E-commerce business models

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Transcript of E-commerce business models

Page 1: E-commerce business models

B2B business-to-busines:

On the Internet, B2B (business-to-business), also known as e-biz, is the exchange of

products, services, or information between businesses rather than between businesses

and consumers.

Examples:

Business to business mainly refers to commerce transactions between the businesses. The examples of

this can be between manufacturers and wholesalers or between retailers and wholesalers. The most

general examples of B2B markets are manufacturers, re sellers, non-profit institutions and government.

Website of B2B:

BizzBuzz.com.au

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Country

Australia

Type

B2B Daily Deal Site

Launch date

April 2011

Bizz Buzz offers at least 40% OFF business products and services you already plan to

purchase. Deals that focus on small businesses – No day spa or restaurant deals here (Sorry!)

'BUSINESS TO CONSUMER - B TO C'

DEFINITION

Business or transactions conducted directly between a company and consumers who are the

end-users of its products or services. Business to consumer as a business model differs

significantly from the business to business model, which refers to commerce between two or

more businesses.

For example,

someone buying a television set from an electronics retailer would be a B2C

transaction. The transaction preceding this, eg, the purchase of components,

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screens, plastics etc. by the manufacturer, and the sale of the set from the

manufacturer to the retailer would bebusiness transactions.

Website

http://www.buddleather.com/

ABOUT BUDD LEATHER

Founded in 1946, Budd Leather has been producing the finest in leather accessories and

gifts for generations s we move forward into the 21st century we are maintaining the

highest standard of quality and customer services. In an age when business focuses on

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speed, competition and globalization we are learning great lessons and are taking with it

the best the future has in store. At the same time, we are proud to be steadfast in the

age old lesson that business has to offer...loyalty, genuine relationships, great

communication and the product excellence that this family has honored for more than

60 years.

'CUSTOMER TO CUSTOMER (C2C)'

DEFINITION

A business model that facilitates an environment where customers can trade with each other. Two

implementations of customer-to-customer markets are auctions and classifieds.

Examples of C2C:

Ebay

Craigslist

Online Ad or Classifieds

Amazon.com

Half.com

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.

About Us

C2C wines is a family run business with a truly personal service. You can buy high quality, affordable wines on-line with overnight delivery as standard on all orders to the UK mainland. There are plenty of new wines to discover from producers who are just as

passionate about their terroire and vines as we are about our customer service and the quality wine we supply.

C2B (Consumer –to-Business)

A consumer-to-business model, or C2B, is a type of commerce where a consumer or end user provides a product or service to an organization. It is a reverse of the B2C model, where businesses produce products and services for consumer consumption.

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Example of c2b:

Vincent Rosso, the cofounder and head of BlaBlaCar, a shared car company, took part in a

round table during the latest Ecomm&Beers on collaborative consumption. This company is a

good example of C2B: you can look for someone who is driving on a specific date, at a specific

time, to a specific destination. You can ask for something highly specific, in very short time and

for very little money. BlaBlaCar has had strong penetration in the last semester, and, with

its unusual business model, it’s a good example of how to consume and grow in harsh times.

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Business - to - Government (B2G)

B2G model is a variant of B2B model. Such websites are used by government to trade and exchange

information with various business organizations. Such websites are accredited by the government and

provide a medium to businesses to submit application forms to the government.

For example, we can pay our vehicle and boat registration fees, state, property, and federal income

taxes, parking fees, and etc.

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Government - to - Business (G2B)

Auctions, tenders Government uses B2G model website to approach business organizations. Such

websites support and application submission functionalities.

For example:

G2B provides all the rules related to Tax, different forms, and facility for submission of online tax

returns.

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Government to Consumer (G2C):

G2C (Government to Citizen) is a term that refers to the relationships between organizations

(subjects) of public administration and a citizen.

Example of G2C:

paying taxes

registering vehicles

providing information and services Website of G2C:

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DEFINITION OF 'TRANSACTION COSTS'

Expenses incurred when buying or selling securities. Transaction costs include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price the buyer pays). The transaction costs to buyers and sellers are the payments that banks and brokers receive for their roles in

these transactions. There are also transaction costs in buying and selling real estate. These fees include the agent's commission and closing costs such as title search fees, appraisal fees and government fees.

.A numbers of kinds of transaction cost have come to be known by particular names:

Search and information costs are costs such as those incurred in determining that the required good is available on the market, which has the lowest price, etc.

Bargaining costs are the costs required to come to an acceptable agreement with the other party to the transaction, drawing up an appropriate contract and so on. In game theory this is analyzed for instance in the game of chicken. On asset markets and in market microstructure, the transaction cost is some function of the distance between the bid and ask.

Policing and enforcement costs are the costs of making sure the other party sticks to the

terms of the contract, and taking appropriate action (often through the legal system) if this

turns out not to be the case.

Prepared by

Maher

Manan