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BUSINESS TO BUSINESS

BUSINESS TO BUSINESS. Classified by nature of market relationship Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to-Consumer (C2C) Classified by type of technology used Peer-to-Peer (P2P) Mobile commerce (M-commerce). Types of E-commerce. Major Types of E-commerce.

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BUSINESS TO BUSINESS

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  1. BUSINESSTOBUSINESS

  2. Classified by nature of market relationship Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to-Consumer (C2C) Classified by type of technology used Peer-to-Peer (P2P) Mobile commerce (M-commerce) Types of E-commerce

  3. Major Types of E-commerce

  4. Business-to-Business (B2B)E-commerce • B2B is that model of e-commerce whereby a company conducts its trading and other commercial activity through the Internet and the customer is another business itself. • It is the largest form of ecommerce • In this form the buyers and sellers are both business entities and do not involve an individual consumer. • It is commonly known as EDI (Electronic Data Interchange).

  5. Business-to-Business (B2B) e-commerce (cont…)‏ • The companies included in the B2B ecommerce are manufacturers, wholesalers rather than retailers only. • Pricing is based on quantity of orders and is often negotiable. • This type of ecommerce is privately held, since only business companies can qualify as potential buyers.

  6. Advantages of B2B e-commerce • Direct interaction with customers • Focused on sales promotion • Building customer loyalty • Scalability-This means that the web is open and offers round-the clock access. Thus the company is able to handle many more customers on a much wider geographical spread. • Savings in distribution costs

  7. Concepts, Characteristics, and Models of B2B EC ‏ • B2B EC Characteristics Parties to the transaction Online intermediary—an online third-party that brokers a transaction between a buyer and a seller; can be virtual or click-and-mortar; buyers; sellers • Types of transactions • Spot buying—the purchase of goods and services as they are needed, usually at prevailing market prices • Strategic sourcing—purchases involving long-term contracts that are usually based on private negotiations between sellers and buyers

  8. Concepts, Characteristics, and Models of B2B EC (cont.)‏ • Types of materials • Direct materials—materials used in the production of a product (e.g., steel in a car or paper in a book)‏ • Indirect materials—materials used to support production (e.g., office supplies or light bulbs)‏ • MROs (maintenance, repairs, and operations)—indirect materials used in activities that support production

  9. Concepts, Characteristics, and Models of B2B EC (cont.)‏ • Direction of trade • Vertical marketplaces—markets that deal with one industry or industry segment (e.g., steel, chemicals). • Horizontal marketplaces—markets that concentrate on a service or a product that is used in all types of industries (e.g., office supplies, PCs)‏

  10. Concepts, Characteristics, and Models of B2B EC • The Basic B2B Transaction Types • Sell side—one seller to many buyers • Buy side—one buyer from many sellers • Exchanges—many sellers to many buyers • Collaborative commerce—communication and sharing of information, design, and planning among business partners

  11. Types of B2B E-Commerce

  12. Concepts, Characteristics, and Models of B2B EC ‏ • Supply chain relationships in B2B • Interrelated sub processes and roles • B2B applications offer competitive advantages for supply chain management (SCM)‏ • Virtual service industries in B2B • Travel and tourism services • Real estate Online stock trading • Electronic payments Online financing

  13. Concepts, Characteristics, and Models of B2B EC ‏ • Benefits of B2B • Eliminates paper and reduces administrative costs • Expedites cycle time • Lowers search costs and time for buyers • Increases productivity of employees dealing with buying and/or selling • Reduces errors and/or improves quality of services • Reduces inventory levels and costs • Increases production flexibility, permitting just-in-time delivery • Facilitates mass customization • Increases opportunities for collaboration

  14. Websites that are engaged in B2B ecommerce • commodityindia.com • Indiaconstruction.com • clickforsteel.com etc.

  15. Consumer-to-Consumer (C2C)E-commerce • It facilitates the online transaction of goods or services between two peoples. • However, there is not visible intermediary involved, but the parties cannot carry out the transactions without the platform, which is provided by the online market such as eBay. Examples: • Advertisement of personal services over the internet. • Selling of knowledge and experts online.

  16. C2C e-commerce (cont…)‏ • In the C2C e-commerce, the consumer lists items for sale with commercial auction site. • The participants in C2C ecommerce are unknown, not trusted parties to sell goods and services to another one. • Example of C2C ecommerce web is eBay, where consumers sell their goods and services to other consumers; • And PayPal (instead of purchasing goods and services directly from the unknown, entrusted seller, the buyer can send money to the PayPal. • Then the PayPal notifies the seller that they will hold the money for them until the goods have been shipped and accepted by the buyer).

  17. Websites engaged in C2C • ebay.com • ICQ.com • MSN.com • bidorbuy.com

  18. P2P • P2P peer to peer technology enables internet users to share files and computer resources directly without having to go through a central web server. • Napster.com which was established to aid Internet users in finding and sharing online music files known as MP3 files is perhaps the most well known example of peer to peer e-commerce.

  19. M-Commerce Mobile commerce refers to the use of wireless digital devices to enable transactions on the web. They utilize wireless networks to connect cell phones and handheld devices such as: • Cellular phones • Hand-held computers such as palmtops, tablets PCs • Messaging/pager devices • Personal digital assistants (PDAs)

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