E-Commerce (Sneha B R)

UNIT 2:

Types of E-commerce:

1)Business-to-consumer:

The term business-to-consumer (B2C) refers to the process of selling

products and services directly between a business and consumers
who are the end-users of its products or services. Most companies
that sell directly to consumers can be referred to as B2C companies.

Working of B2C:

• A website following the B2C business model sells its products

directly to a customer.
• A customer can view the products shown on the website. The
customer can choose a product and order the same.
• The website will then send a notification to the business organization
via email.
• and the organization will dispatch the product/goods to the
customer.
• Example: Amazon , Flipkart.
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2)Business-to-Business:
B2B (business-to-business), a type of e-commerce, is the exchange of
products, services or information between businesses. A B2B
transaction is conducted between two companies, such as wholesalers
and online retailers.
Example: Samsung is one of Apple's largest suppliers in the production
of the iPhone
Working of B2B:
• A website following the B2B business model sells its products to
an intermediate buyer who then sells the product to the final
customer.
• As an example, a wholesaler places an order from a company's
website and after receiving the consignment, sells the end product
to the final customer who comes to buy the product at one of its
retail outlets.
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3) Customer-to-customer:
C2C, customer to customer, or consumer to consumer, is a business
model that facilitates the transaction of products or services between
customers. Consumer to consumer, or C2C, is the business model that
facilitates commerce between private individuals.
Working of C2C:
• A website following the C2C business model helps consumers to
sell their assets like residential property, cars, motorcycles, etc., or
rent a room by publishing their information on the website.
• Website may or may not charge the consumer for its services.
• Another consumer may opt to buy the product of the first customer
by viewing the post/advertisement on the website.
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4) M-commerce :
mobile commerce is the buying and selling of goods and services
through wireless handheld devices such as smartphones and tablets.
Example in-app purchasing, mobile banking, virtual marketplace apps
like the Amazon mobile app or a digital wallet such as Apple Pay,
Android Pay and Samsung Pay
Experts consider mobile commerce as the next phase of eCommerce, as
it allows consumers to buy goods or services from anywhere and at any
time.
M- Commerce triggered the emergence of brand-new industries and
services or helped the existing ones to grow in new directions. Examples
of such innovations include:
• tickets and boarding passes,
• mobile banking,
• money transfers, contactless payments, and in-app payments,
• digital content purchases,
• location-based services,
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• mobile marketing, including coupons and loyalty cards.etc.

5) Social e-commerce:
It is e-commerce that is enabled by social networks and online social
relationships.
It include customer ratings and reviews, user recommendations and
referrals etc.,
Example: Shoppable ads. Shoppable influencer content. Shoppable
videos and media leading to e-commerce sites
6) Local e-commerce/hyper-local commerce:
Falls under the umbrella of Offline-to-Online commerce (O2O). O2O
means that retailers with physical stores can (should) offer their
inventory and sell to local online shoppers in the same way online pure
plays sell to online shoppers.
Local e-commerce, as its name suggests, is a form of e-commerce that is
focused on
engaging the consumer based on his or her current geographic location.

Consumer-Oriented e-commerce:

Introduction:
The wide range of applications envisioned for the consumer marketplace
can be broadly classified into:
(i) Entertainment
(ii) Financial Services and Information
(iii) Essential Services
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(iv) Education and Training

1.Personal Finance and Home Banking Management

(i) Basic Services
(ii) Intermediate Services
(iii) Advanced services
2. Home Shopping
(i) Television-Based Shopping
(ii) Catalog-Based Shopping
3. Home Entertainment
(i) Size of the Home Entertainment Market
(ii) Impact of the Home Entertainment on Traditional Industries
4. Micro transactions of Information
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1. Personal Finance and Home Banking Management:

