Chapter 2 Ecommerce Business Models and Concepts B

B 2 C Business Models n Portal n E-tailer n Community provider (social network) n Content provider n Transaction broker n Market creator n Service provider Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 -2

B 2 C Models: Portal n Search plus an integrated package of content and services n Types: Horizontal Portal , Vertical Portal or Vortal and Search Portal Horizontal portals are directories like yahoo. com!. They're called "horizontal" because their list of websites cover a broad range of topics (such as News, Search, Other Website links, Premium Services, email and Online Storage etc. Examples: Yahoo. com, MSN. Com, Google. com, Aol. com, pakistan. gov. pk v Vertical Portal Vertical portals on the other hand are narrow, covering only one topic or one type of Products or Services. Convert-Files. com Examples: Convert-Files. com, exportall. com, quicken. intuit. com Facts: - No of user of portal Greater than vortal users - Vortal users pay more than portal users v n Revenue model: Advertising, referral fees, transaction fees, subscriptions Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 -3

Example Horizontal Portal Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide

B 2 C Models: E-Tailer Online version of traditional retailer (Physical Retail Stores) n Variations: n v v v n Virtual merchant (Click-and-Click) n Examples: - Shophive, tcs-connect, Amazon , Blue. Nile , Drug. Store Bricks-and-Mortar (Only have Physical Store’s) n Examples: - All offline Retailers (Have no Presence over the Internet/Web ) Bricks-and-clicks (Online as well offline) n Examples: - Jc-Penney , Wal-Mart, Staples Catalog merchant | LLBean. com (also process orders via email and Phone) Manufacturer-direct | Dell. com Shopping Mall | malloflahore. pk Low barriers to entry | Cost for entering into a E-Retail is low than startup a Physical Retail Store. n Revenue model: Direct Sales, Advertisement Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 -5

B 2 C Models: Community Provider n Provide online environment (social network) where people with similar interests can transact, share content, and communicate v Examples: Facebook, Linked. In, Twitter, Pinterest and About. com. Visitors can share tips and buy recommended books from amazon, giving about. com a commission on every purchase. Well. com provides forum for technology and internet related discussions Fool. com which provides financial advice , news and opinions. n Revenue models: v Typically hybrid, combining advertising, subscriptions, sales, transaction fees, and so on Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 -6

B 2 C Models: Content Provider n Sell or provide digital content (News, music, video, text, artwork) on the Web: Examples: consumerreports. org, wallstreatjournal. com, CNN. com, espn. com n Sell or provide Intellectual Property on the Web v n OR Intellectual Property: refers to all forms of human expression that can be put into a tangible medium such as text, cd’s or the web Revenue models: v Subscription; pay per download (micropayment); advertising; affiliate referral Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 -7

B 2 C Models: Transaction Broker n Process online transactions for consumers v Primary value proposition—saving time and money v Site that processes transactions for consumers that are normally handled in person , by phone or mail. Examples: travelocity. com, xpedia. com, rozee. pk, ubl. com, bukharigroup. com. pk n Revenue model: v n Transaction fees Industries using this model: Financial services v Travel services v Job placement services v Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 -8

B 2 C Models: Market Creator n Create digital environment (a C 2 C ecommerce website) where buyers and sellers can meet, display products , search for products and establish a price for products. v e. Bay B 2 C v Priceline B 2 C n Examples: C 2 C n Revenue model: Transaction fees, fees to merchants for access Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 -9

B 2 C Models: Service Provider n n n Use IT / IS Infrastructure of well known companies. . . Web 2. 0 applications such as photo sharing, video sharing and usergenerated content(Blogs, WIKI’S and Social networking sites) are all services provided to customers. SAAS – Software as a Service Providers (Examples) • Google Developing online applications such as Google Maps, Google Drive, Sky Drive, Gmail, Salesforce. com etc. Value proposition v Valuable, convenient, time-saving, low-cost alternatives to traditional service providers Revenue models: v Sales of services, subscription fees, advertising, sales of marketing data Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 -10

Summary