1. E-COMMERCE MODELS & STRATEGIES
MODULE 2
E-COMMERCE MODELS & STRATEGIES

2. TYPES OF E-COMMERCE 1. Business to Consumers (B2C)
2. Business to Business (B2B)
3. Business to Employee (B2E)
4. Business to Government (B2G)
5. Business to Business to Consumers (B2B2C)
6. Consumer to Consumer (C2C)
7. Consumer to Business (C2B)
8. Government to Citizen (G2C)
9. Government to Business (G2B)
10. Government to Government (G2G)
11. Peer to peer (P2P)
12. Mobile Commerce (M-Commerce)
13. Facebook Commerce (F- Commerce)
14. Digital Commerce (D-Commerce)

3. TYPES OF E-COMMERCE 1. Business to Consumers (B2C)
Sells products or services directly to the consumers
Major reason for growth of B2C sites are
Better opportunity
Globalization
Low operational cost
Convenience to consumers
Reduced price

4. TYPES OF E-COMMERCE Functioning of Business to Consumer (B2C)
Visiting the Online shop
Customer Registration
Product Selection and Purchase
Order Processing
Payment Processing
Shipment and Delivery
After Sale Service

5. TYPES OF E-COMMERCE 2. Business to Business (B2B)
Sells products or services to other businesses through internet or brings multiple buyers and sellers together in a central market place.
Advantages of B2B
Direct Interaction
Focused Sales Promotion
Customer Loyalty
Wider Geographical Coverage
Savings in Distribution Cost

6. TYPES OF E-COMMERCE 1. Trading Process in Business to Business (B2B)
A buyer determines the requirements , fix specification, prepare the RFQ (Request for Quotation) , and searches for potential suppliers (sellers)
The buyer submits the RFQ and invites potential suppliers to respond.
Suppliers obtain the RFQ for processing
Interested suppliers bid for the request accordingly
The buyer and suppliers can negotiate the bid online
Finally, the buyer selects the best bid and complete the purchase

7. TYPES OF E-COMMERCE 3. Business to Employees (B2E)
This is an intra-business network which allows companies to provide products and services to their employees
Online Insurance Policy Management
Corporate announcement
Special employee offers

8. TYPES OF E-COMMERCE 4. Business to Government (B2G)
It is often referred as Public Sector Marketing.
This include marketing of products and services to various Governmental organizations through integrated marketing communications. B2G network provide a platform for Public Sector organizations to post tenders in the Internet and companies bid on those opportunities.

9. TYPES OF E-COMMERCE 5. Business to Business to Consumers (B2B2C)
Here one business house sends information to another business house (subsidiary/branch/dealer) which in turn is servicing the final consumer .The large company is having some client companies in different geographical zones. Thus the client business maintain its own business

10. TYPES OF E-COMMERCE 6. Consumer to Consumer (C2C)
It is also called Citizen to Citizen E-Commerce
C2C sites are electronic meeting place of consumers as buyers and sellers. These sites are usually come in the form of an auction site. Other consumers access the site and place bids on the items. The site then provides a connection between the seller and buyer to complete the transaction. E.g. OLX.Quikr

11. TYPES OF E-COMMERCE 7. Consumer to Business (C2B)
In C2B , consumers offer products and services to companies and companies pays them. C2B is a complete reversal of B2C.

12. TYPES OF E-COMMERCE 8. Government to Citizen (G2C)
The goal of Government to Customer (G2C) e-Governance is to offer a variety of ICT services to citizens in an efficient and economical manner, and to strengthen the relationship between government and citizens using technology.

13. TYPES OF E-COMMERCE 9. Government to Business (G2B)
It is an online non- interaction between Local and Central Government and the other commercial business rather than Private Individuals (G2C).
E.g. eBiz – India’s first Government-to-Business (G2B) portal which has been developed by Infosys in a public private partnership model

14. TYPES OF E-COMMERCE 10. Government to Government (G2G)
This is sort of online no-commercial transaction between Government organizations, Departments and authorities. It integrates various Government departments and agencies into a single Government Information System.

15. TYPES OF E-COMMERCE 11. Peer to Peer (P2P)
P2P is also known as People to People E-Commerce .
P2P technology enables internet users to share files and computer resources directly without the help of central web server. The most widely used P2P Networks are Bit Torrent and eDonkey.

16. TYPES OF E-COMMERCE 12. Mobile Commerce (M-Commerce)
It is defined as the process of buying and selling of goods and services through wireless technology.Wireless digital devices such as Mobile phones ,PDAs , Palm tops enable transactions on the web.