• The newest technologies are direct deposit of payroll, on-line bill
payment and telephone transfers
• The technology for paying bills, whether by computer or telephone, is
infinitely more sophisticated than anything on the market a few years
ago
• In 1980s were the days of ―stone age‖ technology because of
technology choices for accessing services were limited
• For home banking, greater demands on consumers and expanding need
for information, it‘s services are often categorized as basic, intermediate
and advanced
(i) Basic services
• These are related to personal finance
• The evolution of ATM machines from live tellers and now to home
banking
• The ATM network has with banks and their associations being the
routers and the ATM machines being the heterogeneous computers on
the network.
• This interoperable network of ATMs has created an interface between
customer and bank that changed the competitive dynamics of the
industry.
• Increased ATM usage and decrease in teller transactions
• The future of home banking lies with PC‘s
(ii) Intermediate Services
• The problem with home banking in 1980 is, it is expensive service that
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requires a PC, a modem and special software

• As the equipment becomes less expensive and as bank offers broader
services, home banking develop into a comprehensive package that
could
even include as insurance entertainment
• Consider the computerized on-line bill-payment system
• It never forgets to record a payment and keeps track of user account
number, name, amount and the date and we used to instruct with
payment instructions. See inFig;

(iii)Advanced Services
• The goal of advanced series is to offer their on-line customers a
complete
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portfolio of life, home, and auto insurance along with mutual funds,
pension
plans, home financing, and other financial products
• The Figure explains the range of services that may well be offered by
banks in future
• The servic3es range from on-line shopping to real-time financial
information from anywhere in the world
• In short, home banking allows consumers to avoid long lines and gives
flexibility
2. Home Shopping:
• It is already in wide use.
• This enable a customer to do online shopping
(i) Television-Based Shopping:
• It is launched in 1977 by the Home Shopping Network (HSN).
• It provides a variety of goods ranging from collectibles, clothing, small
electronics, house wares, jewelry, and computers.
• When HSN started in Florida in 1977, it mainly sold factory overruns
and discontinued items
• It works as, the customer uses her remote control at shop different
channels with touch of button. At this time, cable shopping channels are
not truly interactive
(ii) Catalog-Based Shopping
• In this the customer identifies the various catalogs that fit certain
parameters such as safety, price, and quality
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• The on-line catalog business consists of brochures , CD-ROM

catalogs, and on-line interactive catalogs
• Currently, we are using the electronic brochures
3. Home Entertainment:
• It is another application for e-commerce
• Customer can watch movie, play games, on-screen catalogs, such as
TV guide.
• In Home entertainment area, customer have the control over
programming

Advanced Services

Size of the home Entertainment Market:

• Entertainment services are play a major role in e-commerce
• This prediction is underscored by the changing trends in consumer
behavior.
Impact of Home entertainment on traditional industries:
• This will have devastating effects on theater business
• Economic issues might allow theaters to maintain an important role in
the movie industry
• Today average cable bill is approximately $30 a month Industry
Estimates of consumer
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4. Micro transactions of information:

• One change in traditional business forced by the on-line information
business is the creation of a new transaction category called small-fee
transactions for microservices
• The customer by giving some information away for free and provide
information bundles that cover the transaction overhead.
• The growth of small-money transfers could foster a boom in other
complementary information services
• The complexity is also increased in micro services when an activity
named,
reverification is entered.
• It means checking on the validity of the transaction after it has been
approved Desirable Characteristics of an Electronic marketplace
• Critical mass of Buyers and sellers: To get critical mass, use electronic
mechanisms
• Opportunity for independent evaluations and for customer dialogue
and discussion: Users not only buy and sell products, they compare
notes on who has the best products and whose prices are outrageous
• Negotiation and bargaining: Buyers and sellers need to able to haggle
over conditions of mutual satisfaction, money, terms & conditions,
delivery dates & evaluation criteria
• New products and services: Electronic marketplace is only support full
information about new services
• Seamless interface: The trading is having pieces work together so that
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information can flow seamlessly

• Resource for disgruntled buyers: It provide for resolving
disagreements by returning the product.

