B2B E commerce Business Model Disadvantages

Just like the other business models, the B2B E commerce Business model has some flaws
too, which are:
 Limited Market
Compared to the B2C model, this type of business has a limited market base as it deals
with transactions between businesses. This makes it a bit of a risky venture for small and
medium E commerce businesses.
 Lengthy Decision
Here, the majority of the purchase decisions involve a lengthy process as there are two
businesses involved. The process may involve dependence on multiple stakeholders and
decision makers.
 Inverted Structure
Compared to the other models, consumers have more decision making power than sellers
in the B2B business model. They may demand customizations, impose specifications and
try to lower price rates.
Shopping process flow
Introduction
There are many different types of e-commerce websites, however the two most common
ones are:
• Business-to-Consumer (B2C) - typically designed for selling goods and services to
consumers.
• Business-to-Business (B2B) - used to build strategic relationships with other
businesses, and to ease the supply and procurement processes that characterize trade
among those organizations.
Sites can also have multiple roles, and a single site can provide several functions.
EPiServer Commerce is a flexible platform allowing for seamless integration with external
systems such as financial, CRM, inventory, warehouse and customer service systems.
Depending on how you chose to work with your online store administration and product
content, you will define your user roles and groups, and give them access rights to the
different parts. Example of user roles in EPiServer Commerce are content editors,
marketers, business owners, and store and system administrators.
SHOPPING PROCESS
A "typical" B2C shopping workflow involves a number of interactions between a visitor
on the website, EPiServer Commerce, and any integrated external system.. Depending on
how the system is set up, the shopping workflow can be fully automated so that it requires
little manual attention. However, a purchase order can always be monitored, accessed and
handled manually from the Orders system if needed.
In the following we will describe an example of a B2C type of shopping workflow and the
actions and tasks involved.
1. Cart created
In this example, a customer does not need to register on the site in order to buy. The order
process actually starts as soon as the visitor selects a product and adds it to a shopping cart.
A cart (basket) will be created and saved in the system, and can be viewed in Orders under
"Carts". If the customer does not complete the checkout procedure, the cart will remain in
the system for a specified time.
When the customer returns to the website, the cart will be "remembered" and made
available for continued shopping. Already in this early step the system will perform an
inventory andpricing check, to look for availability in the warehouse, as well as discounts
for selected products in the cart. This will be updated if and when the customer returns to
the cart at a later stage.
2. Start checkout
When the customer decides to complete the purchase and chose to "proceed to checkout",
the first step of the checkout procedure is initiated.
3. Add address
In the second step of the checkout procedure, the shipping and billing address information
is added together with the preferred type of delivery (First class/Express etc). The address
information can be entered manually by an "anonymous" customer, or automatically if the
customer is logged in and has a registered user profile with address information. The
system can also be set up so that it is possible to split shipments in different parts and to
different addresses here.
4. Add payment
In step three of the checkout procedure, the payment is added to the "purchase order to
be". The system will calculate the total sum including the purchase amount and the
shipping fee. In this step the customer selects a payment method, for instance by credit
card or PayPal. The payment will be registered and verified. This may happen instantly or
after a certain specified time, depending on how the payment process is set up and the type
of e-commerce solution (B2C or B2B). In this step it is also possible to split payments, if
the system is configured for this.
5. Order created
Usually the actual purchase order is created in the system when the payment is settled. In
the last checkout step, a purchase order number is created, the customer confirms the
purchase, and an order confirmation is sent to the customer. The shopping cart is now
converted to a purchase order which is visible with status "In Progress" under "Purchase
Orders" in Orders.
6. Order processing
When the order is created the order processing starts. This consists of steps to check the
warehouse and inventory status for the products in the order, and for creating the actual
shipment. Depending on the inventory status for the products, the order may be split into
more than one shipment.
7. Shipment released - when the shipment is verified, it will be released. The purchase
order will now appear in Orders, under "Shipping/Receiving" and "Released for Shipping".
8. Add to picklist - This steps involves the addition of the shipping items to a picklist.
The picklist is the list that the warehouse will use to create the physical shipping of the
products in the order. This step will also produce a packing slip, which is the paper slip
that will be attached to the physical package to be shipped.
9. Order completed/shipped
