Various Business Models in
E-Commerce Business
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Admission No.: HPGD/AP16/XXXX
Specialisation: E-Commerce
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PRIN. L. N. WELINGKAR INSTITUTE OF
MANGEMENT DEVELOPMENT &
RESEARCH
INTRODUCTION
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E-commerce business models can generally be
categorized into the following categories.
Business - to - Business (B2B)
Business - to - Consumer (B2C)
Consumer - to - Consumer (C2C)
Consumer - to - Business (C2B)
Business - to - Government (B2G)
Government - to - Business (G2B)
Government - to - Citizen (G2C)
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Business - to - Business (B2B)
B2B business model sells its products to an intermediate
buyer who then sells the products to the final customer.
As an example, a wholesaler places an order from a
company's website and after receiving the consignment,
it sells the end product to the final customer who comes
to buy the product at the wholesaler's retail outlet.
Business-to-business (B2B) ecommerce market is
gradually maturing across the world, whereas in India it
is still at the nascent stage. Experts have predicted that
India’s B2B industry will be worth Rs. 45 Lakh Crore
by 2020.
B2B identifies both the seller as well as the buyer as
business entities. B2B covers a large number of
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applications, which enables business to form
relationships with their distributors, re-sellers, suppliers,
etc.
Key technologies used in B2B e-commerce -
Electronic Data Interchange (EDI)
Internet
Intranet SAMPLE PROJECT
Extranet
Back-End Information System Integration
Architectural models in B2B e-commerce –
Supplier Oriented marketplace
Buyer Oriented marketplace
Intermediary Oriented marketplace
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Business - to - Consumer (B2C)
In B2C model, a business website is a place where all
the transactions take place directly between a business
organization and a consumer.
In the B2C model, a consumer goes to the website,
selects a catalogue, orders the catalogue, and an email is
sent to the business organization. After receiving the
order, goods are dispatched to the customer.
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Consumer - to - Consumer (C2C)
C2C e-commerce differs SAMPLE PROJECT
from a business-to-business model or a
business-to-consumer model because consumers interact directly
with each other. However, a business does operate the online
platform on which C2C transactions take place. Typically, buyers
can shop for free, but sellers sometimes have to pay a fee to list
their products. Consumers often play an active role in monitoring
e-commerce sites for scams and other inappropriate content.
The C2C model entails lower costs and higher profits for buyers
and sellers. Sellers can store inventory in a home office, and it
costs less to market and distribute products than in a traditional
business-to-consumer model. Both new and used goods are sold
through C2C e-commerce, and fewer middlemen are involved in
the transactions.
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Consumer - to - Business (C2B)
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C2B ecommerce is also known as consumer-to-
business. This change heralds a complete reversal of the
traditional model, with those who would normally be
end-users creating products and services that are
consumed by the businesses and organizations they
themselves buy from.
C2B marketing works because there are three different
groups whose relationships are changing. These are
broken down as the customer, the business, and the
intermediary.
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Business - to - Government (B2G)
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Business-to-government (B2G) is a business model that
refers to the companies selling products, services or
information to governments or government
agencies.B2G models provide an opportunity for
businesses to bid on government contracts or products
that government might buy or need for their firms. This
can comprise of public sector companies that propose
the bids. B2G bidding is increasingly being executed
online through real-time bidding. B2G is also known as
public sector marketing.
Government - to - Business (G2B)
G2B initiatives encompass all activities of government
which impinge upon SAMPLE
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organizations. These
include registrations under different statutes, licenses
under different laws and exchange of information
between government and business. The objective of
bringing these activities under e-Governance is to
provide a congenial legal environment to business,
expedite various processes and provide relevant
information to business.
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Government - to - Citizen (G2C)
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Government uses G2C model website to approach
citizen in general. Such websites support auctions of
vehicles, machinery or any other material.
Such website also provides services like registration for
birth, marriage or death certificates.
Main objectives of G2C website are to reduce average
time for fulfilling people requests for various
government services.
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Thank you
