Lecture_2_-_eBusiness_relationships

eCommerce Relationships

Overview of eCommerce

  • Concepts: eCommerce involves buying and selling of goods and services over the internet.

  • Types: Primarily categorized into Business-to-Consumer (B2C) and Business-to-Business (B2B).

B2C eCommerce

  • Definition: Transactions between businesses and individual consumers.

  • Statistics:

    • eCommerce sales projected to grow from $1.3 trillion in 2014 to $4.5 trillion by 2021 (Statista).

    • In 2017, B2C sales reached $2.3 trillion compared to B2B which dominated at $7.7 trillion.

  • Global Markets:

    • Largest markets include China ($672 billion), USA ($340 billion), and UK ($99 billion).

    • 57% of online shoppers purchased from overseas retailers in the last six months.

Characteristics of Successful eTailing

  • Brand Recognition: High visibility brands tend to perform better (e.g., Apple, Amazon).

  • Consumer Preferences: Many consumers prefer sites in their native language and local currency (75% prefer native language).

  • Popular Products: Items such as electronics, apparel, and gaming are commonly sold online.

E-Tailing Business Models

  1. Traditional Mail-Order Retailers: Companies that also sell online (e.g., QVC).

  2. Direct Marketing by Manufacturers: e.g., Dell, LEGO selling directly to customers.

  3. Pure-Play E-Tailers: Businesses that operate solely online (e.g., Amazon).

  4. Click-and-Mortar Retailers: Physical stores that offer online shopping (e.g., Walmart).

  5. Internet Malls: Websites that host multiple e-tailer storefronts.

B2B eCommerce

  • Definition: Transactions conducted between businesses electronically over the Internet.

  • Types of Transactions:

    • Sell-side: One seller to many buyers.

    • Buy-side: One buyer from many sellers.

    • Marketplaces: Many sellers to many buyers.

    • Collaborative commerce: Joint work on projects and sharing information.

Characteristics of B2B eCommerce

  • Intermediaries: Online marketplaces facilitate transactions between buyers and sellers (e.g., Alibaba).

  • Supply chain improvements: Enhances procurement and logistics efficiencies.

  • Challenges: Potential cybersecurity issues, complex integrations, and varied supplier compliance.

Online Services

  • Travel and Tourism: Services from vendors such as Expedia and Priceline that offer reservation capabilities and travel deals.

  • Online Job Market: Connections between job seekers and employers through platforms like LinkedIn and career-specific websites.

  • Online Banking: Conducting financial transactions via the internet, offering convenience and lower costs.

  • On-Demand Delivery: Utilizing third-party logistics for efficient product delivery.

Online Purchasing Decision Aids

  • Comparison Tools: Websites such as pricrunner.co.uk facilitate price comparisons for consumers.

  • Reviews and Ratings: Customer feedback and expert reviews assist in evaluating products.

  • Shopping Portals: Aggregators that streamline the shopping experience by centralizing various offerings and deals.

B2B Portals and Directories

  • Types: B2B portals providing product listings and connection opportunities for buyers/sellers.

  • Corporate Portals: Enabling streamlined communication and access to company information for suppliers and customers alike.

Future of eCommerce

  • Trends indicate growing reliance on digital platforms for business and consumer transactions, incorporating social media and mobile technology for enhanced engagement.

  • Emerging services such as virtual trade shows and e-communities are reshaping interactions in B2B contexts.