When the picklists with the different orders and their respective packing slips have been
created, the order will be set to completed. In the system this involves the creation of a
shipment validation number which is associated with tracking number. The tracking
number can be entered manually or automatically, if such an integration exists. The
tracking number connects the physical package with the shipping provider for the delivery,
and is used for tracking the package on its way to the delivery address. The purchase order
will now appear in Orders under "Purchase Orders" again, with status "Completed".
10. Return/Exchanges
Only completed orders can be subject to returns/exchanges. Depending on how the system
is set up, returns can be created automatically or manually. Creating a return usually
involves replacing a delivered product with another one in exchange, and/or a payment
refund. When the return is created it will appear in Orders under "Shipping/Receiving" and
"Returns". Order status can be for instance "Awaiting Exchange".
If the return involves replacement of a new product, the shipping procedure will be
initiated again. The return may also involve receiving a faulty product, in which case a
receiving procedure is initiated involving the acknowledgement of a receiving receipt for
the returned product
ELECTRONIC RETAILING
Definition: The Electronic Retailing also called as e-tailing or internet retailing, is the
process of selling the goods and services through electronic media, particularly the
internet. Simply, the sale of retail goods and services online is called as electronic retailing.
It follows the B2C business model wherein the business interacts directly with the
customers without the involvement of any intermediaries
The e-retailers can be of two types:
 Pure Play e-retailers such as Amazon, that emerged as the online bookseller. It is
present only online and do not have any physical outlet for the customers.
 Brick and click e-retailers such as Dell, that sells computers through the internet as
well as has the physical store front for the customers.
Advantages of Electronic Retailing
1. Through electronic retailing, customers can save both the efforts and time.
2. The wide range of products is available online, so the comparison can be made easily
before the purchase.
3. The customer can shop anytime and from anywhere, the facility is available 24*7
4. The huge discounts can be availed while shopping online.
5. The detailed information about the product is available online; that helps the
customer to make the purchase decision.
6. The electronic retailing offers the easy payment terms such as payment on delivery
that instigate the customer to shop online.
Disadvantages of Electronic Retailing
1. The customers may not be sure of the quality of the products offered online.
2. It is the tendency of every individual to bargain before making the final purchase, but
this quotient is missing in electronic retailing.
3. Also, the customers may not trust on the payment gateways and fear the misuse of
credit cards or any other mode of payment.
4. Every customer wants to see and feel the product that he purchases, but it is not
possible in case of electronic retailing where the customer makes the decision just by
looking at the image.
5. The product is not readily available; the customer has to wait for some time to get the
product in his hands.
6. The customer misses the emotional attachment with the seller that leads to less faith
on the offerings.
The electronic retailing is the subset of E-Commerce that means, E-commerce is the
principle domain that includes the e-tailing operations.
ELECTRONIC CATALOGUE
An electronic catalogue is an online publication, that is to say a graphic interface -generally
an html page in which the products and services offered by a company are showed. Digital
catalogues can store great quantities of items, which can be organized and classified into
different categories for users to search in a more rapid and effective way.
There are different types of catalogues according to their functions. The simplest
catalogues show only descriptions of the products and price lists, and do not enjoy a
purchase and payment online method. Others have shopping carts, order forms and offer
payment methods. The amount of functions an online catalogue has will determine the
price of its development.
The main aims of e-catalogues are to advertise, to sell, to distribute, and to draw the
customer’s attention. They are the digital representation of a company and a powerful e-
commerce tool. In the e-commerce world we find business-consumer transactions and
business to business transactions. In this way, e-catalogues are excellent communication
tools between a company and its client, suppliers or other companies. For all these reasons,
catalogues became a marketing tool used every day by different types of organizations.
There are different types of electronic catalogues according to the way they appear on the
Internet. Retailer’s e-catalogues are generally independent pages on the Internet, and their
aim is to promote and sell products and services. But, big companies generally include
their e-catalogues on their general websites. Generally, they are not used as tools for selling
but as means to promote products and services and to draw the customer’s attention. There
are also malls, that is to say e-catalogue groups –ebay.com for example. In this case, an
Internet provider gathers different companies’ digital publications, showing a great
number of offers made by the users.

