Categories of E-Commerce Models

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Presentation transcript:

Categories of E-Commerce Models MIS 4453

Four Categories of eCommerce Four distinct categories of e-commerce can be defined, based on the business origination and the customer type Business originating from... Business Consumers Business B2B C2B e.g., Freemarket, Covisint e.g., Mercata, mobshop And selling to... Consumers B2C C2C e.g., Amazon, Staples.com, Yahoo e.g., e-Bay

B2B: Buyer-Centric Many suppliers seeking to meet the requirements of a single large industry leading buyer Can create animosity over severe price competition and time to market requirement Site managed by the large buyer Often uses EDI

B2B: Supplier-Centric Centered around single, large manufacturers that serve many buyers. Designed to lower costs for buyers by allowing them to purchase online. Suppliers must make sure that they carry and adequate number of choices.

B2B: Distribution Portal Onlines brokerages that channel goods from several large suppliers to many buyers. Revenues generated from mark-ups Cyberspace middleman - reintermediation

B2B: Procurement Portal Bid-ask system where multiple buyers can purchase from multiple sellers Generates revenues via transaction fees Covisint lowers transaction costs

B2B or B2C: Independent Marketplace Concentrates information about products and services from multiple providers at one central point Generates revenues via listing fees, links (B2C) or industry fees (B2B)

B2C: Virtual Storefront E-tailer; sells physical products or services on-line instead of through a physical retail outlet. Generates revenues via margins, handling fees and links

B2C: Information Broker Provides product, pricing and availability information. Generates revenues via transaction fees (commissions)

B2C: Content Provider Provides content of interest (e.g., news, sports, political, entertainment). Generates revenues via subscription by readers or advertisements (banners or links).

B2C: Virtual Community Provides on-line meeting where people with similar interests can communicate and find useful information. Supports heavy repeat usage. Generates revenues via advertisements, especially links.

B2C: Portal Provides initial point of entry to the Web along with specialized content and other services. Generates revenues via advertisements and search engine fees.

C2B: Aggregator Mainly B2B, brings small companies together to facilitate purchasing as one large buyer - economies of scale. Generates revenues by selling the software and/or subscription fee.

C2B: Reverse Auction Consumers submit bid to multiple sellers to buy goods and services Auctioneer creates a margin

C2C: Auction Provides electronic clearinghouse for products where price and availability are constantly changing. Auctioneer receives a fee or commission.