a) Using appropriate examples describe the following models of E-commerce[6 Marks]i. B2Gii. B2Ciii. C2Cb) Outline 3 differences between E-commerce and traditional commerce [3 Marks]c) State and explain three types of technical infrastructure that support e-commerce[6 Marks]
Question
a) Using appropriate examples describe the following models of E-commerce[6 Marks]i. B2Gii. B2Ciii. C2Cb) Outline 3 differences between E-commerce and traditional commerce [3 Marks]c) State and explain three types of technical infrastructure that support e-commerce[6 Marks]
Solution
a) Models of E-commerce:
i. B2G (Business to Government): This model of e-commerce involves transactions between businesses and government entities. For example, a company that provides IT services may have a government agency as a client. The company provides the IT services, and the government agency pays for them.
ii. B2C (Business to Consumer): This is the most common model of e-commerce. It involves transactions between businesses and consumers. For example, when you buy a book from an online retailer like Amazon, you are participating in a B2C transaction. The business (Amazon) sells a product (the book) to you, the consumer.
iii. C2C (Consumer to Consumer): This model of e-commerce involves transactions between consumers. For example, if you sell a used book to another person through an online marketplace like eBay, you are participating in a C2C transaction. Both you and the other person are consumers.
b) Differences between E-commerce and Traditional Commerce:
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Location: E-commerce can be done from anywhere with an internet connection, while traditional commerce requires a physical location.
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Hours of Operation: E-commerce can operate 24/7, while traditional commerce typically has set hours of operation.
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Customer Interaction: In e-commerce, customer interaction is typically done through digital means (email, live chat, etc.), while in traditional commerce, customer interaction is usually face-to-face.
c) Types of Technical Infrastructure that Support E-commerce:
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Servers: These are powerful computers that host websites and handle online transactions. They are essential for e-commerce because they ensure that a business's website is always available for customers to make purchases.
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Payment Gateways: These are services that process credit card transactions for online businesses. They are important for e-commerce because they allow businesses to accept credit card payments from customers.
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Security Systems: These include things like SSL certificates, which encrypt data to protect it from hackers. Security systems are crucial for e-commerce because they help protect sensitive customer information like credit card numbers and addresses.
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