Page 143 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Unit 8: e-Business

Notes

Caselet B2B Market to Touch ` 3,800 Crore

statsIndia, an Internet research and consultancy firm estimates that the business-to-
business (B2B) e-commerce market is set to touch ` 13,550 crore at a CAGR of 52.63
Eper cent by the end of 2009. For the 2006-07 fiscal, the B2B market is likely to be `
3,800 crore. Within the e-commerce market, the e-procurement segment would grow
fastest at a CAGR of 50.93 per cent and cross ` 12,100 crore in the next two years.
Indiamart.com, a B2B online platform, has been forecast to increase its revenues from
` 9 crore in 2004-05 to ` 53 crore by 2007-08 and cross ` 125 crore by 2009-10. Whereas,
Metaljunction.com and Agriwatch.com are slated to grow from ` 50 crore in 2004-05 to
` 920 crore and ` 7 crore in 2004-05 to ` 255 crore by 2009-10 respectively.
Similarly, 01markets.com, which earned revenues worth ` 85 crore in 2004-05 is likely to
grow from the current ` 280 crore to ` 1,125 crore over the next three years against
Indiamarkets.com, which is slated to grow from ` 800 crore in 2004-05 to ` 10,100 crore by
2009-10 and Commercejunction.com is expected to increase its revenues from ` 10 crore to
` 60 crore in the same period.
Source: http://www.thehindubusinessline.in/bline/2007/01/29/stories/2007012901300200.htm
8.1.3 Business-to-Customer (B2C)

B2C is abbreviated from “Business to Customer”, which means the companies provide various
kinds of merchandise for customers by online stores. Business-to-consumer (B2C) is an Internet
and electronic commerce (e-commerce) model that denotes a financial transaction or online sale
between a business and consumer. That is, B2C involves Interactions relating to the purchase
and sale of goods and services between a business and consumer.
The business-to-consumer (B2C) group is a much newer area and largely equates to electronic
retailing over the Internet. This category has expanded greatly in the late 1990s with the growth
of public access to the Internet.
The business-to-consumer category includes electronic shopping, information searching (e.g.
railway timetables) but also interactive games delivered over the Internet. Popular items
purchased via electronic retailing are airline tickets, books, computers, videotapes, and music
CDs.
Business to Consumer, describes the activities of businesses in selling products and/or services.

Example: Someone buying a television set from an electronics retailer would be a B2C
transaction. The transaction preceding this, e.g. the purchase of components, screens, plastics etc.
by the manufacturer, and the sale of the set from the manufacturer to the retailer would be B2B
transactions.

Before the appearance of B2C e-business, people had to go outside to do shopping. However, the
existing of online stores has brought more convenience for human beings! You can buy a suit of
clothes without entering into any clothing shops; you can also get a lot of food and drinks with
only several clicks on your computer mouse; and the like.
All in all, there’s no doubt that B2C e-business is an efficient economic model. It saves much time
for both the companies and the customers. Meanwhile, every coin has two sides. We should
realise that there are some inevitable disadvantages of B2C e-business, such as credit fraud.

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