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Module IV: E-commerce Applications

20267m

Describe the major E-business models and discuss their characteristics with suitable examples.

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Major E-business Models

E-business uses digital networks to conduct business activities, exchange information and complete transactions.

  1. B2B (Business-to-Business): transactions between companies. Example: a manufacturer sells components to a retailer through a procurement portal. Often involves bulk orders and negotiated prices.
  2. B2C (Business-to-Consumer): a business sells directly to individual customers. Example: an online clothing store. Usually emphasizes product discovery, shopping carts and consumer payment.
  3. C2C (Consumer-to-Consumer): individuals sell to other individuals through a platform. Example: a person sells a used bicycle on a marketplace.
  4. C2B (Consumer-to-Business): individuals provide value to businesses. Example: a photographer licenses images to a company or a freelancer provides design services.
  5. B2G / B2A (Business-to-Government/Administration): businesses supply goods or services to public agencies, often through e-tendering portals.
  6. G2C (Government-to-Citizen): government provides digital services to citizens, such as online tax or certificate applications. This is e-government and not always a commercial model.

Revenue models can include direct sales, subscriptions, advertising, commissions, transaction fees and freemium services.

Benefits: wider reach, lower transaction costs, faster processing, personalization and round-the-clock access. Challenges: cybersecurity, privacy, trust, delivery/returns, regulation and dependence on platforms.

Conclusion: E-business models are classified by who interacts with whom. The model influences payment, marketing, logistics, trust and the design of the platform.

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