Electronic commerce

The three significant types of electronic business are business-to-consumer (B2C), retailing products and also services to separation, personal, instance shoppers, business-to-business (B2B), the sales the goods and services amongst business, and consumer-to-consumer (C2C), which entails consumers selling straight to other consumers. Another way of classifying electronic business transactions is in regards to the participants’ physical link to the Web. Conventional e-commerce transactions, i beg your pardon take place over wired networks can be distinguished from mobile commerce or m-commerce, the acquisition of goods and also services utilizing handheld wireless devices. The Internet enables companies to develop closer yet much more cost-efurbanbreathnyc.comctive client relationships. Manufacturers have the right to sell their products and services directly to retail customers, bypassing intermediaries, i m sorry can significantly reduce purchase transaction costs. Airlines deserve to sell tickets directly to passengers v their own net sites or v travel web page such as Travelocity without payment commissions to travel agents. By selling straight to consumer or reducing the number of intermediaries, companies deserve to achieve higher profits when charging lower prices to consumers. The removed of establishments or business procedure layers responsible because that intermediary procedures in the worth chain is referred to as disintermediation. The net is increasing disintermediation in some industries and also creating avenues for new types of intermediaries in others. The procedure of changing the intermediary role in a worth chain to a new source is called reintermediation.

number 4-2 The benefits of disintermediation to the customer The common distribution channel has several intermediary layers, each of i beg your pardon adds to the final expense of a product, such as a sweater. Removing class lowers the final price to the consumer.

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Marketers can use the interaction urbanbreathnyc.comatures of net pages to hold consumers\" attention or to record information around their tastes and also interests. This info may be acquired by asking tourists to \"register\" virtual and carry out information about themselves or by using special software such as clickstream tracking to track the tasks of internet site visitors. Companies have the right to then analysis this information to develop an ext precise file of their customers.

figure 4-3 web site visitor tracking E-commerce web sites have actually tools to track a shopper’s every action through an virtual store. Close examination of customer habits at a net site offering women’s garments shows what the store can learn at every step and also what action it can take to boost sales.

Communications and also product ofurbanbreathnyc.comrings can additionally be tailored exactly to separation, personal, instance customers. By using web personalization an innovation to modify internet pages gift to each customer, marketers can achieve the benefits of using individual salespeople at dramatically lower costs. Personalization can aid firms form lasting relationships v customers by giving individualized content, information and services.


number 4-4 net site personalization firms can develop unique personalized net pages that screen content or ads for products or solutions of one-of-a-kind interest to separation, personal, instance users, enhancing the client experience and also creating extr value.
Collaborative filtering to compare a customer’s behavior with data about comparable customers come predict what the client would choose to view next and makes referrals to users. Blogs, or Weblogs, informal net sites where people or corporate representatives and also groups can publish views and also options, have arised as a promising internet marketing tool. New third-party solutions monitor client discussions in online areas or research study online behavior of big numbers of customers at many difurbanbreathnyc.comrent web sites. learning what client urbanbreathnyc.comel about one\"s assets or solutions through electronic visits to net sites is much less costly than using focus groups. The internet shifts an ext marketing and also selling activities to the customer, together customers fill out their own on-line stimulate forms. Mobile business will administer businesses with added channels for reaching customers and new opportunities because that personalization. The Web and other network technologies room inspiring new approaches to customer service and also support. Companies deserve to reduce costs and also improve customer service by using net sites to provide helpful information and also customer assistance via e-mail. Companies are realizing comprehensive cost savings native Web-based client self-service applications. Brand-new products are even integrating the web with customer call centers. The fastest farming area that electronic commerce is B2B e-commerce. For a variety of years, companies have actually used proprietary electronic data interchange (EDI) solution for this purpose; now they are turning to the Web and extranets. corporate purchasing has traditionally been based upon long-term relationships v one or 2 suppliers. The net makes information around alternative suppliers an ext accessible therefore that companies can discover the ideal deal from a broader range the sources, consisting of those overseas. Suppliers themselves have the right to use the web to study competitors\" prices online


figure 4-5 electronic data interchange (EDI) companies use EDI to automate transactions for B2B e-commerce and consistent inventory replenishment. Companies can instantly send data around shipments to purchasing firms. The purchasing firms can use EDI to carry out production and also inventory requirements and also payment data come suppliers.
Businesses have the right to sell to other businesses through their own web sites or through online net marketplaces, also called digital hubs or e-hubs, which attach many buyers to countless sellers. Exchanges are personal intranets expanded to authorized users external the company. A an excellent deal that B2B e-commerce is performed via private exchanges, or private commercial networks, linking a firm come its it is provided chain and collaborative partners.


number 4-6 A private industrial network A private industrial network, additionally known as a private exchange, web links a firm to its suppliers, distributors, and other an essential business partners for reliable supply chain management and also other cooperation activities.

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Net marketplaces, or e-hubs, provide a single Internet-based marketplace for numerous buyers and also sellers. Some sell straight goods, goods used in a production process, or indirect goods, such as office supplies and products for maintenance and repair. Industry-owned network marketplaces emphasis on permanent contract purchase relationships and providing common networks and also computing platforms for reducing it is provided chain inefficiencies.


number 4-7 A net marketplace network marketplaces room online marketplaces wherein multiple buyers have the right to purchase native multiple sellers.
Exchanges are separately owned third-party network marketplaces the can connect thousands the suppliers and also buyers because that spot purchasing. Numerous exchanges administer vertical markets for a single industry. However, numerous exchanges have failed because they encouraged competitive bidding that drove prices down without ofurbanbreathnyc.comring long-term relationships. Electronic payment systems because that the Internet encompass digital credit card payment systems, digital cash, digital wallets, collected balance digital payment systems, stored value payment systems, peer-to-peer payment systems, digital checks and electronic billing presentment and payment systems. The most innovative electronic business software has actually capabilities for handling credit card purchases end the Web, or companies can contract with services to procedure their credit card transactions. Digital wallets, which store credit card, digital cash, and also owner identification info and administer that details at an electronic business site\"s checkout counter, make paying because that purchases end the Web much more efficient by remove the require for shoppers to repeatedly get in their info into stimulate forms. Micropayment systems using accumulated balance or stored worth payment systems have been emerged for to buy of less than $10. Accumulated balance digital payment systems permit users to do payments top top the Web, accumulating a debit balance ~ above their credit transaction card or telephone bills. Stored worth payment systems, including smart cards, permit users to make immediate payments based on the worth stored in a digital account. A smart card is a plastic card the size of a credit card the stores digital information and which can serve together an digital purse in ar of cash. A smart card calls for use that a distinct card reading and also writing maker to recharge the card through cash or come transurbanbreathnyc.comr cash one of two people to an online or offline merchant. Digital cash is currency represented in electronic type that is moving external the normal network the money. Peer-to-peer payment systems serve civilization who want to send money to vendors or people who space not collection up to accept credit card payments. Digital bill presentment and payment services notify purchasers about bills that space due, current the bills, and procedure the payments. Some consolidate subscriber receipt from various sources for this reason they can all be payment at one time. Digital check systems prolong existing checking accounts by using a digital signature that can be verified and can be offered for payments in digital commerce. Electronic billing presentment and payment systems are used for paying program monthly bills electronically.