1. Categories of E-Commerce Models
MIS 4453

2. Four Categories of eCommerce
Four distinct categories of e-commerce can be defined, based on the business origination and the customer type
Business originating from...
Business
Consumers
Business
B2B
C2B
e.g., Freemarket, Covisint
e.g., Mercata, mobshop
And selling to...
Consumers
B2C
C2C
e.g., Amazon, Staples.com, Yahoo
e.g., e-Bay

3. B2B: Buyer-Centric
Many suppliers seeking to meet the requirements of a single large industry leading buyer
Can create animosity over severe price competition and time to market requirement
Site managed by the large buyer
Often uses EDI

4. B2B: Supplier-Centric
Centered around single, large manufacturers that serve many buyers.
Designed to lower costs for buyers by allowing them to purchase online.
Suppliers must make sure that they carry and adequate number of choices.

5. B2B: Distribution Portal
Onlines brokerages that channel goods from several large suppliers to many buyers.
Revenues generated from mark-ups
Cyberspace middleman - reintermediation

6. B2B: Procurement Portal
Bid-ask system where multiple buyers can purchase from multiple sellers
Generates revenues via transaction fees
Covisint lowers transaction costs

7. B2B or B2C: Independent Marketplace
Concentrates information about products and services from multiple providers at one central point
Generates revenues via listing fees, links (B2C) or industry fees (B2B)

8. B2C: Virtual Storefront
E-tailer; sells physical products or services on-line instead of through a physical retail outlet.
Generates revenues via margins, handling fees and links

9. B2C: Information Broker
Provides product, pricing and availability information.
Generates revenues via transaction fees (commissions)

10. B2C: Content Provider
Provides content of interest (e.g., news, sports, political, entertainment).
Generates revenues via subscription by readers or advertisements (banners or links).

11. B2C: Virtual Community
Provides on-line meeting where people with similar interests can communicate and find useful information. Supports heavy repeat usage.
Generates revenues via advertisements, especially links.

12. B2C: Portal
Provides initial point of entry to the Web along with specialized content and other services.
Generates revenues via advertisements and search engine fees.

13. C2B: Aggregator
Mainly B2B, brings small companies together to facilitate purchasing as one large buyer - economies of scale.
Generates revenues by selling the software and/or subscription fee.

14. C2B: Reverse Auction
Consumers submit bid to multiple sellers to buy goods and services
Auctioneer creates a margin

15. C2C: Auction
Provides electronic clearinghouse for products where price and availability are constantly changing.
Auctioneer receives a fee or commission.