CHAPTER 2

E-COMMERCE
APPLICATION
B2C E-COMMERCE

• Storefront
• Electronic newspaper
• Internet banking
• Electronic auctions
B2C
 B2C (Business-to-Customer) ecommerce is the
exchange of goods or services over the internet
between online stores/businesses and individual
customers.
 Traditionally, this could refer to individuals
shopping for clothes for themselves at the mall,
diners eating in a restaurant or subscribers deciding
to get pay-per-view TV at home.
 More recently, however, the term B2C refers to the
online selling of products, or e-tailing, in which
manufacturers or retailers sell their products to
consumers over the internet.
 An example of a B2C transaction would be
someone buying a pair of shoes online or booking a
pet hotel for a dog..
B2C MODELS
B2C BUSINESS MODELS
There are generally five business models:
1.Direct Sellers
 This is the type most people are familiar with – they are the online retail sites
where consumers buy products. They can be manufacturers such as Gap or Dell
or small businesses that create and sell products, but they can also be online
versions of department stores selling products from a wide range of brands and
manufacturers. Examples include Target.com, Macys.com, and Zappos.com.
2.Online Intermediaries
 These “go-betweens” put buyers and sellers together without owning the product
or service. Examples include online travel sites such as Expedia and Trivago and
arts and crafts retailer Etsy.
B2C BUSINESS MODELS
3. Advertising-Based
 This approach leverages high volumes of web traffic to sell advertising which, in turn, sells products or services to the consumer. This model uses
high-quality free content to attract site visitors, who then encounter online ads. Media outlets that have no paid subscription component, such as
the Huffington Post and Observer.com, are examples.
4. Community-Based
 This model uses online communities built around shared interests to help advertisers market their products directly to site users. It could be an
online forum for photography buffs, people with diabetes, or marching band members. The best-known example is Facebook, which helps
marketers target ads to people according to very specific demographics
5. Fee-Based
 These direct-to-consumer sites charge a subscription fee for access to their content. They typically include publications that offer a limited amount
of content for free but charge for most of it – such as The Wall Street Journal – or entertainment services such as Netflix or Hulu
 Businesses selling directly to consumers should take into account how their target customers like to shop and buy products like theirs as they
explore various business-to-consumer options, whether those possibilities involve in-person or online transactions.
TYPES OF B2C
FOUR COMMON
B2C
 Electronic Storefront

 Electronic Newspaper

 Internet Banking

 Online Auctions
1-ELECTRONIC STOREFRONT
 An electronic storefront is an e-commerce solution for merchants who want to host a website
that advertises their products or services and for which consumer transactions are generated
online. Various software applications are available to merchants, which range from electronic
shopping carts to secure payment gateways. Merchants that lack e-commerce technical skills
find that storefront vendors are especially helpful when starting out or maintaining their online
stores.
 Web analytics and secure socket layer (SSL) security are crucial aspects as well
 Some electronic storefronts include analytic interfaces for the purpose of growing online
businesses as well as predictive analytics to anticipate future shopping trends. If a merchant
needs it, websites can be custom designed, and technical support may be provided.
 Another name for an electronic storefront is an online storefront.
2-ELECTRONIC NEWSPAPER
 An online newspaper is the online version of a newspaper, either as a stand-alone publication
or as the online version of a printed periodical.
 Going online created more opportunities for newspapers, such as competing with broadcast
journalism in presenting breaking news in a more timely manner. The credibility and strong
brand recognition of well established newspapers, and the close relationships they have with
advertisers, are also seen by many in the newspaper industry as strengthening their chances of
survival.
 The movement away from the printing process can also help decrease costs.
 Two types :
 Online only newspaper
 Hybrid newspaper - focused on online content, but also produce a print form
 Internet banking allows a user to conduct financial transactions
via the Internet. Online banking is also known as online
banking or web banking.
 Online banking offers customers almost every service
traditionally available through a local branch including
deposits, transfers, and online bill payments. Virtually every
banking institution has some form of online banking, available
both on desktop versions and through mobile apps.
3-
 Online banking requires a computer or other device, an Internet
connection, and a bank or debit card. In order to access the
INTERNET
BANKING
service, clients need to register for their bank's online banking
service. In order to register, they need to create a password.
Once that's done, they can use the service to do all their
banking.
 Checks can now be deposited online through a mobile app. The
customer simply enters the amount before taking a photo of the
front and back of the check to complete the deposit.
 Convenience is a major advantage of online banking. Basic
banking transactions such as paying bills and transferring
funds between accounts can easily be done 24 hours a day,
seven days a week, wherever a consumer wishes.

