Report On Online Shopping System Information (E-commerce)
Online shopping system
Online shopping is referred to as a form of electric commerce that allows consumers to buy goods or service directly from the seller over the internet with the help of web browser. Customers can shop online using a wide range of different computers as well as devices including laptops, desktops, computers, smartphones, tablet etc (barbradozier, 2018).
Online shopping system and business models of e-commerce
An online shopping system eliminates the method of purchasing products or services regularly from the shopping or retailer center and this process of online purchase is known as Business-to-Consumer (B2C) online shopping. When an online store is established for enabling the businesses to purchase from another business, that process is known as Business-to-Business (B2B) online shopping. The trend of online shopping has emerged with the emergence of the internet. Initially, the internet was only used as an advertising tool for the companies that provide information regarding a variety of products (Bhalla, 2017). Then, it moved on from this utility to an online shopping transaction because of the development of the interactive web pages as well as secure transmissions. The growth of internet technology as a safe and secure shopping channel was developed in 1994, with the very first sale of Sting album known as “Ten Summoner’s Tales.
Business-to-Business E-commerce model
Online shopping system information is available for 24 hours a day which provides a convenient method to purchase products to the consumers. Online shopping directs the consumers of the retail sale through mobile applications and web sites, traditional commerce through Chatbot, live chats and voice assistants. E-commerce businesses might employ a business to business buying and selling. Since online shopping is associated with the business to business model, B2B e-commerce has become a crucial business model in the global economy. It is predicted that by 2020, all the revenue of B2B e-commerce will reach approximately 6.7 trillion USD. Following image depicts the rapid growth of the market by considering the market growth in the past years and the revenue in 2014.
From the above graph, it is expected that further expansion of the B2B businesses on the digital markets will take place in the future. Moreover, as of 2014, 22% of the American Business-to-Business companies are selling their products as well as services online. For understanding the concept of business to business e-commerce in reality, just imagine a network of cross-company transactions along with the supply chains which stands behind the range of products in a supermarket (Commerce, 2018). It is recognized that each and every purchase that is made online through an online information system is supported by Business to Business sales.
Business to Business-B2B model is focused on the sales of services, products or information that is made to other businesses. This model stands in contrast to the B2G (Business to Government) and B2C (Business to Consumer) models. These models are also referred to as the marketing principles that involves same basics but B2B depends mostly on the robust and valuable business relationships for guaranteeing long term involved customers.
Business-to-business models use the following key technologies:
Internet: Internet represents a World Wide Web or represents a network of networks that connects different computers across the world.
Intranet: This technology represents a network in which the outside business suppliers, partners, customers can have restricted access to a portion of enterprise network or intranet.
Electronic Data Exchange: Electronic Data Exchange is an exchange of business documents across inter-organizations in machine processable or structured format.
Back-End Information System Integration: This system is a database management system which is used for managing the business data.
Architectural models related to B2B e-commerce:
Intermediary Oriented marketplace: In such a model, a market place is operated by an intermediary company where the business sellers, as well as buyers, can transact with each other.
Supplier oriented marketplace: A common market place is provided by the supplier in this type of a model which is used by individual business users and customers.
Buyer Oriented marketplace: Buyer has its own market place in this type of model and invites suppliers for conducting bid on the catalog of the products. Moreover, in this type of model, a bidding site is opened by a buyer company (Sankhala, 2014).
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- Bhalla, P. (2017). Types of eCommerce Business Models, Pros, and Cons - KartRocket. Retrieved from https://www.kartrocket.com/blog/ecommerce-business-models-types-pros-cons/
- Commerce, V. (2018). What is business to business e commerce - B2B ecommerce definition | Glossary Virto Commerce. Retrieved from https://virtocommerce.com/glossary/what-is-b2b-ecommerce
- (2014). Online Shopping System. Retrieved from https://www.slideshare.net/Kkushum/online-shopping-system-69945887