E-Commerce: Prof Ajay Mody

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E-commerce

Prof AJAY MODY


Relation between B2B And B2C
Models

Raw Material
Producer Manufacturer Distributor Retailer Consumer

B2B B2C
E-business transaction Model

Business Business

Government

Consumer Consumer
Characteristics of B2C
• In-expensive cost, big opportunities.
• Globalisation.
• Reduces operation cost.
• Customer Convenience.
• Knowledge Management
Customer Identifies
Needs

Searches for the product or


services to satisfy need

Selects a vendor and


negotiates a price

Receives the product


and services

Makes A PAYMENT

Gets Service
And warranty claims
Major Advantages of B2B
• Direct Interaction with customer
• Focused Sales Promotion
• Building Customer loyalty
• Scalability
• Saving in Distribution costs
Strategy Formulation
• Use of pricing as a tool
• Use of application service provider
• Use of generic Models which are known
for efficiency as well as personalized
attention to various business customers.
• Use of comparision shopping
Common elements of B2B
exchanges
• Elements • Benefits

• Centralised market place • Neutral and non aligned


with either seller and
buyers
• Users are prequalified
• Standardised and regulated
Documentation
• Prices quotes, price
history, after sales • Pricing mechanism is self
information regulating
• Confidential transaction • Clearing and settlement
between businesses services provided
B2B Marketplace

Aggregators
Hubs

Auctions Seller
Buyer

Community
Contents
Transaction Model
Aggregator Brokerage Value chain
High

C
O
Info- Mediary Advisory
N Manufacturer

T
R
O
L
Community
Subscription Affiliate
Low

LOW VALUE INTEGRATION HIGH


Affiliate Marketing

Step 3

Affiliate
Brand Seller

Step 2

Step 1
Step 1 customer visit
affiliate website.
Step 2 affiliate website Customer
directs to brand seller
website
Step 3 Brand seller
compensates to affiliate

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