E-commerce Business Models

• A business model is a set of planned activities designed to result in a profit in a marketplace .
  


• E-commerce business model aims to use the unique qualities of the Internet .


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  e-commerce business models Categorized according to the
  e-commerce types (B2B, B2C, C2C)
  Business model components;


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  value proposition.


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  Market segments.


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  value greation structures.


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  Revenue model.


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  Competitive strategy.


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  Growth strategies.

1. Business-to-Consumer Business Models"B2C business models":

Portal
–Horizontal portals ;
Horizontal portals Include all users of the internet.
Example. Yahoo.com, AOL.com .
–Vertical portals ;
Focused around a particular subject matter or market segment .
Example. iBoats.com .
-Both earn money on advertising, referral fees, subscription fees, transaction fees .


Content Provider
–Example. CNN.com .
–Key to success: owning the content .
–Earn money on subscription fees, and/or charge for content downloads.

Transaction Broker
–Financial, travel services, job placement services .
–Examle. E-Trade.com, Monster.com .
–Market opportunity large, but must overcome customer fears .
–Earn money each time a transaction occurs .

Market Creator
–Example. eBay.com .
–The buyers and sellers are their own agents .
–Earn money per transaction .

E-Tailer
Example. Amazon.com, Dell.com .
Every internet user is a potential customer .
Differentiate from existing stores - develop a niche strategy.
Earn money primarily by selling goods .