Comp1503 Introduction to E-Commerce Technology

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Nov 5, 2013 (3 years and 10 months ago)

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Comp2513


E
-
Commerce Business Models

Daniel L. Silver, Ph.D.

2002

Daniel L. Silver

2

Outline


Three fundamental categories of E
-
Commerce
business models


B2C, B2B and C2C


A B2C Scenario


Window Shopping


Step into the store (registration)


Filling the shopping cart


On to the checkout


Paying for the items


Fulfillment and shipment tracking

2002

Daniel L. Silver

3

Three Fundamental Categories of
E
-
Commerce Business Models


B2C


Business to Consumer


What most people typically think of when they
think E
-
Commerce


C2C


Consumer to Consumer


Auctions, Bartering models


B2B


Business to Business


The original E
-
Commerce models


Why?

2002

Daniel L. Silver

4

B2C


Business to Consumer


Storefront Model


The best known form of E
-
Commerce


Displays products (catalogs), takes orders,
accepts payment, fulfills order, manage
customer data


Click and Mortar versus Internet Only


Amazon.com, eToys.com, CDnow.com,
Chapters.ca


2002

Daniel L. Silver

5

B2C


Business to Consumer


Online Shopping Mall Model


Present wider selection of products and services


Searching and shopping convenience


Common shopping cart, payment and shipping
method


Takes advantage of economies of scale


Merchants are charged in various ways


Mall.com, Canadashop.com, Shoptheshops.com

2002

Daniel L. Silver

6

B2C


Business to Consumer


Portal Models


Horizontal portals


general search engines

»
Broad range of topics, shallow depth

»
Links to various malls, stores, auctions, sources

»
Altavista.com, Hotbot.com, Yahoo.com, Google


Vertical portals


specialist

»
Narrow range of topics, in
-
depth information

»
See
http://www.verticalportals.com/


Help users collect information and purchase


Charge merchants for advertisememts

2002

Daniel L. Silver

7

B2C


Business to Consumer


Innovative/Dynamic Pricing Models


Name
-
your
-
price


Priceline.com


Comparison pricing


Bottomdollar.com


Bulk
-
buy pricing


mercata.com, mobshop.com


Rebating


eBates.com. eCentives.com


Free products and services


iWon.com,
Freemerchant.com


free hosting, free store
building, free traffic logs, free auction tools, etc

Most would not be possible without the Internet


2002

Daniel L. Silver

8

C2C


Consumer to Consumer


Auction Model


Internet forum for sellers and bidders


Various auctions (reserve
-
price, reverse, Dutch)


eBay.com (1995, Pez dispenser collector)


4M simultaneous auctions, 450K new items/day


$3.8B spent in online auctions in 2000
(Forrester)


Bartering Model


Offering one item in exchange for another


Ubarter.com

2002

Daniel L. Silver

9

B2B


Business to Business


Businesses have long done E
-
Commerce with
each other


EFT


Electronic Funds Transfer (banks)


EDI


Electronic Data Interchange (suppliers)


Traditional EDI uses a VAN
(value
-
added network)


Closed networks, manufactures and suppliers


Purchase orders and invoices exchanged daily


Standards vary, VANs are costly, closed nets


Moving to the Internet, Web technology and XML
(upgrade of EDI)


2002

Daniel L. Silver

10

B2B


Business to Business


B2B Internet exchanges provide standard methods
of buying, selling, bartering and partnering


2003: US$403 B


2004 projection:


US$2.77 trillion

»
(eMarketer)


US$7.29 trillion

»
(Gardner Group)


B2B auctions:


US$52 billion 2002

2002

Daniel L. Silver

11

The Traditional B2C

Commerce Scenario

1.
Buyer and seller meet

2.
Buyer chooses product and places order

3.
Seller delivers product

4.
Buyer pays for product

2002

Daniel L. Silver

12

The E
-
Commerce B2C Scenario

Consumer Perspective


Search the Internet


Choose the right
product


Place the order and
shipping info.


Enter payment info.


Receive product via
Internet or ground
shipment



Business Perspective


Advertising


Inventory (product)
Management


Order Processing
(shopping cart)


Payment Mgmt


Fulfillment and
Shipping


Profile Management




2002

Daniel L. Silver

13

A B2C Scenario


I would like to buy some hands
-
free
technology to work with my cellular phone
for my consulting business.


Criteria:


It must be reliable


Inexpensive as possible


Light
-
weight


Small (able to fit into my pocket)



2002

Daniel L. Silver

14

Typical B2C Shopping Trip

View Homepage

Registration

Address Book

Shopping Cart

Product Advisor

Search

Receive Ack.

Submit Order

Enter Payment Info.

Enter Shipping Info.

Select Products

Navigate

2002

Daniel L. Silver

15

A B2C Scenario

Technology Questions


How does a browser connect to a server?


How does a search engine work?


What is a cookie?


How do those banner adds work?


Are there web pages for every item?


What is all that gobbledygook in the page address?


What is a shopping cart? How long does it exist?


How does a web sites know who I am on return?


Should I register?

2002

Daniel L. Silver

16

A B2C Scenario

Technology Questions


How does it find my password?


How does it automatically send me emails?


What are the messages concerning insecure
submissions all about?


What is authentication, certificate, encryption?


How do they know my credit card is good?


How do they know there is credit left?


How is software I have purchased downloaded?


How do they track my shipment?



2002

Daniel L. Silver

17

B2C Levels of Automation

Front
-
End


Static Web content


Dynamic Web content


Secure ordering


Shopping cart


Persistent customer
Data


Personalization of
Content


Back
-
End


Manual


Non
-
integrated
computer


Automatic entry


Total Web integration

2002

Daniel L. Silver

18

Business Evolution on the Web

Publishing

Time or Maturity

Functionality

Interactivity

Transactions

Processes

Static web pages

Dynamic web pages

Web
-
enabled

applicatons

THE END


danny.silver@acadiau.ca