What is Relationship E-commerce (R-Commerce)? - Definition from Techopedia
Business relations are the connections that exist between all entities that engage in commerce. Managing business‐to‐business relationships throughout the e‐commerce procurement life cycle. Author(s). Norm Archer (Norm Archer is a Professor of. The purpose of this paper is to understand and provide an empirical illustration for how electronic commerce (EC) tools are used to redesign business.
Industries affected by m-commerce include: One of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs, low-cost technological infrastructure, speedier and more economic electronic transactions with suppliers, lower global information sharing and advertising costs, and cheaper customer service alternatives. Economic integration is either external or internal.
Internal integration, on the other hand, is the networking of the various departments within a corporation, and of business operations and processes. This allows critical business information to be stored in a digital form that can be retrieved instantly and transmitted electronically. Internal integration is best exemplified by corporate intranets.
The e-hub serves as the center for management of content and the processing of business transactions with support services such as financial clearance and information services. Because of this very important link, SESAMi reaches an extensive network of regional, vertical and industry-specific interoperable B2B e-markets across the globe. Corporations are encouraged to use e-commerce in marketing and promotion to capture international markets, both big and small.
The Internet is likewise used as a medium for enhanced customer service and support. It is a lot easier for companies to provide their target consumers with more detailed product and service information using the Internet. Close to a third of the 1.
To enhance customer service, Submarino has diversified into offering logistical and technological infrastructure to other retailers, which includes experience and expertise in credit analysis, tracking orders and product comparison systems. The development of ICT is a key factor in the growth of e-commerce. For instance, technological advances in digitizing content, compression and the promotion of open systems technology have paved the way for the convergence of communication services into one single platform.
This in turn has made communication more efficient, faster, easier, and more economical as the need to set up separate networks for telephone services, television broadcast, cable television, and Internet access is eliminated. At present the high costs of installing landlines in sparsely populated rural areas is a disincentive to telecommunications companies to install telephones in these areas. Installing landlines in rural areas can become more attractive to the private sector if revenues from these landlines are not limited to local and long distance telephone charges, but also include cable TV and Internet charges.
This development will ensure affordable access to information even by those in rural areas and will spare the government the trouble and cost of installing expensive landlines.
For e-commerce to be a competitive alternative to traditional commercial transactions and for a firm to maximize the benefits of e-commerce, a number of technical as well as enabling issues have to be considered. A typical e-commerce transaction loop involves the following major players and corresponding requisites: The Seller should have the following components: A corporate Web site with e-commerce capabilities e.
Banking institutions that offer transaction clearing services e. For business-to-consumer transactions, the system must offer a means for cost-efficient transport of small packages such that purchasing books over the Internet, for example, is not prohibitively more expensive than buying from a local store ; and Authentication authority that serves as a trusted third party to ensure the integrity and security of transactions.
Consumers in a business-to-consumer transaction who: Form a critical mass of the population with access to the Internet and disposable income enabling widespread use of credit cards; and Possess a mindset for purchasing goods over the Internet rather than by physically inspecting items. A legal framework governing e-commerce transactions including electronic documents, signatures, and the like ; and Legal institutions that would enforce the legal framework i.
And finally, the Internet, the successful use of which depends on the following: For e-commerce to grow, the above requisites and factors have to be in place.
The least developed factor is an impediment to the increased uptake of e-commerce as a whole. For instance, a country with an excellent Internet infrastructure will not have high e-commerce figures if banks do not offer support and fulfillment services to e-commerce transactions.
In countries that have significant e-commerce figures, a positive feedback loop reinforces each of these factors. As a technical infrastructure, it is a global collection of networks, connected to share information using a common set of protocols.
Also, as a vast network of people and information, the Internet is an enabler for e-commerce as it allows businesses to showcase and sell their products and services online and gives potential customers, prospects, and business partners access to information about these businesses and their products and services that would lead to purchase.