ADVANTAGE Online banking is fast and efficient. Funds can be transferred

between accounts almost instantly, especially if the two
S OF ONLINE accounts are held at the same institution. Consumers can open
and close a number of different accounts online, from fixed
BANKING deposits to recurring deposit accounts that typically offer
higher rates of interest.

Consumers can also monitor their accounts regularly closely,

allowing them to keep their accounts safe. Around-the-clock
access to banking information provides early detection of
fraudulent activity, thereby acting as a guardrail against
financial damage or loss.
  For a novice online banking customer, using systems for the first time may
present challenges that prevent transactions from being processed, which
is why some consumers prefer face-to-face transactions with a teller.

DISADVANT  Online banking doesn't help if a customer needs access to large amounts of
cash. While he may be able to take a certain amount at the ATM—most

AGES OF cards come with a limit—he will still have to visit a branch to get the rest.

ONLINE  Although online banking security is continually improving, such accounts

are still vulnerable when it comes to hacking. Consumers are advised to
use their own data plans, rather than public Wi-Fi networks when using

BANKING online banking, to prevent unauthorized access.

 Additionally, online banking is dependent on a reliable Internet

connection. Connectivity issues from time to time may make it difficult to
determine if banking transactions have been successfully processed.
 Some banks operate exclusively online, with no
physical branch. These banks handle customer service
by phone, email, or online chat.
 These banks may not provide direct automatic teller
machine (ATM) access but will make provisions for
consumers to use ATMs at other banks and retail stores.
They may reimburse consumers for some of the ATM
fees charged by other financial institutions. Reduced
DO YOU
overhead costs associated with not having physical KNOW?
branches typically allow online banks to offer
consumers significant savings on banking fees. They
also offer higher interest rates on accounts.
 Prominent online banks in the United States include
Ally Bank, Bank5 Connect, Simple Bank, Discover
Bank, and Synchrony Bank.
4-ONLINE AUCTIONS
 is an auction which is held over the internet.

