MIRPUR UNIVERSITY OF SCIENCE AND TECHNOLOGY (MUST), MIRPUR

DEPARTMENT OF COMPUTER SCIENCE & INFORMATION TECHNOLOGY

 E-COMMERCE
BIT - 3604

Lecture 04 : E-Commerce Business Models

Ms. Saeeda Kouser

(Lecturer)

Date: ______________
 LECTURE CONTENTS

1. Introduction

2. Study of Business Models

3. Business – to – Consumer Model

4. Consumer – to – Business –Model

5. Business - to – Government Model

6. Government – to – Business Model

7. Government - to – Citizen Model

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 INTRODUCTION
• 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

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 BUSINESS - TO – CONSUMER MODEL

Business - to – Consumer Model

• A website following the B2C business model sells its products directly to a
customer.

• A customer can view the products shown on the website.

• The customer can choose a product and order the same.

• The website will then send a notification to the business organization via email

• The organization will dispatch the product/goods to the customer.

• In B2C model, a business website is a place where all the transactions take place
directly between a business organization and a consumer.
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BUSINESS - TO – CONSUMER MODEL

Fig. 8- B2C Model

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 BUSINESS - TO – CONSUMER MODEL

Consumer Shopping Procedure

The steps used in B2C e-commerce −
A consumer −
• determines the requirement.
• searches available items on the website meeting the requirement.
• compares similar items for price, delivery date or any other terms.
• places the order.
• pays the bill.
• receives the delivered item and review/inspect them.
• consults the vendor to get after service support or returns the product if not satisfied
with the delivered product.

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 BUSINESS - TO – CONSUMER MODEL

Disintermediation and re-intermediation

• In traditional commerce, there are intermediating agents like wholesalers,
distributors, and retailers between the manufacturer and the consumer.
• In B2C websites, a manufacturer can sell its products directly to potential
consumers.
• This process of removal of business layers responsible for intermediary functions is
called disintermediation.

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BUSINESS - TO – CONSUMER MODEL

Fig. 9- Disintermediation
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 BUSINESS - TO – CONSUMER MODEL

Re-intermediation
•Nowadays, new electronic intermediary breeds such as e-mall and product selection
agents are emerging.
•This process of shifting of business layers responsible for intermediary functions from
traditional to electronic mediums is called re-intermediation.

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 BUSINESS - TO – CONSUMER MODEL

• Disintermediation

Fig. 10 - Disintermediation

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 BUSINESS - TO – CONSUMER MODEL

• Re-intermediation

Fig. 11 - Re-intermediation
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 COSUMER - TO – BUSINESS MODEL

Consumer - to – Business Model

• In this model, a consumer approaches a website showing multiple business organizations for a
particular service.

• The consumer places an estimate of amount he/she wants to spend for a particular service.

• For example, the comparison of interest rates of personal loan/car loan provided by various
banks via websites.

• A business organization who fulfills the consumer's requirement within the specified budget,
approaches the customer and provides its services.

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CONSUMER - TO – BUSINESS MODEL

Fig. 12 - C2B - Model

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 BUSINESS - TO – GOVERNMENT MODEL

Business - to – Government Model

• B2G model is a variant of B2B model.

• Such websites are used by governments to trade and exchange information with various
business organizations.

• Such websites are accredited by the government and provide a medium to businesses to
submit application forms to the government.

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 GOVERNMENT - TO – BUSINESS MODEL

Government - to - Business
• Governments use G2B model websites to approach business organizations.

• Such websites support auctions, tenders, and application submission

functionalities.

Fig. 13 - G2B - Model

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 GOVERNMENT - TO – CITIZEN MODEL

Government - to - Citizen
• Governments use G2C model websites to approach citizen in general.
• Such websites support auctions of vehicles, machinery, or any other material.
• Such website also provides services like registration for birth, marriage or
death certificates.
• The main objective of G2C websites is to reduce the average time for fulfilling
citizen’s requests for various government services.

Fig. 14 - G2C - Model

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 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

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THANKS