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3business Models of E - Commerce

E-Governance utilizes IT to enhance government services and citizen engagement, improving efficiency and transparency. The Affiliate Model in e-commerce allows merchants to pay commissions to affiliates for promoting products, while Supplier-Centric B2B e-commerce focuses on suppliers creating online marketplaces for buyers. Key technologies for B2B e-commerce include web platforms, database systems, and security technologies, with various e-commerce models like B2B, B2C, and C2C serving different transaction relationships.
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0% found this document useful (0 votes)
13 views7 pages

3business Models of E - Commerce

E-Governance utilizes IT to enhance government services and citizen engagement, improving efficiency and transparency. The Affiliate Model in e-commerce allows merchants to pay commissions to affiliates for promoting products, while Supplier-Centric B2B e-commerce focuses on suppliers creating online marketplaces for buyers. Key technologies for B2B e-commerce include web platforms, database systems, and security technologies, with various e-commerce models like B2B, B2C, and C2C serving different transaction relationships.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Q. What is e-Governance and How Does It Work?

• Definition:
E-Governance means using Information Technology (IT) to provide government
services and information to citizens, businesses, and other government departments.
• Purpose:
To improve efficiency, transparency, and citizen participation in government
processes.
• Who Uses It:
Used by legislative, executive, and judicial branches of the government.
• How It Works:
o Government creates online platforms or digital systems.
o Citizens can access services, submit forms, pay bills, and give feedback
online.
o This reduces the need to visit government offices physically.
• Benefits:
o Saves time and money.
o Reduces corruption.
o Improves service delivery.
o Provides 24/7 access to services.

Examples of E-Governance

Example 1: Kenya – Fighting Corruption Online

• A project in Kenya allows people to report corruption online.


• The system is called Electronic Graft Management (EGM).
• Public reports are filtered and sent to authorities for action.

Example 2: India – e-Seva in Andhra Pradesh

• E-Seva centers provide multiple services in one place.


• Citizens can:
o Pay electricity/water bills.
o Book train tickets.
o Get birth/death certificates, vehicle permits, etc.
• It saves time and reduces queues at government offices.

Q. What is an Affiliate Model?

• The Affiliate Model is an e-commerce model where:


o A merchant (seller) pays a commission to an affiliate (partner site).
o The affiliate promotes the merchant’s products using ads or links.
o When a user clicks the link and makes a purchase, the affiliate earns a
commission.
• It is a pay-for-performance model:
o No sales = No cost to the merchant.
o Helps increase traffic and sales for the merchant.
• Common methods used:
o Banner ads
o Pay-per-click
o Revenue sharing

Examples of Affiliate Model:

1. Amazon.com
o Offers an Amazon Associates program.
o Affiliates promote Amazon products and earn commission on sales.
2. Barnes & Noble
o Runs an affiliate program for promoting books and other products.
o Affiliates get paid for sales made through their links.

Q. What is Supplier-Centric B2B Electronic Commerce?

• Definition:
A supplier-centric B2B e-commerce is a model where a supplier (seller) creates an
online marketplace for multiple buyer businesses to purchase goods or services.
• Who controls it:
The supplier controls the platform and sets the rules, pricing, and product catalog.
• Buyers:
Buyers visit the supplier’s site to place orders, check prices, and make payments.
• Features:
o Customized pricing (e.g., bulk discount, loyalty pricing).
o One supplier serves many buyers.
o Ideal for large suppliers with many customers.
• Benefits:
o Direct relationship between supplier and buyers.
o Easier inventory and order management.
o Reduces need for intermediaries.

Example:

• Cisco Connection Online (CCO)


Cisco offers an online platform where businesses can:
o Browse products
o Customize orders
o Get support
o Complete transactions directly
Q. Potential Benefits of B2B E-Commerce

1. Outsource unprofitable parts of the business to focus on core activities.


2. Speed up product development and reduce time to market.
3. Improve business and market intelligence through better data access.
4. Understand the market better than competitors.
5. Expand or clone the business into new markets easily.
6. Increase speed of communication between businesses.
7. Make communication easier between customers and suppliers.
8. Reduce wastage by opening additional sales channels.
9. Enhance ability to experiment and learn new business strategies.
10. Achieve higher customer retention rates.
11. Lower customer acquisition costs compared to traditional methods.
12. Pass on cost savings to customers through favorable pricing.

Q. What is CPD?

• CPD = Continuing Professional Development


• It means regular training and learning for professionals to keep their skills and
knowledge up to date.

Benefits of CPD:

1. Helps professionals stay updated with new technologies and methods.


2. Ensures effective implementation of e-governance projects.
3. Integrates different community perspectives into a shared vision for urban
development.
4. Helps in planning and prioritizing actions like policy changes and investments.
5. Encourages partnerships between government and civil society for better
outcomes.

Points of Concern in CPD:

1. Requires time and resources for regular training.


2. May face resistance from professionals reluctant to change or learn.
3. Difficult to align diverse community views into one vision.
4. Needs continuous updating to stay relevant with changing technologies and policies.
5. Success depends on active participation and commitment from all stakeholders.
Q. What are the key technologies for B2B e-commerce? Explain
architectural models of B2B e-commerce.

