ETIT Q.1) What is E-Commerce and Explain the models of E-Commerce?

Q.1) What is E-Commerce and Explain the models of E-Commerce?

Ans:-

E-Commerce:-

It is process for buying and selling of products or services over electronic system such as Internet and Computer Networks.

e.g. Electronic Data Transfer, Supply Chain Management, Internet Marketing, Online Transaction Processing, etc.

Types of E-Commerce:-

1. Collaborative Commerce:- Business Partners Collaborate electronically
2. Intra Business Commerce:- Organization uses EC internally to improve it’s operation
3. Mobile Commerce:- Wireless Environment

Models/Types of E-Commerce Business :-

Creating an e-commerce solution mainly involves creating and deploying an e-commerce site. The first step in the development of an e-commerce site is to identify the e-commerce model. Depending on the parties involved in the transaction, e-commerce can be classified into 4 models. 

These are:

• Business – to – Business (B2B) model
• Business – to – Consumer (B2C) model
• Consumer – to- Consumer (C2C) model

• Consumer – to – Business (C2B) model

Business-to-Business (B2B) Model :-

• The B2B model involves electronic transactions for ordering, purchasing, as well as other administrative tasks between houses. 
•  It includes trading goods, such as business subscriptions, professional services, manufacturing, and wholesale dealings. 
• Sometimes in the B2B model, business may exist between virtual companies, neither of which may have any physical existence. In such cases, business is conducted only through the Internet.

example of www.amazon.com ,TPN

The advantages of the B2B model are:

•  It can efficiently maintain the movement of the supply chain and the manufacturing and procuring processes.
•  It can automate corporate processes to deliver the right products and services quickly and cost-effectively.
• The B2B model is predicted to become the largest value sector of the industry within a few years. This is said to be the fastest growing sector of e-commerce.

Business-to-Consumer (B2C) Model :

• The B2C model involves transactions between business organizations and consumers. It applies to any business organization that sells its products or services to consumers over the Internet. 
• These sites display product information in an online catalog and store it in a database. 
• The B2C model also includes services online banking, travel services, and health information.

• Consider  example in which a transaction is conducted between a business organization and a consumer. A business house, LMN Department Store, displays and sells a range of products on their Web site, www.lmn.com.
•  The details information of all their products is contained in the huge catalogs maintained by LMN Department Stores.
• The B2C model of e-commerce is more prone to the security threats because individual consumers provide their credit card and personal information n the site of a business organization.
• In addition, the consumer might doubt that his information is secured and used effectively by the business organization. This is the main reason why the B2C model is not very widely accepted. 
• Therefore, it becomes very essential for the business organizations to provide robust security mechanisms that can guarantee a consumer for securing his information

Consumer-to-Consumer (C2C) Model :-

• The C2C model involves transaction between consumers. Here, a consumer sells directly to another consumer.
•  eBay and www.bazee.com are common examples of online auction Web sites that provide a consumer to advertise and sell their products online to another consumer. 
• However, it is essential that both the seller and the buyer must register with the auction site. While the seller needs to pay a fixed fee to the online auction house to sell their products, the buyer can bid without paying any fee.
•  The site brings the buyer and seller together to conduct deals.

Example:- eBay

Consumer-to-Business (C2B) Model :-

• The C2B model involves a transaction that is conducted between a consumer and a business organization.
•  It is similar to the B2C model, however, the difference is that in this case the consumer is the seller and the business organization is the buyer. In this kind of a transaction, the consumers decide the price of a particular product rather than the supplier.
•  This category includes individuals who sell products and services to organizations. 
• For example, www.monster.com is a Web site on which a consumer can post his bio-data for the services he can offer.
•  Any business organization that is interested in deploying the services of the consumer can contact him and then employ him, if suitable.