Learn about the traditional types of ecommerce business models as well as. Download a pdf version for easier offline reading and sharing with coworkers. An ebusiness is defined as a company that has an online presence. Business to business b2b business to consumer b2c consumer to consumer c2c consumer to business c2b business to government b2g government to business g2b government to citizen g2c business to business b2b. A b2b model focuses on providing products from one business to another. As an example, a wholesaler places an order from a companys website and after receiving the consignment, sells the endproduct to the final customer who comes to buy the product at one of its retail outlets. Ecommerce models creating an ecommerce solution mainly involves creating and deploying an ecommerce site. The combination of a companys policy, operations, technology and ideology define its business model. Pdf introduction ecommerce business models are using computing and communication technologies to make transactions between a business and.
Business model, value creation, credit risk management, ecommerce, customer value proposition cvp, profit formula, key processes. Sales from online stores are expected to increase 78% by 2020. The best 6 types of successful ecommerce business models. Business to business a website following the b2b business model sells its products to an intermediate buyer who then sells the product to the final customer. Ecommerce or electronics commerce business models can generally categorized in following categories. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads. An ecommerce business model aims to use and leverage the unique qualities of the internet, the web, and the mobile platform. This is particularly true of internet companies teece, 2010, p. Ebusinesses that have the ability to sell, trade, barter and transact over the web can be considered ecommerce businesses. A booming ecommerce business takes intuition, knowledge of your market.
Ecommerce business models of all types are thriving. The explanation that follows makes a broad distinction between the two. Pdf introduction ecommerce business models are using computing and communication technologies to make transactions between a business and its. You will find it easier to assimilate the information if you apply it to a case study or better still a business that you know or want to start yourself. Ecommerce business models and concepts kean university. Using a case study approach, the author examines in detail some of the ebusiness models impacting on the travel industry both in. While many businesses in this niche are service providers, youll find software companies, office furniture and supply companies, document hosting companies, and numerous other ecommerce business models under this heading. Pdf the ecommerce business model implementation alessia d. Depending on the parties involved in the transaction, ecommerce can be classified into main 4 models. In this model, both the sellers and buyers are business entities. B2c is the most common business model, so there are many unique approaches. The first step in the development of an ecommerce site is to identify the ecommerce model.
Four traditional ecommerce business models if youre starting an ecommerce business, odds are youll fall into at least one of these four general categories. Its easy to get caught up and excited in the latest ecommerce trends, but unless you know the fundamentals, youll hit a profitability wall without knowing it. Different types of ecommerce business models explained. Website following b2b business model sells its product to an intermediate buyer who then sells the product to the final customer. B2b, or business to business, is the largest ecommerce model. Business models in the ecommerce without a welldeveloped business model, innovators will fail to either deliver or to capture value from their innovation. Pdf in this article the author explained the classes of ecommerce business models and their advantages and disadvantages. This model describes the transactions between a retailer or a wholesaler, or a wholesaler and manufacturer. Banking, finance, and economics 2509 the ecommerce business t model implementation alessia dandrea national research council, italy. Each has its benefits and challenges, and many companies operate in several of these categories simultaneously.
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