Explain the main types of e commerce how do these components apply to tourism industry explain m commerce business model

Business to Consumer B2C Business-to-Consumer B2C concept The term business-to-consumer B2C refers to the process of selling products and services directly between a business and consum

TASK

Question 1: Explain the main types of E-commerce? How do these components apply to

tourism industry

Question 2: Explain M-commerce business model?

ANSWER

Assignment weighting 50%

Question 1 :

Four main types of e-business models - B2C, B2B, C2B, and C2C - and how they can help you build a better e-commerce business

Business to Consumer (B2C)

Business-to-Consumer (B2C) concept

The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers

Understanding Business-to-Consumer

Business-to-consumer (B2C) is among the most popular and widely known sales models B2C traditionally referred to mall shopping, eating out at restaurants, pay-per-view movies, and infomercials

B2C Storefronts Vs Internet Retailers

Traditionally, many manufacturers sold their products to retailers with physical locations But that changed once the Internet came New businesses arose that promised to sell directly to the consumer, thus cutting out the middle person the retailer and lowering prices 4 4

B2C in the Digital World

Online B2C can be broken down into 5 categories: direct sellers, online intermediaries, advertising-based B2C, community-based, and fee-based

1 Direct sellers : These may include manufacturers or small businesses or simply online

versions of department stores that sell products from different manufacturers

2 Online intermediarie : These are liaisons or go-betweens who don't actually own products

or services that put buyers and sellers together Sites like Expedia, Trivago, and Etsy fall into this category

3 Advertising-based B2C : This model uses free content to get visitors to a website One

example is media sites like the Huffington Post, a high-traffic site that mixes advertising with its native content

4 Community-based : Sites like Meta (formerly Facebook), which build online communities

based on shared interests, help marketers and advertisers promote their products directly to consumers Websites typically target ads based on users' demographics and geographical location

5 Fee-based : Direct-to-consumer sites like Netflix charge a fee so consumers can access

their content The site may also offer free but limited content while charging for most of it The New York Times and other large newspapers often use a fee-based B2C business model B2C Companies and Mobile

With smartphone apps and traffic growing year-over-year, B2C companies have shifted attention to mobile users and capitalized on this popular technology

Because of the nature of the purchases and relationships between businesses, sales in the B2B model may take longer than those in the B2C model

B2C vs Business-to-Business (B2B)

Unlike the B2C business model, pricing structures tend to be different in the B2B model With B2C, consumers often pay the same price for the same products However, prices are not necessarily the same Businesses tend to negotiate prices and payment terms

* Example of a business to consumer company : One example of a major B2C company today

is Shopify, which has developed a platform for small retailers to sell their products and reach

a broader audience online Before the advent of the internet, however, business to consumer was a term that was used to describe take-out restaurants, or companies in a mall, for instance

In 1979, Michael Aldrich further utilized this term to attract consumers through television

Five types of business to consumer models

Typically, B2C models fall into the following five categories: direct sellers, online intermediaries, advertising-based B2C, community-based, and fee-based The most frequently occurring is the direct seller model, where goods are purchased directly from online retailers By contrast, an online intermediary model would include companies like Expedia, which connect buyers and sellers Meanwhile, a fee-based model includes services such as Disney+, which charges a subscription to stream their video-on-demand content

Business to Business (B2B)

B2B e-Commerce concept

Business-to-business (B2B) e-Commerce describes online business-to-business transactions

in which a supplier or manufacturer sells goods to another company, typically a retailer B2B enterprises, like any other type of business, come in a variety of forms, sizes, and levels of sophistication

While many of us purchase online as consumers, we are unaware that the worldwide B2B digital commerce sector is worth six times as much as the B2C market.This will drive demand for B2B Commerce systems by encouraging typically offline B2B vendors to put up an e-Commerce site

B2B e-Commerce benefits

B2B e-Commerce offers more than just allow businesses to get online and sell their goods to

a wider audience It helps open doors to new markets, boost employee productivity, and encourage existing consumers to buy more

