Electronic
Commerce
Introduction
Dr. Waheed Anwar
Computer Science
What is an eCommerce?
• Electronic commerce, or eCommerce, is a
business model that allows companies and
individuals to trade products and services
online.
• It covers various market segments and
works on computers, tablets, smartphones,
and other smart devices.
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TOP 6 Ecommerce Business Models
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1-Business-to-Business (B2B)
• Business-to-business (B2B) is a
business model that provides products
from one business to another.
• This category usually includes service
providers and extends to different
ecommerce models like software firms,
office furniture & supply providers, and
document hosting companies.
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Business-to-Business (B2B)
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How does B2B work
Here’s a step-by-step breakdown:
• Step 1: Introduction of Product: A crucial differentiation between B2B and B2C
lies in the time it takes for a product to transition from introduction to sale.
• Step 2: Customer Acquisition: Gaining new customers in B2B typically
takes longer than B2C.
• Step 3: Contract Agreement: B2B deals require a contract agreement
process due to higher transaction values and longer processes.
• Step 4: Careful Transaction Planning: Each B2B transaction demands
meticulous planning as it depends on client management.
• Step 5: Marketing Strategies: Different marketing tactics attract
potential clients’ attention and enhance awareness of the company’s
offerings.
• Step 6: Client Engagement: Maintaining contact is essential after
acquiring clients . Professional meetings are crucial before finalizing
deals to ensure smooth business proceedings.
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Pros & Cons of B2B
Pros:
• Higher profits
• Huge market potential
• Improved security
• High Level of Customer Loyalty
• Recurring revenue
Cons:
• More complex setup process
• Limits to sales & target market
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Examples of B2B Companies
Under the B2B business model, a variety of businesses and
companies fall. Let’s take a look at some notable examples.
Zoom Video Communications
• Amid the COVID pandemic, Zoom Video Communications
gained prominence in the B2B landscape. This US-based
startup. provides video calling and online chat services,
improving connections with clients, colleagues, friends, and
family.
• Furthermore, Zoom introduced a cloud-based platform for
online chat, video calls, and phone systems
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Examples of B2B Companies
Slack
• Among the top 15 valuable B2B SaaS firms worldwide, Slack
Technologies Inc. is highly valued.
• Positioned as a “collaboration hub,” Slack provides a
messaging platform for communication and aids businesses in
automating workflow tasks, integrating smoothly with
applications like Google Drive and Office 365.
Google
• Google has an extensive collection of 271 products that cover
areas like cloud content collaboration, surveys, digital
analytics, document creation, and video conferencing.
• Popular tools among these are Google Drive, Google Forms,
Google Docs, Google Analytics, and Google Hangouts Meet.
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2-Business-to-Consumer (B2C)
Business-to-Consumer or B2C is the most common type of business model, where
businesses sell products and services directly to individual online shoppers rather
than through physical stores.
B2C became widely popular during the late 1990s dotcom boom. It mainly
pertains to online retailers using the internet to sell products and services
to consumers directly.
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How does B2B work
Here’s a step-by-step breakdown:
• Step 1 – Create attention-grabbing content: B2C businesses face
competition, requiring strategies to catch the attention of potential
customers.
• Step 2 – Build Trust: Leveraging social media aids in building trust,
especially as people extensively research products and services
online before making purchases.
• Step 3 – Embrace Multi-Channel Approach: Employing marketing
emails, discounts, blogs, podcasts, and social media content
across various platforms fosters trust among potential customers.
• Step 4 – Build Loyalty Programs: Implementing special programs
featuring benefits like discounts, points, or membership perks
attracts customers and enhances their loyalty.
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Pros & Cons of B2C
Pros:
• Lower prices
• 24/7 reach
• Quicker sales cycle
• Direct Communication
• No geographical boundaries
• No middlemen involved
• Robust customer relationships
Cons:
• Highly Competitive Market
• Lower Margins
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Examples of B2c Companies
Under the B2C business model, a variety of businesses and companies
fall. Let’s take a look at some notable examples.
Amazon
Amazon excels in various domains such as e-commerce, digital
streaming, cloud computing, and artificial intelligence.
When customers purchase Amazon products, they’re involved in a
B2C transaction while also paying for Amazon’s online services.
Netflix
Netflix a popular online streaming platform, provides subscribers
with access to movies, documentaries, and TV shows for a
monthly fee.
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Examples of B2C Companies
Spotify
• Spotify provides a music streaming service through
monthly subscriptions, giving users access to a
wide range of songs, podcasts, and albums.
• Other well-known B2C companies
include Starbucks, H&M, Facebook, YouTube,
Alibaba, Airbnb, Uber, and eBay.
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3-Direct-to-consumer (D2C)
Direct-to-consumer (D2C) is a business model that allows
companies to sell their product directly to their end
customers, bypassing third-party wholesalers or online
retailers.
This approach is well-suited for small business marketing
to launch products, though it necessitates partnering with a
fulfillment center for inventory storage and prompt order
shipping.
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How does D2C work
Here’s a step-by-step breakdown:
• Step 1 – Online Presence: Brands set up an online platform,
often a website or app, to enable customers to explore products
and place orders.
• Step 2 – Direct Engagement: Through this platform, brands
directly interact with customers, sharing product details,
promotions, and company values.
• Step 3 – Order Placement: Customers select products, add
them to their cart, and place orders directly via the brand’s
website or app.
• Step 4 – Order Fulfillment: Brands manage the entire process,
from packaging to arranging delivery, once an order is received.
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How does D2C work
• Step 5 – Delivery: Brands collaborate with packaging and
delivery services to ensure timely and secure product delivery to
customers’ homes.
• Step 6 – Customer Support: Store owners address customer
inquiries, feedback, and concerns directly, fostering a personalized
connection and offering assistance.
• Step 7 – Feedback Loop: Brands collect customer feedback to
enhance products, services, and the overall shopping experience.
• Step 8 – Personalization: Store owners tailor marketing
messages, product recommendations, and customer interactions
based on individual preferences, enriching the customized
shopping journey.
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Pros & Cons of D2C
Pros:
• Reach higher control over margins
• Create more room for product testing
• Cut out the middleman
• Better connect with your customer
• Control your brand’s story
Cons:
• Increased competition & liability
• Complex supply chains
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Examples of D2C Companies
Bombas
• Bombas stands out as a D2C startup by significantly enhancing
product quality and pricing items above the standard while still
achieving remarkable success.
• By 2018, Bombas had achieved a gross profit exceeding $100
million.
Reference
[Link]
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