What model we use?
The first decision to be taken when we want to start a business on the Internet. There are already many models for doing business on the Internet. They can be classified according to the number of suppliers, customer service, as follows:
- One-to-One ( e-shop )
- many-to-One ( e-mall )
- many-to-many ( e-auction ).
A first element is the supplier of goods or services, the second is the Internet service provider who can provide the web space to the possibility of integration in an e-mall.
The third element of the chain is the customer, with some training, personal interests and preferences.
This client is the consumer (B-2-C), another company (B-2-B), public administration (B-2-A) or employee (B-2-E), in the context of internal transactions within a firm.
Still present, in general, some Internet business models:
- online shop (e-shop)
- department store electronically (e-mall)
- electronic public procurement (e-procurement)
- electronic auction (e-auction)
- virtual community (virtual community)
- Provision of electronic services (e-Service Providing)
- information brokerage
- advertising models
1. Online shop (e-shop)
The basic idea of e-commerce business is to implement physical, material in the website. Thus, the company presents its product catalog and Internet services.
• Products are offered, generally in different price categories, taking into account the tendency of clients to test quality, delivery speed and efficiency before deciding to buy more expensive products. Internet marketing appropriate products are usually those that can be described easily and do not require the sense of touch: tickets or concert tickets, CDs, books, software, tools, spare parts, certain foods or even cars . On the other hand, products that were initially considered as not suitable for marketing on the Internet - ties, for example, now sells very well on the Internet.
• Services offer complete product usually circumscribed but often a wider sphere: for example, if ties are sold, the site may submit a drawing / sketch about how to tie the knot. In addition, the site can also include a guide to colors and styles for business, a guide for business success, the store may decide to sell neckties and socks, shoes and hats on the site to include other vendors.
• Prices of products sold via the Internet should be lower than those charged for traditional orders. The books, for example, are offered on the internet with a reduction of 10-50%, or at least, without additional charge for delivery. Services and especially information services should be largely free. Information services through regular publications are provided free at first, open access or free subscriptions, then bidders will initiate additional services such as access to archives and search capabilities will expand, requiring users to subscribe and pay for the benefit of them.
It appears that the impact on users online subscription is very small: most remain faithful to the traditional subscriptions and, in general, only new customers are turning to this new subscription. However, the online subscription fee for access to the latest news or participate in debates with restrictive example, of interest to only if the services offered are of exceptional value.
There are different types of hosting an e-shop, as follows:
- On a separate server (a computer owned by the company owner of an e-shop) for some large and complex web pages, it will be located in the company if the frequency changes to be made is high (eg, news, prices, etc.. ) or if traffic is required between the company and the server for e-shop
- On a virtual server (a space owned by the company an e-shop owner, a hard disk of a computer web provider), in correlation with a larger space www.yourshop.com type, the preferred solution for most enterprises Small and medium - in an electronic shop (e-mall)
Choosing the best for your shop depends on the costs of electronic telecommunication, technical 'know how' at the firm level, the target group, size, structure and medium term objectives of the future e-shop.
To the extent possible, an e-shop should be able to be accessed in several ways: a link permanently on a site advertising portal, a keyword advertising in search engines or in the presentation of information on the Internet General or the entire firm is a full range of products and a window of this website in an e-mall - all simultaneously. In addition, an interesting idea would be to establish names like "www.product_name.com for product groups, with exact link to the appropriate page of the electronic shop.
2. Convenience Store (e-mall)
An e-mall provides a common front for more e-shops and can be done using different models of transactions, depending on the type of services that the mall owner wants to offer. Also the owner is one who is in charge of marketing for the mall, so the mall right choice is a decision essential to a shopkeeper. The mall is defined as being under a mall with a strong network with a good marketing strategy, with a front right and the presentation that can be accessed directly and in many ways e-shop site, with a structure adequate and shops and to offer services such as providing current information of regional or sectoral.
We return to the example mentioned, the store for ties: if the owner wants to present the store in a mall, he must decide whether to opt for a mall for fashion or for one who specializes in accessories.
For some areas is beneficial participation in a mall with competitive products such as jewelry. This leads to an increase in mall traffic and thus increase the turnover of each store in its structure. On the other hand, the mall owner can profit from advertising, charges members and / or charges on transactions.
3. Electronic public procurement (e-procurement)
Public acquisition by B-2-B model is applicable if the government bodies and large organizations launch calls for bidding purchase of goods or services.Typical coverage includes auctions of construction services and property investment to extensive studies and other works. Internet procurement may include electronic negotiation, contracting and bidding in partnership, for example.
