Ecommerce Models

Dr. John P. Abraham

Early businesses

Amazon.com 1995 – offered 30% of list price on books.

Barnes & Noble 1997 offered 40% off on best selling books.

E-Commerce Models

B2B B2C C2B C2C M-commerce P2P

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

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.

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.

B2C

Business to consumer Example amazon.com. Cut out the middleman. Manufacturers can sell cheaper and faster – Dell. Many end-users are not

sophisticated to deal with the manufacturer. So new middleman exists – quotesmith.com CRM – customer relationship management, a big

problem.

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

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

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

C2B

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

C2C

Consumer to Consumer Models Ebay.com Half.com Overstock.com

Mobile Electronic Commerce

M-commerce Wireless access to internet through handheld

devices. Shop from anywhere any time.

P2P

Person to Person Transferring money from one individual to

another. Paypal. Kazaa.com

E-commerce and Client/Server Architecture

Server – Provider of service Client – Requester of Service

Internet Related Programs

FTP E-mail TCP/IP RDBMS SQL

Client Server-Architectures

Two-Tier Server process on server and client process on

client (interface) Security provided by both

Three-Tier

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.

E-commerce technologies

LAN Inter-networking Web Server and web pages (front-end) Relational database (rear-end)

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

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

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

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

Storefront Model (2)

www.more.com www.amazon.com www.ticketmaster.com

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

Merchant server database

Product specifications Availability Shipping info Stock levels On-order info

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

Auction Model

Sites are forums that a person can be an auctioneer or a bidder

Photographs, minimum bid, reserve price eBay model

Portal Model

News, Sports, Weather Ability to search the web Yahoo.com, about.com, hotbot.com,

altavista.com

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

B2B EXCHANGES

Fastest growing of e-commerce Icgcommerce.com Tradeaccess.com Itoi.com eWork.com

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.

Online Trading

www.schawb.com Etrade.com Fool.com

E-Loan

Eloan.com Lendingtree.com Ditech.com

E-Recruiting

Monster.com Dice.com Guru.com

E-news

Wsj.com Barrons.com Espn.com

E-travel

Expedia.com Travelocity.com Counciltravel.com Cheaptickets.com Orbitz.com

Entertainment

iCast.com Imdb.com

Automotive

Autobytel.com Autoparts.com

Energy

Houstonstreet.com Altranet.com Retailenergy.com

Brain Power

Buy patents and intellectual property online. Yet2.com

Art

Art.com

E-Learning

Universities offering degrees Technical education

Click-and-Mortar

Walmart Bn.com 1800flowers.com