E-business- the conducting of business on the Internet including not only buying and selling but also serving customers and collaborating with business partners.
E-Business Models
- Business-to-business (B2B) - Applies to businesses buying from selling to each other over the Internet. E.g: Electronic marketplace (e-marketplace)- interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities.
- Business-to-consumer (B2C) - Applies to any business that sells its products or services to consumers over the Internet. E.g: E-shop- a version of a retail store where customers can shop at any hour of the day without leaving their home or office & E-mall- consists of a number of e-shops, it serves as a gateway through which visitor can access other e-shops.
- Consumer-to-business (C2B) - Applies to any consumer that sells a product or service to a business over the Internet. E.g: Brick-and-mortar business- operates in a physical store without an Internet presence, Pure-play business- a business that operates on the Internet only without a physical store, Click-and-mortar business- a business that operates in a physical store and on the Internet.
- Consumer-to-consumer (C2C) - Applies to sites primarily offering goods and services to assist consumers interacting with each other over the Internet. E.g: Electronic auction(e-auction), forward auction, reverse auction.
- Highly accessible
- Increased customer loyalty
- Improved information content
- Increased convenience
- Increased global reach
- Decreased cost
E-business Challenges:
- Identifying limited market segments
- Managing customer trust
- Ensuring consumer protection
- Adhere to taxation rules
E-business benefits and challenges:
- Transaction fees
- License fees
- Subscription fees
- Value-added fees
- Advertising fees
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