17. TYPES OF E-COMMERCE 13. Facebook Commerce (F- Commerce)
The use of Facebook as a platform for facilitating and executing transactions.
In e-commerce terminology, Facebook commerce, or F-commerce, is a strategy that focuses on  developing or designing ecommerce content and storefront sites within the Facebook social networking site

18. TYPES OF E-COMMERCE 14. Digital Commerce (D- Commerce)
Digital Commerce is primarily refers to the activity of buying and selling goods and services through digital channels. It is a form of e-commerce by companies that sell news ,documents, e-books, music ,video, software or ay other content that can be delivered digitally over the web.

19. E-Commerce VS M-Commerce
Technology
E-Commerce
M-Commerce
Device PC
Smart Phones, PDAs, Tablet Computers, Phablets OS
Windows, Unix, Linux
Android, Windows, Symbian, Palm OS ,etc.
Presentation Standard
HTML
HTML, WML, HDML,
i-Mode
Bearer Network
TCP/IP & Fixed Wire Line Network
GSM, GPRS, TDMA, CDMA, Paging Network etc.
Browser
Google Chrome, Mozilla firefox, IE ,Opera ,Safari, Bing etc
Opera Mini, UC browser, Android, IE, Bing etc

20. E-COMMERCE BUSINESS MODELS
1. Brokerage Model
Open Auction
Reverse Auction
Market Exchange
2. Aggregator Model
Content Aggregator
Mainstream Aggregator
Event Aggregator
Shopping Aggregator
3. Infomediary Model
Specialized Agents
Generic Agent
Supplier Agent
Buyer Agent
4. Community Model

21. E-COMMERCE BUSINESS MODELS
5. Value Chain Model
6. Manufacturer Model
7. Advertising Model
8. Subscription Model
9.Affiliate Model
10. Utility Model

22. E-COMMERCE BUSINESS MODELS
1. Brokerage Model
The brokerage model brings together the buyers and sellers and facilitates transactions. Three types of transaction may occur buyer and seller in a brokerage model B2B ,B2C and C2C.A broker charges a fee for each transaction either from both the parties or from one party.
E.g.
BROKER
SELLER
BUYER

23. E-COMMERCE BUSINESS MODELS
Price Discovery mechanism for Brokerage Model are
1.Open Auction/Forward
The seller sets the price and submits to multiple buyers .The participants repeatedly place higher bids for the product under auction .The person who places the highest bid gets the product. E.g.
2.Reverse Auction/Dutch Auction
In Reverse Auction the price of the product is set at a very high level .The price is reduced at regular intervals till someone agree at the price and buys the product.
E.g.
3.Market Exchange
Buyer and sellers can exchange goods and services through the market exchange .They provide full range of services covering the transaction process.

24. E-COMMERCE BUSINESS MODELS
2.Aggregator Model
Aggregator model is an E-commerce business model where a firm (that does not produce or warehouses any item) collects (aggregates) information on goods and/or services from several competing sources at its website. The firm's strength lies in its ability to create an 'environment' which draws visitors to its website, and in designing a system which allows easy matching of prices and specifications.

26. E-COMMERCE BUSINESS MODELS
Basically there are four type of aggregators
Content Aggregator
Mainstream Aggregator
Event Aggregator
Shopping Aggregator
1. Content Aggregator
They are large scale sites which provide data in a form of statistics , research works or analysis or pool information. 
E.g.

27. E-COMMERCE BUSINESS MODELS
2. Mainstream Aggregators
It provide search engine along with bunch of attractive tools like facility, remainders, online chat, etc. The most attractive factor of these sites is that they have an easy to remember URL, which is one of the reason for their popularity.
E.g.

29. E-COMMERCE BUSINESS MODELS
3. Event Aggregator s
These are sites that provide in depth content and tools tailored to the needs of a particular group. Here the user can get information ,tools, analysis advices and the ability to purchase a product or service based on it.
E.g.

31. E-COMMERCE BUSINESS MODELS
4. Shopping Aggregators
Shopping aggregators let consumers roam through hundreds of sites and catalogs and find the best product and price, in seconds. They help consumers to go through dozens of e-commerce sites and compare products and price.
E.g.

