Internet business models for e-commerce
The Business to Consumer ecommerce business model is one of the oldest on line. One of the first companies to open an online store was Pizza Hut back in 1994 at a cost of 50million. A little beyond the reach of your average retailer at the time.
In more recent times a new term has been coined to represent businesses that have both an offline, "real world" store and an online presence in the form of an Ecommerce store. The "bricks and clicks" business model is fast becoming normal business practice giving its customers the ability to buy online and to visit their real world counterpart.
Things have progressed at a fast rate since 1994, the 50 million dollar price tag for an ecommerce web site has dropped to a few hundred dollars a year, and in most cases cheaper than a business listing in the yellow pages.
Companies like have made opening an online store as simple as drag and drop. Their technically advanced ecommerce store templates give the visitor a user friendly enjoyable surfing experience. The merchants interface is logical and smoothly designed with the small business owner in mind.
A well thought out pre-installed credit card payment facility and simple ease of use has made popular for both the "bricks and clicks" retailer and internet only retailers.
The Nitty Gritty Of Ecommerce Business ModelsHere are the basic Ecommerce business models that can be used in combination. Have a good look at all of these different business models, and we will go over some examples to better show you how e-businesses use a combination of these with great success.
Merchant Ecommerce Business ModelThe merchant e-business model is the online version of you local store. If you can name it, you can find an online store selling it. Some of these may have a brick and mortar store and an Internet store "bricks and clicks", but the great majority are solely online.
They accept online payment methods and ship the merchandise to the customer, or they use a 3rd party online shipping and warehousing service. These companies warehouse and ship goods directly to the customer on your behalf, meaning no product handling or postage for you!
Advertising Ecommerce Business ModelThe advertising e-business model is based on your daily newspapers and monthly magazines. You collect revenue either by renting a small space on your pages or getting paid for every click on the ad.
is a perfect example of this. There are many paths out there regarding online advertising company for you to explore.
Advertising should always be targeted directly at the readers to compliment your websites content, most advertising companies are good at doing this job for you, but I am still amazed at how many sites get it wrong!
Affiliate Ecommerce Business ModelThe affiliate e-business model is based on commission sales. You do not have to buy the product to resell, and you are not involved in the handling or shipping. All of this is done by the parent company. You simply redirect the customer from your own website to the product on the parent companies website and if they make a purchase you earn a commission.
Amazon is a good example of a parent company. They were, infact, the first company to use this method of selling, allowing anyone to sell and get commission through Amazons merchandise. There are many reputable affiliate programs for you to join and earn commissions from.
In more recent years the affiliate ecommerce business model has been used with astounding success by the
Jeremy Shoemaker or "Shoemoney" as he likes to be called has made millions and is now considered one of the most influential people online today. When Google rings you to trail its products you can change your name to anything you like!
His in your face affiliate marketing techniques and brash statements are backed up by his successful marketing strategies which have put his face on the front page of many major business magizines.
Brokerage Ecommerce Business ModelThe Brokerage e-business model is a website that brings two parties together to conduct business, The best example of this is online auctions like Ebay. However it is not limited to online auctions, Online Real estate, business brokers, boat brokers etc also use this method. They generally collect a fee for their service which can be worked out with a percentage base or a set fee.
Information Ecommerce Business ModelThe Information e-business model is based largely around specialized information on a particular subject. These websites can attract a large following of people interested in their specific field of knowledge and will use Ecommerce business models, other than their specialized information, to create revenue.
Subscription Ecommerce Business ModelIn the Subscription e-business model customers pay a set fee on a monthly or yearly basis to get access to the products or services of the company. Some good examples of this model are online newspapers or magazines, adult websites, and Internet service providers.
E-business - Getting The Right Mix Of Ecommerce Business ModelsIn the e-business example below, we will look at how you can build a strong profitable website that targets your viewer and compliments the content of your site by using a combination of these Ecommerce business models.
We will also look at how you can optimize the click through rates on your website by knowing the best positions to place advertising.
In this e-business example we will use the information business model with a mix of others to make your site more profitable.