Bob Travica
                                   Outline
          •  Electronic commerce (E-commerce) 
          •  Business-to-Consumer (B2C) E-Commerce
          •  Business-to-Business (B2B) E-Commerce 
          •  Summary
                                                                     2
                                                               Bob Travica
                          Concept of E-commerce
          •  E-commerce is the area of commerce that is 
           conducted via  
            computer networks and information systems. 
          •  E-commerce started among businesses (supply 
           markets), and expanded into consumer markets when 
           Internet moved to businesses and homes in the mid-
           1990.
          •  Moving into B2C or B2B is an important strategy 
           leading to increasing market share, integrating supply 
           chains, improving financial results.
                                                                        3
                                                                   Bob Travica
                       Two Domains of E-commerce
                              B2B
                                                 B2C
                                                 offer, sell
                        Supplier      Web storefront
                       Organization              demand, 
                                                buy
                 Supplier             Physical 
               Organization           company
                        buy                              Consumer 
                   sell
                         Classical company
                                
        •  Business-to-Consumer (B2C), retail on the Internet via
           Web storefronts: Chapters.com; “click and mortar” or 
           “pure click” 
        •  Business-to-Business (B2B), buying & selling between 
           firms 
          •   via e-markets (Covisint, Freelancer.com)
          •   directly (private networks or Internet; Dell, shipping         4
            ind.)
                                                                  Bob Travica
                 B2C E-Commerce Birth and Trends
       •   Boom 1994-2000, crash in 2001; pure vs. hybrid models
       •   Global share of B2C in total retail in 2017*: 
           –   Overall 8.2%, Canada 7.4%, U.S.A. 8.3%
           –  UK 16.9% (top), China 15.5% (second)
                               Average revenue 
                              per online shopper
                              US $1,804
                              UK $1,629
                              Sweden $1,446
                              France  $1,228
                              Germany $1,064
                              Japan   $968
                              Spain   $849
                              China   $626
                              Russia  $396
                              Brazil  $350
                                                                    5 of 10
                                                                   Bob Travica
                   Business Models for B2C E-commerce 
       •  Web Retail (also called Web Storefront, Web Store, Online 
          Store)
           •  Sells many goods & services online 
           •  Example: Amazon.com – “pure click”, leader*
           •  Amazon started as a bookstore and initiated the trend of 
              web retail. 
           •  Amazon keeps improving business processes (sales, 
              inventory) to increase up-selling and cross-selling.
           •  Global presence; Interactive Marketing and Personalization.
       •  Bestsellers in Web storefronts: 
           – 10-25% of purchases: DVD, CD, books, computer hardware 
              & software
           – Below 10% of purchases: A/V equipment, clothes, music… 
              anything
                                                                         6 More