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E-Commerce Business Category


Business category
There are two categories of businesses:
Business Category
1)Offline categories that have been shifted to online categories
2)innovative category that has evolved with e-commerce
Eg: Pay Per Click(ppc), Pay Per Lead(ppl), Affiliated net, SMO, Advertisement
  • Native Category
1) Content Based Model
Giving the relevant information online while making the transactions offline and delivery of the product is also offline. Eg: Physical delivery(COD), event management firms.
  •   Information Content Model
This model only provides information to the users. Such websites are generally made attractive and provide speedy search. Eg: college or school websites
  • Freeware Model
This model includes the software which can be easily downloaded from the websites of the companies or one can easily go for the trial versions of softwares. Eg: Adobe reader, open source softwares
  •   Information Exchange Model
The information captured during interaction with a person necessary to build a profile of the person. This information may be taken as a part of registration of a person. Eg: Forums, offline sellers, salvage.com

2) Transaction Based Model
These models include digital products merchandising internet access provisions, software and services for creating and maintaining websites and finally a new kind of intermediary that aggregates and present information to the user. The World Wide Web is suited for merchandising products, described, experienced and delivered over internet. Eg: music video, picture, templates, softwares etc. The buyer needs to select one of the payment methods or mechanism supported by merchant. Eg: MasterVisa card, cyber cash etc.  

Technical Aspect
1*  Internet is required
2*  Website is a like catalogue and way to submit the our requirements.
3*  Payment Gateway: The party which takes care of payment. It can be within a website or a third party merchant. Eg: payu.in, worldpay.com, payumoney.com

     Paypal.com

Working of Paypal.com

  •  Internet Service Provider(ISP): Provides internet connectivity Eg: Reliance, Airtel, Vodafone, TMobile, Verizon, mtnl, bsnl
  • Metered Service Model: It is built upon providing infrastructure to the needy companies based on their rate of utilization. This infrastructure may include keeping track of system planning, packages updating to the latest conversion around the globe. The knowledge rich resources companies can deploy metered service model to charge the knowledge consuming companies based on demand and usage.
  • Metamediary: As there is information explosion in internet market space, searching for useful and reliable information, comparing it and carrying out transaction is a cumbersome task. As a result, a new breed of middleman have emerged to facilitate online trading activities. They connect with the customers, with the providers of goods and services in a virtual trading space called the meta market. They can be multivendor catalog websites, auction websites. Eg: jewellery websites, OLX.com, makemytrip.com
  • Transplanted Category
    1)      Content Based Model
    The sites which were earlier present in the market space but now has made some innovations. Eg: review sites
    a)      Subscription model
    The subscription model is a business model where a customer must pay a subscription price to have an access to the product/service. eg: online libraries, e-books, e-magazines
    b)      Advertising model
    The advertiser pays the website for displaying its adds over it. eg: Youtube
    c)       Infomediary model
    It collects a personal profile from the users and then marks the data for the companies which require such data. Eg: Naukri.com, shaadi.com, jeevansathi.com
    d)      Affiliate network
    An affiliate network acts as an intermediary between publishers (affiliates) and merchant affiliate programs. It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website (and thus generate income from those programs), and allows websites offering affiliate programs (typically online merchants) to reach a larger audience by promoting their affiliate programs to all of the publishers participating in the affiliate network. Intermediary with whom you can sign up to get advertisers. Eg: VoucherCodes.com, haircutadvice.com
    2)      Transaction Based Model
    Now there is an online transactions being made. Eg: e-books, e-magazines(Kindle)
    a)      Electronic Store Model
    Downloading and subscribing online usage. Eg: YouTube
    b)      Brokerage Model
    Many B2B(Business to Business), B2C(Business to Customer), C2C(Customer to Customer), C2B(Customer to Business) transactions are allowed in this model eg: salvage.com, Stock exchange(trading).
    c)       Manufacturer Model
    In a typical distribution system, from the time the products are manufactured to the time they reach the customers they pass through several layers of intermediaries such as distributors, whole sale marketing etc. Each layer adds a cost that ultimately customer has to pay. Web has increased the power of disintermediation in which manufacturer can directly sell their products to the customer and the customer can get it at the factory price. Eg: Dell, Sony products





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