 online auctions break down and remove the physical

limitations of traditional auctions such as geography,
presence, time, space, and a small target audience
 the largest online auction site is eBay, which was the first
to support person-to-person transactions. Other popular
examples of online auction sites include WebStore,
OnlineAuction and Overstockt
 Malaysia online auction site https://bid2u.com.my/en
B2B
CHALLENGES
B2C CHALLENGES
 Consumer traffic. If Google, Bing, or Yahoo! do not know your name, you do not exist. Search
engine marketing and optimization are the lifeblood of any online business. The usual
consumer behavior is to transition to a link on the first or second page of search results. A B2C
website must be optimized to attract traffic; the structure, architecture, and content
management system must work for you as from its creation. This is why the choice for a
website platform is vital for its success.
 Product findability. Online stores continue are becoming more straightforward, more intuitive,
and flashy-looking. The convenience of on-site searching and navigating is the key component
of usability. The associations, specific jargon, abbreviations, autocomplete suggestions of the
search dictionary, filters and refinements, clear product hierarchy - are the essential features
that would dramatically increase conversion rates. If a client can’t find a product, he can’t buy
it.
B2C CHALLENGES
 Payment processing. Many customers are hesitant to submit their personal data to websites
due to security reasons. SSL encryption, PCI compliance and other trust marks have proven to
increase online clients' confidence.
 Client support. Sales are always about people. The cost of acquiring a new consumer is almost
ten times higher than of maintaining an existing loyal customer, who usually spends 60% more
than a new client. An optimized customer experience encourages visitors to become loyal
customers. So the most significant emphasis should be on improving retention. Many
strategies help make clients feel appreciated. Online shopping needs to be easy , it needs to
motivate clients to become your partners, the advocates of your brand.
FACTORS TO
CONSIDER
WHEN
CHOOSING AN E-
COMMERCE
PLATFORM
FACTORS TO CONSIDER
WHEN CHOOSING AN E-
COMMERCE PLATFORM
Pricing and Payment .
 The first thing you should consider when searching for an ecommerce platform is the price.
Whether you’re a small business just getting started or an already established brick & mortar
business moving online, you need to know exactly what you’ll be paying.
2.Integrations
 Another factor you should consider when looking at ecommerce
FACTORS TO
platforms is their integrations and plugins. Most platforms, such as
Shopify, will have plenty of tools for you to run your business. Your
business needs will be a determining factor when deciding on the
CONSIDER
WHEN
plugins that will work best for you. When looking at the different
platforms, think of what tools you’ll need or already use for your
business. Here are some of the most popular types of plugins that you
should look out for:
 Accounting plugins to help with sales, taxes, revenues, and profits
 Email marketing tools to help you keep in contact with your
CHOOSING AN
E-COMMERCE
customers
 A platform that helps you reward your customers for using your
products
 Apps to help with shipping your products
PLATFORM
3. SEO Friendliness
 Ecommerce businesses are not exempt from working
FACTORS TO
on their SEO. In fact, it can be highly beneficial to
have your store rank high in search results. You want
CONSIDER
your customers to find you when they’re searching for
products like yours. WHEN
 Some of the most important factors when looking for
an SEO friendly platform include: CHOOSING AN
 The ability to add a blog to your website
 The ability to use your own domain name E-COMMERCE
 The ability for customers to leave reviews
PLATFORM
FACTORS TO CONSIDER
WHEN CHOOSING AN E-
COMMERCE PLATFORM
4.Mobile Friendliness
 Did you know nearly 60% of searches are done from
mobile devices? Often those searches continue on to
a purchase from a mobile device. This means its
important to look for platforms that allow customers
to easily access your website as well as make a
purchase on their mobile device. Diagram at the side
is a great example from Shopify
5.Security
 No one want to enter their credit card
FACTORS TO
information on a sketchy website, which is
why security is becoming one of the biggest
CONSIDER
concerns among consumers. While most
software today will have robust security as
WHEN
standard, always check to make sure your
platform supports HTTPS/SSL for a safe and CHOOSING AN
secure checkout for your customers.
 Also, make sure that any platform you choose
E-COMMERCE
is PCI (Payment Card Industry) compliant. PLATFORM
FACTORS TO CONSIDER
WHEN CHOOSING AN E-
COMMERCE PLATFORM
6 -Scalability
 All business owners hope their business will grow
in the future, but you may not know to what
extent. Nonetheless, it’s important to look for a
platform that will scale along with your business.
 You don’t want to pay for features and storage
that you’re not using when you first start out. You
also want to keep up with higher demands as your
business takes off. Choose a platform that you can
scale to your business size and that won’t charge
you outrageous fees for doing so.
THANK YOU.
REFENCES
 https://www.shopify.my/encyclopedia/business-to-consumer-b2c
 https://www.investopedia.com/terms/o/onlinebanking.asp
 https://en.wikipedia.org/wiki/Online_auction
 https://www.2checkout.com/ecommerce-glossary/electronic-storefront/
 https://virtocommerce.com/glossary/what-is-b2c-ecommerce
 https://www.digitaldoughnut.com/articles/2019/august/top-b2c-ecommerce-challenges-of-201
9
 https://www.searchenginewatch.com/2017/08/11/7-things-to-consider-when-choosing-an-
ecommerce-platform/