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CompTIA
EIDX B2C Models
EIDX's historical focus
has been on business-to-business (B2B)
electronic commerce. Many developments in the world of business-to-consumer (B2C)
electronic commerce trigger developments in B2B electronic commerce,
and vice-versa.
Some basic B2C models are described here for informational purposes.
Most of us are consumers, and are familiar with
the traditional methods for buying consumer goods.
- Buying Stuff at Stores (Brick and Mortar businesses)
-
Go to retail store or
outlet (or flea market, or whatever)
-
View and/or handle
stuff
-
Select stuff
-
Pay for stuff
-
Take stuff home
- Variation: Purchasers can have
goods shipped/delivered to their homes or other locations.
-
Ordering Stuff from Catalogs
-
Browse through a catalog
-
Select stuff
-
Fill out order form, including payment
information, and mail it
- Variation: Phone
in the order
-
Receive stuff at home or other location
- Return stuff because it's the wrong
stuff
Click and Order
- Internet B2C Order Models
It's no secret by now that
the it's very lucrative for a business to put up a web site that allows
them to sell stuff and allows consumers to buy stuff from them. There
are several order models for web-based commerce, or "click and
order." But notice that at the fundamental, technology-independent
level, the transaction is going to look very much like EIDX's models for
B2B. It's what happens before the order and after the order that is
different:
- The consumer logs onto the
web and accesses the seller's web site. The seller sends a catalog
to the consumer, just like in Pre-Order Model 1. In this case
it is sent from the seller's to the consumer's on-line session on his/her
computer desktop.
- Some web sites now have a feature
that allows consumers to find out if the item they want is available. This
is like the inventory inquiry and inventory
advice. If inventory is not available, the consumer has
the option to look elsewhere. Most web sites do this availability
step after the consumer goes through the process of submitting an order
and is committed to the buy.
- In most B2C transactions for
non-major purchases, the consumer typically does not send a request-for-quote
and wait for a response from
the seller. However, this is not
unheard of, especially for big-ticket items, antiques, and other such
commodities, which may be sold via uction or
an Exchange.
- If the consumer is satisfied
and decides to purchase, he/she sends a request from his/her desktop
to the seller's server indicating that he/se are ready to buy. This
is analogous to the contract award. The seller's
server responds with an order form sent to the consumer's desktop or
by starting a shopping cart in the consumer's on-line session.
- The consumer fills out the
order form by selecting items to be put into the shopping cart, and
at the end,completing the order with ship-to address and payment
information. This is analogous to a B2B buyer creating
an order in a back-end system.
- When the consumer submits the
order, it is just like the 'send purchase order' step in Order
Model 1. In this case, the order is sent from the consumer's
computer desktop to the seller's server.
- The seller's server sends a PO
response to theconsumer's desktop. It
may tell the consumer that the order has been accepted and will
ship immediately, or it may tell the consumer that the order will
be confirmed via e-mail.
- If the goods are not shipped
immediately, the consumer may have the opportunity to request a change
to the order, which the seller has to respond to, or the seller may
send a re-acknowledgment of
the order via e-mail. The seller may request something from the
consumer (seller-initiated change); for example, if multiple
items are on-order, and one item is backordered, the seller may send
a request to the consumer offering them a choice to hold all items
until they can ship together or to ship available items immediately
and send the backordered item in a separate shipment. The consumer
then sends back a response to the seller.
- Seller
may have one warehouse from which they ship stuff, or several strategically
located warehouses. The warehouses may be those of a third-party
logistics provider (3PL) with whom the seller has contracted. The
seller or 3PL may ship to the consumer's home, or another location
such a recipient of a gift.
The models her below represent technology
options for the basic ordering process.
- Storefront Order Model
Seller provides a web site that serves as the internet store front. Goods
are shipped to the customer's home or other location from a warehouse. Payment
is by credit card, which allows sellers to do quick credit checks before
accepting orders or before shipping orders.
- Go to seller's web site
- Log in if you are a returning
customer
- Look at stuff in online
catalog
- Select stuff
- Register if you are a
new customer
- Fill out order form,
including payment information, and push "Submit Order"
- Receive stuff at home or other location
Amazon.com, is an example of a storefront model.
- Same Day/Next Day Delivery
This is where the consumer places an order in the morning for
same-day delivery, or the night before for next-day delivery. It's
really the same as the Storefront Order Model except for the turnaround
time. Many people are familiar with the internet grocery delivery
services, which haven't turned out to be profitable for all entrants
in the market due to the logistics of having well-stocked warehouses
in strategic locations. However, this is becoming an important
service model for the supplying of medicines and medical equipment to
homebound patients; in this case, the service availability tends to be
localized.
- Kiosk Order Model
Many stores have computers set up in their stores that allow customers
to order something that is either out-of-stock, or only available via
catalog order. Goods are shipped from a warehouse which
ships either to the store, where the customer
can come pick up when it arrives, or have ship it to the customer's
home or other location. Since the customer is in the store at the
time of order placement, there are more payment options - payment doesn't
have to be via credit card.
- Go to retail store
- View stuff, or look up stuff
in the catalog
- Access the order form on
the store's computer
- Fill out order form, including
payment information, and delivery option
- If payment is other
than credit card, pay for stuff
- Go back to store when stuff
arrives, or receive stuff at home or other location
Office Max, Office Depot,
Staples, Fry's, and CompUSA are examples of stores that offer this
ordering method.
- Aggregator Order Model
There are two types of aggregator models. One is when buyers
join together and bundle their requirements in order to increase their
purchasing power. The buyers are typically businesses, so it's
really a B2B model. In the other type of aggregator model, sellers
join together and bundle their offerings to increase their selling power. Usually,
a third party acts on behalf of either buyers or sellers to execute transactions. Sellers
aggregate to reduce cost of sales, extend customer reach and improve
customer service, and it offers buyers one-stop shopping for a variety
of goods, especially if the aggregation brings together sellers of hard-to-find,
specialty products. From the consumer's perspective, the ordering
process is just like the process in the Storefront
Order Model.
Staples.com is an example of
an aggregator model. From the consumer's perspective, the consumer
is buying everything from Staples.
- Auction
and Exchange Models
Used both for big-ticket and high value consumer goods, as well as
for materials and capital assets that businesses use to build their
products. Described
in more detail in Trading
Communities.
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