The World of B2C

e-Commerce

From:
Abhishek Singh
Ajit Sharma
Ranjan Gupta
Shweta Chopra
IIMM, PUNE Sourabh Bajaj
2006-08 BATCH IIMM 1
 What is B2C e Commerce

While the term e-commerce refers to all online transactions, B2C stands for
"business-to-consumer" and applies to any business or organization that
sells its products or services to consumers over the Internet for its own
use
B2C has grown to include services such as online banking, travel services,
online auctions, health information and real estate sites.

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What’s the difference between
B2B & B2C
Integration
Retailers don't
Objective Complexity have to
B2B (business-to- B2B transactions
Negotiation integrate with
business) are more complex
Selling to their customers'
customers are and have higher
another business systems.
other companies security needs
involves haggling Companies
while B2C
over prices, selling to other
customers are
delivery and businesses,
individuals
product however, need
specifications. to make sure
Not so with most they can
consumer sales. communicate
That makes it without human
easier for intervention
retailers to put a
catalog online, IIMM 3
The story of ups & downs
The Dotcom Continuous efforts to
burst around increase business $ 39 bn online
2000 through web shopping in 2000

Expected to reach $ 172 bn online

Technological shopping in 2005
$ 400 bn by 2010
advancements

Increased THE
customer base
UNSTOPPABLE
on broadband
REVOLUTION
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The Hype around B2C e-Commerce
¾ Posed a threat to traditional brick and mortar businesses by giants
like eBay & Amazon

¾ Retail giants spun off separate companies to run their e-commerce

operations.

¾ The customers were without the expenses of maintaining physical

stores, little inventory, unlimited access to capital and little concern
about actual earnings.

¾ Wal-Mart was the third most popular site, trailing Amazon and eBay
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How should companies organize their
B2C initiative?
¾ In the early days, e-commerce initiatives were often led by groups
that were separate from the main IT department.

¾ Now e-business departments are coming back under the corporate

umbrella and CIO’s are often in charge

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 Major Challenges for B2C e Commerce

Getting
Browsers
to buy things

Focus on
personalization

Easy-to-use
Building
Major Building customer
Customer
Challenges Loyalty service
Trust & Privacy
application

Focus on making
your site easy to use

Fulfillment
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Channel Conflicts in B2C e Commerce
Channel conflict, or disintermediation, occurs when a
manufacturer or service provider bypasses a reseller or
salesperson and starts selling directly to the customer.

How to avoid conflicts

ƒ Finding ways to approach e-commerce without upsetting

their salespeople.
ƒ Devote resources to it as part of their branding and commerce.

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Does it ensure Profits?

E-commerce sites are finally generating a return. Amazon.com reported

its first profit in 2002, proving to the world that online retailing could,
in fact, make money. Amazon went on to post a profit for the full year
in 2003. E-commerce sites are now regularly reporting profits
although competition remains stiff.

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 Privacy Policy for B2C Initiative
¾ According to a survey done by the Privacy Leadership
Initiative, 82 percent of consumers were paying attention to
online privacy statements in April 2001, and that number was
rising.

¾ Both organizations offer privacy seal programs

¾ You can log on to the arm of the Better Business Bureau or the
non-profit group TRUSTe to be sure of where to begin.

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Internet taxation?
The Internet Tax Freedom Act of 1998 put a three-year suspension on
Internet taxation and was renewed and extended in 2004. Since its
passage, Internet sales have been handled in the same way as
catalog and telephone sales — if the retailer has a store in the
purchaser's state, a sales tax is supposed to be added to the bill.
The Supreme Court has ruled that companies cannot be required to
collect taxes in states where they have no physical presence

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The shopping Experience through
Rediff Shopping

M PLE
SA

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Online purchase of computers through
DELL

M PLE
SA

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B2C for Auto/Bike lovers

http://www.harley-devidson.com/

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Entertainment through B2C
Movietickets.com

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Other important Web portals for B2C
www.mysimon.com

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 Shopping through ShopSafe - UK

M PLE
SA

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Joining B2C & Online Gaming
http://hpen.oberon-media.com

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 Thank You

ns ??
e st io
Q u

STUDENTS PRESENTATIONS
DURING E-COMMERCE TRAINING AT IIMM
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BY PROF. J. ZAVERI