E-Commerce Models Are Constantly Changing and Evolving Essay
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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…
Sources Used in Documents:
Rappa, M (2010). "Business Models on the Web." Managing the Digital Enterprise. digitalenterprise.org/models/models.html (accessed January, 2011).
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