32. E-COMMERCE BUSINESS MODELS
Basically five aggregator models are visible in e-commerce
Virtual Merchant
Catalog Merchant
Surf and Turf
Bit Vendors
Subscriber Model

33. E-COMMERCE BUSINESS MODELS
3. Infomediary Model (Information +Intermediary)
Infomediary collects information about consumers and their consumption habits and sell the information to marketing companies.
They also provide information about producers and products to the consumers.
Infomediaries generate revenue from sellers and not from the consumers. Some firms collect a membership fee from customers for providing information about producers and products.
NetZero is an example of a third-party infomediary

34. E-COMMERCE BUSINESS MODELS
Based on their relationship with the sellers and buyers Infomediaries are classified into four.
1.Specialized Agents
Specialized agents have closed relationship with both sellers and customers. They charge fee from sellers and consumers for the information
2.Generic Agents
It maintain an open relationship with both sellers and customers .In other words information is provided free of cost.
E.g. Google ,Yahoo etc.
3.Supplier Agents
They provide information about their affiliated company’s Product. They act as agent of some suppliers

35. E-COMMERCE BUSINESS MODELS
4.Buyer Agents
Buyer agent establish relationship with core set of buyers and work on their behalf and any number of suppliers.

36. E-COMMERCE BUSINESS MODELS
4. Community Model
Electronic communities are formed when groups of people or business to meet online to fulfill certain needs, which include personal interests, entertainment and transactions. E- Communities usually come online to exchange information, share ideas, trade goods and services, entertain find and communicate with likeminded people, and seek help.
brings together the reach of global and the depth of local, delivering 24/7 news coverage and analysis on the trends, technologies and opportunities that matter to IT professionals and decision makers.
is an E-commerce Company in India. It is a social shopping community, where shoppers see products share by other users of the site. Their product categories were apparel, jewellery and home decor. It is a marketplace for designers to showcase and sell their products

37. E-COMMERCE BUSINESS MODELS
1.Newsletters
A user can get in touch with the community by sending the same message to the entire list of people E-merchants can send their latest catalogues as newsletters to registered customers.
2.Discussion Blogs
Here the users can post their views and opinions which can be viewed by other members. The submitted message often might need approval from moderator or webmaster to get published.
E.g. Blogspot
3.Chat Rooms
Chats are scheduled in advance so that many users can join around for the same topic (about a company or a new product ) and have a meaningful discussion. Both text and video chats could be possible.
4. Community building sites
Community building sites like twitter, facebook, linkedin, ibibo, wayn are some of the most effective tool for monitoring buyer behaviour and to target appropriate product endorsements and advertisements targeted at buyers behaviour. This results in a better sales conversion ratio.

38. E-COMMERCE BUSINESS MODELS
5. Value Chain Model
The goal of value chain model is to facilitate interaction among all members of the supply chain. It will result in Lower inventory level, uninterrupted production and higher customer satisfaction.
It helps an organization to link its business partners, suppliers and others to the network and create a centralised online system to make the organization more competitive. Value chain model facilitate the following
Search catalogs, Inventory data base, auction sites, classified ads, job listing and suppliers
Improves the success rate of incoming searches . New query processing tool help customers to find products even when they do not know exact product names or model numbers.
Permit the users to sort results by brand, price availability or any other model
Present the search result with the help of a customer interface
Maintain an index of images, articles and video clips

40. E-COMMERCE BUSINESS MODELS
6.Manufacturer Model/Direct Model
The manufacturer model allows a manufacturer to reach buyers directly, eliminating intermediaries. It results in improved efficiency, improved customer service and a better understanding to customer preferences. It may take the following ways.
Sales
Lease
License

42. E-COMMERCE BUSINESS MODELS
7. Advertising Model
The principle of advertising model is simple. A site offers free access to something (Ex. Latest sports news) shows advertisements on every page. The advertiser pays the site operator for showing his advertisement (eyeballs) or for every time someone clicks on the advertisement (Click through)

45. E-COMMERCE BUSINESS MODELS
Types of Advertising on the Internet
1. Portals-
2. Classifieds
3. Query Based paid Placement
4. Contextual Advertisement
While downloading and using Freeware advertisement is displayed

46. E-COMMERCE BUSINESS MODELS
8. Subscription Model
Under subscription model the users are charged a periodical fee (daily monthly or annually) to subscribe to a service. Such sites usually provide expert content and timely information. Such sites used to combine free content with premium con tent. Premium content can be accessed only by members who pay subscription.
Different forms of Subscription Models are
a. Content Services
An Internet content provider is a website or organization that handles the distribution of online content such as blogs, videos, music or files. This content is generally made accessible to users and often in multiple formats, such as in both transcripts and videos. Periodic subscription is charged by the Content service providers
E.g.

