2. Contents
Commerce
E-commerce
Business models for e-commerce
Electronic data interchange (EDI)
Advantages of EDI
How EDI works?
Payment gateway
Virtualization
How virtualization works?
Application areas of virtualization
3. What is Commerce?
E-COMMERCE
Commerce is a division of trade or production which deals with the exchange of goods and services
from producer to final consumer.
• It is commonly known as electronic marketing.
• It refers to the use of technology to enhance the processing of commercial transactions between
a company, its customers and its business partners.
• In e-commerce, the buyers and sellers interact electronically using telecommunication networks
rather than through physical contact or exchange.
• It is a new way of conducting, managing, and executing business transactions using computer
and telecommunication networks.
4. 1.Business to Consumer (B2C):
Business Models for E-Commerce
Definition: -
B2C is typically used to refer to online retailers who sell products and services to consumers
through the internet.
Generally, this supports the activities within the consumer chain that focuses on sell- side
activities.
E-Business Markets: -
E-shops, E-malls, E-auctions, buyer, aggregators, portals, etc.
Examples: -
This may involve direct sellers like www.cisco.com; online intermediaries like www.amazon.com;
and communities built around shared interests like photography, cooking etc.
www.cookingmatters.com .
5. 2. Business to Business(B2B):
Business Models for E-Commerce
Definition: -
This supports the supply chain of organizations that involves commerce between a company and
its suppliers or other partners. A website sells its products to an intermediate buyer who then sells
the product to the final customers.
E-Business Markets: -
E-auctions, E-procurement, E-distribution, portals, E-marketing, etc.
Examples: -
A wholesaler places an order from a company’s website after receiving the consignment, sells the
end-product to the final customer who comes to buy the product at one of its retail. Just like
www.indiamart.com .
6. 3. Consumer to Consumer(C2C):
Business Models for E-Commerce
Definition: -
With C2C e-business model, consumers sell directly to other consumers via on-line classified ads
and auctions, or by selling personal services and expertise on-line. C2C e-commerce allows
unknown, untrusted parties to sell goods and services to one another. Consumer-to-consumer
model facilitates plain and simple commerce between consumers. In this model, revenue typically
matching buyers with sellers and vice versa.
E-Business Markets: -
E-auctions, virtual communities, etc.
Examples: -
A consumer selling his/her asset like residential property, cars, motor-cycles etc. or rent a room by
publishing their information on the relevant website. Just like:- www.eBay.com .
7. 4. Consumer to Business(C2B):
Business Models for E-Commerce
Definition: -
In this model, consumers set prices and companies bid to offer product and services.
E-Business Markets: -
E-marketing, E-distribution.
Examples: -
The comparison of interest rates of personal loan/car loan provided by various banks via
websites. The consumer places an estimate of amount he/she wants to spend on hiring a service
of personal loan. A business organization who fulfills the consumer’s requirement within the
specified budget, approaches the customer and provides its services. Like :- www.bankbazar.com
.
8. 5. Consumer to Government(C2G):
Business Models for E-Commerce
Definition: -
This covers all the e-commerce transaction between consumers and government.
E-Business Markets: -
E-marketing
Examples: -
www.incometaxindia.gov.in .
9. 6. Government to Consumer(G2C):
Business Models for E-Commerce
Definition: -
This allows consumers to provide feedback or ask information about government authority from
public sector. Consumers can reach higher authority without going around in cities. The aim is to
reduce the average time for fulfilling citizen’s requests for various government services.
E-Business Markets: -
E-marketing
Examples: -
Services including land searches, confirmation of genuine licenses and vehicle ownership
searches. Disputes such as non-payment of tax or tax refunds are resolved through online
support on the government platforms. Example:- E-Seva (Andhra Pradesh).
10. 7. Business to Government(B2G):
Business Models for E-Commerce
Definition: -
B2G model is a variant of B2B model. Such websites are used by governments to trade and
exchange information with various business organizations.
Examples: -
Such websites are accredited by the government and provide a medium to businesses to submit
application forms to the government. For example:- ports, or sell goods and services to
Government agencies.
11. Electronic Data Interchanged(EDI)
• Electronic Data Interchange (EDI) is a standard format for exchanging business data.
• EDI is an electronic communication system that provides standards for exchanging data via any
electronic means.
• EDI is commonly used for e-commerce purposes, such as sending orders to warehouse, tracking
shipments, and creating invoices.
13. Payment gateway
1. A Payment Gateway is a service that authorizes credit card payments, processes them securely, and
deposits the funds into merchant’s bank account.
2. A payment gateway performs the same functions as a credit card swipe machine at restaurant or retail
store, it just performs these functions for purchases made online instead of in person.
3. Payment gateway represents the way e-commerce/m-commerce vendors collects their payments.
4. The payment gateway is another critical component of e-commerce set up.
5. These payments gateway assures seller of receipt of payment from buyer of good & services.
6. Payment gateway is a means of authorizing credit cards or other forms of electronic payments.
14.
15. Virtualization
How virtualization works?
Virtualization refers to technologies designed to provide a layer of abstraction between
computer hardware systems and the software running on them.
1. The core concept of Virtualization lies in partitioning, which divides a single physical server into
multiple logical servers.
2. Once the physical server id divided, each logical server can run an operating system and
applications independently.
3. For example: Partitioning of a hard drive is considered virtualization because one drive is
portioned in a way to create two separate hard drives.
4. Devices, application and human users are able to interact with the virtual resource as if it were
a real single logical resource.