Kinds of E-Commerce Used

Electronic commerce (e-commerce) is commerce, but it is commerce accelerated and enhanced by IT, in particular the internet. E-commerce enables customers, consumers, and companies to perform powerful new relationships that would not be possible without the enabling technologies. E-commerce breaks down business barriers such as time, geography, language, and culture. Best buy is a click-and-mortar believer. Click and mortar refers to an organization that has a presence in the physical world such as a building or a store you can visit and also a presence in the virtual world of the internet. www.cfo.com/article.cfm.

Internet Business Model

There are nine major e-commerce business models that include B2B, B2C, B2G, C2B, C2C, C2G, G2B, G2C, and G2G. The most important of these models are business to business (B2B) model and business to consumer (B2C) model. Business to consumer (B2C) e-commerce occurs when a business sell product and services to customers who are primarily individuals. Best Buy uses the second model which is business to consumer. Best buy is registering with search engines, online ads. Best Buy advertises on yahoo, and Google sites. Barry judge, vice president of marketing for best buy.com says “we have a lot of early- adopter technology users, and our stores attract more tech savvy consumers to begin with, about 80 percent to 90percent of our core target is already on the web.

                                              

                                             

                                              Marketing Mix

          Marketing mix refers to the set of marketing tools that an organization uses to pursue its marketing objectives in reaching and attracting potential customer. Because Best Buy is mostly a B2C e-commerce its marking mix includes registering with search engines, online ads, viral marketing and affiliate programs. Best Buy is active in the social networking aspect as far as Twitter and Facebook community. They give out many special offers, coupons, and discounts for members that follow there pages and recommend others to do the same. Best Buy also participates in affiliate programs where places like Youtube advertise products that Best Buy exclusively sells to increase their share and profit.

Payment System

          Some of the payment systems used by Best Buy include financial cybermediary which partnered with paypal made it easy for their customers to buy their products over the internet through their website. Another payment system used is electronic check where customers can even come into the store and send money using their checking and savings accounts. The next payment system used is Electronic Bill Presentment Payment (EBPP), which is a system that sends bills over the Internet. This is used to so the customers can make payments on the Best Buy credit card instead of having to come into the store.