TYPES OF E-COMMERCE
Presented by –
Anjali Wadhwa
BUSINESS TO BUSINESS (B2B)
B2B INTRODUCTION
It refers to E-commerce activities between businesses via
internet.
It is largest form of E-commerce involving business of
trillions of orders.
It is similar to manufacturer issuing goods to retailer or
wholesaler.
It is commonly known as EDI (Electronic Data
Interchange)
B2B INTRODUCTION CONTD…
Pricing is based on quantity of orders and is often
negotiable.
It requires high security needs.
It is privately held, since only business companies can
qualify as potential buyers.
B2B EVOLUTION
Automated order entry systems started in 1970’s
EDI started in the 1970’s
Electronic Storefronts emerged in 1990’s
Net Marketplaces emerged in the late 1990’s
BENEFITS OF B2B E-COMMERCE
Lower procurement administrative costs.
Low-cost access to global suppliers.
Lower inventory investment due to price
transparency/reduced response time.
Better product quality because of increased cooperation
between buyers and sellers, especially during the product
design and development.
EXAMPLES OF B2B TRANSACTIONS
Ford Motor Company does not manufacture automobile
parts; it only assembles these parts and sells the
automobiles to the customers.
Dell sells computers and other related accessories but it
does not manufacture these products. Instead, it
purchases these products from other businesses.
WEBSITES ENGAGED IN B2B E-
COMMERCE
Commdityindia.com
Indiaconstruction.com
Clickforsteel.com
BUSINESS TO CONSUMER (B2C)
B2C INTRODUCTION
It refers to a business communicating with or selling to
an individual rather than a company.
Business sell to the public typically through catalogs
utilizing shopping cart software.
Ability to create a unique ‘skin’ for the site or
developing attractive electronic marketplaces is
important factor in business branding.
B2C TRANSACTION PROCESS
Customer identifies a need
Searches for the products or services to satisfy the need
Selects a vendor and negotiates a price
Receives the products or services
Makes payment
Gets service and warranty claims
ADVANTAGES OF B2C E-COMMERCE
Shopping can be faster and more convenient.
Offerings and prices can change instantaneously.
CHALLENGES FACED BY B2C E-
COMMERCE
Acquiring new customers
Sustaining customer loyalty
WEBSITES ENGAGED IN B2C E-
COMMERCE
Amazon.com
Hotels.com
Travelocity.doc
Rediff.com
Jaldi.com
Indiatimes.com
Indiaballs.com
compUSA.com
CONSUMER TO BUSINESS (C2B)
C2B INTRODUCTION
Also called Demand Collection model.
In this, consumers communicate with business
marketplaces and the site operators.
It use reverse pricing model.
C2B TRANSACTION PROCESS
Consumer posts his project with a set budget online
Companies review the customer requirements and bid on
the project.
Consumer review the bids and selects the company that
will complete the project.
EXAMPLE OF C2B TRANSACTIONS
A person wants to fly from London to New York but has
only $300 in the bank to pay for his trip. He puts an ad
on the internet C2B site, seeking the airlines that are
willing to offer the trip for $300 or less.
WEBSITES ENGAGED IN C2B E-
COMMERCE
Razorfinish.com
Priceline.com
ReverseAuction.com
CONSUMER TO CONSUMER (C2C)
C2C INTRODUCTION
It facilitates online transactions of goods and services
between two people.
Uses an auction style model.
It comprises an auction site (e.g. eBay) where both
sellers and buyers need to be registered.
Sellers need to pay a fixed fee to sell the product but
buyers can bid without a fee.
EXAMPLES OF C2C E-COMMERCE
Advertisement of personal services over the internet
Selling of knowledge and experts online
WEBSITES ENGAGED IN C2C
Bazee.com
Napster.com
ICQ.com
MSN.com
Bidorbuy.com
Auctionindia.com
