ALLAMA IQBAL OPEN UNIVERSITY

Department of Business Administration

Course. E-Commerce

Level M.COM

Course Code 8554

Topic Assigned E-Commerce Business Models

Name of Tutor S M Raza

Name of Student Anam Abdul Qayyum

Roll No BV556062

Semester Spring
E-Commerce Business Models
Presented To: S M RAZA
Presented By: ANAM ABDUL QAYYUM
What is E-Commerce?
E-commerce is the selling and buying of goods and
services, or the transmitting of funds and data ,
over an electronic network, such as internet.
What is a business model?

A business model refers to the method of doing

business by which a company can generate a
revenue.
E-commerce is a type of business model that
enable to a firm to conduct business over the
Internet.
 Business Models of E-Commerce
 E-commerce business models can generally be categorized into the
following categories.

 Business - to - Business (B2B)

 Business - to - Consumer (B2C)
 Consumer - to - Consumer (C2C)
 Consumer - to - Business (C2B)
 Business - to - Government (B2G)
 Government - to - Business (G2B)
 Government - to - Citizen (G2C)
B2B Business Model
 Business - to - Business
B2B business model sells its products to
an intermediate buyer who then sells
the product to the final customer.
As an example, a wholesaler places an
order from a company's website and
after receiving the consignment, sells
the end product to the final customer
who comes to buy the product at one
of its retail outlets.
 B2B E-Commerce

 It refers to a situation where one business makes a commercial transaction with

another. I.e. It is the inter organizational electronic transaction.
 The overall volume of B2B segment is more than double of the volume in B2C
segment.
 Alibaba, Manta, India-mart etc , are the popular names in the present B2B
market.
 B2B typically occurs:
 When a business purchase a raw materials for production or
 When a business needs the services of another or
 When a business re-sells goods and services provided by others
B2B Business Model Type

 Supplier Oriented marketplace (E-Distribution) − A common

marketplace provided by supplier is used by both individual
customers as well as business users.

 Buyer Oriented marketplace (E-Procurement) − A buyer has his/her

own market place or e-market. He invites suppliers to bid on
product's catalog.

 Intermediary Oriented marketplace (E-Exchange) − An intermediary

company runs a market place where business buyers and sellers
can transact with each other.
Benefits of B2B E-Commerce

Scalability
Improved Efficiency
More Revenue
Improved Brand Awareness
Analytics
Cost Reduction
B2B E-Commerce Business Examples

Quilla.com
Office supplies, owned by staples

Ferguson.com
Bath, kitchen and lighting supplies

Grainger.com
Contracting tools and supplies
B2C Business Model
 Business - to - Consumer
 B2C business model sells its products directly to a
customer.
 A customer can view the products shown on the
website.
 The customer can choose a product and order
the same.
 The website will then send a notification to the
business organization via email and the
organization will dispatch the product/goods to
the customer.
 B2C E-Commerce
 B2C e-commerce is used to describe a transaction
conducted over the Internet between a business and a
consumer for his/her personal use.
 B2C is otherwise known as e-tailing.
 Popular items sold using b2c are air-tickets, books, computers
etc.
 B2C makes revenue through direct sale to customers, as well
as shipping for retailers, such as Amazon, which has its own
shipping methods.
The B2C Process
B2C Business Model Type

 Portals – It offers powerful web searching tools like search engines

 Storefront – An online version of retail store
 Market creator – Use internet technologies to create
market that bring buyers and sellers together like online auctions
 Content providers – It offers detailed product information on web
like newspaper
 Transaction broker – They process online sales transaction and
receive a commission like share broker
 Community provider – Sites where individuals with similar interest
come together and interact
Benefits of B2C E-Commerce

Instant communication
Global access
Customization
De-intermediation
Collaboration
 Relationship between B2B and B2C
B2B

Raw
Manufactu
Material Wholesaler Retailer Consumer
re
Supplier

B2C
B2C E-Commerce Business Examples

AliExpress.com
Smarter shopping, Better living!

Booking.com
Online hotel reservations

Zocdoc.com
Find doctor in your network

Amazon.com

Goldenlines.com
C2C Business Model
 Consumer - to - Consumer
 C2C business model helps consumers
to sell their assets like residential
property, cars, motorcycles, etc., or
rent a room by publishing their
information on the website.
 Website may or may not charge the
consumer for its services.
 Another consumer may opt to buy
the product of the first customer by
viewing the post/advertisement on
the website.
 C2C E-Commerce
 The C2C model involve transactions between
consumers. Here a consumer directly to another
consumer.
 eBay and craigslist are common examples of online
auctions websites that provide a consumer to
advertise and sell their product online to another
consumer.
 Personal items and used items are mainly transacted
in this market.
C2C Business Model Type

Free online classifieds

Auctions
Forums
Individual pages for startup entrepreneurs
Advantages and Limitations of C2C

Advantages
o Low transaction cost
o No intermediary
o Wide range
o Round the clock availability

Limitations
o Payment made has no guarantee
o Notorious for scams
o No standardization
C2C E-Commerce Business Examples
C2B Business Model
 Consumer – to – Business

 A consumer approaches a website

showing multiple business
organizations for a particular service.
 The consumer places an estimate of
amount he/she wants to spend for a
particular service.
 A business organization who fulfills the
consumer's requirement within the
specified budget, approaches the
customer and provides its services.
C2B Business Model Type
• C2B model uses a reverse auction scenario also called demand
collection model.
• The business responds to the consumer’s requested product and its
price.
• It enables buyers to name their own price, often binding, for a
specific goods or services generating demand.
• A consumer post his project with a set budget online and within
outs; companies review the customers’ requirements and bids out
the project.
• Then customer will review the bids and select the company that will
complete the project.
• For example; stock market , priceline.com , ReverseAuction.com
C2B E-Commerce Business Examples
 Market research (quantitative surveys, qualitative interviews,
segmentation).
 Consumer feedback channels, such as rating and reviews,
customer service lines, avenues for suggestions/comments.
 Social media, such as online consumer user communities,
Facebook pages, Twitter followings, etc.
Conclusion

 "E-commerce is an evolution"
By using electronic technology through the internet, it achieved
* More competitions, more marketplaces, faster transactions, and more
advanced technologies
to make activities between customers and producers more active.
* We as customers and internet users are responsible to keep our e-
commerce healthy and safe so
that e-business can be more reliable in the future