E-commerce Business Models and Concepts B2C E-Commerce Business Models Chapter 2 E-commerce Business Models and Concepts B2C E-Commerce Business Models Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

B2C Business Models Portal E-tailer Community provider (social network) Content provider Transaction broker Market creator Service provider Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

B2C Models: Portal Search plus an integrated package of content and services Types: Horizontal Portal , Vertical Portal or Vortal and Search Portal Horizontal 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  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 Revenue model: Advertising, referral fees, transaction fees, subscriptions Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

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

B2C Models: E-Tailer Online version of traditional retailer (Physical Retail Stores) Variations: Virtual merchant (Click-and-Click) Examples:- Shophive, tcs-connect, Amazon , BlueNile , DrugStore Bricks-and-Mortar (Only have Physical Store’s) Examples:- All offline Retailers (Have no Presence over the Internet/Web ) Bricks-and-clicks (Online as well offline) 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. Revenue model: Direct Sales, Advertisement Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

B2C Models: Community Provider Provide online environment (social network) where people with similar interests can transact, share content, and communicate Examples: Facebook, LinkedIn, 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. Revenue models: Typically hybrid, combining advertising, subscriptions, sales, transaction fees, and so on Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

B2C Models: Content Provider Sell or provide digital content (News, music, video, text, artwork) on the Web: Examples: consumerreports.org, wallstreatjournal.com, CNN.com, espn.com OR Sell or provide Intellectual Property on the Web 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: Subscription; pay per download (micropayment); advertising; affiliate referral Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

B2C Models: Transaction Broker Process online transactions for consumers Primary value proposition—saving time and money 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 Revenue model: Transaction fees Industries using this model: Financial services Travel services Job placement services Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

B2C Models: Market Creator Create digital environment (a C2C ecommerce website) where buyers and sellers can meet, display products , search for products and establish a price for products. Examples: Priceline eBay Revenue model: Transaction fees, fees to merchants for access B 2 C B 2 C C 2 C Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

B2C Models: Service Provider Use IT / IS Infrastructure of well known companies . . . Web 2.0 applications such as photo sharing, video sharing and user- generated 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 Valuable, convenient, time-saving, low-cost alternatives to traditional service providers Revenue models: Sales of services, subscription fees, advertising, sales of marketing data Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Summary