Structure of the e-commerce market, Cost-cutting factors in...

The structure of the e-commerce market

Categories of e-commerce: consumer, company, administration, government. Their relationship is shown in Fig. 18.3:

Interdependence of e-commerce categories

Fig. 18.3. The relationship between e-commerce categories

The presented diagram represents all eight models of relations between categories of electronic commerce:

• B2B (business business) is defined as a category of electronic commerce, in which market participants are two companies. For example, links and relationships between dealers and suppliers, head offices of companies and their regional representatives;

• B2C (business-consumer) regulates relations between companies and consumers, i.e. retail e-commerce (online shopping);

• B2A (business administration) regulates relations between business and administration, licensing issues, permits for business activity of an enterprise, equipment supplies, customs, etc.

• B2G (business-government) - the concept of building business processes of the enterprise, ensuring the increase of its "transparency" and facilitating interaction with government agencies;

• C2C (consumer-consumer) regulates relations between two consumers, for example, on the exchange of experience in committing commercial transactions. A classic example is an online auction;

• С2А (consumer-administration) regulates relations between consumers and state structures in various areas and spheres of the economy;

• C2G (consumer-government). Regulates relations between consumers and the government. Increase in public participation, including the chambers of public experts, in political decision-making and legislative expertise;

• A2G (administration-government) regulates relations between the administration and the government in the field of politics and legislation at the macro level.

E-commerce cost reduction factors

The further expansion of e-commerce will depend not only on improving infrastructure and more favorable conditions for Internet access around the world. First of all, it will be connected with the specific advantages that the business sector will receive from using e-commerce tools in its activities,

There are the following factors for the specific commercial benefits of e-commerce:

• The first factor is a reduction in the cost of obtaining information.

The Internet is the fastest and cheapest (but compared to other ways of collecting information) source of information. To use some methods of marketing research (questioning, questioning, collecting information, etc.), there is no need for personal contact with respondents.

The second factor is the reduction in advertising costs.

The cost of creating, distributing and maintaining advertising on the Internet is much lower compared to other advertising methods.

The third factor is a reduction in the cost of internal communications.

Reduction of labor costs due to a reduction in the number of exit events, telephone conversations. Saving working hours in terms of finding the necessary information.

The fourth factor - reducing the cost of external communications.

This decrease is due to the automation of collection, processing orders (quick access to information about the order, the state of its execution, etc.).

The fifth factor is a reduction in the cost of renting office space, organizing workplaces.

Work of company employees can be carried out from a remote computer (for example, a home PC).

The sixth factor is the reduction in costs for the purchase of goods and services.

Using the e-commerce system makes it possible to carry out operations to promote goods (providing services) in a fully automated mode.

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