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E-Commerce Business Models: A Taxonomy and Real-Life Examples, Slides of Fundamentals of E-Commerce

Acharya Nagarjuna UniversityFundamentals of E-Commerce

An overview of various e-commerce business models, including advertising, affiliate, broker/brokerage, community, infomediary, manufacturer, merchant, subscription, and utility models. Real-life examples of each model are given, such as ebay for brokerage, verticalnet for business trading community, and paypal for transaction broker. The document also discusses multi-item auctions and infomediary specializations.

Typology: Slides

2012/2013

Uploaded on 07/29/2013

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alok-sarath 🇮🇳

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Electronic Commerce (WS-02/03)
2. EC from a Business Perspective
2.1 A Taxonomy of EC Business Models [Rappa02a]
oAdvertising Model
oAffiliate Model
oBroker / Brokerage Model
oCommunity Model
oInfomediary Model
oManufacturer Model
oMerchant Model
oSubscription Model
oUtility Model
2.2 Trends & Directions
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Electronic Commerce (WS-02/03) 2-

2. EC from a Business Perspective

2.1 A Taxonomy of EC Business Models [Rappa02a] o Advertising Model o Affiliate Model o Broker / Brokerage Model o Community Model o Infomediary Model o Manufacturer Model o Merchant Model o Subscription Model o Utility Model 2.2 Trends & Directions

Electronic Commerce (WS-02/03) 2-

Brokerage Model: Auction Broker

A site that conducts auctions for sellers (individuals or merchants). Broker charges seller a fee, which is typically scaled with the value of the transaction. Seller takes highest bid(s) from buyers above a minimum. Auctions can vary in terms of the offering and bidding rules. Examples: eBay (www.ebay.com), ricardo.de (www.ricardo.de). Auction Catalog: AuctionNet (www.auctionnet.com). www.ebay.com

Electronic Commerce (WS-02/03) 2-

Brokerage Model: Transaction Broker

Provides a third-party payment mechanism for buyers and sellers to settle a transaction. Examples: Paypal (www.paypal.com), Escrow (www.escrow.com). www.paypal.com

Electronic Commerce (WS-02/03) 2-

Auctions (5)

Multi-item Auction

o Additional to existing auctions o Single seller o N units for sale o N highest bidders get objects and pay

Electronic Commerce (WS-02/03) 2- Infomediary Model: Advertisement Networks Service that feeds banner ads to a network of sites, thereby enabling advertisers to deploy large marketing campaigns. By using cookies, the Ad Network operator collects data on web users that can be used to analyze marketing effectiveness. Example: DoubleClick (www.doubleclick.com). www.doubleclick.com

Electronic Commerce (WS-02/03) 2-

Merchant Model: Catalog Merchant

The migration of mail-order to a web- based order business. Example: Chef's Catalog (www.chefscatalog.com), OTTO (www.otto.de), Lands‘ End (www.landsend.com). www.chefscatalog.com

Electronic Commerce (WS-02/03) 2-

Utility Model: Metered Subscription

Metered Subscriptions: Subscribers purchase access to content in metered portions (e.g., numbers of pages viewed). Example: slashdot (slashdot.org). www.slashdot.org