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Lecture 3

The document discusses different e-commerce business models. It describes the business-to-business (B2B) model, where a website sells products to intermediate buyers who then sell to final customers. Key B2B areas and technologies are also outlined. The consumer-to-consumer (C2C) model is explained as allowing consumers to sell assets or rent rooms by posting on a website. Diagrams provide graphical representations of the B2B and C2C models.
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0% found this document useful (0 votes)
24 views20 pages

Lecture 3

The document discusses different e-commerce business models. It describes the business-to-business (B2B) model, where a website sells products to intermediate buyers who then sell to final customers. Key B2B areas and technologies are also outlined. The consumer-to-consumer (C2C) model is explained as allowing consumers to sell assets or rent rooms by posting on a website. Diagrams provide graphical representations of the B2B and C2C models.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MIRPUR UNIVERSITY OF SCIENCE AND TECHNOLOGY (MUST), MIRPUR

DEPARTMENT OF COMPUTER SCIENCE & INFORMATION TECHNOLOGY


E-COMMERCE
BIT - 3604

Lecture 03 : E-Commerce Business Models

Ms. Saeeda Kouser


(Lecturer)

Date: ______________
LECTURE CONTENTS

1. Introduction

2. E-Commerce Business Models

3. Business-to Business model

4. Consumer –to-Consumer model

BIT-3604 E-COMMERCE 3
INTRODUCTION
• Key concepts and skills for the strategic use of e-commerce and related information technology
are presented from three perspectives: business to consumers, business-to-business, and intra-
organizational.

• E-Commerce business models are key components of e-commerce business activities.

• The important business models are Business-to Business model, Business-to-Consumer model
and Consumer –to-Consumer model.

• The different type of business models elaborate and map the interaction between website, seller
and buyer at discrete level.

• Graphical representation of each model shows the request and response mechanism of e-
commerce system

BIT-3604 E-COMMERCE 4
BUSINESS - TO – BUSINESS MODEL

Business - to – Business Model


• A website following the B2B business model sells its products to an intermediate
buyer who then sells the product to the final customer.

• As an example, a wholesaler places an order from a company's website and after


receiving the consignment, sells the end-product to the final customer who comes to
buy the product at one of its retail outlets.

• B2B identifies both the seller as well as the buyer as business entities.

• B2B covers a large number of applications, which enables business to form


relationships with their distributors, re-sellers, suppliers, etc.
BIT-3604 E-COMMERCE 5
BUSINESS - TO – BUSINESS MODEL

Fig. 6 - B2B Model


BIT-3604 E-COMMERCE 6
BUSINESS - TO – BUSINESS MODEL

• Following are the leading items in B2B e-Commerce.

• Electronics

• Shipping and Warehousing

• Motor Vehicles

• Petrochemicals

• Paper

• Office products

• Food

• Agriculture
BIT-3604 E-COMMERCE 7
BUSINESS - TO – BUSINESS MODEL

Key Technologies
The key technologies used in B2B e-commerce are−
• Electronic Data Interchange (EDI) − EDI is an inter-organizational exchange of business
documents in a structured and machine process able format.
• Internet − Internet represents the World Wide Web or the network of networks
connecting computers across the world.
• Intranet − Intranet represents a dedicated network of computers within a single
organization.
• Extranet − Extranet represents a network where the outside business partners, suppliers,
or customers can have a limited access to a portion of enterprise intranet/network.
• Back-End Information System Integration − Back-end information systems are database
management systems used to manage the business data.

BIT-3604 E-COMMERCE 8
BUSINESS - TO – BUSINESS MODEL

Architectural Models
Following are the architectural models in B2B e-commerce −
• Supplier Oriented marketplace -
• In this type of model, a common marketplace provided by supplier is used by both
individual customers as well as business users.
• A supplier offers an e-stores for sales promotion.
• A Classic example of a supplier-oriented B2B marketplace is that of Cisco connection
online (CCO)which operates Cisco’s electronic marketplace.
• The various services of B2B that cisco’s website provided to its customers
• 1. Customer Service
• 2. Online Ordering
• 3. Tracking Order Status.

BIT-3604 E-COMMERCE 9
BUSINESS - TO – BUSINESS MODEL

Architectural Models

• Supplier Oriented marketplace -

BIT-3604 E-COMMERCE 10
BUSINESS - TO – BUSINESS MODEL

Architectural Models
• Buyer Oriented marketplace −
• In this type of model, buyer has his/her own market place or e-market.
• He invites suppliers to bid on product's catalog.
• A Buyer company opens a bidding site.
The advantages to the buyers are:
• Identifying and building relationships with new suppliers worldwide.
• Cutting down sourcing cycle times and reducing the costs of sourced goods.
• Transmitting information to multiple suppliers simultaneously and quickly.
• Quickly receiving and comparing offers from a large number of suppliers to get the
best deal.

BIT-3604 E-COMMERCE 11
BUSINESS - TO – BUSINESS MODEL

Architectural Models
The advantages to the Sellers are:

• Access to global buyers

• Boosted Sales

• Lowered costs for sales and marketing activities

• Improved sales productivity

BIT-3604 E-COMMERCE 12
BUSINESS - TO – BUSINESS MODEL

Architectural Models
• Intermediary Oriented marketplace −

• In this type of model, an intermediary company runs a market place where business
buyers and sellers can transact with each other.

BIT-3604 E-COMMERCE 13
BUSINESS - TO – BUSINESS MODEL

Architectural Models
• Intermediary Oriented marketplace −

BIT-3604 E-COMMERCE 14
BUSINESS - TO – BUSINESS MODEL

THE ONLINE B2B AUCTIONS: B2B auctions can be categorized into three major types:
• Independent Auctions:

A co. may use a third-party auctioneer to create the site and sell its goods. E.g. www.fairmarket.com

• Commodity Auctions:

Many buyers and sellers come together to a third-party web site for the auction of the same product.

E.g. www.fastparts.com

• Private Auctions:

Many co’s auction their products themselves on their own sites, without taking the help of intermediaries.
Such auctions may be open or by invitation only.

E.g. www.auctionblock.com

BIT-3604 E-COMMERCE 15
BUSINESS - TO – BUSINESS MODEL

B2B APPLICATIONS
• - Supply Chain Management (SCM)

• - Electronic Marketing

• - Procurement Management

• - Just-in-Time (JIT) delivery

• - Electronic Data Interchange (EDI)

BIT-3604 E-COMMERCE 16
COSUMER - TO – CONSUMER MODEL

Consumer - to – Consumer Model


• A website following the C2C business model helps consumers to sell their assets like
residential property, cars, motorcycles, etc., or rent a room by publishing their
information on the website.

• Website may or may not charge the consumer for its services.

• Another consumer may opt to buy the product of the first customer by viewing the
post/advertisement on the website.

BIT-3604 E-COMMERCE 17
CONSUMER - TO – CONSUMER MODEL

Fig. 7 - C2C Model


BIT-3604 E-COMMERCE 18
ACKNOWLEDGEMENTS

• Dave Chaffey :E-Business and E-Commerce Management Strategy, Implementation and

Practice 5th Edition ISBN: 978-0-273-71960-1

• https://www.tutorialspoint.com/e_commerce/e_commerce/htm

BIT-3604 E-COMMERCE 19
THANKS

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