E-Business model

Presented by Bibek Chaudhary

18530082
Today we will discuss E-business models

Based on functionality.
Based on transactions.
E-Business Model Based on
functionality
Merchant Model
One of the most common e-business model

 Involves businesses selling their goods

as well as services using IT to the
customers on the internet.

 Virtual Merchants: Pure store like

Amazon.

 Catalog Merchants: Turkish airline-

place order using phone or email, make
my trip use app or website.

 Bit vendor-pure digital supplies-

iTunes.
Community Model
An e-business model in which different user communities share their data, opinions, photos, etc.
using the website – Facebook, Fliker, Wikipedia, Instagram, etc.

 Feasibility/ Practicability of these sites

depends mainly on user loyalty.

 Such business models earn money through

advertising or voluntary donations.

 The types of businesses in this category

are:
 Open Source model – Red hat
 Public Broadcasting
 Knowledge Networks – Students, Teachers
Subscription Model
 An e- business in which the e-business
organization charges the users for using
their services.

 Business organizations can charge them

on a daily, monthly or annual basis.

 The types of business in this category

are:
 Content Services model.
 Internet Services providers.
Advertising Model
 Extension of the traditional media broadcast model.

 Generates good web traffic, along with

advertisements which generate revenue.

 Can offer free/paid email, chart services or forums.

 Various sub-types that are included in the advertising:

 Portal
 Classifieds - shaddi.com
 Contextual advertising - based on search experience
 Content targeted advertising
Brokerage Model
 Brings buyer & Seller organization together on
the web.

 Brokers get a commission on every sales

transaction they enable.

 The formula for fees may very from business to

business or from brokers to brokers.

 Various sub-types that are included in the

advertising:
 Buyer/Seller – Transaction Broker (daraz.com)
 Marketplace exchange – Search Agent
(Policybazar.com)
 Virtual Marketplace (cs.cart.com)
 Audio broker (ebay.com)
Manufacturer’s Model
 Allows manufacturers/produces of various products or goods to sell their
products directly to the customers.

 It will enable them to stay away from the middlemen such as distributors,
dealers, etc.

 Provides efficiency, improved

customer satisfaction and a
better understanding
of the customer preferences
to the business organization.

• Various sub-types that are included in the advertising

 Online lease models
 License
Utility Model
 Based on the subscribers’ metered usage of the
services provided by the e-business organization.

 Also known as to satisfy “pay as you go”

approach.

 Metered subscription
model is a variant of
metered usage mode.

 It allows the subscribers to purchase the contents

of the business website in metered portions that
are based on the number of pages to be viewed or
several songs to be downloaded, etc.
Affiliate Model
 Affiliate model provides purchase chances as and when people are
surfing on the internet.

 It offers financial incentive or commission based on the percentage

of revenue to be given to the affiliated business partners.

 The affiliate thus

provides an
opportunity to the e-business organization to add purchase point
click-through.

 The variations in this type of business model are pay per click
model, banner exchange and the revenue sharing model.
Infomediary Model
 Infomediary organizations collect information about customers
and their consumption habits.

 It analyzes information carefully and categorically and supplies

to various producer companies.

 They also assist consumers by collecting information about

products and their producers.

 Different types of infomediary models include – Advertising

networks, Audience measurement service model, incentive
marketing, and aggregators business model.
E-Business Model based on transactions
 Business To Business (B2B)

 Business To Consumer (B2C) Business Business

 Consumer To Business (C2B)

 Consumer r To Consumer (C2C) Government

 Business To Government (B2G)

 Government To Business (G2B)

Consumer Consumer
 Consumer To Government (C2G)
Fig: E-Business transaction model
 Government To Consumer (G2C)

 Government To Government (G2G)

B2B (Business-to-Business)
 In B2B business model, a business sells it’s products to an
intermediate buyer. Who than sells the products to the final
customer.
Company
Wholesaler

p l ies
Sup

Ord
er s
Sells

Website

Retailer/Customer
B2C (Business-to-Consumer)
 In B2C business model, a business sells it’s products/services
directly to the customer.

p l ies
Sup

Ord
Customer er s

Website
C2B (Consumer-to-Business)
 C2B business model is based on the customer approach. A website
showing multiple business organization for a particular service.

Pl
Website pa ace
r der rt i s
O cu M
c e ss la on
Pro r s ey
e r fo
vi r
ce
s

Receive products

Receive Money
Customer
Company
C2C (Consumer-to-Consumer)
 In consumer to consumer e-commerce environment consumers sells
their online goods to other consumers. A well known example is
OLX.

e ll Website W
o s an
n t s t ts p r ts t
Wa roduc od o
u c bu
p ts y

Receive products

Customer Receive Money

Customer
B2G (Business-to-Government)
 This model is a variant B2B model such websites are used by
government to trade a exchange information and services with
various business organization.

Business
Website Government
Organization
G2B (Government-to-Business)
 Government use G2B model to approach business organization
such website support auction, tenders and application submission
functionalities.

Business
Government Website
Organization
C2G (Consumer-to-Government)
 In this model, an individual consumer interacts with the
government. For example, a consumer can pay his/her income tax
or house tax online.

Consumer Website Government

G2C (Government-to-Consumer)
 In this model, the government transacts with an individual
consumer. For example, a government can enforce laws pertaining
to tax payments on individual consumers over the internet by using
G2C model.

Government Website Consumer

G2G (Government-to-Government)
 This model involves transactions between 2 governments. For
example, if the Nepal government wants to buy oil from the Indian
government, the transaction involved are categorized in the G2G
models.
 G2G, also involves transaction between two different department of
different ministries. E.g. transaction between ministry of finance
and ministry of Information and Communication.

Government Website Government

Thank You!