Advantages E-catalogues
E-catalogues bring many advantages to different companies. Here we show them to you
for you to consider catalogues as a promotion tool for your company:
Low costs
Unlike conventional catalogues, these e-catalogues allow you to save money, since you
will not need to spend on paper and printing. For this reason, they are perfect for small and
medium-sized companies, which will have, with them, the possibility of getting into the
world market.
Market expansion
Thanks to the possibilities that the Internet provides, people around the world will be able
to gain access to your online catalogues any time. With these catalogues, different
companies gain new customers, providing a faster and more comfortable service to
consumers. By using these catalogues, users will be able to search for products and
services, place orders, make payments by credit cards or payment portals, and clear up
their doubts. In this way, sales increase considerably.
Interaction
Unlike printed catalogues, digital catalogues allow a direct relationship between the
company and its clients. With an e-catalogue, a company can inform about its products
and services to its clients, who will contact the company’s representatives to clear up their
doubts, to make comments or suggestions. Because of this, company will be permanently
updated about the fluctuating necessities of their target.
Information for customers
With these catalogues, each company will be able to provide information on the
products and services it offers and links to other websites for customer to get
complementary information on the subjects the company’s website leads with.
Regular update
E-catalogues content is stored on a server to which navigators from all over the world
have access. They can be updated from the server in a regular, fast and easy way. What is
more, the changes made are immediately available for customers to see. In this way,
catalogues show the latest about new products, prices, points of sale, new technology
incorporations, etc.

WHAT IS INTERACTIVE ADVERTISING

Interactive advertising is a shift from the more traditional (and perhaps, boring) method of
advertising, which relies on customers seeing and remembering a typical magazine ad or
hearing about a product on the radio. Interactive advertising is about developing two-way
communication between brand and customer, because the brand has developed advertising
that requires the
customers to react in some type of unusual way (not simply going to a store and buying
the advertised item).
You're probably most accustomed to seeing the interactive nature of advertising through
the medium of the internet, right? After all, you have to click on links to view content and
choose to follow through on an advertisement you see on your favorite news site. Savvy
marketers have determined that interactive advertising can take many different forms (like
JetBlue discovered), in an effort to open up the dialogue between a business and its
audience, engage them, build relationships and ultimately, convert them into customers.

BENEFITS AND DISADVANTAGES

Interactive advertising, like any form, has both advantages and drawbacks that marketers
should consider. Among them:
Benefits
 Gives viewers more control over their interpretation of your content
 Proves the importance of the consumer (by asking them to respond or react in some
way)
 Opens lines of interaction and dialogue between a brand and its audience
Disadvantages
 Can be more costly in terms of finances and time
 Requires a clear understanding of the audience being targeted

IMPACT OF E COMMERCE
INTRODUCTION.
E-commerce is about much more than marketing or selling. It impacts significantly on
all the functional areas of a business. The largest and most-successful e-
commerce businesses have invested hugely over many years to develop their IT
systems, business processes and capabilities.

THE ADVANTAGES & DISADVANTAGES OF ADVERTISING ON THE

INTERNET
More than 4 billion people use the internet. If you want to build your business brand, reach
prospective customers, and make more sales, you can no longer ignore digital advertising.
But beware: there are ineffective strategies that can eat your ad dollars in record time,
leaving you with little to show for your advertising efforts. For many businesses, however,
the advantages outweigh the disadvantages. Advantage: Your Customers Are on the
Internet
Do you know anyone who doesn’t use the internet? The fact that it is so ubiquitous is
probably the most compelling reason to get on board. Platforms like Facebook, Instagram,