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Electronic business is using technology to

improve your business processes

This includes managing internal processes

such as human resources, financial and

administration systems, as well as external

processes such as sales and marketing, supply

of goods and services, and customer

relationships.

The way in which you manage your businessrelationships has not changed, but the waythey are referred to when using e-businesstools has.

They are becoming more often known as:

Business to Business (B2B)

Business to Consumer (B2C) (also known ase-commerce)

Government to Consumer (G2C)

Government to Business (G2B)

E-Business is more than having a website for your business.

Using E-Business tools can make your administrative and

operational activities more efficient through:

Accessing the Internet to source information about

your industry, suppliers and products and for general

research

The use of electronic transaction, for example online

banking, financial management, stock control and

compliance reporting to regulatory bodies such as

the Taxation Office

Purchasing and selling without a web presence by

using email or E-fax

Human resources management, through the

development of an intranet for news, policies, staff

movements and enabling staff to apply for leave and

access their personnel information online

Customer relationship management, which

integrates front and back office functions of an

organization through electronic capabilities

Using appropriate project management software

The benefits of implementing E-Business

tools is not so much in the use of technology, as

in the streamlining of business processes and

the ease in finding new markets.

Some of the advantages include:

Quicker and easier communications

Strengthened marketing capabilities and reach

Increased hours of operation (a website

provides 24 hour 7 day information to existing

and potential customers)

Access to broader information through

research

Reducing the cost of doing business by

lowering transaction costs and increasing

efficient methods for payment, such as

using online banking and reducing stationery

and postage costs

Opportunities to adopt new business models

and develop tailored customer support.

Electronic commerce is trading in

products or services conducted via computer

networks such as the Internet.

E-commerce draws on technologies such as

mobile commerce, electronic funds transfer,

supply chain management, Internet

marketing, online transaction processing,

electronic data interchange (EDI), inventory

management systems, and automated data

collection systems.

Electronic commerce is generally

considered to be the sales aspect

of e-business.

It also consists of the exchange of

data to facilitate the financing and

payment aspects of business

transactions.

This is an effective and efficient way of

communicating within an organization and

one of the most effective and useful ways of

conducting business.

It is a Market entry strategy where the

company may or may not have a physical

presence.

Economists have theorized that e-commerce ought

to lead to intensified price competition, as it

increases consumers' ability to gather information

about products and prices.

Research by four economists at the University of

Chicago has found that the growth of online

shopping has also affected industry structure in

two areas that have seen significant growth in e-

commerce, bookshops and travel agencies.

Generally, larger firms are able to use

economies of scale and offer lower prices.

The lone exception to this pattern has been

the very smallest category of bookseller,

shops with between one and four

employees, which appear to have withstood

the trend.

Individual or business involved in

e-commerce whether buyers or sellers

rely on Internet-based technology in

order to accomplish their transactions

E-commerce is recognized for its ability

to allow business to communicate and

to form transaction anytime and

anyplace

Whether an individual is in the US or overseas,

business can be conducted through the internet

The power of e-commerce allows geophysical

barriers to disappear, making all consumers and

businesses on earth potential customers and

suppliers

E-bay is a good example of e-commerce business

individuals and businesses are able to post their

items and sell them around the Globe.

Business-to-business (B2B) describes

commerce transactions between businesses,

such as between a manufacturer and a

wholesaler, or between a wholesaler and a

retailer.

Business-to-Business

(B2B) E-commerce

Business-to-business e-commerce may be

defined as the buying and selling of

goods and services between companies

online.

There are two distinct aspects of B2B e-

commerce that separate it from the more

familiar business-to-consumer (B2C)

“E-Tailing” model:


(B2B) E-commerce

Flexibility in pricing. Transactions between

businesses often require variability in the

pricing of products between purchasers. This

concept of haggling is rare in the B2C

marketplace

Integration of business systems. To realize

increased productivity and savings, businesses

involved in B2B will integrate their internal

systems together, enabling less human

intervention.


(B2B) E-commerce

E-Procurement

Internet-based electronic procurement of

goods and services between companies is

called e-procurement

In the same way that B2C e-commerce is

often referred to now as e-tailing, labeling

B2B e-commerce as e-procurement better

shows how B2B affects a company’s

traditional supply chain


(B2B) E-commerce

E-Marketplaces Electronic marketplaces, also known as B2B exchanges,

serve as electronic hubs bringing together suppliers and

purchasers in common virtual environments.

