E-Business Lecture 5 E-commerce Business Models. E-commerce Models (applications) Three main categories: – Business to consumer (B2C) – Business to business.

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Presentation transcript:

E-Business Lecture 5 E-commerce Business Models

E-commerce Models (applications) Three main categories: – Business to consumer (B2C) – Business to business (B2B) – Consumer to consumer (C2C) Other categories: – Business to government (B2G) – Mobile Commerce

B2C Model (applications) Offer directly to the customer an interface of activity – Typical examples: Online book store (e.g. amazon.com) Online car purchasing (e.g. automall.com) Booking and purchase of airline tickets (e.g. ryanair.com)

B2C Model (applications) Cont. Correspond to retail sale Growth of B2C applications thanks to Internet A new kind of B2C applications are the Cybermalls Cybermalls A cybermall is a "single Web site that offers many products and services at one internet location." (Stair, R.M., 2010 pg 203)

B2C applications: advantages Advantages: – Allow company to extend existing services to customers – Allow company to increase its customers – Offer a wider choice and allow cheaper prices – May give to the company a worldwide visibility – Online shops are accessible 24h a day

B2C applications: disadvantages Disadvantages: – Low order conversion ratesorder conversion rates – High risk

B2B Model (applications) Realize transactions needed to perform financial or commercial activities by companies over the Internet Some typical applications: – E-procurement E-procurement – E-Marketplace E-Marketplace The turnover is much greater than that dealed with B2C applications

B2B applications: advantages Advantages: – Help to automate communications between companies making them easier and quicker – Allow to cut prices drastically – Help in reducing mistakes

B2B applications: disadvantages Disadvantages: – Often need legacy integration

C2C Model (applications) Concern the consumers who run negotiations with other consumers sometimes utilizing as intermediary a company – Examples: Ebay Autotrader.com

C2C applications: advantages Advantages – Allow consumers to interact directly among them – Give to the consumers a new way of purchasing and selling services and goods

C2C applications: disadvantages Disadvantages – Little earning capacity

B2G Model (applications) Correspond to all kind of transactions between company and public administrator Utilized mostly in the USA

Mobile commerce Model (applications) Concern doing businesses by means of mobile wireless devices Can be both B2B and B2C Have a growing importance in the future of e- commerce applications

Mobile commerce Model (applications) Cont. Will introduce completely new forms of electronic commerce – E.g. E-tickets The development of such applications faces some of the greatest challenges in the security area to secure the trust of consumers