E-retailing:
• Electronic retailing (E-tailing) is the sale of goods and services
through the internet.
• E-tailing can include business-to-business (B2B) and business-to-
consumer (B2C) sales of products and services.
• Amazon.com (AMZN) is by far the largest online retailer providing
consumer products and subscriptions through its website.
• Many traditional brick-and-mortar stores are investing in e-tailing
through their websites.
• Types of Electronic Retailing (E-tailing)
1. Business-to-Consumer (B2C) E-Tailing:
2. Business-to-Business (B2B) E-tailing:
1.Business-to-Consumer (B2C) E-Tailing:This group of retailers
includes companies selling finished goods or products to consumers
online directly through their websites. The products could be shipped
and delivered from the company's warehouse or directly from the
manufacturer.
2.Business-to-Business (B2B) E-tailing:Business-to-business
retailing involves companies that sell to other companies.
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Advantages of E-Retailing:
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i) Price and selection: Online shopping provides quick deals for many
items with many different vendors. E-tailing provides the facilities of
online price comparison which makes selection quite easy and fast.
ii) Opportunities to reach new markets: E-retailing gives retailers an
opportunity to reach new markets which is physically not possible.
iii) Provides home shopping experience: E-Retailing overcomes some
limitations of the traditional formats. For instance the customers can
shop with the ease and comfort of their homes.
iv. Extension to leverage: For the existing retailers, it is an extension to
leverage their skills and grow revenues and profits without creating new
business.
vi. 24 hours shopping: Online stores are usually available 24 hours a
day. Many customers who have internet access both at work and at
home go for online shopping. Moreover, increasing fuel costs, large
mall crowds and time constraints are motivating buyers to shop online.
Retailers can get the order from any customer living any place at any
time of the day. E-tailing removes the barriers of time and space.
vii. Reasonable cost: E-Commerce channels are definitely efficient and
they are highly cost-effective retailers. Retailers do not have to pay a
heavy price (rent) for shops in costly shopping malls.
Key Success Factors for E-retailing:

1. Brand name
Create a memorable brand name: Like Amazon, eBay, Flipkart, etc.,
your business name and domain name should be simple (maybe just one
word) and catchy. It should be easy to remember and pronounce. The
reason is, most of the customers want to shop the things in brand stores.
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Therefore, choosing a memorable brand name is the key first step in

starting the ecommerce business.

Make your brand consistent: Changing your online store name

constantly affects your credibility as a business and leads to a
low volume of traffic. Your brand name is the identity of your store.
Once you select a name, don’t change unless it is necessary.

Avoid changing your domain name: It’s not only your brand name but
also your domain name that needs to be consistent. Your customers are
familiar with your website, thus changing a domain name will make
your site less visible in search engines. Being consistent with the
domain name provides trust among your customers.

2. Design of the store

Attractive design: When it comes to the look and appearance of the
storefront, the design should entice the customers. You have to build the
stores with the latest features and display the array of products in an
aesthetically pleasing manner.
Create an easy-to-use interface: The user interface is the amazing
thing that draws the visitors’ attention. You can design the store in such
a way that makes customers find products easily and complete the
purchase in a short period of time.
Transparency in your information: You have to display your contact
information on every page of the store clearly so that customers can
communicate with you at any point of time. Other details of the store
like the product price, shipping charges, the shipping time should be
displayed in a precise way because transparency builds trust.
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2. Search Engine Optimization (SEO)

Make your site SEO-friendly: You have to build a website that is

search engine friendly as it helps you rank top position in the search
engines. For example, Purchase Commerce is an SEO-friendly
ecommerce platform that makes it easy to write a detailed product
description, also allowing its visibility in search engines when someone
searches for those products.
Use relevant keywords: You can use tools like Keyword Planner
and UberSuggest to figure out the long tail purchase intent keywords for
your store. Using these keywords in the product description will
increase its visibility in search engines.
Mobile responsiveness: You also check the responsiveness of your
website in order to help your mobile users. i.e., your site should be
accessed or supported in the mobile device.

