B2B Business of EC21

The Organisations are performing manufacturing and merchant functions as well. The information revolution is automating their merchant functions, including retailing, wholesaling, and input procurement. It has changed the way of merchandizing with reducing the cost of transactions.

    

The information revolution can be termed as Electronic commerce i.e. E-commerce (hereafter e-commerce) in which all electronically mediated information exchanges between an organisation and its external stakeholders.

 E-commerce shows  strategic impact on the organisation in all respect. Buyer-side e-commerce transactions and seller-side e-commerce transactions  considered for that.

Buyer or Supplier side e-commerce refers to transactions to procure resources needed by an organisation from its supplier. Whereas, Sell side e-commerce refers to transactions involved with selling products to an organisation’s customer.

An E-commerce is a commonplace for the transactions between an organisation and its stakeholders according to whether they are primarily with consumers or other Businesses or Government. This decides the Business model of that organisation.

E.g. B2C- Business to consumer  e.g. Amazon etc.

       B2B- Business to Business    e.g.EC21 etc.

       B2G-Business to Government e.g. Feedback to government businesses and NGOs

      C2C- Consumer to Consumer   e.g. eBay etc.

      C2B- Consumer to Business     e.g. Priceline etc.

      C2G- Consumer to Government  e.g. Pressure groups

      G2C- Government to Consumer  e.g. Tax online

      G2B- Government to Business    e.g. Tax

      G2G- Government to Government  e.g. Exchange of Information

B2B direct business model :B2B direct supports commerce transactions involving products, services, or information between two businesses or parties. Typical B2B direct transactions occur between buyers, suppliers, manufacturers, resellers, distributors, and trading partners.

The following diagram demonstrates a typical B2B direct business.

EC21 is EC21 is the world’s largest B2B marketplace to facilitate online trades between exporters and importers from all around the world.

Let take an example of one of the Suppliers of EC21 i.e. Guangzhou E.Box Digital Technology from China and another one of the Suppliers of EC21 like TradeTang.com from China , who are wholesale supplier. Here, EC21 is acting as a platform for B2B transactions.

Guangzhou E.Box Digital Technology Product Co., Ltd. (a member of E.Box Great Enterprises Group) is a leading global manufacturer of laptop cases and computer peripherals, E.Box main business includes laptop cases, laptop messenger bags, laptop trolleys, laptop backpacks, CD/DVD cases, digital camera/camcorder bags and other storage accessories & peripherals for computers.

<http://eboxgrouphk.en.ec21.com/company_info.jsp>

The company details :

Registration Date	2010/05/29 (yyyy/mm/dd)
Buyer / Seller in EC21	Seller
Business Type	Manufacturer
Year established	2002
Employees total	Above 1000
Annual revenue	More than 100,000,000

TradeTang.com is a China wholesale Product center. Unlike other worldwide commercial platforms, the TradeTang.com is a globalized B2B wholesale center that collects made-in-China merchandise all over the country from sellers directly link to the manufacturers. Most of our products are straightly from factories, which means the lowest prices.

Technologies used by Buyer/Seller side e-commerce are :

1.    Blog: Blogs are used to customer comment and response, which decides the ‘Customer rating’ for that product.

2.    Customer Database: Databases are maintained about the information like where customers directly visited the site or using the natural search, what is  the ‘Click ratio’ , buying tendency etc. This database is very important to maintain the history of the customer to understand the behaviour pattern.

3.    Wikis: Updated information about the organisation and its products.

4.    Twitter: Social networking sites are playing very important role in the e-commerce. Customer gets information about the product or the organisation.

5.    Website in general: Websites which display information about products.

6.    RSS: Rich Site Summary is a format for delivering regularly changing web content. RSS solves a problem for people who regularly use the web. It allows you to easily stay informed by retrieving the latest content from the sites you are interested in.

7.    Flash Demos: Short, quick and cheaper way of promotion.

8.    Facility like ’Your Suggestion’: The organisation site asks for the Suggestion to customize their product. This is the Win-Win position for Buyer and seller.

9.    SEM : Search engine marketing, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of search engine optimization, paid placement, contextual advertising, and paid inclusion

Conclusion:

In this information revolution small enhancement can lead the efficiency of transactions of intercompany and can cut down the cost of transactions. So, proper handling of this information is a crucial area to work upon and from there a trust building factor can be very strong to promote e-commerce transactions in the world.

References:

·         Chaffey  Dave,2002, E-Business and E-commerce management : Strategic, Implementation and Practice

·         David Lucking-Reiley and Daniel F. Spulber,June 2002, BUSINESS -TO - BUSINESS ELECTRONIC COMMERCE, Working Paper No. 00-W16

·         EC21 B2b market place <http://www.ec21.com/>

·         Guangzhou E.Box Digital Technology Product Co., Ltd. <http://eboxgrouphk.en.ec21.com/company_info.jsp>

·         B2B Direct Business Model <http://publib.boulder.ibm.com/infocenter/wchelp/v5r6/index.jsp?topic=/com.ibm.commerce.admin.doc/concepts/csdb2bdirectmodel.htm>