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Ecommerce Models

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  1. Ecommerce Models Dr. John P. Abraham

  2. Early businesses • Amazon.com 1995 – offered 30% of list price on books. • Barnes & Noble 1997 offered 40% off on best selling books.

  3. E-Commerce Models • B2B • B2C • C2B • C2C • M-commerce • P2P

  4. B2B • Greatest portion of e-commerce. • Provides infrastructure for supply chains. Example – Covisint (see next slide) • Vertical model • Specialized goods or services across many type of industries. • Horizontal model • Goods or services for one industry

  5. About Covisint • Launched in November of 2000, Covisint is an online marketplace for the worldwide automotive industry. Originally conceptualized in late 1999 by industry leaders Ford Motor Co., General Motors, and DaimlerChrysler, the business-to-business (B2B) Covisint today supports over 45,000 organizations in over 96 countries in the global automotive, healthcare, public sector, and financial services industries, as well as emerging market opportunities -- supporting them in seven languages.With roughly 250 online catalogs, the site mainly functioned as a procurement and auction vehicle in early 2001. Design professionals also were able to use the site as a platform for collaborating with other automotive engineers.

  6. B2B models • E-distributor grainger.com, FindMRO.com • E-Procurement – Ariba.com, CommerceOne.com • Exchanges – ExchangeSteel.com, GEPlymerland.com • Industry Consortia – Covisint.com, Sciquest.com • Your next assignment is from this & some of the following slides.

  7. B2C • Business to consumer • Example amazon.com. Cut out the middleman. • Manufacturers can sell cheaper and faster – Dell. • Many end-users are notsophisticated to deal with the manufacturer. • So new middleman exists – quotesmith.com • CRM – customer relationship management, a big problem.

  8. B2C Models • Portal – yahoo.com msn.com – Offers integrated package of content. Sailnet.com – Offers vertical content. • E-tailer – Amazon.com –virtual merchant. Wal-Mart.com – Clicks and Bricks. LandsEnd.com –catalog. Dell.com – manufacturer direct. • Content Provider – wsj.com, cnn.com • Transaction broker – e-trade.com, expedia.com, monster.com • Market creator – ebay.com priceline.com • Service Provider – Mybconsulting.com, lawinfo.com • Community provider – about.com, ivillage.com

  9. Online shopping Risks • Payment risks • Not receiving • Sending bank transfers • Money orders • Captured payment information – used again • Shipping fees • Don’t buy if shipping fee not known • Return policies

  10. Safeguards • Pay with credit cards • Can complain to credit card issuer • Debit card do not have the same protection • Use only secure website • Shop only with reputable companies or those with good ratings • Check digital certificates and certificate authority

  11. C2B • Consumer to business • Broker between consumers and business • Consumer make the offer • Priceline.com

  12. C2C • Consumer to Consumer Models • Ebay.com • Half.com • Overstock.com

  13. Mobile Electronic Commerce • M-commerce • Wireless access to internet through handheld devices. • Shop from anywhere any time.

  14. P2P • Person to Person • Transferring money from one individual to another. • Paypal. • Kazaa.com

  15. E-commerce and Client/Server Architecture • Server – Provider of service • Client – Requester of Service

  16. Internet Related Programs • FTP • E-mail • TCP/IP • RDBMS • SQL

  17. Client Server-Architectures • Two-Tier • Server process on server and client process on client (interface) • Security provided by both • Three-Tier

  18. Three Tier Architecture • A middle tier is added between the server and the client • The middle tier can perform queueing, application execution and database staging. • The client can make a request and then do something else while waiting for the answer.

  19. E-commerce technologies • LAN • Inter-networking • Web Server and web pages (front-end) • Relational database (rear-end)

  20. Front End • Must be attractive, appealing, concise and informative. • Web browser – web server - middleware – database. • Construction of front-end • Transmission control protocol/internet protocol • Hypertext markup language • Hypertext transfer protocol

  21. TCP/IP • 5 layers • Physical – wires • Data link – mac, hardware addressing, frames and encoding • Network – IP addressing, packet, control • Transport – socket, TCP or UDP • Application

  22. HTML • Web page may include text, graphics and pointers to other web pages. • HTML describes how documents to be formatted. • Starting with HTML version 2.0 forms are included. Form contains boxes and buttons. • XML And XSL

  23. Storefront Model (1) • Similar to stores we are accustomed to (Shopping Cart) • Buyer and seller interact directly • Merchants organize an online catalog of products • Secure Transaction processing • Online payment and merchandise shipping • Information storage

  24. Storefront Model (2) • www.more.com • www.amazon.com • www.ticketmaster.com

  25. Shopping-cart Technology • Allows to accumulate items • Items are placed in shopping cart from product catalog • Product catalog is kept on merchant server database • Can view the contents of the shopping cart and get a total any time

  26. Merchant server database • Product specifications • Availability • Shipping info • Stock levels • On-order info

  27. Online Shopping Malls • Variety of products in one location • Save shopping time and shipping costs • These sites may be shopping portals directing customers to retailers • Mall.com shopnow.com DealShop.com

  28. Auction Model • Sites are forums that a person can be an auctioneer or a bidder • Photographs, minimum bid, reserve price • eBay model

  29. Portal Model • News, Sports, Weather • Ability to search the web • Yahoo.com, about.com, hotbot.com, altavista.com

  30. Dynamic Pricing Models • Name your price - Priceline.com • Comparison pricing Model • Search web and compare prices for you • (bottomdollar.com) • Demand-Sensitive Pricing Model • Combing buyers to lower cost • Barter Model, Rebates, Free

  31. B2B EXCHANGES • Fastest growing of e-commerce • Icgcommerce.com • Tradeaccess.com • Itoi.com • eWork.com

  32. B2B Service Providers • Help other businesses improve policies, procedures and customer service • Ariba.com provides supply chain management, procurement, logistics • Freemarkets.com connects sellers and buyers • Liverperson.com to improve customer service on the net.

  33. Online Trading • www.schawb.com • Etrade.com • Fool.com

  34. E-Loan • Eloan.com • Lendingtree.com • Ditech.com

  35. E-Recruiting • Monster.com • Dice.com • Guru.com

  36. E-news • Wsj.com • Barrons.com • Espn.com

  37. E-travel • Expedia.com • Travelocity.com • Counciltravel.com • Cheaptickets.com • Orbitz.com

  38. Entertainment • iCast.com • Imdb.com

  39. Automotive • Autobytel.com • Autoparts.com

  40. Energy • Houstonstreet.com • Altranet.com • Retailenergy.com

  41. Brain Power • Buy patents and intellectual property online. • Yet2.com

  42. Art • Art.com

  43. E-Learning • Universities offering degrees • Technical education

  44. Click-and-Mortar • Walmart • Bn.com • 1800flowers.com