Before the Internet was utilized for commercial purposes, companies used private networks-such as the EDI or Electronic Data Interchange-to transact business with each other.
Business relationship model
That was the early form of e-commerce. However, installing and maintaining private networks was very expensive. With the Internet, e-commerce spread rapidly because of the lower costs involved and because the Internet is based on open standards.
In this context, corporate functions, decisions and processes involving e-commerce activities are more coherent and organized. The proliferation of intranets has caused a shift from a hierarchical command-and-control organization to an information-based organization.
This shift has implications for managerial responsibilities, communication and information flows, and workgroup structures. Aside from reducing the cost of doing business, what are the advantages of e-commerce for businesses? It enables start-up and small- and medium-sized enterprises to reach the global market.
Leveling the Playing Field through E-commerce: The Case of Amazon. It does not have a single square foot of bricks and mortar retail floor space. To be fair, Amazon has yet to turn a profit, but this does not obviate the point that in many industries doing business through e-commerce is cheaper than conducting business in a traditional brick-and-mortar company.
However, this does not discount the point that without a good e-business strategy, e-commerce may in some cases discriminate against SMEs because it reveals proprietary pricing information. A sound e-business plan does not totally disregard old economy values. The dot-com bust is proof of this. Majority of these were e-commerce and content companies.
The shutdown of these companies was followed by the folding up of Internet-content providers, infrastructure companies, Internet service providers, and other providers of dial-up and broadband Internet-access services. The crash began when investors started demanding hard earnings for sky-high valuations. The Internet companies also spent too much on overhead before even gaining a market share. Experiences take the entire customer journey into account to foster long-term satisfaction and engagement The shifting e-commerce landscape: All recent success stories in e-commerce are prime examples of relationship commerce: Instead of focusing on acquiring transactions, these companies established themselves as leaders in specific verticals by providing a unique, differentiated experience with engaging retention mechanisms.
Relationship Commerce provides a pathway to success in this competitive landscape. The retailer offers a steady stream of fresh, relevant experiences that solve customer needs and the customer continues to engage and thereby helps the retailer build a more robust, comprehensive understanding of the customer's preferences.
This leads to a virtuous circle of ever better understanding and more customer needs being met. Different frameworks for personalizing experiences Traditional Personalization for Transactional Commerce Today, most legacy personalization tools and efforts are designed for transactional commerce and have these characteristics: Often these technologies are mis-applied to recurring 'upper funnel' experiences with poor results.
Customer profiles are represented by a collected set of recent actions: This limits recommendations to 'related products'; little exploration and adaptation can be done. A specific product action e. It does not matter who the customer is or what the retailers knows about their changing needs.
In the extended site store, the following types of contracts can refer to the storefront asset store base for default contract and share its terms and conditions: Default contracts Base for default contracts For examples of contract modeling using base for default contracts, see Catalog filter assignment and contracts and Price rule assignment and contracts.
Customer groups In an customer group model, the store needs to have multiple contracts which govern the interactions between the site and the various customer groups. Again, an account is not necessary. When the customer group is created, it is assigned a contract. A customer that belongs to the customer group can then browse your site, and is governed by the specific terms and conditions that comprise the contract for which they are eligible. In this case, all that would be required is a default contract, and then a second contract for Gold customers.
The customers who qualify as Gold customers would have to be explicitly added to the member group to which the contract applies. After that, whenever they log in, they would be able to browse the site and be subject to the terms and conditions of the applicable contract.
Consumer-to-business - Wikipedia
Business customers In a business-to-business model, the store needs to have multiple contracts which govern the interactions between the store, and the customer account. Once the account is defined, it is assigned a base contract. For each buying unit that is created, an additional contract is required which inherits the base contract, and then defines further terms and conditions as necessary.
An employee of the customer account can then browse your site, and is governed by the union of the terms and conditions that comprise the contracts for which they are eligible. As an example, consider an office supply store. This store would have an initial default contract that would govern any people that came to the site, who did not belong to a customer account.