Business Models of eCommerce

1
Business Models of e-Commerce

• Business model design
• Revenue models
• Customer/seller models
• E-auctions

2
Business Model Design

• Business assessment
• Digitalitality level of a business
• Profit orientation (profit center business or
  loss center for spillover benefits)
• Delivering customer value
• Four Ps of Value
• Product
• Price
• Place
• Promotion

3
Revenue Models

• Revenue streams
• Evaluating streams
• Strength
• Stability
• Cyclicality
• Resource needs
• Interrelationships between streams

4
Source of Site Income

• Free access sitesprofit derived through
• Advertising/commissions
• Sponsorships
• Promotion or support of other business line
• Paid access
• Complete access for one charge
• Access to core with extra charge for premium
• Problems of micro payments)
• Hybrids
• One party pays (e.g., job recruitment sites)
• Two-tiersome free access charge for premium

5
Types of Business (Pure) Models
6
Hybrids

• B-2-BC (Business to business and consumer)
• E.g., Staples.com
• Complex
• Amazon.com B2C and C2C

7
B2C

• Direct sellers
• Intermediaries
• Advertising-based businesses
• Community-based model
• Fee-based model

8
Characteristics of Successful B2C Companies

• High number of visitors
• High conversion rates
• Higher revenue per transaction
• Higher average gross margin
• No impact of
• Number of transactions per consumer
• Acquisition cost

9
Clicks-and-Bricks Model

• Integration of electronic and traditional
  commerce
• Consumers can shop and return both ways
• Synergies
• Forms
• Spin-offs
• Strategic partnerships
• Joint ventures
• Within-company division

10
B2B

• Typical characteristics
• High volume, value
• Purchase specificity
• Team buying/decision making
• Long term relationships
• Leasing issues
• Competitive bidding

11
C2C

• Usually require intermediary (e.g., eBay)
• Issues of reputation
• Infrastructure issues (e.g., ability to take
  credit card payments)
• Economics of
• Labor (seller)
• Cost of search (buyer)

12
C2B

• Rare category
• Agency coordinating sales of
• Property (e.g., antiques)
• Personal skills

13
E-Auctions

• Types
• English
• Dutch
• Speedier
• May result in lower prices when multiple items
  are sold
• Bidding behavior issues
• Timing of bids
• Sniping

14
Issues in PowerPoint

• Presentation objectives
• Presentation design issues
• Slide presentation and animation

15
Presentation Content Considerations

• Presentation objective
• Order and flow
• Amount of text/info per slide
• Use of diagrams/graphics
• Strategies for emphasis
• Selective bolding
• Italics/bold

Source Adapted from SDSU handout
16
Use of Animation

• Appropriateness for audience
• Potential overuse

17
Advanced options

• Screen shows
• Inserting
• Voice
• Video
• Stability and technical considerations

18
Field presentation issues

• Some presentation options
• Overhead slides
• Built-in projectors
• Portable projectors
• Compatibility of equipment
• Availability of equipment
• Appearance on various surfaces
• Visibility
• Quality of graphics