ECOM - E-Commerce Business Models Lesson
E-Commerce Business Models Lesson
E-Commerce Business Categories
Businesses involved in e-commerce can be categorized based on how revenue is generated in terms of the seller-buyer relationship. The table below showcases common e-commerce business models.
| E -Commerce Business Model | Description |
| Business-to-Business (B2B) | Businesses that sell products and services to other businesses. |
| Business-to-Consumer (B2C) | Businesses that sell products to a customer. |
| Consumer-to-Business (C2B) | Consumers sell products and services to businesses. |
| Consumer-to-Consumer (C2C) | Consumers sell products and services to other consumers. |
| Business-to-Government (B2G) | Businesses that sell products to government agencies that have procurement needs. |
| Government-to-Business (G2B) | Government agencies that transact with businesses to provide services like electronic incorporation forms, online meetings, eLearning, and procurement marketplaces. |
| Government-to-Consumer (G2C) | Government agencies that transact with consumers to provide services or sell vehicles and machinery. |
E-Commerce Website Elements
Regardless of the business model utilized, e-commerce websites should include basic elements to support transactions on the website. The image below details the basic elements found on e-commerce websites.
As you meet with clients to discuss web construction for e-commerce, you will discover that some have the funds, resources, and technical staff to create an online product catalog, open a merchant account, connect to a payment processor, and meet the requirements for order fulfillment and customer support. There will be times however, when you consult with a business owner that does not have the funds and resources needed to undertake the basic elements needed on an e-commerce website. Referring the client to a web hosting agency that can meet these needs will benefit the owner since many customers will have questions about the security of their personal information.
Security Issues in E-Commerce
Security issues should be discussed as you meet with clients to discuss the construction of the e-commerce website. Privacy concerns, technical attacks, and phishing fears are several of the topics that will more than likely be discussed during the consultation. There is an abundance of e-commerce software and service solutions to address security fears as well as code you can apply to ensure data entered via forms is secure. It is important to keep a clean backup of all files in case of a security breach. It is also advisable to keep your files in cloud storage rather than on your desktop or local server as there is less chance of corruption or breach. Your clients will most likely be concerned about how to secure customer information. Customer information must be encrypted and secured by a SSL (Secure Socket Layer). Business need to utilize vendor tracking devices to help them manage their vendors, contracts and needs.
As with all websites, strong security software must be implemented with E-Commerce, this includes use of virus protection software and malware protection software. It is the responsibility of the e-commerce site to protect their customers' account information from hackers and phishing schemes. To do this you must use an https protocol site (secured by SSL). This means the business must purchase an SSL certificate. It is important to keep the computer(s) and browsers updated.
Online Shopping Process and Payment Options
There is a four-step process to shopping online. That process begins when individuals use the Internet to connect to an online storefront. The second step involves browsing through the e-tailer's catalog to search for items. It is during this step that individuals can make several selections by clicking on the object item button to add items to their electronic shopping cart which is the third step in the process. The fourth and final step involves checking out at the electronic counter which entails the payment process.
Before checking out, individuals should check to determine if the website is secure by looking at the URL. If the URL begins with https or if an image of a padlock is viewable in the taskbar, those are indicators that the website is secure.
There may be other options that are available to individuals if they do not feel comfortable using their credit card. Those options include paying by person-to-person which involves an online payment or a third-party payment that wires money over the internet. PayPal is an example of this service.
Using a one-time-credit card is an option that allows consumers to make purchases while keeping their actual card number hidden. Shoppers should communicate with their credit card company to obtain information about obtaining such a card. The one-time-use credit number only works for a single online purchase. If a hacker manages to steal the number from this card, it will not be accepted for any other online or offline purchases.
The electronic wallet also referred to as the digital wallet, is software that stores billing and shipping information which can be submitted during check out. This option eliminates having to enter all the details of the billing address and credit card number.
Once the payment has been processed, order fulfillment occurs. This involves the process of picking sold items from inventory, packaging the items, and shipping them to the customer. Many companies utilize FedEx or UPS to assist in the delivery process.
IMAGES CREATED BY GAVS