Revenue Models in ecommerce

Revenue Models in ecommerce

1. Business to Business (B2B)

   • Definition
     • defined as e-commerce between companies.
   • E-frastructure
     • architecture of B2B
     • Factors
       • Logistics
       • Application service providers
       • Outsourcing of functions in the process of e-commerce
       • Auction solutions
       • Content management
       • Web-based commerce enablers
   • Benefits
     • Transaction costs
     • Disintermediation
     • Price transparency
     • Economies of scale & network effects

2. business to consumer

   • Definition
     • commerce between companies and consumers
   • What it involves
     • customers gathering information; purchasing physical goods or information goods, and, for information goods, receiving products over an electronic network.
   • Benefits
     • Reduced transaction costs
     • Reduction of entry barriers
     • Removes the need for physical distribution channels

3. Business to Government

   • Definition
     • commerce between companies and the public sector
   • What it involves
     • refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations.
   • Features
     • the public sector assumes a pilot/leading role in establishing e-commerce;
     • it is assumed that the public sector has the greatest need for making its procurement system more effective.
   • Benefits
     • Increases transparency and reduces risk of irregularities

4. C2C & C2B

   • Definition
     • commerce between private individuals or consumers.
   • Types
     • auctions facilitated at a portal
     • peer-to-peer systems
     • classified ads at portal sites
   • Transaction
     • involve reverse auctions, which empower the consumer to drive transactions

5. Mobile Commerce

   • Definition
     • buying and selling of goods and services through wireless technology
   • Adv and Disadv
     • As content delivery over wireless devices becomes faster, more secure, and scalable, some believe that m-commerce will surpass wireline
     • most critical considerations for this strategy is the software solution that the organization uses – portability, native vs HTML5
   • Benefits
     • Ease of use, familiarity
     • Reach of devices
     • Low cost of deployment/installation and maintenance
     • Ability to upgrade
     • Sustainability