Online Business Model
Issues in B2C
- Long tail -Channel conflict (disintermediation and cannibalization) - Order fulfillment (harder than B2B)
Limitation of E-comm
- bandwidth -security non technical limitation: perception that it is insecure, legal issues and psychological issue people want touch/feel
6 online advertising
- display advertising - email ads (spamming) - search advertising - referral ads -classifieds - rich media ads
3 E-marketplace ownership
-private ( owned by one buyer or seller) -consortia (owned by group of buyer/seller) -independent (venture owned)
2 e-marketplace model
-public ( many firms connect to many other firms) -private ( one firm connection many other firm)
All 6 types of provider-consumer relationship
1. B2C 2. B2B 3. C2C 4. B2E 5. G2B / G2C 6. m-commerce
3 classification of business model's
1. Brick & Mortar 2. Click & Mortar 3. Pure-play
The 6 online sales model
1. Brokerage 2. Infomediary 3. Advertising 4. Affiliate 5. Subscription 6. Utility
2 Online sales model
1. Click & Mortar (or hybrid) 2. Pure play (pure click)
Disintermediation vs cannibalization
1. Conflict between with channel partner 2. Conflict with own distribution channel
B2C seller website classification
1. E-Brochure (catalogue/billboard) 2. E-Promotion (Product/consumer service information) 3. E-Sales (Full transaction, ex .amazon)
Electronic cash system (4)
1. stored value money card (prepaid) 2. smart card (chip) 3. person-to-person payment 4. digital wallet
EDI in B2B e-com
Electronic data interchange. Transfer structured data from a computer system to another in B2B e-com it can be web-based EDI so you can process data using a web-browser
Forward vs Reverse auction
Forward : buyers compete to obtain a product Reverse: sellers compete to obtain business from the buyer(B2B)
Affiliate online sales model
Pay-per-click (commission based)
Two classification of E-Commerce
Pure & Partial (Based on the degree of digitalization involved)
What C2C model was popularized by the internet?
auction model, because of low administrative cost and ability to involve a lot of buyers and sellers.
Utility online sales model
charges based on metered usage. ex. cell phone data plan
Benefits e-comm
for customer - more choice - 24/7 365 days for organization - reduce inventory and overhead costs -small business can compete with large organization for society - people can work from home -lower prices
what is e-commerce?
is generating revenue through transactions conducted on the web. (focus on transaction)
E-payments (2)
its an integral part of e-comm. 1. Online credit card payment system 2. Electronic cash system
Why does B2C e-commerce creates long tail
lower storage and distribution cost
MRO inputs
present in e-marketplace stands for maintenance reparation and operations
Long tail
product in low demand can collectively make up a huge market share that exceeds high demand products
Infomediary
similar to brokerage, but deal but with information
What is a business model
the method by which a company generates revenue
what are brokerage
they are market-makers. they bring buyers and sellers together
2 type of B2B e-marketplace
vertical ( within an industry) horizontal (within different industry and region)
2 internet use for B2B
web-based EDI e-marketplace
m-commerce
where transaction are conducted using a mobile device (PDA, smart phone, etc)
