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There are six basic e-commerce models. These models can be combined to create various hybrids.
Does site serve as neutral marketplace ?
Models
Yes
Start
Exchange
No
Does the site favor buyers or sellers? Sellers Does site owner own customer relationship ? No Does site owner buy goods/ services?
Buyers
Yes
Purchasing Aggregator
No
Consumer Aggregator
No
Yes
Department Store
Mall
Yes Destination
Examples of Models
The six basic e-commerce models are applicable for both B2C and B2B e-commerce.
Buyer-biased
Purchasing
Description:
Neutral
Exchange
Seller-biased
Destination
Consumer Aggregator
Department Store
Procurement Pools collective administered by buying power of buying group fragmented buyers aggregates facilitates product info purchases (i.e., from pregroup discounts) approved suppliers
B2C:
N/A
Amazon.com Rediff.com (India) Dell.com SatyamOnline.com (India) Dangdang.net (China) 8848.net (China) eShopping.ne.jp Sina.com (China) (Japan)
Yahoo.co.jp (Japan)
B2B:
BuyGroup.com
AdAuction.com PaperExchange.co m
Dell.com Cisco.com
MRO.com
VerticalNet.com
Make decision Sign for goods Send to procurement and accounting Wait for delivery Purchasing Fax to vendor
Review bid
Make Modifications
Customer Relationships
Commoditizing products Customer loyalty yields incremental revenue Customer relationships are a differentiator and source of value Explosion of customer choice & access
No silver bullet models yet Suppliers, distributors, and customers may not be ready to change
Each country unique - www maturity - Languages - Currencies - Taxes & duties - Customs - Culture, politics, religion
Three company/industry attributes that determine to what extent a company can expect to be be affected by e-commerce
Product/service Characteristics bittable/digitisable Portability Company position within the value chain Can you innovate new products and channels Are you a pure intermediary Can you build an extended enterprise Customer Willingness How desirable is your offering via e-commerce How accessible is it (positive purchasing/servicing experience)