E-Commerce Models Are Constantly Changing and Evolving

E-commerce models are constantly changing and evolving with new technologies, faster internet service and more widely available internet access around the world. Businesses that use e-commerce are still differentiating their models as either business to business (B2B) or consumer to business (C2B) models but the traditional business models are no longer the status quo. There are a variety of e-commerce models, but some of the most popular are the brokerage model, advertising model, infomediary model, merchant model, manufacturer model, affiliate model, community model, and utility model (Rappa, 2010).

Brokers are market-makers: they bring buyers and sellers together and facilitate transactions (Rappa, 2010). EBay is one company that has excelled at the use of this business model. Many other companies use forms of the auction model to bring buyers and sellers together to make purchases.

The web advertising model is an extension of the traditional media broadcast model, which provides content and services mixed with advertising messages in the form of banner ads (Rappa, 2010). The businesses that use this model include search engines, blogs, classified ads, user registered sites, and content targeted advertising (Rappa, 2010). Many companies offer programs where website owners can advertise links to certain content that will provide the owner with income when a user visits the site and clicks on an ad. Another method of web advertising, used on Facebook and other social media sites, offers advertising "impressions" where advertisers pay for the number of people who are shown an ad.

A wholesale model, or virtual merchant, is the typical retail model of selling directly to consumers (Rappa, 2010). These market places consist of companies that sell products online exclusively and established businesses that have an online presence in addition to their other retail outlets.

The manufacturer model is predicated on the power of the web to allow a manufacturer (i.e., a company that creates a product or service) to reach buyers directly and thereby compress the distribution channel (Rappa, 2010). This model includes direct purchasing, leasing, licensing, and brand integrated content (Rappa, 2010). Many computer companies offer this type of service.

The affiliate model is a newer e-commerce model. In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, the affiliate model provides purchase opportunities wherever people may be surfing (Rappa, 2010). This model includes banner exchange, pay per click, and revenue sharing (Rappa, 2010).

The community model is based on user loyalty where users have a high investment in both time and emotion including software development, content development, public broadcasting and social networking (Rappa, 2010).

The subscription model is not a new concept, but has been adapted to the virtual world. In this type of model users are charged a periodic -- daily, monthly or annual -- fee to subscribe to a service. The services provided vary widely and include things such as scholarly articles, research, music, and movies.