Table 7.1 E-Commerce Business Models – Flashcards
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Affiliate marketing
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Vendors ask partners to place logos (or banners) on partner's site. If customers click on the logo, go to the vendor's site, and buy, then the vendor pays commissions to partners.
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Viral marketing
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Receivers send information about your product to their friends.
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Group purchasing (e-coops)
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Small buyers aggregate demand to get a large volume. The group then conducts tendering or negotiates a low price.
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Online auctions
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Companies run auctions of various types on the Internet. Very popular in C2C, but gaining ground in other types of EC (www.ebay.com).
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Product customization
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Customers use the Internet to self-configure products or services. Sellers then price them and fulfill them quickly (build-to-order)(www.jaguar.com).
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Electronic marketplaces and exchanges
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Transactions are conducted efficiently (more information to buyers and sellers, lower transaction costs) in electronic marketplaces (private or public).
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Bartering online
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Intermediary administers online exchange of surplus products and/or company receives "points" for its contribution, which can be used to purchase other needed items. (www.bbu.com).
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Deep discounters
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Company offers deep price discounts. Appeals to customers who consider only price in their purchasing decisions. Example: www.half.com
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Membership
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Only members can use the services provided, including access to certain information, conducting trades, etc. (www.egreetings.com)
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