Chapter 3 Selling on the Web: Revenue Models and Building a Web Presence.

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Presentation transcript:

Chapter 3 Selling on the Web: Revenue Models and Building a Web Presence

Sales Cost of goods sold Gross margin Expenses Net income

E-commerce business models Brokerage Advertising Infomediary Merchant Manufacturer Affiliate Community Subscription Utility

Brokerage Brokers are market-makers: they bring buyers and sellers together and facilitate transactions. Brokers play a frequent role in (B2B (B2C), (C2C) markets. Usually a broker charges a fee or commission for each transaction it enables. The formula for fees can vary.

Brokerage Marketplace Exchange. [Orbitz, ChemConnect]OrbitzChemConnect Business Trading Community [VerticalNet]VerticalNet Buy/Sell Fulfillment --. [CarsDirect, Respond.com]CarsDirectRespond.com Demand Collection System -- [Priceline.com]Priceline.com Auction Broker. [eBay]eBay Transaction Broker [PayPal, Escrow.com]PayPalEscrow.com Bounty Broker [BountyQuest]BountyQuest Distributor [Questlink, ConvergeTrade]QuestlinkConvergeTrade Search Agent [MySimon, DealTime]MySimonDealTime Virtual Mall [ChoiceMall]ChoiceMall

Advertising Portal -- [Yahoo!]Yahoo! Personalized [MyYahoo!]MyYahoo! Niche Portal -- [iVillage.com]iVillage.com Classifieds [Monster.com, Match.com]Monster.comMatch.com Registered Users [NYTimes Digital]NYTimes Digital Query-based Paid Placement -- [Google, Overture]Google Overture Contextual Advertising [Gator, eZula]GatoreZula

Infomediary Advertising Networks --. [DoubleClick]DoubleClick Audience Measurement Services -- [Nielsen//Netratings]Nielsen//Netratings Incentive Marketing --. [Coolsavings, MyPoints, Greenpoints]CoolsavingsMyPointsGreenpoints Metamediary -- [Edmunds]Edmunds

Merchant Virtual Merchant -- [Amazon.com]Amazon.com Catalog Merchant -- [Lands' End]Lands' End Click and Mortar -- [Barnes & Noble]Barnes & Noble Bit Vendor --. [Eyewire]Eyewire

Manufacturer Purchase - dell Lease -- License -- (e.g., with software licensing). Brand Integrated Content [bmwfilms].bmwfilms

Affiliate Banner Exchange -- Barnes & Noble, Amazon.com]Barnes & Noble Amazon.com Pay-per-click Revenue Sharing

Community Open Source. [Red Hat]Red Hat Public Broadcasting -- [The Classical Station (WCPE.org)]The Classical StationWCPE.org Knowledge Networks -- [AllExperts]AllExperts

Subscription Content Services -- [Listen.com, Netflix]Listen.com Netflix Person-to-Person Networking Services -- [Classmates]Classmates Trust Services -- [Truste]Truste Internet Services Providers. [America Online]America Online

Utility Metered Usage -- Metered Subscriptions [Slashdot]Slashdot

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