from different manufacturers and sell an assortment to consumers, in the
case of a B2C brand like Macy’s or Dick’s Sporting Goods.

B2B2C — business to business to consumer

With B2B2C models, businesses partner with other companies to reach new customers.
Manufacturers sell a consumer product to retailers, who in turn sell that product to
consumers.

How does a B2B2C model work?

In a B2B2C relationship, the manufacturer benefits from direct access to customer data and
additional brand recognition through the retailer. With these keys to growth, the manufacturer
can accelerate their expansion and scale.

Let’s look at a simple, hypothetical scenario where a baseball bat is being sold through a
B2B2C model:
Examples of B2B2C partnerships

Every B2B2C relationship can operate differently based on the business’s needs. Let’s look at
some real-world examples of successful partnerships.

Protein bar company RXBAR gained enough early momentum with a B2B2C model to also
take advantage of a direct-to-consumer (D2C) model where consumers can purchase directly
from them through its B2C ecommerce site.

How it works: RXBAR sells wholesale to a range of businesses like Whole Foods and REI.
Whether they’re grocery stores, fitness centers, or convenience stores, retailers purchase the
product through RXBAR’s B2B ecommerce site, email, and phone.

What is C2C - Meaning And Examples

What is C2C? C2C is consumer-to-consumer or customer-to-customer transactions. In a C2C

model, buyers and sellers transact directly instead of through an intermediary.
Online C2C firm sites include Quikr, OLX, and eBay, which sell products or services through
a classified or auction system.

The purpose of a C2C is to enable these partnerships among customers, helping buyers and
sellers locate each other. Customers can benefit from the rivalry for items and readily find
products that may otherwise be difficult to identify. In contrast to B2C and B2B
business models, C2C is business-to-consumer.

Consumer-to-Consumer (C2C): What Is It?

Consumer to Consumer (C2C) is a business model in which third-party organisations

facilitate transactions for items or services between consumers. There is no corporation
participating on either end of the sale, and most C2C business is done online.

In addition to direct sales to consumers, the most common methods of distribution are:
• Direct sales to businesses
• Consumers
• Companies
Many businesses use consumer-to-consumer (C2C) models, and the results are positive.
Customers' relationships with companies are strengthened, and new markets are opened due
to this. The C2C business model is prevalent among e-commerce firms, and enterprises are
reaping huge rewards thanks to the rapid growth of technology and marketing.

Examples of C2C Business

• eBay
This website has two product listings:
• fixed-price products
• auction items
Fixed-price products can be purchased immediately by using the Buy Now option. Place Bid
buttons are featured on auction items and show the current bid price. These items are up for
grabs for a fixed period, and the highest bidder is declared the winner.

• Coutloot
A social commerce platform called Coutloot was established in 2015. It is well-known as
India's largest physical and online social media marketing platform, giving its users the
option to sell anything online to reasonable consumers anywhere in the nation.
Additionally, Coutloot offers its clients paperwork, cash on delivery, and logistics services.
Mumbai, Maharashtra, India is home to the company's headquarters.

• Quikr
Launched in 2008, Quikr is a well-known online C2C eCommerce marketplace that enables
users to post and respond to free local classified advertising for a variety of items, including
apartments, pets, furniture, jobs, events, vehicles, housing, and more.
Currently, Quikr offers its services in over 940 cities across India. Mumbai, Maharashtra,
India is home to the company's headquarters. Quikr is ranked 16th among the top websites in
India.

• OLX
Well, Olx has established quite a significant foothold in the modern digital industry. The
business was founded in 2006. The strongest and most well-known consumer to consumer
(C2C) based digital platform in India is called Olx.
Olx provides a service for purchasing, renting, and selling products through locally-based,
free classified ads. Everything is available for digital purchase, including vehicles, bicycles,
furniture, mobile devices, laptops, residences, gadgets, and real estate.

Business Models for C2C

Several e-commerce platforms make it easier for consumers and sellers to find exactly what
you're looking for. A minor listing charge or commission on the final sale is how most C2C
platforms make money.
The following are some of the most common C2C venues::
• It is possible to advertise a product for sale at a predetermined price and allow
numerous purchasers to compete for the item until one person wins. There may not be
many other exciting bids, in which case the item's price may rise much higher than if
the seller had advertised it at a fixed price.
• Many online platforms connect consumers and sellers who want to trade authentic
goods—from secondhand furniture to artwork and anything in-between—and join
 them. Many of these systems are available in online and app formats to facilitate in-
person transactions.
• These services can be exchanged via online C2C platforms such as hiring a dog
trainer, a web designer, a handyperson or renting someone's holiday house.
• As a result, C2C online payment systems have been created to streamline the payment
process for C2C transactions on other platforms. These companies may charge a
minor fee for transferring earnings into one's bank account to generate revenue.

