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The World of E-Business

In today's world, businesses take on more than just a brick-and-mortar structure. Online businesses are becoming more and more popular everyday. Online business models have four components: a value proposition for targeted customers, an online offering, a unique resource system, and revenue model unlike traditional a traditional business where the revenue model is the main focus. (Rayport-Jaworski, p. 112) Online business models can take on different forms including Business-to-Business (B2B), Business-to-Consumer (B2C), and Consumer-to-Consumer (C2C).

"Business-to-Business marketplace is an internet market place where exporters, importers, traders, broker, manufacturers, wholesalers, retailers, and other business communities from around the world meet for buying and selling." (http://www.allactiontrade.com/whatb2b.asp) In a B2B model, businesses sell and trade products, services, and information with other businesses. Business-to-Business models not only operate through the buying and selling of products. The business has evolved to include supply chain management "as more companies outsource parts of their supply chain to their trading partners."  (http://www.indiawebdevelopers.com/articles/ ecommerce/solutions.asp) Therefore, Business-to-Business models target business buyers. B2B business models operate in three ways: catalog sites, exchange sites, and auction sites. Examples of B2B companies are Intel, Xerox, and IBM. Intel, for example, sells personal computers and software to other businesses, provides technical books, and information on trends and new computer technology. To assists buyers, Intel offers customer service, product information, and training. Business-to-Business models also offer community sites where researching, lobbying, or exchanging of ideas takes place. B2B models can effectively market themselves through pop-up ads, search engines, auction and trade sites, and referral sites. This type of model limits overhead costs and company expenses. It has a world wide presence as buyers from any country has access to its products and services. Business-to-Business type models are able to sell products to buyers at a low cost because of its minimal overhead costs. The use of a Business-to-Business model achieves more efficient, error-free transactions and inventory maintenance.

A Business-to-Consumer model is online retailing. A company which sells products, services, or information to consumers online is considered a B2C model. The target audience for this type of model is everyday consumers "shopping for and buying personal and household products." (http://www.ecommerceprogram.com/ecommerce/Ecommerce-Functions.asp) Web site feature functions may include wish lists, a shopping cart, real-time inventory, and product information. Unlike in Business-to-Business models, the Business-to-Consumer model may also offer customization and gift-wrapping services to attract its target audience. Another added quality of a B2C business model is the option to pick up merchandise at an area store if necessary. E-businesses using a Business-to-Consumer model tailor their websites to the customers needs. Some companies such as Babies R Us, www.babiesrus.com, give consumers the ability to create and find gift registries, purchase gifts, have them gift wrapped, and shipped to expecting mothers. It simplifies shopping for consumers by providing all services in one place. A Business-to-Consumer model has a large amount marketing power. Not only are they advertising online but they are advertising in brick-and-mortar stores also. B2C models also advertise through pop-ups, search engines, and referral sites. Maintaining a B2C model e-business reduces company costs and produces additional revenues. Most companies have brand names that are well known. Therefore, it's easier to market products and services. This type of company also has global presence. Merchandise can be shipped world wide just as with a Business-to-Business model. Business-to-Consumer businesses played a large role in the rapid development of the commercial Internet in the late 20th century.

Consumer-to-Consumer businesses are sites where consumers sell products and services to other consumers. E-businesses with this type of model are usually auction sites such as E-bay. E-bay gives consumers the option to buy or sell products over the web. Purchasers have the option of buying at the selling price or placing a bid. Consumer-to-Consumer businesses target audience is consumers. Just as with a B2C model, C2C models offer website features such as wish lists, shopping carts, real-time inventory, and customization. Consumer-to-Consumer models also offer convenient signup for consumers, a feedback feature that keeps track of sellers' history, and international appeal to auctioneers overseas. C2C models advertise through search engines, pop-ups, and referral sites just as B2B and C2C model businesses. A Consumer-to-Consumer model allows sellers and traders to transact business at a low cost. E-business models derive revenue through listing and selling fees. http://www.utdallas.edu/~murthi/EBAY.HTM

Ecommerce is one of the most important aspects of the Internet today. Both individuals and organizations have adopted Internet technologies to improve productivity, convenience, and communications globally. Before the Internet, all business took place in brick-and-mortar establishments. Years ago, the technology required to implement online business did not exist. Most businesses used mainframe computers. Now, with new technology, businesses have the ability to be versatile. They can be brick-and-mortar, online, or both. Business-to-Business, Business-to-Consumer, and Consumer-to-Consumer businesses all have something in common. They all have a targeted audience to which they cater and all three models are a result of our ever-changing world.

REFERENCES

http://www.allactiontrade.com/whatb2b.asp

http://www.babiesrus.com

http://www.ecommerceprogram.com/ecommerce/Ecommerce-Functions.asp

http://www.indiawebdevelopers.com/articles/ecommerce/solutions.asp

http://www.utdallas.edu/~murthi/EBAY.HTM

Rayport-Jaworski. (2003) Introduction to e-Commerce. The McGraw-Hill Companies.

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