E-marketplaces are either “many-to-many,” bringing

together many buyers and sellers in a particular vertical

BUSINESS-TO-BUSINESS E-COMMERCE BASICS (03/08)

market, or “one-to-many” where one major supplier or

consumer will attract many of its trading partners to its e-

marketplace.


(B2B) E-commerce

E-Marketplaces

Over the past couple of years, it has been

these private, one-to-many e-marketplaces

that have proven to be the most

successful.

One well-known public Canadian e-

marketplace is SourceCan.com.


(B2B) E-Commerce

The B2C model involves transactions between business

organizations and consumers

It applies to any business organization that sells its

products or services to consumers over the Internet

These sites display product information in an online

catalog and store it in a database

The B2C model also includes services online banking, travel

services, and health information


(B2C) Consumer

An e-commerce payment system

facilitates the acceptance of electronic

payment for online transactions.

Also known as a sample of Electronic

Data Interchange (EDI), e-commerce

payment systems have become

increasingly popular due to the

widespread use of the internet-based

shopping and banking.

Electronic Payment

Net BankingThis is a system, well known in India, that does not

involve any sort of physical card

It is used by customers who have accounts enabled

with Internet Banking

Instead of entering card details on the purchaser's

site, in this system the payment gateway allows

one to specify which bank they wish to pay from.

Methods of Online Payment

Net Banking

Then the user is redirected to the

bank's website, where one can

authenticate oneself and then approve

the payment

Typically there will also be some form

of two-factor authentication


PayPal

PayPal is a global e-commerce business

allowing payments and money

transfers to be made through the

Internet

Online money transfers serve as

electronic alternatives to paying with

traditional paper methods, such as

cheque and money orders


PayPal

PayPal is an acquirer, a performing

payment processing for online vendors,

auction sites, and other commercial

users, for which it charges a fee

It may also charge a fee for receiving

money, proportional to the amount

received


PayPalThe fees depend on the currency used, the

payment option used, the country of the

sender, the country of the recipient, the

amount sent and the recipient's account

type

In addition, eBay purchases made by credit

card through PayPal may incur extra fees if

the buyer and seller use different currencies


Google Wallet

Google Wallet was launched in 2011,

serving a similar function as PayPal to

facilitate payments and transfer money

online

It also features a security that has not

been cracked to date, and the ability to

send payments as attachments via

email


Business Entity The type of structure you choose for your business requires

the same analysis you would go through for any business.

First, do some research into the various forms of legal and

tax business structures available.

Your business can be a sole proprietorship, a partnership or

a limited liability partnership.

Each has different legal and tax consequences that you

should be sure you understand.

Legal aspects of E-Business

Sales Taxes

The revenue collection agencies in

most states now have some kind of

formal position on e-commerce sales.

Most treat the sales in the same way

they treat mail-order sales; however,

you should contact your state tax

agency and ask for help and

information with regard to your

particular business to be sure.


Trademarks

Because your domain is such a big part

of your e-commerce business, you'll

want to be sure to protect it

The best way to do that is through

trademark law

A trademark is a word or symbol used

to identify the source of goods or

services to consumers


Trademarks

You may apply for registration of a

trademark or service mark, word,

phrase or image after you use the

mark to identify a product sold or

service performed "in commerce,"

which means that you've used it for

advertising and/or sale to customers.


Trademarks

Your online business name can be a be

a service (for trademark purposes) if

it provides any kind of service to

consumers: information access, ticket

booking, online dating and so on.

If your site sells the goods you

manufacture, then your product

names would be goods for trademark

purposes.


Trademarks

Trademark rights arise upon use in

commerce--with or without national

registration--of the name of the good or

service.

However, national registration expands and

protects your trademark rights, giving your

company a presumption of first use of the

mark in association with particular goods or

services.


Trademarks

The trademark office will not register a

domain name that does not also meet the

requirements of being a trademark; a

domain name by itself is considered

merely an address.


Trademarks

Having trademark rights allows you to

protect your domain name against others

who might allege that it infringes on their

trademark and try to have it legally taken

from you, and also allows you to enforce

your trademark rights against others who

use domain names similar to yours to try

to divert your customers.


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