Advantages of the C2C Model

1. Both buyers and sellers benefit when a company is removed from a sales transaction.
C2C model encourages lower prices and more profit margins. When wholesalers and
retailers are cut out of the equation, the vendor and the buyer benefits from more
significant profit margins and lower prices.
2. A wide variety of products and services are available. The site is great for those who
trade in rare collectables or secondhand goods that are hard to obtain from traditional
firms. The ease with which the transaction can be completed will benefit both parties.
Compared to traditional business forms like brick-and-mortar stores, C2C eliminates
many obstacles consumers face.
3. Many sellers cannot afford to start a conventional small business, while others don't
want to sell as a primary source of income. Consumers may find it difficult to find
cheap goods and services in brick-and-mortar stores. Because C2C platforms remove
these obstacles, you can now do business from home.

Drawbacks of the C2C Model

1. C2C sales transactions provide consumers and sellers with a wide range of freedoms,
but they also have significant drawbacks. As a result, there's a lack of quality
assurance. There is a risk that C2C platforms may not be able to control product
quality because they do not make or sell things themselves.
2. It's not always simple to get paid, and paying using a credit card isn't always an option
on all C2C platforms. Thus, customers may have to use cash or another service that
may incur a fee.
3. There are more instances of dishonesty than in the past. Hence, C2C marketplaces are
more likely to include scammers attempting to defraud customers and sellers. Non-
traditional payment methods and a lack of information regarding a seller's listing may
raise red flags for buyers. Before transferring their goods, buyers should pay the seller
in full.

What is E-Marketing?

Web marketing, digital marketing, internet marketing or online marketing; all of these words
are synonymously used for E-Marketing. What it means is the marketing of products or
services by using the internet. E-mails and wireless marketing also fall into the category of e-
marketing.
We can say that it uses different technologies and media to connect customers and
businesses. Especially in this era of technology, e-marketing has become a very important
part of the marketing strategy of different companies.

Features of E-Marketing

Big or small, many businesses are using e-marketing because of various features and multiple
advantages. Some of the important features are as follows;
E-marketing is Cheaper than Traditional Marketing
If you compare its cost with traditional marketing media such as newspaper ads and
billboards, then it’s much cheaper and efficient. You can reach a wide range of audience with
very limited resources.

Tangible ROI
Small business owners can now check the turnover rate or ‘‘action taken’’ with the help of
Infusionsoft. It analyzes multiple things like views of videos, number of emails opened, and
per click on the link. Most importantly, it tells us how much sales the business has been made
as a result of e-marketing.

24/7/365 Approach
It works 24 hours a day, 7 days a week and 365 days of the year. It doesn’t matter whether
you’re homesick, sleeping, or attending a casual meetings; but e-marketing is always hard at
work.

Eliminate Follow-up Failure

Elimination of follow-up-failure is the main secrete behind the success of small business. It is
done by entering your business figures into the Infusionsoft, and then its automated
marketing system will provide you the custom-tailored information about your business,
which areas to improve and what product to discontinue.

E-Marketing Advantages
Some of the important advantages of e-marketing are given below;
1. Instant Response. The response rate of internet marketing is instantaneous; for
instance, you upload something and it goes viral. Then it’d reach millions of people
overnight.
2. Cost-Efficient. Compared to the other media of advertising, it’s much cheaper. If
you’re using the unpaid methods, then there’s almost zero cost.
3. Less Risky. When your cost is zero and the instant rate is high; then what one has to
loos. No risk at all.
4. Greater Data Collection. In this way, you have a great ability to collect a wide range
of data about your customers. This customer data can be used later.
5. Interactive. One of the important aspects of digital marketing is that it’s very
interactive. People can leave their comments, and you’ll get feedback from your target
market.
6. Way to Personalized Marketing. Online marketing opens the door to personalized
marketing with the right planning and marketing strategy, customers can be made to
feel that this ad is directly talking to him/her.
7. Greater Exposure of your Product. Going viral with one post can deliver greater
exposure to your product or service.
8. Accessibility. The beauty of the online world and e-marketing is that it’s accessible
from everywhere across the globe.