Key Technologies for B2B E-Commerce

1. Web Platforms and Marketplaces:


Websites that act as online marketplaces where businesses (importers, exporters,
wholesalers, retailers, distributors) meet to trade.
2. Database Management Systems:
Store and manage product catalogs, customer data, orders, and transactions
efficiently.
3. Electronic Data Interchange (EDI):
Standardized electronic communication for exchanging business documents like
purchase orders and invoices.
4. Security Technologies:
Secure payment gateways, encryption, and authentication to protect sensitive business
data.
5. Middleware and Integration Tools:
Connect different business applications (ERP, CRM, supply chain software) to enable
smooth data flow.
6. Communication Technologies:
Tools like email, instant messaging, and video conferencing for real-time
communication between businesses.

Architectural Models of B2B E-Commerce

1. Supplier-Centric Model:
A supplier controls the marketplace and buyers come to the supplier’s platform to
place orders.
(Example: Cisco Connection Online)
2. Buyer-Centric Model:
A large buyer creates a marketplace where suppliers offer their products or bids.
Buyers control the process.
(Example: Large retailers managing suppliers)
3. Intermediary-Centric Model:
An independent third-party provides a platform where multiple buyers and suppliers
interact.
They act as brokers or marketplaces.
(Example: Alibaba, IndiaMART)

Summary

• B2B e-commerce marketplaces provide tools like:


o Lead posting, catalog posting, product search, inquiry handling
o Virtual transaction management, bidding, company profiles
• Important features:
o Ease of use for businesses
o Security to protect transactions and data
Q. E-Business Models Based on Relationship of Transaction Parties

1. B2C (Business to Customer):


o Businesses sell products or services directly to customers.
o Example: Amazon.com
2. B2B (Business to Business):
o Businesses sell products or services to other businesses.
o Can include marketplaces where many buyers and sellers meet.
o Example: Chemdex.com
3. B2G (Business to Government):
o Businesses sell products or services to government agencies (local, state,
federal).
o Example: iGov.com
4. C2C (Consumer to Consumer):
o Consumers sell products or services directly to other consumers.
o Example: eBay.com
5. C2B (Consumer to Business):
o Consumers set prices or offer products/services, and businesses decide to
accept or reject.
o Example: Priceline.com

Additional Notes:

• B2B and B2C are often linked in supply chains:


o Raw Material Producer → Manufacturer → Distributor → Retailer →
Consumer
o B2B happens in early steps (e.g., producer to manufacturer)
o B2C happens at the retailer to consumer stage

Q. Technology Requirements for a B2C E-Commerce Application

1. Software Architecture:
o Mostly built using Java/J2EE or Microsoft .NET platforms.
2. Key Features to Support:
o Search and browsing of products.
o Rich shopping cart functionality.
o Product comparison and promotions.
o Personalization (recommendations, wish lists, registries).
o Multichannel ordering (web, mobile).
o Rich Internet Application (RIA) support.
o Customer data management.
o Marketing tools and customer self-service.
3. Hardware Requirements:
o Reliable Internet connectivity (preferably broadband).
o Devices like PC, laptop, tablet with a multitasking OS supporting Java/J2EE
apps.
4. Web Technologies Used:
o HTML, DHTML, CSS for front-end design.
o Server-side tools like ASP, CGI/Perl, Java Servlets, JSP, PHP, VB, and Java.
5. Web Servers and Databases:
o Multiple web servers for handling traffic.
o Backend database systems for managing product and customer data.

Steps in a B2C Process Model

1. Basic Requirement Determination:


Customer decides what product or service they want to buy.
2. Search for Items:
Customer searches online for products that meet their needs.
3. Compare Items:
Customer compares products based on price, features, reviews, etc.
4. Place Order:
Customer adds chosen items to the shopping cart and places the order.
5. Payment:
Customer pays using credit card or other online payment methods.
6. Order Processing:
Merchant processes the order and prepares it for shipment.
7. Shipment:
Items are shipped from the warehouse to the customer.
8. Delivery & Inspection:
Customer receives and inspects the product.
9. After-Sales Service:
Customer contacts vendor for support, returns, or complaints if needed.

Q. Different categories of e-commerce:

Categories of E-Commerce

1. Business-to-Business (B2B)
o Electronic transactions of goods or services between companies.
o Examples: Manufacturers selling to wholesalers.
2. Business-to-Consumer (B2C)
o Businesses sell products/services directly to consumers.
o Examples: Online retail stores like Amazon, Flipkart.
3. Consumer-to-Consumer (C2C)
o Consumers sell to other consumers, usually through a third-party platform.
o Examples: eBay, OLX.
4. Consumer-to-Business (C2B)
o Consumers offer products/services to businesses.
o Examples: Crowdsourcing platforms, stock photo sites like iStockphoto.
5. Business-to-Administration (B2A)
o
Transactions between businesses and government/public administration.
o
Examples: Online tax filing, social security services for companies.
6. Consumer-to-Administration (C2A)
o Transactions between individuals and government/public administration.
o Examples: Paying taxes online, online education portals, health service
appointments.

B2B (Business to B2C (Business to


Aspect C2B (Consumer to Business)
Business) Consumer)
Business sells Business sells
Consumers offer
Meaning products or services
directly to individual
products/services to businesses.
to other businesses.
customers.
Consumers set price or
Alibaba, Direct Amazon,
Example requirements; business accepts or
Industry, TradeNet McDonald’s, Flipkart
rejects. Example: Priceline.com
Between company Individual proposes price/service
Transaction Between companies
and individual users to company
Establish business Selling
Businesses accept consumer
Purpose partnerships and goods/services to end
proposals or demands
supply chains users
Business to Users
Object Business to Business Person (Consumer) to Business
(Consumers)

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