Chapter 4, Problem 1DQ

Summary Introduction

Interpretation:

The different types of e-commerce.

Concept Introduction:

Web based business (electronic trade) is the movement of electronically purchasing or selling of items on online administrations or over the Web.

Answer to Problem 1DQ

1. Business to Business E-commerce (B2B)
2. Business to Consumer E-commerce (B2C)

Explanation of Solution

There are mainly two types of E-commerce:

1. Business to Business E-commerce (B2B):

In this type of E-commerce, various companies buy and sell the services, products and business to and from other businesses. That is, the manufacturers sell to wholesalers and the wholesalers sell to retailers. The price is generally based on the quantum of quantity and is often negotiable.

Advantages:

• Lower costs of administration, procurement and keeping inventory.
• Access to global suppliers.

2. Business to Consumer E-commerce (B2C):

This is a very commonly found type of E-commerce in which the various businesses are directly selling to the individual consumers. The businesses make use of internet and catalogues to show their products to the mass population.

For example:

Myntra selling pair of shoes to general public.

Advantages:

• Lesser prices for the consumers because of great competition and unavailability of middleman.
• Access to global products.