chapter 14



The Internet is a powerful channel that presents new opportunities for an organization to:
  • Touch customers
  • Enrich products and services with information
  • Reduce costs

How do e-commerce and e-business differ?
  • E-commerce – the buying and selling of goods and services over the Internet 
  • 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

E-business model – an approach to conducting electronic business on the Internet

Business-to-Business (B2B)

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)

Common B2C e-business models include:
  • 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 a visitor can access other e-shops

Business types:
  1. Brick-and-mortar business
  2. Pure-play business
  3. Click-and-mortar business

Consumer-to-Business (C2B) is an example of a C2B e-business model

The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices

Online auctions
  • Electronic auction (e-auction) - Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
  • Forward auction - Sellers use as a selling channel to many buyers and the highest bid wins
  • Reverse auction - Buyers use to purchase a product or service, selecting the seller with the lowest bid
C2C communities include:
  • Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting
  • Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
  • Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

E-Business Benefits and Challenges

E-Business benefits include:
  1. Highly accessible 
  2. Increased customer loyalty
  3. Improved information content 
  4. Increased convenience
  5. Increased global reach 
  6. Decreased cost 

E-business challenges include:
  1. Protecting consumers
  2. Leveraging existing systems
  3. Increasing liability
  4. Providing security
  5. Adhering to taxation rules

There are numerous advantages and limitations in e-business revenue models including: 
  1. Transaction fees
  2. License fees
  3. Subscription fees
  4. Value-added fees
  5. Advertising fees


Web mashup - a Web site or Web application that uses content from more than one source to create a completely new service

Application programming interface (API) - a set of routines, protocols, and tools for building software applications

Mashup editor - WSYIWYGs (What You See Is What You Get) for mashups

Syaireen Shafiq,

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