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E-Commerce: Prof Anesh Maniraj Singh

This document discusses different types of e-commerce including B2B, B2C, C2B, and C2C models. It outlines reasons for businesses to establish an online presence including reaching new markets and customer convenience. The top benefits of e-commerce for businesses are cost savings and increased customer service and revenue generation. Challenges include some products not being suitable for online sales and requiring additional IT skills. Specific challenges in South Africa include limited internet infrastructure and access. The document then focuses on B2B e-commerce, defining it as businesses selling to other businesses online through systems like supply chain management. Key benefits of B2B e-commerce are lower costs, breaking geographic barriers, and eliminating weak middlemen

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Divashni Moodley
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58 views16 pages

E-Commerce: Prof Anesh Maniraj Singh

This document discusses different types of e-commerce including B2B, B2C, C2B, and C2C models. It outlines reasons for businesses to establish an online presence including reaching new markets and customer convenience. The top benefits of e-commerce for businesses are cost savings and increased customer service and revenue generation. Challenges include some products not being suitable for online sales and requiring additional IT skills. Specific challenges in South Africa include limited internet infrastructure and access. The document then focuses on B2B e-commerce, defining it as businesses selling to other businesses online through systems like supply chain management. Key benefits of B2B e-commerce are lower costs, breaking geographic barriers, and eliminating weak middlemen

Uploaded by

Divashni Moodley
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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E-Commerce

Prof Anesh Maniraj Singh


Head of School
Graduate School of Business, University of KwaZulu-
Natal
Types of E-Commerce

Business Originates From ...


Busine Consumers
ss
Business

B 2B C 2B
And Sells To ...

Consumers

B 2C C 2C
Reasons for being on the Internet

• to establish a presence
• extending reach
• to network
• to procure raw materials
• to reach specialised markets
• to reach a highly desirable demographic
market
• provide customer convenience
Business Value of the Internet

Customer
Service
Cost Saving 32%
35%

Other Revenue
2% Marketing
Generation
13%
18%
Challenges Facing E-Business

• Not all products are suitable for online sales

• Requires additional skilled personnel

• Connectivity dependent on the ISP

• Discontinued service from small businesses

• Determining who is on the other end


making purchases
Challenges Facing SA E-Business

• Limited reach
• Lack of ICT infrastructure & electricity
• Illiteracy
• Many Internet businesses do not have
credit cards
• Fear
B2B E-Commerce
What is B2B E-Commerce

• Businesses selling to other businesses using


the Internet

• Machines are selling to machines

• Evolved to encompass systems integration


which facilitates supply chain management

• Differs from B2C in that it requires


negotiation
Evolution of Technology Based
Business
• EDI - Electronic Data Interchange

• Locked-in buyers with single supplier

• Limited control of costs and pricing

• Suppliers would increase prices indiscriminately

• Internet broke the barriers of being locked-in


Benefits of B2B E-Commerce

• 24/7/365

• Breaks geographic barriers

• Online tendering

• Lower cost

• Perfect competition

• Eliminating weak middlemen


B2B Infrastructure

• People

• Processes

• Presentation

• Policies
B2B Transactions

• Online auctions
– WYSNWYG
– Phantom bidding
– Shilling
– Knock Offs
– Collect and run

• Online Tendering

• Aggregated Catalogues
B2B Transactions

• Online auctions
– WYSNWYG
– Phantom bidding
– Shilling
– Knock Offs
– Collect and run

• Online Tendering

• Aggregated Catalogues
Key Success Factors in B2B

• Brand reputation

• Customer service

• Price

• Information privacy
Questions

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