E-Portfolio (Assessment 3)
E-Business plan is a practice of creating a document for an e-commerce company for obtaining financing and starting the business. To get an online business up and to ensure that business run efficiently, small E-business owners can develop a comprehensive E-business Plan. The financial part of an E-Business plan includes information about the budget. E-Business plan lists amount required and the return amount projected on investment for the online business. The financial section of the e-business plan also presents the cost related to building E-Business website including laptops, desktops and mobile devices. It can also list the low cost of free tools such as Free Web store, Homestead which provides functions for setting an online shop and accepting payments for it through PayPal and Google Checkout.
Business-to-Consumer: B2C model of E-business sells products and services to retail consumers online, for example, Amazon. This type of model has only one identity through which a wide range of products can be provided to the customers. Other Business-to-Consumer enterprises include gartner.com and bestbookbuys.com. This model is also known as e-tail of electronic retail.
Business-to-Business: The Business-to-business model involves companies that use the internet for conducting transactions with one other. According to the U.S Census Bureau, this model accounts for more than 90% of electronic commerce. The revenue in this type of business model can be generated directly from direct sales.
Consumer-to-Business: C2B is an E-business model in which demand and value for products are created by the consumers themselves. The main characteristic of this model is the reverse auctions in which the transactions can be derived and prices for the products can be offered. Ruelala, glit are shopping sites that follow the C2B E-business model.
Consumer-to-Consumer: C2C is an e-business model which allows consumers to act buyers and sellers in an online marketplace facilitated by the third party. Craigslist is one such company which is a third-party marketplace and brings together disparate sellers and buyers to conduct business. PayPal and eBay are two examples of Consumer-to-Consumer business model. In this type of e-business model, revenue can be generated in various ways such as through subscription or membership fees, personal ad fees, transaction fees and sales commission fees.
Benefits of E-Business
Easy to set-up: It is easy to set up an online business even by sitting at home or at any other location with the availability of the required device, software, and the internet.
Less expensive: This is an easy and less expensive way to set up an online business as compared to the traditional business. Moreover, the transaction cost associated with the E-Business is effectively less.
No-geographical boundaries: There are no geographical boundaries related to this business type and anyone can order anything such as food products, electronic products etc from any location.
Flexible Business hours: E-Business provides 24X7 support to its customers and can enquire about a service or a product with the availability of the internet.
Increase discounts: E-Business increases the competition among organizations, due to which various organizations provide substantial discounts to their customers.