4. Multichannel marketing

Promote on Social Media: As per stats, there are 3.2 billion social
media users around the world. Hence, you can use this excellent
opportunity to advertise your store. Create a Facebook and Instagram
business page can boost your brand’s online presence.
Content marketing: Content marketing is one type of ecommerce
strategy where you can acquire new buyers. Creating content about
products and publishing them on your web page is an added advantage
to your site. Also, making a YouTube video about the product review
helps in getting more traffic to your online store.
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Email marketing: Email is one of the best marketing places where you
can get connected with your customers. You can update the current
status of your store to the buyers through the email.

5. Personalized buying experience

Customer Satisfaction is the key: Customer satisfaction is the main
thing to boost your business globally. Every new customer is important
for your business; therefore, you should satisfy all the
customers’ needs.
Make the customer work simple: Always don’t make the customer
confused about your product. You should make it clear what your
business website actually provides. Hence, display all the details in a
well-defined way. Also, your site should have multilingual support if
you want to develop your business globally.
Offer discounts & deals: Offering daily deals with many seasonal
offers and discounts will make your buyers happy. By doing
this, customers will feel to make a return in terms of either shopping
again in your store or recommending your store to their friends. This is
also indirect marketing to grow your business.

6. Multiple payment methods

Online payment: The online money transactions are becoming popular

now and buyers are familiar with the net banking payment method. You
can provide options like credit card and debit card transaction along
with the net banking to don’t lose out any customers. You can even
offer your store’s wallet to pay the amount.
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Offer third-party payment: Payment methods like PayPal, Paytm,

Google Pay, etc., are used increasingly these days where some
buyers are interested to transfer money.

Provide offline payment: Customers are also more comfortable to pay

the amount at the time of delivery i.e., Cash on
Delivery (COD) method. So, you can have an offline payment option in
your store.

7. Easy check-out process

Add savelist buttons: ‘Add to Cart’ and ‘Add to Wishlist’ buttons are
primary features in your store. These buttons aid customers to add their
desired products. You can make them mostly red color to make it
attractive.
Single page check-out: To save the time of your buyers, you can make
a one-page checkout option. The various segments like personal details,
billing statements, shipping information are all given in the single
page. Hence, buyers can quickly check-out their products.
Third-party integration: You can integrate a third-party shipping
method to your store. The third-party member takes responsibility for
delivering the products to the customers securely on time.

8. Customer service:
Provide customer service: The first experience is the best experience.
So, buyers can’t forget the first conversation they had with your
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store. Therefore, providing service to customers is one of the best ways

to improve the customers’ trust in your business.
Get regular feedback: The customers who are disappointed with your
store will give more negative reviews to others when compared to
satisfied people who had a good experience. Therefore, taking into
account the customer’s feedback, you have to improve the quality of the
store.
Answer all the customers’ queries: Be sure to satisfy all the customer
queries on time and you should maintain a friendly approach when
communicating with your buyers. Handling customer problems aids
buyers to feel more comfortable towards your ecommerce business.
Models of e-retailing:
1. Specialized e-store
2. Generalized e-store
3. E-mall
4. Direct selling by the manufacturer
5. Supplementary distribution channel
6. E-broker
7. E-services
1. Specialized e-store
• we can distinguish two different kinds of specialization:
traditional specialization along product lines : essentially we
have a store that decides to pick one particular product line for
example books, flowers, CDs, clothes, and sells only this particular
product line.
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specialization by function : A good example of this is

lastminute.com In lastminute.com they sell gifts, travel tickets, and
other items for last minute shoppers who want to purchase these
items at a very short notice. Generally, when one purchases an item
at a very short notice (e.g. travel), he often pays a premium, which
is an extra amount for the convenience of booking the travel at the
last minute.
2. Generalized e-stores
Generalized e-stores sell a large number of product lines rather than
con-fining themselves to just one or a very few product lines.
3. E-malls
• In an e-mall, cyberspace is rented out to cyber e-stores that wish to
sell their goods.
• This store could be a specialized or generalized e-store.
• In an e-mall, each store is under its own management.
• E-mall management is responsible only for creating the cyber sites
that can be rented and can support services and marketing of the
mall. It, thus, provides a web hosting service.
• Several e-malls also provide software tools, which can be utilized
by a prospective e-store to create and maintain it e-store. The
advantage for an e-store is that it is grouped together with other
stores in a well known e-mall site and, therefore, is likely to pick
up visitors to the mall.
4. Direct selling by the manufacturer
• A number of manufacturers with well-known brand name products
have chosen to use the internet to carry out direct selling via the
internet.
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• Example : Cisco systems and Dell computer.