47. E-COMMERCE BUSINESS MODELS
b. Person to Person Networking Services
Such services provide user required information.
For example Classmates .com, they may search and find a classmate on behalf of an individual.
C. Internet Service Providers
ISP Provides Internet connectivity and relate services on a monthly subscription
E.g.

48. E-COMMERCE BUSINESS MODELS
9. Affiliate Model
It is way that you can promote other peoples products and get paid a commission for promoting them. It is an E- commerce model that enables you to generate revenue without carrying inventories, managing orders, processing payments or handling packaging and shipping.
The affiliate model is popular e-commerce relationship in which an online merchant agrees to pay a commission to the affiliate for providing an ad and link to the merchant.
E.g.

49. E-COMMERCE BUSINESS MODELS
10. Utility Model

50. Electronic Data Interchange (EDI)
EDI is the electronic exchange of business documents in a standardized , computer processable and universally accepted format between trading partners.
It is the flow of data directly from sender’s computer to the receiver’s computer without any human intervention.
EDI is used for routine business documents like purchase order and invoices
The documents should be in standard data format.

51. Meaning
Electronic Data Interchange (EDI) refers to the structured transmission of data between organizations by electronic means.
A way to exchange transcripts (and other important data) without paper.
The National Institute of Standards and Technology in a 1996 publication defines Electronic Data Interchange as "the computer-to- computer interchange of strictly formatted messages that represent documents other than monetary instruments.
EDI can be transmitted using any methodology agreed to by the sender and recipient. This includes a variety of technologies, including modem (asynchronous, and bisynchronous), FTP, , HTTP, AS1, AS2, etc

54. Benefits of EDI Cost Reduction Speed Accuracy Security
Reduced inventory Level

55. Limitations of EDI Expensive No of transaction is limited
No flexibility
Inaccessible to small organization

56. Working of EDI
Exchange of data with several trading partners directly in a standard format.
Interaction with multiple companies through a central information clearing house. Here each companies add EDI program to its computer to translate the company data into standard formats for transmission, and for reverse translation in the data.

57. Working of EDI Supplier Manufacture Supplier Supplier Manufacture
One to Many
Manufacture
Supplier
Supplier
Many to Many
Manufacture
Supplier
Third Party Vendor
Manufacture
Supplier
Manufacture
Supplier

58. EDI Business Cycle Vendors Customers Branch Office EDI Service Network
Company XYZ
Customers
EDI Destination
Notes, Documents, Images, Letters, Purchase Orders, Invoice, Queries, Order Entry, Shipment Details, Payment Orders, Bankers Advice, Miscellaneous claims.
EDI Destination
Branch Office
EDI Destination
EDI Service Network
Distributors
EDI Destination
EDI Destination
Stores
EDI Destination
EDI Destination
Banks
Computer with EDI software
Transporters

59. MOBILE COMMERCE (M-COMMERCE)
M-commerce (Mobile Commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next- generation e-commerce.
M-Commerce enables users to access the Internet without needing to find a place to plug in. The emerging technology behind m-commerce, which is based on the Wireless Application Protocol (WAP), has made far greater strides in Europe, where mobile devices equipped with Web-ready micro-browsers are much more common than in the United States.

60. M-COMMERCE APPLICATIONS
1.Mobile Ticketing
2. Content Purchase and Delivery
Caller tunes, Wall papers, Games, Software. etc.
3. Location Based Services
Local maps, Local weather, Vehicle Tracking

61. M-COMMERCE APPLICATIONS
4. Mobile Banking
Account information
Mini-statements and checking of account history
Alerts on account activity or passing of set thresholds
Monitoring of term deposits
Access to loan statements
Access to card statements
Mutual funds / equity statements
Insurance policy management
5. Mobile Purchase

62. M-COMMERCE APPLICATIONS
Transaction
Funds transfers between the customer's linked accounts
Paying third parties, including bill payments and third party fund transfers
Check Remote Deposit
Investments
Portfolio management services
Real-time stock quotes
Personalized alerts and notifications on security prices

63. M-COMMERCE APPLICATIONS
Support
Status of requests for credit, including mortgage approval, and insurance coverage
Check (cheque) book and card requests
Exchange of data messages and , including complaint submission and tracking
ATM Location
5. Mobile Purchase