Wawasan Open University
UNIT 3
3.1 Business Value of B2C E-commerce
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Identify business values to be gained from B2C e-commerce.
Explain how these business values are helping in implementation
of e-commerce websites.
Summary
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Rapid advancement in technology
make it possible transaction to be
done on the internet thus lead to
creation of many e-commerce sites.
Cost of setting up web-site is getting
cheaper
Computer literacy is rising
E-commerce as a support
to business
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The purpose is not sell directly but to
support selling transaction process.
To provide product information to
potential buyers
Information can be accessed from
anywhere and at anytime.
Add value to business by enhancing
the quality of product information.
The function of E-commerce
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New Sales Channel
– Immediate delivery of certain product such as music, video,
books, software, etc
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Direct Savings
– Having CS dept is more expensive than to setup website and
have customer check themselves the order status
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Time Saving
– Updated news on political, financial market, etc
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Brand and corporate image
– Building the image thru technology
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Customer relationship
– Interactive and more personalized
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New product capabilities
– Customization based on the customer’s preference, needs, and
wants. For example www.dell.com.my
B2C Business Models
Way of classifying Business Models
1. Resembling bricks & mortar store
2. Virtual model
Differentiate the business models by the number of
parties involved in the business transaction
See page 12
Trading Methods
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Sell side – most of “e-tailer”
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Buy side – twist of traditional retailer based on
demand and supply
Different kinds of B2C model
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Storefront
– resemble physical store such as www.amazon.com
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E-mall – malaysia’s e-mall
– Collections of the above.
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Image building
– Enhance public awareness and image of the company.
Example http://www.rjrt.com/
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Customer service –
– To provide post-sales support for current and past
customers
– CRM software is growing where its integrated with internet
– http://support.ap.dell.com/support/downloads/index.aspx?c=my&l=en&s
=gen
Common Business Imperatives
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Customer visits to the websites, bringing the traffic
Global reach
Reduce cost in transaction
Shortening of business cycle
Attracting some ads dollar
Create new product & services while customizing the existing
ones
Exploiting new technology
Offering new features & functionality that are difficult to copy
in respond to increasing number of internet-based company
Versatile operation on the seller side such as convenience,
user-friendly, quality and cheaper product/service.
Internet business models continue to evolve. New and
interesting variations can be expected in the future.
B2B business models
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Companies that supply products and
services to other companies.
www.grainger.com
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Companies create & sell access to
digital electronic markets. www.ariba.com
An Exchanger such as www.alibaba.com
Specific Industry www.exostar.com
M-commerce
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Take the traditional e-commerce and
leveraging new wireless technologies
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Mobile ticketing
Mobile payment
mobile vouchers, coupons
GPS
Mobile news, stocks, sports, 4D
Mobile banking
Auction
http://www.maxis.com.my/mmc/index.asp?fusea
ction=press.view&recID=373