OVERVIEW OF

E-COMMERCE AND
BUSINESS MODELS
Group 1
Pabitra Thapa
Shreya Shrestha
Srishti Shrestha
Tisha Manandhar
Lasata Tuladhar
Diksha Shrestha
Pratistha Shrestha
E-commerce
• Use of Internet and Web to transact business.

• Digitally enabled commercial transactions between and

among organizations and individuals.

• Digitally enabled transactions include all those mediated

by digital technology, meaning, for the most part,
transactions that occur over the Internet, the Web, and/or
via mobile apps.
E-Business
• The digital enabling of transactions and processes within
a firm, involving information systems under the control of
the firm.

• Does not include commercial transactions involving an

exchange of value across organizational boundaries
Features of E-commerce Technology
Ubiquity
• Internet/Web technology is available everywhere: at work, at
home, and elsewhere via mobile devices, anytime. Customer
convenience is enhanced, and shopping costs are reduced.

Global reach
• The technology reaches across national boundaries, around
the earth. Commerce is enabled across cultural and national
boundaries seamlessly and without modification.

Universal Standards
• There is one set of technology standards, namely Internet
standards. There is a common, inexpensive, global technology
foundation for businesses to use.
Features of E-commerce Technology
Information Richness
• Video, audio, and text messages are possible. Video, audio,
and text marketing messages are integrated into a single
marketing message and consuming experience.
Interactivity
• The technology works through interaction with the user.
Consumers are engaged in a dialog that dynamically adjusts the
experience to the individual, and makes the consumer a co-
participant in the process of delivering goods to the market.
Information Density
• The technology reduces information costs and raises quality.
Information processing, storage, and communication costs drop
dramatically, while currency, accuracy, and timeliness improve
greatly. Information becomes plentiful, cheap, and accurate.
Features of E-commerce Technology
Personalization/ Customization
• The technology allows personalized messages to be
delivered to individuals as well as groups. Personalization
of marketing messages and customization of products
and services are based on individual characteristics.

Social technology
• User content generation and social networks. New
Internet social and business models enable user content
creation and distribution, and support social networks. 
Classification of E-commerce
Transaction originating from and being fulfilled by
Transaction initiated and accepted by

Business Consumer Government

Business B to B B to C B to G

Consumer C to B C to C C to G

Govenment G to B G to C G to G
 B-to-B B-to-C
exchange of products,
exchange of products,
information or services
services or information
between business and
between business consumers in a retailing
entities relationship

G-to-B B-to-G
exchange of information, exchange of information,
services and products services and products
between government between business
agencies and business organizations and
organizations government agencies online
Types of
G-to-C
e-commerce
C-to-B
government sites offering
exchange of products,
information, forms and
information or services from
facilities to conduct
individuals to business
transitions for individuals

G-to-G C-to-C
C-to-G
transactions within consumers interact
consumers provide
countries linking local directly with other
services to government
governments together consumers for
(yet to be
and also international exchange of
implemented)
governments information
E-commerce Business Model
• A business model is a set of planned activities designed to

result in a profit in a marketplace.

• An e-commerce business model aims to use and leverage

the unique qualities of the Internet, the web, and the

mobile platform.
• There are eight key elements of a business model:
Value Proposition
• Define how a company's product or service fufils the need
of customers.

• -Examples of successful value propositions

• -Personalization/ Customization

• -Reduction of product search, price discovery costs

• -Facilitation of transactions by managing product delivery

Revenue Model
• Define how the firm will earn revenue generates profits and
produce a superior return on invested capital
• -Major types:

• Advertising revenue models: CNN.com

• Subscription revenue models: MATCH.com

• Transaction fee revenue model: EBay, E-Trade, Hotwire

• Sales revenue model: Amazon, LLbean, Gap.com

• Affiliate revenue model: E-pinions, Banner Exchange, Edmunds à

sends traffic to another website
Market opportunity
• This is describes what market space does the company

intend to serve and what is its size. Basically, it is refers to

the company’s intended market space and the overall
potential financial opportunities available to the company
in that market space.
Competitive environment
• This is describes the direct and indirect competitors who

doing similar business in the same market space. For

example, the additional information includes how large
they are, their net profits, their share of the market space
and the price of their product
Competitive Advantage
• Achieved when a firm can produce a superior product
and/or bring a product to market, at a lower price than
most, or all, of their competitors.

• What special advantages does your firm bring to the

marketplace?

• Is your product superior to or cheaper to produce that

your competitors?
Market Strategy
• Plan that details how a company intends to enter a new

market and attract strategy

• Details how company intends to enter market and attract

customers. Best business concepts will fail if not properly

marketed to potential customer.
Organizational Development
• Describes how the company will organize the work that

needs to be accomplished
• Work typically divided into functional departments, eg:

production, shipping, marketing finance etc.

 Management Team
• Employees of the company responsible for making the
business model work

• -Strong management team gives instant credibility to

outside investors
 B2B
• Business to Business is a commerce transaction between
businesses.
• One business sells products or services to another
business.
• For Eg:
 B2B Business Model
• E-distributor
An intermediary that connects manufacturers with buyers
by aggregating the catalogs of many suppliers in one place
and services directly to individual business.

• E- procurement
Create and sell access to digital electronics markets. It
offers purchasing firms sophisticated set of sourcing and
supply chain management tools.
B2B Business Model
• Exchanges
An electronic digital marketplace where suppliers and
commercial purchasers can conduct transactions. Usually
owned by independent firms whose business is making a
market.

• Industry Consortium
Industry owned vertical marketplaces that serve
specific industries. Horizontal marketplaces, in contrast,
sell specific products and services to a wide range of
industries.
The Gold Rush Model
• Companies whose business model is focused on providing
infrastructure necessary for e-commerce companies to
exist, grow and prosper.

 E-commerce industries have profited the most from:

• Providing hardware, software, networking and security.
• E-commerce software systems, payment systems.
• Media solutions, performance enhancement.
• CRM software and databases.
E-commerce and Changing Business

personalized product easy to

shopping prices are get paid
experience low for
products

variety of people
product data-driven
can buy
options decision
on the go
E-commerce and Firm Value Chains

After
Inbound Operation Outbound Sales and
Sales
Logistics s Logistics Marketing
Service
Example of Amazon’s Value Chain
THANK YOU