5. What is Marketplace model in e
commerce?
A marketplace model or a Multivendor Marketplace is an online store where
multiple vendors come together to sell their products thus making the profit.
You will find multiple e-Commerce businesses such as Amazon, eBay, etc that
are implementing this marketplace model to enhance their business.
6.
7. E-COMMERCE BUSINESS MODELS
1. BROKERAGE MODEL
The brokerage model brings together the buyers and sellers and facilitates
transactions. Three types of transaction may occur buyer and seller in a
brokerage model B2B ,B2C and C2C.A broker charges a fee for each transaction
either from both the parties or from one party.
E.g.
BROKER
SELLER
BUYER
8. E-COMMERCE BUSINESS MODELS
Price Discovery mechanism for Brokerage Model are
1a.Open Auction/Forward
The seller sets the price and submits to multiple buyers .The participants
repeatedly place higher bids for the product under auction .The person who
places the highest bid gets the product.
E.g.
1b.Reverse Auction/Dutch Auction
In Reverse Auction the price of the product is set at a very high level .The
price is reduced at regular intervals till someone agree at the price and buys
the product.
E.g.
1c.Market Exchange
Buyer and sellers can exchange goods and services through the market
exchange .They provide full range of services covering the transaction
process.
E.g.
10. E-COMMERCE BUSINESS MODELS
2.AGGREGATOR MODEL
Aggregator model is an E-commerce business model where a firm (that does
not produce or warehouses any item) collects
(aggregates) information on goods and/or services from
several competing sources at its website. The firm's strength lies in
its ability to create an 'environment' which draws visitors to its website, and
in designing a system which allows easy matching
of prices and specifications.
Housing.com –Revenue Model is Listing Fee for Sellers
11. E-COMMERCE BUSINESS MODELS
Basically there are four type of aggregators
1. Content Aggregator
2. Mainstream Aggregator
3. Event Aggregator
4. Shopping Aggregator
2a. Content Aggregator
They are large scale sites which provide data in a form of statistics ,
research works or analysis or pool information.
E.g.
Questia has ceased operations on December 2020. Similar services are
offered in Gale
12. E-COMMERCE BUSINESS MODELS
2b. Mainstream Aggregators
It provide search engine along with bunch of attractive tools like e-mail
facility, remainders, online chat, etc. The most attractive factor of these
sites is that they have an easy to remember URL, which is one of the
reason for their popularity.
E.g.
14. E-COMMERCE BUSINESS MODELS
2c. Event Aggregator s
These are sites that provide in depth content and tools tailored to the
needs of a particular group. Here the user can get information ,tools,
analysis advices and the ability to purchase a product or service based
on it.
E.g.
15.
16. 2d. Shopping Aggregators
Shopping aggregators let consumers roam through hundreds of sites and
catalogs and find the best product and price, in seconds. They help
consumers to go through dozens of e-commerce sites and compare
products and price.
E.g.
E-COMMERCE BUSINESS MODELS
17. 3. INFOMEDIARY MODEL(Information +Intermediary)
Infomediary collects information about consumers and their consumption
habits and sell the information to marketing companies.
They also provide information about producers and products to the consumers.
Infomediaries generate revenue from sellers and not from the consumers.
Some firms collect a membership fee from customers for providing information
about producers and products.
NetZero is an example of a third-party infomediary
E-COMMERCE BUSINESS MODELS
18. Based on their relationship with the sellers and buyers Infomediaries are
classified into four.
3a.Specialized Agents
Specialized agents have closed relationship with both sellers and
customers. They charge fee from sellers and consumers for the
information
3b.Generic Agents
It maintains an open relationship with both sellers and customers .In
other words information is provided free of cost.
E.g. Google ,Yahoo etc.
3c.Supplier Agents
They provide information about their affiliated company’s Product. They
act as agent of some suppliers.
3d.Buyer Agents
Buyer agent establish relationship with core set of buyers and work on
their behalf and any number of suppliers.
