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Students of Communication, study E-Commerce as an auxiliary subject. these are the key points discussed in these Lecture Slides of E-Commerce : Advertising Model, Business Models, Affiliate Model, Brokerage Model, Community Model, Infomediary Model, Manufacturer Model, Merchant Model, Subscription Model, Utility Model
Typology: Slides
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Electronic Commerce (WS-02/03) 2-
Current business models are: o Advertising Model o o Affiliate ModelBroker / Brokerage Model o o Community ModelInfomediary Model o o Manufacturer ModelMerchant Model o Subscription Model o Utility Model Some of these business models are still successful, whereas other have not proven to be accepted by Internet customers.
Electronic Commerce (WS-02/03) 2-
Model especially common in B2B markets for basic materials and industrial intermediates. In the exchange model, the broker typically charges the seller a transaction fee based on the value of the sale. The pricing mechanism can be a simple offer/buy, offer/negotiated buy, or an auction offer/bid approach. Example: Orbitz(www.orbitz.com) ChemConnect's World Chemical Exchange (www.chemconnect.com). www.chemconnect.com
Electronic Commerce (WS-02/03) 2-
o Price clock starts at too high of a price o o PriceFirst bidder to signal gets the goods at the price on the clock descends in real time
o Everyone puts their bid in an envelope and submits it to the auctioneer o At a designated time, the auctioneer opens the envelopes and determines the highest bidder o Two strategies: • First-price sealed bid: Highest bidder pays his bid
Electronic Commerce (WS-02/03) 2-
Provide professional a source expertise of information or the experience based on of other users. Sites are forum where persons seeking information typically run like a can pose questions and receive answers from (presumably) someone know- ledgeable about the subject. The experts may be employed staff, a regular cadre of volunteers, or in some cases, simply anyone on the web who wishes to respond. Examples: ExpertCentral AskMe (www.askme (www..comexpertcentral), NY Times.com), Abuzz (www.abuzz.com). Quite some companies have turned away from this business model (guru, exp).^ www.expertcentral.com
Electronic Commerce (WS-02/03) 2-
Implements classic wholesalers and retailers of goods and services (increasingly often referred to as "e-tailers"). Sales may be made based on list prices or through auction. In some cases, the goods and services may be unique to the web and not have a traditional "brick-and-mortar" storefront. Specializations: o o Bit VendorCatalog Merchant o o Surf-and-TurfVirtual Merchant
Electronic Commerce (WS-02/03) 2-
Users pay for access to the site. High value-added content is essential (example: Consumer Reports (www.consumerreports.org)). Generic news content, viable on the newsstand, has proven less successful as a subscription model on the web. Examples: Slate ( (www.salon.com).www.slate.com), Salon: A 1999 survey by Jupiter Communications found that 46 percent of Internet users would Some businesses have combined free not pay to view content on the web. content with premium (to drive content volume or andservices ad revenue) for subscribers only.^ www.consumerreports.com
Electronic Commerce (WS-02/03) 2-
Business model trends: B2C o o Shops: SaturationAdvertising and community models: Do not create revenues anymore o o Virtual merchants: Few profitable remainingSurf-and-turfs: Successful business model B2B o Marketplaces: Gaining importance in some industries o Auctions: Popular in B2C; but much more important in B2B for dynamic price-finding.
