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Business models of e commerce

Business models of e commerceEvery successful phenomenon such as e-commerce certainly gains scientific momentum and business models are developed for the same. These models tend to lend a rigorous basis for further development of the discipline which is necessary for long term sustenance of the same.

Since e-commerce is being used extensively in all aspects of import/export business, international trade and global sourcing, it was imperative that different models come up for the description of the same. There are mainly five types of e-commerce models:
  1. Business-to-business (B2B)
  2. Business-to-consumer (B2C)
  3. Business-to-government (B2G)
  4. Consumer-to-consumer (C2C)
  5. Mobile commerce (m-commerce)

Polls
Though E-commerce is on Business-to-Business (B2B), Business-to-consumer (B2C) and Consumer-to-Business (C2B), it is being increasingly realised that the B2B holds the most potential. While the global B2C E-commerce is expected to grow from $7.80 billions in 1998 to $108 billions by 2003, that for B2B is forecast to grow from $43 billions to $1.40 trillions. Little wonder that the focus world over is now on B2B E-commerce.

In the sales industry, your main goal is to sell your product and maximize your profit. In doing this, you have one major choice to make. Do you want to sell to end-users or consumers or would you prefer to sell to other businesses that need your products? Which of these groups of customers you choose to sell to will determine your entire marketing strategy.

Online success is not achieved by simply setting up a website, putting the address on your business card and letterhead and walking away. In fact,h websites today are starting to get overrun—overrun by the stream. Twitter, Facebook, RSS and other services are indicators of the waning importance of the "reading pages" system. They are ushering in the age of "the stream" as described by investor John Borthwick:

"In the initial design of the web reading and writing (editing) were given equal consideration—yet for fifteen years the primary metaphor of the web has been pages and reading. The metaphors we used to circumscribe this possibility set were mostly drawn from books and architecture (pages, browser, sites etc.). Most of these metaphors were static and one way. The steam metaphor is fundamentally different. It's dynamic, it doesn't live very well within a page and still very much evolving.

Amazon.com, which sells books over the Internet, is an example of a B2C E-commerce initiative where the company gets in touch with its consumers directly. This is equivalent to the direct selling concept popularised by companies such as Amway. The only difference is that the selling is done via the Net. On the other hand, ChemConnect.com and Chemdex.com (which deal with chemicals) are B2B E-commerce initiatives, that bring two firms together on the virtual market place.

We'll discuss these five models in the next few articles.


E-commerce Concepts

Business models of e commerce

  1. E-commerce Concepts
  2. What is e commerce business?
    Electronic commerce or e-commerce refers to a wide range of online business activities for products and services.
  3. Advantage of e-commerce
  4. Explain e-business
    E-business is more than just having a web presence to facilitate buying and selling.
  5. Ecommerce resources
    List of Ecommerce software is for your convenience.
  6. Challenges in e-commerce
    The biggest challenge is not if or when to consider an Internet commerce solution, but rather how to select the best Internet commerce strategies to develop and sustain competitive advantage.
  1. Business models of e commerce
  2. B2B in e commerce
  3. B2C e commerce
  4. B2G e commerce
    Business-to-government e-commerce or B2G is generally defined as commerce between companies and the public sector.
  5. C2C e commerce
  6. Advantages of B2B e commerce
  7. Mobile commerce
    It refers to the use of mobile devices for conducting the transactions.
  8. Sales leads generation
  9. Marketing lead generation
  10. Direct mail campaign
    With all the buzz about online marketing, it’s easy to overlook direct mail.
  11. Qualified sales leads
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