Chapter 7

E-businesses.

If you have your paycheck deposited directly to your bank account, did you ever wonder how it gets there?
Well, the money that your employer owes you for services rendered, is sent to your bank account electronically. An EFT or Electronic Funds Transfer. Because of the EFT, people can pay bills online, purchase items at e-businesses, and use any ATM.

E-businesses have some distinct advantages over the old fashioned "brick and mortar" businesses. Location is very important to the brick and mortar business. They need to have high visibility to attract customers, and need to have hours of operation that are good for the customers. Brick and mortar businesses are also limited to the space available to them. They can only stock so many shelves, in each store. This also may lead to having an excess of unwanted inventory on hand.

E-business models.


A business model is how any business establishes itself. It is the audience a business plays to.

There are five e-business models to use. B2C, C2C, C2B, B2B, B2G. These are as follows:

1. Business to Consumer.
2. Consumer to Consumer.
3. Consumer to Business
4. Business to Business
5. Business to Government.

A business to consumer is a standard model, where businesses try to expand beyond their brick and mortar location to reach a far greater amount of consumers. JCPenney,Wal-mart, Barnes & Noble, etc are types of business to consumer models.

Priceline.com was a pioneer in the consumer to business model. They have a reverse auction from that of ebay. Consumers can bid on airlines and hotels. This can very beneficial to the consumers, as these deals are usually at a great discount.

A consumer to consumer business model is where consumers put items up for auction, and consumers will place bids for these items. Ebay is a great example of this type of business model.



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Auto parts stores and car dealers have a business to business type of business model. When a dealer is repairing a vehicle and needs parts they can go online to find the part they need and have it delivered right Businesses have access to a portal on a vendor's website to allow them to order supplies and other inventory.

The business to government model brings together both the government and the buyers who want to place bids on government contracts.