Disadvantages of E-Marketing
E-Marketing is not without disadvantages, some of them are as follows;
1. Technology Dependent. E-Marketing is completely dependent on technology and the
internet; a slight disconnection can jeopardize your whole business.
2. Worldwide Competition. When you launch your product online, then you face a
global competition because it’s accessible from everywhere.
 3. Privacy & Security Issues. Privacy and security issues are very high because your
data is accessible to everyone; therefore, one has to be very cautious about what goes
online.
4. Higher Transparency & Price Competition. When privacy and security issues are
high, then you have to spend a lot to be transparent. Price competition also increases
with higher transparency.
5. Maintenance Cost. With the fast-changing technological environment, you have to
be consistently evolved with the pace of technology and the maintenance cost is very
high.

The Future of E-Commerce: Trends To Watch In 2023

Detailed information about Forbes branded products & services: How to order, join,
participate and buy.

In 2023, we can expect to see continued growth in social commerce, personalization, AR/VR,
subscription services, and sustainable and ethical shopping practices.

The top two obstacles to growth are winning new customers and building people capacity
who are doing well by doing good.

To help you with the first obstacle, I wanted to share how our Growth CFOs think about
eCommerce. We learn a lot when working with CMOs and marketing experts.

As the world becomes more connected and digital, e-commerce continues to grow at an
unprecedented rate. In 2020 alone, global e-commerce sales topped $4.2 trillion, with
projections indicating that this number will only continue to rise. With the ever-changing
landscape of e-commerce, it's vital to stay ahead of the curve and understand the latest trends
shaping the industry. Here are some of the key trends to watch in 2023:

• AI-Generated Noise: AI-produced articles and pictures are going mainstream fast.
As a result, AI-generated content marketing will explode while its effectiveness
decreases. To keep results going in the right direction, figure out “that’s me”
messaging that resonates with your ideal customer on a spiritual level. Dial into that
niche even more.
• Pricing Pressure: In the open eCommerce world customers can price check. Thus,
the pressure toward commoditization is even greater, especially when selling on
platforms like Amazon. And pricing changes faster. This create methods to
differentiate your products. When done well you can achieve value pricing which
outperforms marketing pricing.
• 80/20 Customer Segmentation: To avoid commoditization, what are your customer
segments? What is unique about the top 20%? Figure out how to keep and grow these
customers as you align new customer acquisition. You will find more joy and
financial freedom doing your best work for customers who love it.
• Social Commerce: Social media platforms such as Facebook, Instagram, and
Pinterest are quickly becoming major players in e-commerce. The integration of
shopping features within these platforms, such as Instagram's Checkout and
Facebook's Marketplace, allows users to purchase products without ever leaving the
platform. This seamless integration is expected to drive social commerce growth in
2023 and beyond.
• Personalization: Consumers are increasingly looking for personalized shopping
experiences, and e-commerce retailers are responding by using data analytics and AI
to provide customized product recommendations, targeted advertising, and
personalized email marketing. This trend is expected to continue to grow in 2023,
 with retailers using a combination of customer data and predictive analytics to create
tailored shopping experiences.
• Augmented Reality (AR) and Virtual Reality (VR): AR and VR technology are
transforming the way consumers shop online. By allowing customers to virtually try
on clothing or visualize furniture in their homes, retailers can provide a more
immersive and interactive shopping experience. This trend is expected to grow in
2023 as more retailers adopt AR and VR technology to enhance their online shopping
experiences.
• Subscription Services: Subscription-based e-commerce services have been on the
rise for several years, and this trend is expected to continue in 2023. Consumers are
increasingly turning to subscription services for convenience, value, and personalized
product recommendations. Retailers are responding by offering everything from
personalized clothing subscriptions to meal kit deliveries and beauty product
subscriptions.
• Sustainable and Ethical Shopping: Consumers are becoming more conscious of the
impact their purchasing decisions have on the environment and society. As a result,
sustainable and ethical shopping practices are becoming increasingly important for e-
commerce retailers. In 2023, we can expect to see more retailers focusing on
sustainable and ethical sourcing, packaging, manufacturing, and initiatives to reduce
their carbon footprint.