E-COMMERCE BUSINESS MODELS
19. E-COMMERCE BUSINESS MODELS
4.COMMUNITY MODEL
Electronic communities are formed when groups of people or business to
meet online to fulfill certain needs, which include personal interests,
entertainment and transactions. E-Communities usually come online to
exchange information, share ideas, trade goods and services, entertain find
and communicate with likeminded people, and seek help.
brings together the reach of global and the depth of local,
delivering 24/7 news coverage and analysis on the trends, technologies and
opportunities that matter to IT professionals and decision makers.
is an E-commerce Company in India. It is a social
shopping community, where shoppers see products share by other users of
the site. Their product categories were apparel, jewellery and home decor. It is
a marketplace for designers to showcase and sell their products .
20. E-COMMERCE BUSINESS MODELS
5. VALUE CHAIN MODEL
The goal of value chain model is to facilitate interaction among all members
of the supply chain. It will result in Lower inventory level, uninterrupted
production and higher customer satisfaction.
It helps an organization to link its business partners, suppliers and others to
the network and create a centralized online system to make the
organization more competitive. Value chain model facilitate the following
a) Search catalogs, Inventory data base, auction sites, classified ads, job
listing and suppliers
b) Improves the success rate of incoming searches . New query
processing tool help customers to find products even when they do
not know exact product names or model numbers.
c) Permit the users to sort results by brand, price availability or any other
model
d) Present the search result with the help of a customer interface
e) Maintain an index of images, articles and video clips
21.
22. E-COMMERCE BUSINESS MODELS
6. MANUFACTURER MODEL / DIRECT MODEL
The manufacturer model allows a manufacturer to reach buyers directly,
eliminating intermediaries. It results in improved efficiency, improved
customer service and a better understanding to customer preferences. It
may take the following ways.
a) Sales
b) Lease
c) License
23.
24. 7. ADVERTISING MODEL
The principle of advertising model is simple. A site offers free access to
something (Ex. Latest sports news) shows advertisements on every page.
The advertiser pays the site operator for showing his advertisement
(eyeballs) or for every time someone clicks on the advertisement (Click
through)
E-COMMERCE BUSINESS MODELS
25.
26. Types of Advertising on the Internet
1. Portals-
2. Classifieds
3. Query Based paid Placement
4. Contextual Advertisement
While downloading and using Freeware advertisement is displayed
E-COMMERCE BUSINESS MODELS
27. 8.SUBSCRIPTION MODEL
Under subscription model the users are charged a periodical fee (daily monthly or
annually) to subscribe to a service. Such sites usually provide expert content and timely
information. Such sites used to combine free content with premium con tent. Premium
content can be accessed only by members who pay subscription.
Different forms of Subscription Models are
8a. Content Services
An Internet content provider is a website or organization that handles the distribution of
online content such as blogs, videos, music or files. This content is generally made
accessible to users and often in multiple formats, such as in both transcripts and videos.
Periodic subscription is charged by the Content service providers
E.g.
E-COMMERCE BUSINESS MODELS
28. 8b. Person to Person Networking Services
Such services provide user required information.
For example Classmates .com, they may search and find a classmate on behalf
of an individual.
8c. Internet Service Providers
ISP Provides Internet connectivity and relate services on a monthly subscription
E.g.
E-COMMERCE BUSINESS MODELS
29. 9. AFFILIATE MODEL
It is way that you can promote other peoples products and get paid a commission for
promoting them. It is an E-commerce model that enables you to generate revenue without
carrying inventories, managing orders, processing payments or handling packaging and
shipping.
The affiliate model is popular e-commerce relationship in which an online merchant
agrees to pay a commission to the affiliate for providing an ad and link to the merchant.
E.g.
E-COMMERCE BUSINESS MODELS
30. AdWords AdSense Model
• Publisher –Ad Sense -----Pay 30%
• Advertiser –Ad Words----- Get 100%
• Publisher – Website /YouTube Channel Owner
• Advertiser –Brand
• Platform – Google AdWords /AdSense Model
