Chapter 8 - MIS Chapter 8 How Do Companies Use E-commerce?...

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MIS – Chapter 8 How Do Companies Use E-commerce? E-commerce – the buying and selling of goods and services over public and private computer networks. Merchant companies – those that take title to the goods they sell. They buy goods and resell them. Non merchant companies – those that arrange for the purchase and sale of goods without ever owning or taking title to those goods. Merchant companies sell services that they provide; nonmerchant companies sell services provided by others. The three main types of merchant companies are those that sell directly to consumers, those that sell to companies, and those that sell to government. B2C, business-to-consumer, e-commerce concerns sales between supplier and a retail customer (the consumer). A typical information system for B2C provides a Web-based application or Web storefront by which customers enter and manage their orders. Amazon.com, REI.com, and LLBean.com, are examples of companies that use B2C information systems. B2B, or business-to-business, e-commerce refers to sales between companies. Raw materials suppliers use B2B systems to sell to manufacturers, manufacturers use B2B systems to sell to distributors, and distributors uses B2B systems to retailers. B2G, or business-to-government, refers to sales between companies and government agencies. The manufacturer that uses an e-commerce site to sell computer hardware to the U.S. Department of State is engaging in B2G commerce. Suppliers, distributors, and retailers sell to the government as well. Example of Use of B2B, B2G, and B2C: Raw materials Supplier – Manufacturer – Distributor – Retailer – Raw materials Supplier - Manufacturer = B2B Manufacturer – Distributor = B2B Distributor – Retailer = B2B Retailer – Consumer = B2C Raw materials Supplier , Manufacturer , Distributor, Retailer – Government = B2G Non merchant E-Commerce The most common non merchant e-commerce companies are auctions and clearing houses. E- commerce auctions match buyers and sellers by using an e-commerce version of a standard auction. This e-commerce application enables the auction company to offer goods for sale and to support a competitive-bidding process. Example: Ebay
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This note was uploaded on 03/21/2012 for the course MIS 235 taught by Professor Sunrro during the Spring '08 term at Miami University.

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Chapter 8 - MIS Chapter 8 How Do Companies Use E-commerce?...

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