Types of E-commerce Business-to-Consumer (B2C) May be classified by market relationship or technology Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to-Consumer (C2C) Business to Government (B2G) Non-Business E-Commerce Social e-commerce Mobile e-commerce (M-commerce) Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Business-to-Consumer (B2C) It is the direct trade/selling via the Internet/web between companies and end consumers. Examples: Mc Donald's selling me a Big Mac Dell Selling me a Laptop An online pharmacy giving free medical consultation and selling medicines to patients Overstock.com, Expedia.com and pia.com Amazon.com, Gap.com Shophive.com Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

The Growth of B2C E-commerce SOURCE: Based on data from eMarketer, Inc., 2013a; authors’ estimates. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Business-to-Business (B2B) in which businesses focus on selling to other businesses. B2B is the largest form of e-commerce. Examples: Manufacturer supplying goods to the retailer or wholesaler. Heinz selling ketchup to Mc Donald's Intel selling micro processors to Dell Firestone Selling tires to Ford Company. Dell.co, sell products and services to small, medium, and large enterprise businesses. www.quill.com | Best for Office Supplies Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

The Growth of B2B E-commerce Figure 1.4, Page 21 SOURCE: Based on data from U.S. Census Bureau, 2013; authors’ estimates. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Consumer-to-Consumer (C2C) C2C e-commerce provides a way for consumers to sell to each other, with the help of an online market maker such as the auction site eBay. places the product for auction or sale relies on market maker to provide catalog, search engine, and transaction clearing capabilities Examples: Mary buying an iPod from Tom on eBay.com Selling Laptop on Olx.com | Hafeezcenter.com www.mudah.my | www.pakistanauction.com www.pakwheels.com www.alibaba.com www.zameen.com Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Business to Government (B2G) Business-to-government (B2G) is a business model that refers to businesses selling products, services or information to governments OR Government to Businesses. Any commerce between companies and the public sector. Bid on government projects or products Examples: Dell.com | supplies computers to public sector organization ppra.org.pk | Public Procurement Regulatory Authority (monitoring procurement by public sector agencies/organizations) Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Non-Business EC academic institutions, not-for-profit organizations, religious/social organizations and government agencies using EC to improve their operations, customer service and reduce expense Examples: Hospitals Websites Govt Websites Organizations websites Universities/ Colleges Websites Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Social e-commerce Social commerce is the use of social network(s) in the context of e-commerce transactions. Electronic commerce that involves using social media that supports social interaction, and user contributions to assist in the online buying and selling of products and services. Examples: Facebook commerce or f-commerce refer to the buying and selling of goods or services through Facebook Selling via Pinterest.com Social Selling with LinkedIn Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Mobile e-commerce (M-commerce) Mobile mean Mobility, Anywhere any time M-Commerce refers to the use of mobile devices such as a mobile phone, a Personal digital assistant PDA or a smartphone for conducting the transactions. M-commerce is becoming so popular that the web design and development companies have to optimize the websites to be viewed correctly on mobile devices. Examples: Mary buying an iPod from Tom on eBay.com using Netbook Selling Laptop on Olx.com using Smartphone A person doing trade using Mobile devices. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Advantages and Disadvantages of E-Commerce e-Commerce has in fact become one of the most popular activities on the web.  According to Forrester, online retail sales will grow to $250 billion by 2014.  There are many benefits an online store can offer to the owner and the customers, which the ‘brick and mortar’ stores could never have. Ecommerce offered many advantages to companies and customers but it also caused many problems. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

ADVANTAGES OF ECOMMERCE Faster buying/selling procedure, as well as easy to find products, Services and Information. Buying/selling 24/7. More reach to customers, there is no geographical limitations. Easy Shelves Arrangement Low operational costs and better quality of services. No need of physical company set-ups. Easy to start and manage a business. Customers can easily select products from different providers without moving around physically. Time Saving, Easier to Compare Prices Customer also can Products, Services or information. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

DISADVANTAGES OF ECOMMERCE Any one, good or bad, can easily start a business. And there are many bad sites which eat up customers’ money. There is no guarantee of product quality. Shipping Takes Time Doubts and Fears Inability to Feel the Physical Too Many Competitors There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack. Shipping Costs More Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

DISCUSSION Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

What are the benefits of apps for content owners and creators? What are the advantages and disadvantages of apps, compared with Web sites, for mobile users? What are the benefits of apps for content owners and creators? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Understanding E-commerce: Organizing Themes Technology: Development and mastery of digital computing and communications technology Business: New technologies present businesses with new ways of organizing production and transacting business Society: Intellectual property, individual privacy, public welfare policy Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Facebook and the Age of Privacy Why are social network sites interested in collecting user information? Is e-commerce any different than traditional markets with respect to privacy? Don’t merchants always want to know their customer? How do you protect your privacy on the Web? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Percentage of disposable income spending by online shoppers INDIA 33% CHINE 31% Brazil 27% UK 25% USA 23% Argentina 21% Mexico 21% Germany 21% France 19% Russia 18% Pakistan ? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall