E comm models

567 views
355 views

Published on

Ecommerce Business Model

Published in: Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
567
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
13
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

E comm models

  1. 1. Comp2513 E-Commerce Business Models Daniel L. Silver, Ph.D.
  2. 2. Outline  Three fundamental categories of E-Commerce business models – B2C, B2B and C2C  A B2C Scenario – – – – – – 2002 Window Shopping Step into the store (registration) Filling the shopping cart On to the checkout Paying for the items Fulfillment and shipment tracking Daniel L. Silver 2
  3. 3. Three Fundamental Categories of E-Commerce Business Models  B2C – Business to Consumer – What most people typically think of when they think E-Commerce  C2C – Consumer to Consumer – Auctions, Bartering models  B2B – Business to Business – The original E-Commerce models – Why? 2002 Daniel L. Silver 3
  4. 4. B2C – Business to Consumer  Storefront Model – The best known form of E-Commerce – Displays products (catalogs), takes orders, accepts payment, fulfills order, manage customer data – Click and Mortar versus Internet Only – Amazon.com, eToys.com, CDnow.com, Chapters.ca 2002 Daniel L. Silver 4
  5. 5. B2C – Business to Consumer  Online Shopping Mall Model – – – Present wider selection of products and services Searching and shopping convenience Common shopping cart, payment and shipping method – Takes advantage of economies of scale – Merchants are charged in various ways – Mall.com, Canadashop.com, Shoptheshops.com 2002 Daniel L. Silver 5
  6. 6. B2C – Business to Consumer  Portal Models – Horizontal portals – general search engines » Broad range of topics, shallow depth » Links to various malls, stores, auctions, sources » Altavista.com, Hotbot.com, Yahoo.com, Google – Vertical portals – specialist » Narrow range of topics, in-depth information » See http://www.verticalportals.com/ – Help users collect information and purchase – Charge merchants for advertisememts 2002 Daniel L. Silver 6
  7. 7. B2C – Business to Consumer  Innovative/Dynamic Pricing Models – – – – – Name-your-price – Priceline.com Comparison pricing – Bottomdollar.com Bulk-buy pricing – mercata.com, mobshop.com Rebating – eBates.com. eCentives.com Free products and services – iWon.com, Freemerchant.com – free hosting, free store building, free traffic logs, free auction tools, etc Most would not be possible without the Internet 2002 Daniel L. Silver 7
  8. 8. C2C – Consumer to Consumer  Auction Model – – – – Internet forum for sellers and bidders Various auctions (reserve-price, reverse, Dutch) eBay.com (1995, Pez dispenser collector) 4M simultaneous auctions, 450K new items/day – $3.8B spent in online auctions in 2000(Forrester)  Bartering Model – Offering one item in exchange for another – Ubarter.com 2002 Daniel L. Silver 8
  9. 9. B2B – Business to Business  Businesses have long done E-Commerce with each other – EFT – Electronic Funds Transfer (banks) – EDI – Electronic Data Interchange (suppliers)  Traditional EDI uses a VAN (value-added network) – – –  Closed networks, manufactures and suppliers Purchase orders and invoices exchanged daily Standards vary, VANs are costly, closed nets Moving to the Internet, Web technology and XML (upgrade of EDI) 2002 Daniel L. Silver 9
  10. 10. B2B – Business to Business    B2B Internet exchanges provide standard methods of buying, selling, bartering and partnering 2003: US$403 B 2004 projection: – US$2.77 trillion » (eMarketer) – US$7.29 trillion » (Gardner Group)  B2B auctions: – US$52 billion 2002 2002 Daniel L. Silver 10
  11. 11. The Traditional B2C Commerce Scenario 1. 2. 3. 4. 2002 Buyer and seller meet Buyer chooses product and places order Seller delivers product Buyer pays for product Daniel L. Silver 11
  12. 12. The E-Commerce B2C Scenario Consumer Perspective  Search the Internet  Choose the right product  Place the order and shipping info.  Enter payment info.  Receive product via Internet or ground shipment 2002 Business Perspective  Advertising  Inventory (product) Management  Order Processing (shopping cart)  Payment Mgmt  Fulfillment and Shipping  Profile Management Daniel L. Silver 12
  13. 13. A B2C Scenario I would like to buy some hands-free technology to work with my cellular phone for my consulting business.  Criteria:  – – – – 2002 It must be reliable Inexpensive as possible Light-weight Small (able to fit into my pocket) Daniel L. Silver 13
  14. 14. Typical B2C Shopping Trip View Homepage Search Navigate Registration Product Advisor Select Products Shopping Cart Enter Shipping Info. Address Book Enter Payment Info. Submit Order 2002 Receive Ack. Daniel L. Silver 14
  15. 15. A B2C Scenario Technology Questions          How does a browser connect to a server? How does a search engine work? What is a cookie? How do those banner adds work? Are there web pages for every item? What is all that gobbledygook in the page address? What is a shopping cart? How long does it exist? How does a web sites know who I am on return? Should I register? 2002 Daniel L. Silver 15
  16. 16. A B2C Scenario Technology Questions         How does it find my password? How does it automatically send me emails? What are the messages concerning insecure submissions all about? What is authentication, certificate, encryption? How do they know my credit card is good? How do they know there is credit left? How is software I have purchased downloaded? How do they track my shipment? 2002 Daniel L. Silver 16
  17. 17. B2C Levels of Automation Front-End  Static Web content  Dynamic Web content  Secure ordering  Shopping cart  Persistent customer Data  Personalization of Content 2002 Back-End  Manual  Non-integrated computer  Automatic entry  Total Web integration Daniel L. Silver 17
  18. 18. Business Evolution on the Web Processes Functionality Web-enabled applicatons Transactions Interactivity Dynamic web pages Publishing Static web pages Time or Maturity 2002 Daniel L. Silver 18
  19. 19. THE END danny.silver@acadiau.ca

×