1 B2B e-Commerce helps businesses boost sales

According to Zendesk, 67% of shoppers prefer using self-service tools rather than talking to

a sales representative Because your B2B e-Commerce website can provide clients with the correct information and make it simple for them to fulfill their orders In that way, your

revenue, and average order values will significantly rise As a result, you will not only acquire new customers but also increase your customer retention rate

2 Reduce costs with B2B e-Commerce

By automating and simplifying these numerous procedures, your firm may save money while improving the efficiency of its operations

3 Reach more customers

Utilize the power of search engines to go where your consumers are investigating products

A responsive, SEO-friendly site that can be accessed from any device will rank higher on Google and raise company recognition

For example, will value a well-organized website They’ll have a single source of truth since catalog data, orders, pricing, and history will be conveniently available 3 whether they’re in the office or working from home

4 Increase productivity

Productivity is one of the possible benefits of B2B e-Commerce A self-service portal may accept orders 24/7, and provide consumers with tailored pricing, order progress, and other information The potential for mistakes and misunderstandings is reduced with automated order procedures

5 Develop digital agility

Brands can easily form long-term connections or develop their own following thanks to many cutting-edge technologies Another advantage of B2B e-Commerce is that it helps B2B retailers to expand their client base outside their immediate location

6 Deliver omnichannel customer experience

A B2B e-Commerce experience overcomes the limitations of physical stores in terms of selling Customers don’t have to go to a showroom just to leave empty-handed because they can’t locate what they’re looking for

For example, customers can start on your Facebook page from their mobile devices and then

go to your desktop site

7 Get access to accurate analytics

Data connection with other business tools (ERP, PIM, Procurement, CRM, and so on) gives you a complete picture of your whole company process This gives you a better understanding

of business processes like inventory bottlenecks and helps you to make key business choices fast to improve your operations

Three common types of B2B e-Commerce

* Buyer-oriented

Buyer-oriented marketplaces are where there are more buyers than sellers Buyers have their own internet markets in this situation If you’re a wholesale supplier, these B2B marketplaces are a cost-effective approach to market your items to buyers and merchants

* Supplier-oriented

This is a frequent approach for B2B sellers with a large number of buyers and few suppliers

To meet demand and sell at scale, businesses frequently join supplier directories or create an online sales portal

* Intermediary-oriented

A third-party middleman connects buyers and sellers in the intermediary-oriented economy B2B e-Commerce sites like Amazon Business, Alibaba, AliExpress, Rakuten, or TradeKey are examples of intermediary-oriented markets, often known as <horizontal marketplaces.=

Some best B2B e-Commerce examples from leading businesses : HP, BuySwings, Rubie’s Costumes, Chocomize, Steelcase

A business-to-business (B2B) e-commerce model is one where a business sells its products

or services to other businesses, rather than to consumers This model is generally associated

with high-end, high-priced products or services in industries in which the bulk of the revenue

is generated by business purchases The business-to-business model generally ends at the purchase stage The company ends up selling its product to another company, which then sells

it to its customers

As an example, think of your business’ current or future relationship with an e-commerce wholesaler like AliExpress or Alibaba Your business buys products from their business and then sells it to a consumer for a profit - this commerce interaction falls under the B2B e-commerce model

Consumer to Business (C2B)

What Is C2B?

C2B ecommerce is also known as consumer-to-business This change heralds a complete reversal of the traditional model, with those who would normally be end-users creating products and services that are consumed by the businesses and organizations they themselves buy from

In much the same way as a brand leverages its prestige, consumers can now leverage their influences C2B benefits as a new form of currency that has nevertheless proven very effective for both sides

How Does C2B Marketing Work?

