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