This document discusses different business models for e-commerce. It defines e-commerce as buying and selling goods and services over electronic systems like the internet. The main e-commerce models discussed are business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), and business-to-business-to-consumer (B2B2C). Each model is defined and examples are provided. Additional topics covered include e-commerce vs e-business, drivers of e-commerce, architecture, processes, benefits and challenges. Trends in online business like mobility and social shopping are also mentioned. The document concludes with tips for choosing an effective e-commerce

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e-Commerce
BUSINESS MODELS OF SIGNIFICANCE

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Session Overview
• What is a Business Model?
• The Difference between e-Commerce & e-Business
• The e-Commerce Models
– Purpose
– Benefits
– Application Examples
• Choosing an Effective e-Commerce Business Model
• In-class
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• Four interlocking, interdependent elements that, taken together, create and deliver value.
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What is a Business Model?

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e-Commerce Defined
• Buying and selling goods and services over an electronic system such as the internet.
• E-commerce is the purchasing, selling & exchanging goods and services over computer
networks, or via the internet, wherein transactions or terms of sale are performed
electronically.
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e-Commerce vs. e-Business
• We use the term e-business to refer primarily to the digital enablement of transactions and
processes within a firm, involving information systems under the control of the firm.
• E-commerce includes commercial transactions involving an exchange of value across
organizational boundaries.
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e-Commerce Business Drivers
• Expanded & Faster Data Networks
• Intense Competition
• Increased Globalization
• Advancing Technology
• Trend Towards More Extensive Automation
• Availability of Low-Cost / High-Quality Products & Services
6D.Balaganesh LINCOLN
DIGITAL

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e-Commerce Architecture
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Process of e-Commerce
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Benefits & Challenges
• Benefits include:
– Highly accessible
– Increased customer loyalty
– Improved information content
– Increased convenience
– Increased global reach
– Decreased cost
– Ease of search & evaluation
– Ease of transaction
– Enhanced communication
• Challenges include:
– Protecting consumers
– Leveraging existing systems
– Increasing liability
– Providing security
– Adhering to taxation rules
– Unable to examine products
– Not everyone is connected
– possibility of credit card theft
– Mechanical failures

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Business to Business – B2B
• B2B e-commerce is simply defined as ecommerce
between companies. About 80% of e-commerce is of
this type.
• Application Examples
– Intel selling microprocessor to Dell
– Heinz selling ketchup to McDonald’s
– Amazon selling data analytics / software
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Business to Consumer – B2C
• Commerce between companies and
consumers
– Customers gather information
– Physical goods/services are purchased
and/or received via an electronic
network
• Application Examples
– Amazon selling books
– Dell selling laptops
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Consumer to Consumer – C2C
• Commerce between private
individuals or consumers
• Application Examples
– Classified Ads
– eBay
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Business to Business to Consumer - B2B2C
• An emerging e-commerce model that combines Business to Business (B2B) and Business to
Consumer (B2C) for a complete product or service transaction.
• The next wave of digital marketing
• Application Examples
– Amazon Data Services
– Lending Tree
– Travelocity
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Software as A Service
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• B2B / B2C
• Subscription
• Quality / Speed of product
• Cloud (no maintenance)
• Upfront payments

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Software as A Service
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Trends to Watch For
• 6 Key Trends in Online Business
– Mobility
– Community Building
– Social Shopping
– Analytical Riches
– Search Engine Optimization (SEO)
– Segmentation Over Aggregation
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Choosing an Effective Model
• Consider an appropriate business model for your new product or service.
• Maybe start dealing with physical goods in the beginning.
• When you feel the time is right, go for selling digitally.
• Consider delivering value-add services to your customers.
• Determine whether or not you want to manufacture your product yourself … OR …
• Go for a reliable manufacturer … OR …
• Buy from wholesalers, and then sell.
• Ensure lower price to your customers than your competitors.
• Provide quality products to your customers to establish your brand reputation.
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In-class
• Question & Answer
• Research Examples
• Case Study
• Discussion for Complete Understanding
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