Page 30 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

Unit 2: Business Models of E-Commerce

2. Personal Contact: Personal contact is important within various industry sectors. Each buyer has a
different situation and all special requirements are difficult to include in an e-marketplace.

3. Security and Regulations: Security aspects such as, impact of hacker attacks, thefts of business
information and funds, as well as dishonest transactions and conflicts cause uncertainty in
organizations willing to use e-marketplaces.

4. Technology: New technologies often emerge and companies that choose to build a certain e-
commerce platform will lose out if new standards are adopted.
5. Supplier Issues: Suppliers often avoid e-marketplaces due to the price transparency. Some
suppliers are not convinced on sharing inventory and capacity information because they believe
that it will affect their sales.
2.3 Business-to-Consumer (B2C) E-Commerce

Business-to-Consumer (B2C) model describes activities of those businesses that serve end consumers
with products and services. It includes electronic retailing or e-tailing.
Electronic retailing includes retail sales and makes it easier for the manufacturer to sell directly to a
consumer without the help of intermediaries. An electronic store or Web storefront means the Web site
of an organization where the products and services are sold. Consumers have the option of browsing
the catalogs and electronic storefronts online.

An example of Web storefront is Amazon.com. In this Web site, consumers can
browse catalogs and place orders for the products. Once the order is placed, it is
delivered directly to the specified address.
According to Turban (2002), the following things are commonly browsed and sold over the Internet:
1. Computer Hardware and Software: Most of the software products are bought online.

The prominent online retailers of software and hardware are Gateway and Dell.

2. Consumer Electronics: Consumer electronic products are the most sold online products.

Some of the commonly purchased electronics items online are digital cameras,
scanners, printers, and wireless devices like mobile phones, pen drives, and other
such electronic goods.

3. Sporting Goods: Some of the sports accessories that are sold online are cricket bats, tennis bats,
golf balls, and golf accessories.

Web site like Summitonline.com provides sports accessories online.
4. Office Supplies: The consumer sales of the office supplies have increased all over the world.

The sales of office supplies through the Officedepot.com Web site crossed $2.3
billion in the year 2002.
5. Other items like, music related products, CDs, toys, beauty and health products, vehicles and
apparels are the general things that are sold over the Internet.
According to Bidgoli (2002), the performance of business in consumer e-commerce involves five main
activities:
1. Information Sharing: In order to share details with customers, a business-to-consumer e-
commerce model can make use of a company Web site, online catalog, online advertisements, e-
mail, and message board system and discussion groups.

LOVELY PROFESSIONAL UNIVERSITY 23