E-Commerce Business Models
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. As we know, www.amazon.com is an online bookstore that sells books from various publishers. In this case, the publishers have the option of either developing their own site or displaying their books on the Amazon site (www.amazon.com), or both. The publishers mainly choose to display their books on www.amazon.com at it gives them a larger audience. Now, to do this, the publishers need to transact with Amazon, involving business houses on both the ends, is the B2B model. 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.
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...
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