Deapartment of Computer Applications

E-Commerce : Business Models B.Com. (CA) III Year (VI Sem)

S.K. University, Anantapuramu.

BY

Madhavi Alamuri,Lecturer in Computer Applications,

NSPR GDC(W), Hindupur.

Objectives

What is E-Commerce?

The Process of E-Commerce

Types of E-Commerce

Business Models of E-Commerce

Consumers and Business Models

B2C, B2B, C2C, C2B

Government/Public Administration Models

B2G, G2B, G2C, C2G

E-Commerce

E-Commerce is commonly known as E-Marketing.

E-Commerce is the ability to conduct business electronically over the internet.

E-Commerce consists of buying and selling goods and services over an electronic systems such as the Internet and other computer networks.

E-Commerce is a platform for selling products & services via internet.

E Commerce is the process of doing business online.

Sharing business information, maintaining business relationships and conducting business transactions using computers connected to a telecommunication network is called E-Commerce.

The Process of E-Commerce

The Process of E-Commerce

A consumer uses Web browser to connect to the home page of a merchant's Web site on the Internet.

The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in the electronic equivalent of a shopping cart.

When the consumer is ready to complete the purchase of selected items, consumer provides a bill-to and ship-to address for purchase and delivery

When the credit card number is validated and the order is completed at the Commerce Server site, the merchant's site displays a receipt confirming the customer's purchase.

The Commerce Server site then forwards the order to a processing network for payment processing and fulfilment.

Types of E-Commerce

Types of E-Commerce By Type of Transaction

What is a Business Model?

Business model is a conceptual structure of business strategy, i.e., how consumer interacts with business through online.

Business model includes the purpose and goals of your company and how it intends to achieve them.

Basically there are four models which describes almost all transactions with consumers to business or with business to consumers. They are,

1. B2C (Business to Consumer)

2. B2B (Business to Business)

3. C2C (Consumer to Consumer)

4. C2B (Consumer to Business)

with consumers to business.

B2C (Business to Consumer) Model

The customer directly interacts with business organization through a website.

B2C sales are the traditional retail model, where a business sells to individuals, but business is conducted online as opposed to in a physical store.

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 and the organization will dispatch the product/goods to the customer.

The business may sell a service or goods.

B2C (Business to Consumer) Model

B2C (Business to Consumer) Model

Ex: Amazon, Flipkart etc.

B2B (Business to Business) Model

When the products or goods sold from one business to another business.

Here the business sells its products to intermediate buyer, the intermediate buyer again sells the product to retailer or this intermediate buyer itself is a retailer sometimes.

This is a business interaction between manufacturer and customer through online.

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

B2B (Business to Business) Model

B2B (Business to Business) Model

Ex: IndiaMart, Alibaba etc.

C2C (Consumer to Consumer) Model

In C2C model, business transaction takes place between one consumer to another consumer.

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

This provides a specific service to individual customers.

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.

C2C (Consumer to Consumer) Model

C2C (Consumer to Consumer) Model

Ex: OLX, eBay etc.

C2B (Consumer to Business) Model

C2B model consists of the sale of goods and services to the business organization via the website.

In this business model, the consumer creates value, and the businesses consume that value.

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.

C2B (Consumer to Business) Model

C2B (Consumer to Business) Model

Ex: Freelancer, Fiverr etc.

Government/Public Administration Ecommerce

Government or Public Administration E-Commerce models are,

1. Business - to - Government

2. Government - to - Business

3. Government - to - Citizen

4. Citizen - to - Government

B2G (Business to Government) Model

B2G model is a variant of B2B model.

B2G 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.

Business-to-government (B2G) is a business model that refers to businesses selling products, services or information to governments or government agencies.

B2G is also referred to as B2A, which is Business to Administration.

B2G (Business to Government) Model

Ex: Govt. Bids, Tenders, Contracts etc.

B2G (Business to Government) Model

Ex: Govt. Bids, Tenders, Contracts etc.

G2B (Government to Business) Model

G2B model refers to the relationships between organizations (subjects) of public administration and enterprises (businesses).

G2B is a business model that refers to government providing services or information to business organization.

Government uses B2G model website to approach business organizations. Such websites support auctions, tenders and application submission functionalities.

In G2B model the initiative comes from a Government organization and businesses are the target group.

G2B (Government to Business) Model

Ex: government procurement, electronic procurement marketplaces , electronic auctions , e-learning, electronic incorporation forms updating corporate information, sending filled-out electronic forms (eg tax forms, social insurance forms) , sending electronic payments, on-line meetings etc.

G2C (Government to Citizen) Model

Governments use G2C model websites to approach citizen.

The main objective of G2C websites is to reduce the average time for fulfilling citizen’s requests for various government services.

G2C is the communication link between a government and private individuals or residents.

G2C websites support auctions of vehicles, machinery, or any other material.

G2C website also provides services like registration for birth, marriage or death certificates.

G2C (Government to Citizen) Model

Ex: e-citizen services (Aadhar services, National Voters services, Passport services etc.), Cybercrime reporting Portal, Greivance Redressal Portal, Transport related services (Digi Yatra, e-transportation, IRCTC services etc.), Employment related services etc.

C2G (Citizen to Government) Model

C2G business model encompasses electronic transactions online between the individuals and the public administration.

The C2G model helps the consumers to post their queries and request information regarding public sectors directly from their local governments/authorities.

C2G model provides an easy way to establish communication between the consumers and the government.

C2G (Citizen to Government) Model

Ex: e-tax filing, distance learning, payment of health services etc.

Conclusion

E-commerce business models are designed by keeping in mind the major two parties involved in it. One is the service provider or seller, and the other is the consumer or the customer.

References

1. David Whiteley, “E-Commerce”, Tata McGraw Hill, 2000.

2. E Business by Parag Kulakarni and Sunitha Jahirabadkar from Oxford University Press.

3. https://www.tutorialspoint.com/e_commerce/e_commerce_business_models.htm

4. https://www.ecomsay.com/types-of-ecommerce-business-models/

5. https://theinvestorsbook.com/e-commerce.html

THANK YOU