C2B marketing works because there are three different groups whose relationships are changing These are broken down as the customer, the business, and the intermediary

1 The Customers

The customer is an individual who has something to offer This can be broken down into goods or services

For example: Someone who is active on social media and has thousands of followers or subscribers can share their use of a product to introduce it to new audiences

Throughout these examples, there’s one key theme, which is a changing nature of the relationship to customers away from being top-down and toward being back-and-forth Consumers are now no longer a market, they are a network

2 The Business

In this particular transactional relationship, the business is the for-profit institution that purchases goods or services from individuals This can be for many reasons, and

in both

For example : Businesses who need to make a new hire and want to find the best people through referral hiring sites

3 The C2B Intermediary

In C2B ecommerce, the intermediary is the portal, or the medium that is used by both businesses and individuals, and connect the two

For example : Affiliate marketing is an example of a C2B ecommerce model, as a customer can utilize their blog to links back to a product sold on the company’s ecommerce website, thereby facilitating the sale and being financially rewarded for doing do

Consumer to consumer (C2C)

C2C also referred to as peer-to-peer (P2P) is an e-commerce business model where a consumer sells their products or services directly to other consumers It contrasts with business-to-consumer (B2C), where the focus of the business is selling products or services

to consumers C2C is a very popular e-commerce model because it allows business owners to broaden their customer base and reach a larger audience

Customer to customer (C2C) is a business model whereby customers can trade with each other, typically in an online environment Two implementations of C2C markets are auctions and classified advertisements C2C marketing has soared in popularity with the arrival of the Internet and companies such as eBay, Etsy, and Craigslist.ustomer to Customer (C2C) concept

How Customer to Customer (C2C) Works

C2C represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction C2C companies are a type of business model that emerged with e-commerce technology and the sharing economy

C2C sites are convenient because there is no need to visit a brick-and-mortar store Sellers list their products online, and the buyers come to them

Types of Customer to Customer (C2C) Businesses

Craigslist is an e-commerce platform that connects people advertising products, services, or

situation Craigslist not only provides a platform for buying, selling, and trading products but posts monthly classified ads, such as employment opportunities and property listings

Etsy allows company owners to create their custom website on which to market their products

to consumers

eBay features two types of product listings: fixed-price items and auction items Fixed price

items can be purchased quickly by selecting the Buy It Now button These items are open to bids for a predetermined time and are declared "sold" to the highest bidder

Revenue and Growth of the C2C Market

C2C websites and similar platforms make money from fees charged to sellers for listing items for sale, adding on promotional features, and facilitating credit card transactions

However, C2C has problems such as a lack of quality control or payment guarantees In some cases, there is little support for credit card transactions, although the emergence of PayPal and other such payment systems over the years has helped simplify payments on C2C platforms Real World Example of Customer to Customer (C2C)

For example, Amit Lakhotia, former vice president of payments at Paytm, left his position in January 2016 to pursue other ventures, one of which was Tokopedia, one of Indonesia's largest

online marketplaces Tokopedia is a C2C retailer that provides a platform on which entrepreneurs can open small and midsize C2C enterprises (SME) for free Between the second quarter of 2018 and the second quarter of 2019, Tokopedia was Indonesia's top e-commerce website, bringing in 140.4 million web visits

Online platforms such as Etsy and Craigslist appeal to customers who can locate mostly any product or service at a price they are willing to pay

How do businesses make the components B2C, B2B, C2B, C2C apply to the tourism industry?

There are many e-commerce models, but in tourism, people often apply models such as B2B (connecting businesses), B2C (connecting businesses with customers), C2B (connecting customers with businesses) Hotels or travel agencies can build individual websites for customers to register and can register with a company that provides a global booking system

In Vietnam, especially hotels, they often register with the global online booking system (Global Distribution System - GDS) and online booking engine (Web Booking Engine - WBE) GDS and WBE user will be easy to set the room hotel from the world The hotel connects GDS to 4 global distribution channels: Saber, Galileo, Worldspan and Amadeus Each channel has strengths in different continents Using GDS, hotel information is automatically linked to more than 1,000 travel websites, including 100 of the world's most famous travel websites (www.expedia.com, www.travelocity.com, www.zuji.com .) and more than 600,000 travel agents worldwide At the same time, the hotel also implements an e-commerce action taking reservations from global travelers

Question 2 :