Goals of E-commerce

Goals of E-commerce
• Business can reach out to larger audience
• Business can operate 24* 7
• Lower inventory levels
• Helps in building brands
• Providing value to customers
• User friendly purchasing experience
• Helps in providing personal attention
• Helps in providing a sense of community
 Resources required for successful
implementation of e-commerce
• Website
• Back end support
• Device
• Product /services
• Forms for ordering
• Handling money transaction
• Bill
• Delivery of product
• Return
• Claims warranty
• Emails /online form
 Advantages of E-commerce
• Reduced response time
• Increased customer service
• Provides an increasing purchasing opportunity for
buyers
• Low cost advertising
• Facilitates the globalization of business
• Lower staffing costs
• Low barriers to entry
• Increased profits
 Disadvantages of e-commerce
• Internet connection
• Startup cost
– Connection
– Hardware/software
– Set up
– Maintenance
• Legal issues
• Lack of skilled personnel
• Some business processes may never lend themselves to ecommerce
• Cultural and legal impediments to e-business
• Security concern
• Lack of human touch
• Training and maintenance
 E-commerce application/scope
• E-commerce in banking
– Download account statements
– Latest transcations
– Cheque book
– Open/close FD
– NEFT
– Upi
• E-commerce in insurance
• E-commerce in payment of utility bills
• Online marketing
• E-tailing(B2C)
• Online travel services
• Online career service industry
• E-auctions
• Online learning
• Online publishing
• Online entertainment
• Online shopping
– Amazon
– Snapdeal
– Flipcart
– alibaba
 E-business
Using electronic medium to distribute
information and provide customer support
….e-businsss or e-commerce
 E-commerce E-business
• Trading of merchandise • Running business using
over internet Internet
• E-commerce is a part of • E-business includes e-
e-business commerce
• Monetary transaction • No
• Commercial transaction • Business transaction
• B2C • B2B
 Categories of e-commerce
buyer
Business consumer
Seller

Business B2B B2C

consumer C2B C2C
 Business to Consumer(B2C)
• It is selling goods and services to a customer and
transaction takes place through internet
• Eg. Amazon
• Advantage from business
– Feedback/review can improve performance
– Reduction in operational cost
– Wider market and unlimited customers
– Advertising cost reduction
– Offers can change dynamically
• Advantage for customer
– Any time any where shopping
– Cost effective
– Wider choice
– Price comparison
 Business –business(B2B)
• Commercial transaction between two or more
business
Raw material supplier

Manufacture of goods B2B

Distributor

Retailer

B2C
Consumer
 Assignment-1
• Explain the different types of B2B e-commerce
models
• Explain different activities involved in B2C process
 Business to Business(B2B)
Different B2B e-commerce model :
• Supplier oriented marketplace (e-Distribution)
• Buyer Oriented market place(e-procurement)
• Intermediary oriented marketplace(e-exchange)

Business
supplies Organization

wholesaler Order processing

orders

sells
Website

customer
 Examples of B2B
• Metalsite.com
• Verticalnet.com
• Shop2gether.com
• Alibaba.com
 Business to consumer(B2C)
• E-tailing
B2C e-commerce models
1. Portal
2. Storefront
3. Market creator
4. Content providers
5. Transaction broker
6. Community provider
Example :amazon.com
 Business Organization

supplies
Order
processing
Customer

Website

orders