Q. Explain the concept of the following :
(i) B2B (ii) B2C
(iii) C2C (iv) C2B
(v) B2G (vi) G2C
Q. Write a note on E-Commerce Models.
Ans. There are four main E-Commerce models according to the types of buyers and sellers in the transactions, which are as follows:
(i) Business–to–Business (B2B): Business–to–Business (B2B) E-Commerce implies that both the sellers and buyers are business corporations. Computers, electronic items, shipping and warehousing, motor vehicles, petrochemicals, paper and office products, food and agriculture are the leading items in B2B E-Commerce.
Business-to-Business E-Commerce covers a broad spectrum of applications that enable an enterprise or business to form electronic relationships with their distributors, resellers, suppliers, and other partners. It is also known as E-Commerce where companies of all types are mutually buying and selling products and services on the internet. Business-to-Business model uses websites to sell the product to the immediate buyer who takes the product to the final consumer. For example, a wholesaler places an order through the company’s website for fresh stock and receives processed order in the form of shipped supplies. The wholesaler then sells the supplies to the final consumer, the customer who walks into the retail outlet.
B2B applications will offer enterprises access to the following sorts of information:
• Product – specifications, prices, quality, sales history and forecasts.
• Customer – sales history and forecasts.
• Supplier – sales terms and conditions like delivery time, local taxes etc.
• Product process – capacities, commitments, product plans.
• Transportation – carriers, lead times, costs.
• Inventory – inventory levels, carrying costs, locations.
• Sales and marketing – point of sales, promotions.
• Supply chain alliance – Key contacts, partners’ roles and responsibilities schedules.
• Competitior: benchmarking, competitive product offerings, market share.
• Supply chain process and performance – process descriptions, performance measures, quality, delivery time, customer satisfaction.
Thus, B2B E-Commerce contribute to:
• lowered purchase costs
• reduced inventory
• enhanced efficiency of logistics
• increased sales
• lowered sales costs
• lowered marketing costs
(ii) Business-to-Consumet (B2C): Business to Consumer (B2C) applies to the business or organisation that sells its products or services to consumers directly over the internet. Consumers from anywhere can browse and order goods and services online anytime.
B2C model uses a web site where all transactions takes place between a business organization and the final consumer. For example, a customer would log into a web site and go for details. If he want to buy a product, an order would be placed and sent as an e-mail to the office or the business organization. The e-mail would be received at the office, the goods would be dispatched and the customer would received the goods.
To attract a large number of customers, these sites have to do a lot of advertising, both on and off the Net, and are thus, much more visible than the other segments. These sites require huge investment in terms of the hardware and software. This is required to get and support the many millions of hits that they experience. A good example is the famous bookstore Amazon at www.amazon.com. Amazon is the largest bookstore in the world, with 50 percent of the book market share. After gaining a reputation as the bookstore, Amazon expanded its offerings to music, video, gifts and auction.
B2C in addition to online retailing include services such as online banking, travel services, tourism services, online stock trading, online auction, real estate services etc.
(iii) Consumer-to-Consumer (C2C): In this model, consumers sell directly to consumers. Examples are individuals selling residential property, cars and so on. If you have something to sell, then you get it listed at an auction site, and others can bid for it. These sites are again mass usage sites like the B2C ones, which depend on more and more people visiting and using the site’s services. For example, at an auction site, customers located in India and in Washington can register. A customer from India places an advertisement on the Web site. A customer from Washington, while surfing, looks at the advertisement and decides to purchase the product. Thus, the deal is finalized through the web site without an actual meeting.
(iv) C2B (Consumer-to-Business): Consumer to Business (C2B) involves reverse pricing model or reverse auctions that enable buyers to determine their own prices for specific products and services. In such sites, the consumer places an estimate of the amount of money he is willing to spend for a particular service. As an example, we have hotel rooms or airline tickets. Businesses that can offer this service within the customer’s specified limit get back to him with the offer. Such sites depend on proper estimates by consumers and the ability of corporate users to fulfil customer demand. Examples of C2B website are surveyscouts.com, reverse auction.com etc.
(v) B2G (Business-to-Government): A B2G web site is a variation of the B2B web site. It is a web site used by the government to exchange information and trade with various organisation across the world. A B2G web site would :
● Be accredited by the government.
● List all the rules and regulations pertaining to the specific industry.
● Provide a medium for the submission of forms and applications to the government.
(vi) G2C (Government-to-Citizen): A G2C web site is an attempt by the government to reach out to people in general. The government regularly conducts auctions and sales of vehicles, machinery and other material. These auctions are high valued and are visited by customers. These web sites also provide access to various official records and application forms, such as for birth, marriage, and death certificates.
Main Objectives of G2C are :
1. Reduce the average time for citizens to find benefits and determine eligibility.
2. Reduce the number of clicks to access relevant loan information.
3. Increase the number of citizens filling taxes electronically.
4. Reduce the time for citizens to find information on recreational opportunities.
(vii) G2B (Government-to-Business): A G2B web site is an attempt by the government to reach out to business. Such sites provide access to various application forms.
