Writing Assignment #2
Due Date: Monday, Mar. 27, 2015
Electronic commerce that is accelerated and enhanced by information technology, the internet (Hagg). Electronic commerce is what allows businesses and consumers to form relationships and communicate with today’s technologies. There are a total of nine electronic commerce’s but today I will only be going over the three most popular. Business to business, business to consumer, and consumer to consumer. Although very different each model will overlap in same way with another.
Business to business electronic commerce is when a business sells products and services to customers who are primarily other businesses (Hagg). Business to business is actually the largest business in the electronic world right now. Business to business is when companies purchase components and raw materials to make their own product. An example of this would be when Reese’s sells mini pieces to Pillsbury for their deluxe peanut butter cookies that you buy from your local grocery store; it is a manufacture buying from a manufacture. Businesses are maximizing the electronic commerce by creating business to business electronic market places. These market places are where manufactures and companies can network online to help keep their inventory regulated, and network with new companies and establish relationships, which can help generate new bids and keep the cost of the overall product down. Business to business electronic commerce helps enable data exchange and reduces cycle time in businesses (Khurana).
Business to consumer electronic commerce is when a business sells products and services to an individual person using the internet (Hagg). If you have ever bought anything from EBay, bought and downloaded a book from Barnes and Noble, or ordered a movie from OnDemand, you’ve participated in business to consumer electronic commerce. Consumers are able to shop any time day or night and are able to locate and purchase almost any product they need. Conversion software even makes it possible to shop in different country’s allowing the websites to convert to the consumer’s local currency (Tatum 4). Due to their being many online retailers this has led to stiff competition, search sites like Google and Bing let you type in what you are looking for, and pulls up multiple sites where that item can be purchased. This is where having a great reputation and a strong website comes into play. As a business you will want to be at the top of that search list and have an easily accessible safe website for your users. Amazon is a great example of this, if you search for an item on Google, Amazon is one the first sites to generate, if they sell the product you are looking for.
Consumer to Consumer is when an individual sells products or services to another individual (Hagg). There are multiple ways for this to occur, EBay is the one of the most common, you search for items you need or want then bid or buy the item now if that option is available, but it is other individuals selling their items. Another of consumer to consumer electronic commerce is craigslist.org, here you don’t pay the website directly like you do with EBay, but you find items for sale locally and meet to buy from individuals. Some lesson common ways are going to your local newspaper classifieds or a local auction (Swarthout). The consumer to consumer model entails lower cost for the buyers and a higher profit margin for the seller due to it manly being things the seller no longer needs or wants. An example of this would be selling an old car. If you go to KellyBlueBook.com and ask for an average price to sell your vehicle you will get two prices, a trade in price consumer to business, or a private seller...
References: Haag, S., & Cummings, M. (2013). Management information systems for the information age (9th ed.). New York, NY: McGraw-Hill Irwin.
Khurana, A. (n.d.). Business to Business (B2B) Ecommerce: Overview. Retrieved February 27, 2015, from http://ecommerce.about.com/od/eCommerce-Trends-and-Issues/a/Business-To-Business-Ecommerce.htm
Swarthout, D. (n.d.). Consumer-to-Consumer (C2C) e-Commerce. Retrieved February 27, 2015, from http://education-portal.com/academy/lesson/consumer-to-consumer-c2c-e-commerce-definition-business-model-examples.html
Tatum, M., & Harris, B. (n.d.). Retrieved February 27, 2015, from http://www.wisegeek.com/what-is-business-to-consumer-e-commerce.htm
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