Ecommerce Models Dr. John P. Abraham

Early businesses Amazon.com 1995 – offered 30% of list price on books. Barnes & Noble 1997 offered 40% off on best selling books.

E-Commerce Models B2B B2C C2B C2C M-commerce P2P

B2B Greatest portion of e-commerce. Provides infrastructure for supply chains. Example – Covisint (see next slide) Vertical model Specialized goods or services across many type of industries. Horizontal model Goods or services for one industry

About Covisint Launched in November of 2000, Covisint is an online marketplace for the worldwide automotive industry. Originally conceptualized in late 1999 by industry leaders Ford Motor Co., General Motors, and DaimlerChrysler, the business-to-business (B2B) Covisint today supports over 45,000 organizations in over 96 countries in the global automotive, healthcare, public sector, and financial services industries, as well as emerging market opportunities -- supporting them in seven languages. With roughly 250 online catalogs, the site mainly functioned as a procurement and auction vehicle in early Design professionals also were able to use the site as a platform for collaborating with other automotive engineers.

B2B models E-distributor grainger.com, FindMRO.com E-Procurement – Ariba.com, CommerceOne.com Exchanges – ExchangeSteel.com, GEPlymerland.com Industry Consortia – Covisint.com, Sciquest.com Your next assignment is from this & some of the following slides.

B2C Business to consumer Example amazon.com. Cut out the middleman. Manufacturers can sell cheaper and faster – Dell. Many end-users are not sophisticated to deal with the manufacturer. So new middleman exists – quotesmith.com CRM – customer relationship management, a big problem.

B2C Models Portal – yahoo.com msn.com – Offers integrated package of content. Sailnet.com – Offers vertical content. E-tailer – Amazon.com –virtual merchant. Wal- Mart.com – Clicks and Bricks. LandsEnd.com – catalog. Dell.com – manufacturer direct. Content Provider – wsj.com, cnn.com Transaction broker – e-trade.com, expedia.com, monster.com Market creator – ebay.com priceline.com Service Provider – Mybconsulting.com, lawinfo.com Community provider – about.com, ivillage.com

Online shopping Risks Payment risks Not receiving Sending bank transfers Money orders Captured payment information – used again Shipping fees Don’t buy if shipping fee not known Return policies

Safeguards Pay with credit cards Can complain to credit card issuer Debit card do not have the same protection Use only secure website Shop only with reputable companies or those with good ratings Check digital certificates and certificate authority

C2B Consumer to business Broker between consumers and business Consumer make the offer Priceline.com

C2C Consumer to Consumer Models Ebay.com Half.com Overstock.com

Mobile Electronic Commerce M-commerce Wireless access to internet through handheld devices. Shop from anywhere any time.

P2P Person to Person Transferring money from one individual to another. Paypal. Kazaa.com

E-commerce and Client/Server Architecture Server – Provider of service Client – Requester of Service

Internet Related Programs FTP TCP/IP RDBMS SQL

Client Server-Architectures Two-Tier Server process on server and client process on client (interface) Security provided by both Three-Tier

Three Tier Architecture A middle tier is added between the server and the client The middle tier can perform queueing, application execution and database staging. The client can make a request and then do something else while waiting for the answer.

E-commerce technologies LAN Inter-networking Web Server and web pages (front-end) Relational database (rear-end)

Front End Must be attractive, appealing, concise and informative. Web browser – web server - middleware – database. Construction of front-end Transmission control protocol/internet protocol Hypertext markup language Hypertext transfer protocol

TCP/IP 5 layers Physical – wires Data link – mac, hardware addressing, frames and encoding Network – IP addressing, packet, control Transport – socket, TCP or UDP Application

HTML Web page may include text, graphics and pointers to other web pages. HTML describes how documents to be formatted. Starting with HTML version 2.0 forms are included. Form contains boxes and buttons. XML And XSL

Storefront Model (1) Similar to stores we are accustomed to (Shopping Cart) Buyer and seller interact directly Merchants organize an online catalog of products Secure Transaction processing Online payment and merchandise shipping Information storage

Storefront Model (2)

Shopping-cart Technology Allows to accumulate items Items are placed in shopping cart from product catalog Product catalog is kept on merchant server database Can view the contents of the shopping cart and get a total any time

Merchant server database Product specifications Availability Shipping info Stock levels On-order info

Online Shopping Malls Variety of products in one location Save shopping time and shipping costs These sites may be shopping portals directing customers to retailers Mall.com shopnow.com DealShop.com

Auction Model Sites are forums that a person can be an auctioneer or a bidder Photographs, minimum bid, reserve price eBay model

Portal Model News, Sports, Weather Ability to search the web Yahoo.com, about.com, hotbot.com, altavista.com

Dynamic Pricing Models Name your price - Priceline.com Comparison pricing Model Search web and compare prices for you (bottomdollar.com) Demand-Sensitive Pricing Model Combing buyers to lower cost Barter Model, Rebates, Free

B2B EXCHANGES Fastest growing of e-commerce Icgcommerce.com Tradeaccess.com Itoi.com eWork.com

B2B Service Providers Help other businesses improve policies, procedures and customer service Ariba.com provides supply chain management, procurement, logistics Freemarkets.com connects sellers and buyers Liverperson.com to improve customer service on the net.

Online Trading Etrade.com Fool.com

E-Loan Eloan.com Lendingtree.com Ditech.com

E-Recruiting Monster.com Dice.com Guru.com

E-news Wsj.com Barrons.com Espn.com

E-travel Expedia.com Travelocity.com Counciltravel.com Cheaptickets.com Orbitz.com

Entertainment iCast.com Imdb.com

Automotive Autobytel.com Autoparts.com

Energy Houstonstreet.com Altranet.com Retailenergy.com

Brain Power Buy patents and intellectual property online. Yet2.com

Art Art.com

E-Learning Universities offering degrees Technical education

Click-and-Mortar Walmart Bn.com 1800flowers.com