Because this model can be handy and small enterprises were set up platforms and partnerships in which the sellers work together to get better offers from manufacturers. For example, the fashion industry is an important user of these consortiums. The electronic auction (e-auction)
Bidding products and items on the Internet has proved to be a successful model. Can be used both for e-commerce B-2-B as well as the B-2-C and, because it is an area of great interest, can also be integrated in regular e-shops.
Products sold through electronic auctions may be the latest products, the fluctuating stock or overstock or items of value to collectors specialize in goods and include materials, metals and agricultural raw materials, unique art objects. For example, firms selling hardware and specialized electronic auction already well known, both new designs and products used.
Like an e-mall, an electronic auction typically includes multiple vendors. The operator develops mechanisms for placing the object auction auction bidding (usually by e-mail) and can provide additional payment and delivery services.
4. Virtual community ( virtual community )
On the Internet - just like in reality, people with shared interests in communities to meet to discuss or listen to your favorite topics. These forums - such as discussion forums, interactive group discussions (chat or forums), mailing lists (mailing list) - are useful both for leisure and for business communications and are called "virtual communities".
Mentioned tools are often offered as free services, in order to increase website traffic and to stimulate emotional attachment to it. But business communication can be made through a service fee. Direct communication channel and video-conferences are attractive tools that reduce travel costs and are used by large companies for both scientific papers as well as commercial ones.
According to conference organizer role (company, service, association) and the objectives which they propose (marketing, benefits), or participation fees may be event-specific, or not charged at all.
Collaboration platforms offer a set of tools and information environment for collaboration between companies, between them and between scientists and external collaborators, serving as a virtual enterprise to the external world. If the platform does not belong to a particular enterprise, the operator should pay special attention to the status of neutrality, data protection and communication security, to prevent leakage of information of interest to competitors.Transmission speed is also of major importance especially in the technical field.Equally, the digital signature becomes an indispensable tool for conducting business in general or for the contract in particular.
5. Provision of services for electronic commerce ( e-Service Providing )
Services that support e-commerce activities are offered exclusively by Internet providers, which generally summarize the hosting Web pages or Internet access. For example, there are department stores, electronic (e-mall) led by manufacturers, vendors, ISPs, web designers, or associates.
There are also external electronic services such as management, information, data processing, consulting, integration of service delivery, which may be provided in various types of electronic commerce. Obviously, any links that may provide electronic services value chain and become revolving plate on specific market. Activities can focus on attracting as many participants in a link in a chain, so as to create a strong structure of the B-2-C (e-mall) or a B-2-B platform.
6. Information Brokerage
Relevant information required throughout the value chain of service providers. This need can not currently be satisfied by known search engines or catalogs, so owners have migrated database dedicated to providing web archives indexed for periodical publications, patents and market data, and scientific literature.
Some of these commercial services are rendered for a fee or subscription-based system or through electronic money such as e-cash or cybercash. Units have been established and research agencies are trying to create mechanisms for detecting semantics, but services are based on information that human experience, that experts in the field, services are still paramount for the business world.
7. Advertising Models
In addition to direct sales and subscription system, hosted on the website ads that are also often profit-generating electronic stores and websites in general. But Internet advertising is not always possible or appropriate: the design allows electronic or department store, advertising in the stores, depending on the type of transactions charged in the e-mall.
Typically, banner advertising - the most common form of advertising - are placed on web pages with appropriate content, such as the host page, subpages attractive, resulted from the search pages by keyword was, however, commercial activities can generate income only if the benefits of a website traffic. Advertisers will be interested in a particular site, just in case there are no guarantees in terms of number of visitors per month.
Given that access to banner advertising rate is relatively low and depends largely on the design, prices for advertising is currently based more on web page visibility (number of visitors). It was found that the rate of access to advertising banners hosted on a website often stands between 0.05 - 0.3%, sometimes rising to 3% or more. But the banner visits can be identified directly by the beneficiary of the ad on their site, unlike visits the Web page hosting the ad and can not be monitored only by the owner of this page.
Advertising prices differ greatly depending on the importance of the contract, the specific and specialized web page host (with even more specialized as it is more expensive) and other criteria (for example, a search engine, the use for advertising purpose of the keyword "e-commerce" is rated with a higher price than other keywords such as "provider" or "business").
