E Commerce : A Type Of Business

In B2C i.e. Business to Customer, business offers and supply products or services to the

Once a decision is made to develop a business, whom the customer will be is the next decision to be made. Whom will the company target as a customer? Will it be a business? Or will it be a consumer? Business-to-business (B2B) marketing has differences from business-to-consumer (B2C) marketing practices. This paper will outline these differences between the two types of e-commerce business transactions.

E-commerce is the process of buying and selling of various products and services by businesses through the Internet. Primarily there are five types of ecommerce systems: Business to Consumer (B2C)

| 2.7-B2C: connecting people with people, everywhere permitted(68)2.8-B2B: marketers, free channels; advertisers with budget, solutions to audience; developers with resource, offer platform(69)

The last behavior is consumer-to-business (C2B) is a transaction that the consumers offer products to companies and the companies compensate them (WebFinance Inc, 2010). Individuals with access to increased technology can request products from companies at a decreased cost. Priceline gives the consumers control of naming a price they are willing to pay. The business determines if they have a product in the proposed price the consumer submits. The consumer-to-business model is a complete reversal of traditional business practices where companies offer the product and prices and customers purchase the products. Consumers look for opportunities to purchase products that they can name their own price and Priceline provides that luxury. The consumer needs to have computer access, set up an account, and a credit card.

E-commerce is short for electronic commerce and refers to purchasing and selling items and services on the Internet via a website. Otherwise called an online store, an E-Commerce website has features that make it easy for customers to browse for items to purchase.

a. Is a map of the exchanges of information between a firm and both its customers

It has a complex and longer purchasing process, and the order can be repetitive and stable. It is focus on relationship management, and B2B need to keep that chain of command in mind. It has higher risk than B2C, because the investment sums are much higher. Purchasing the wrong product or service, the wrong quantity, the wrong quality or agreeing to unfavourable payment terms may put an entire business at risk. Since there are more people involved in the decision making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C. Companies seek long term relationships as any experiment with a different brand will have impacts

An online market, usually B2B, in which buyers and sellers exchange goods or services best defines

Gilead and business partners use this model for Raw materials, equipment, consultants, parts, utilities, infrastructure, distribution, logistics services, legal, marketing etc. Drugs sold to pharmacies, doctors are also under this model. Business to Government e-commerce (B2G); Businesses selling product and services to a government entity (Haag.S & Cummings.M., 2013). Internationally some countries drugs are sold to the governments as the governments control the distribution, alternatively this model is also for epidemic support when needed in collaboration with the CDC. Finally, Government to Business e-commerce (G2B) occurs when the government selling products and services to business (Haag.S & Cummings.M., 2013). This comes into consideration when government run programs with subsidized drug payments. From a daily business operation perspective, City, county, state and Federal services are necessary to operate the business. FDA, EU etc. filing fees and

Companies such as eBay and Amazon exploited the internet to support their business model of business-to-consumer (B2C) retail purchasing. E-commerce has proved to be a disruptive technology to traditional retail markets, such as Walmart. It also provided advantages to consumers with lower pricing, sales tax avoidance and convenience purchasing. Convenience purchasing is the ability to conduct business transactions using mobile technology from anywhere. E-commerce has become so effective that traditional bricks and mortar institutions, such as Walmart, have developed e-commerce capabilities to stay competitive. Walmart has adopted a bricks and clicks business model to help combat threats from Amazon and others. Bricks and clicks are defined as able to support online transactions while offering the convenience of

E-business uses the digital technology to optimize the business activities of organization in order to increase the efficiency and effectiveness of operation and gain competitive advantages. E-business provides the solution that allows the organization to instantly share database, information of products and services, financial figures and data and nearly anything else that the organization may need to operate the business activities effectively and efficiently (Nguyen, 2013). E-commerce which is the abbreviation of electronic commerce is the subset of e-business. It focuses on the online transaction which includes selling of products or service by using computer network, primarily the Internet.

‘B2B goods: goods that are sold to organizations for: (a) incorporation into producing other products; or (b) supporting the production of other products directly’, this is a basic understanding of business markets as stated on http://wps.pearsoned.co.uk, Viewed 1/9/2006

Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services

exchange of information, goods, services, and payments. In the process, they create economic value for buyers, sellers, market