• Note that this approach permits mass customization to meet
customer preferences.
• This direct selling by the manufacturer has an important
disintermediation effect leading to reduced costs to the end
customer and increased profitability to the manufacturer.
• this approach can be used by manufacturers of well-known brands
of products because the customer already knows the product.
• Secondly, the manufacturer must have a thorough understanding
of customer preferences, otherwise he has to rely on the customer
knowledge of a retailer.
5. Brokers or intermediaries
This class of e-retailers is essentially an extension of the notion of a
broker from the physical to the cyber world. A broker is an
intermediary who
• may take an order from a customer and pass it on to a supplier
• may put a customer with specific requirements in touch with a
supplier who can meet those requirements
• may provide a service to a customer, such as a comparison between
goods , with respect to particular criteria such as price, quality, etc.
Thus, brokers provide comparison shopping, order taking and
fulfilment, and services to a customer. That is the reason why they are
sometimes referred to as electronic intermediaries.
There are several different models for electronic brokers and these
include:
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• Brokers that provide a registration service with directory, search

facilities , e-payment facilities, and security-related
facilities. Any business can register with such an e-broker.
• Brokers that meet a certain requirement such as a fixed price.
• Brokers that provide comparison shopping between products .
6. Supplementary distribution channel:
• This model is useful to create logistic network(i,e it is used to
create logistic distribution channel).
• Example: zomato.
7. E-services:
• E-service is nothing but online services ,An e-service refers to any
information and services provided over the Internet. These services
not only allow subscribers to communicate with each other, but
they also provide unlimited access to information. for example e-
banking, call centers etc.
Features of E-Retailing
• The provision of an on-line catalogue, which allows one to browse
through different categories of goods. Thus, it is dynamic and
linked with order process.
• The provision of a search engine, which is a very important feature
that does not exist in traditional retailing.
• The provision of a shopping cart, which allows convenient goods
selection. An ability to provide an automatic price update.
• Personalization of store layouts, promotions, deals, and marketing.
• The ability to distribute digital goods directly. Thus, these goods
can be downloaded instantly.
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• An on-line customer salesperson, “who” can help customers to

navigate through the site.
• An order status checking facility, which is a useful feature before
submission.
• The use of Forums (collaborative purchasing circles) to create a
customer community and thus increase “stickiness.”
Developing a consumer – oriented e-commerce system:
Step one: Product
• Take time to find your eCommerce niche to appeal to the right
customers, and source a product that meets their needs at the right
price.
• Even if your product already matches those needs, you need to
listen to find the best way to increase the benefit to them.
• There are people out there who don’t yet know they need your
product so, Producing appealing and educational content helps
nurture your industry.
• Support customers from the first touch point. Customer service
isn’t only for when things go wrong, it should be introduced before
the customer even knows about your product. Every interaction is a
chance for feedback, which can go right back into developing your
market fit.
Step two: Market
• Provide good CX at every step.
• Tag, filter, and categorize products to make them easier to find.
• Ask for feedback as often as you can, across as many channels as
you can.
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• Use positive reviews in your marketing as much as possible, these

help boost the visibility of your products on Amazon and eBay, as
well as convincing prospects.
• Always try to personalize the experience. 88% of customers feel
more positive about a brand if their experience feels like it has the
personal touch.
Step three: Delivery
• Be sure to make checkout as easy as possible.
• Try to keep your customers updated as much as possible. Order
confirmed, dispatch status, delivery tracking; each notification is an
opportunity to provide peace of mind. And any time spent reading
communications from you is a chance for the customer to reaffirm
that relationship.
• Deliver the items as quickly as possible.
• The quicker they get their stuff, the quicker they can leave that
five-star review. Consider sweetening the deal with free shipping
and returns, too.
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