1. E-commerce Business Models and Concepts B2C E-Commerce Business Models
Chapter 2
E-commerce Business Models and Concepts B2C E-Commerce Business Models
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2. B2C Business Models Portal E-tailer
Community provider (social network)
Content provider
Transaction broker
Market creator
Service provider
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3. B2C Models: Portal
Search plus an integrated package of content and services
Types: Horizontal Portal , Vertical Portal or Vortal and Search Portal
Horizontal Portal
Horizontal portals are directories like yahoo.com!. They're called "horizontal" because their list of websites cover a broad range of topics (such as News, Search, Other Website links, Premium Services, and Online Storage etc.
Examples: Yahoo.com, MSN.Com, Google.com, Aol.com, pakistan.gov.pk 
Vertical Portal
Vertical portals on the other hand are narrow, covering only one topic or one type of Products or Services. Convert-Files.com 
Examples: Convert-Files.com, exportall.com, quicken.intuit.com
Facts: - No of user of portal Greater than vortal users
- Vortal users pay more than portal users
Revenue model: Advertising, referral fees, transaction fees, subscriptions
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4. Example Horizontal Portal
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5. B2C Models: E-Tailer
Online version of traditional retailer (Physical Retail Stores)
Variations:
Virtual merchant (Click-and-Click)
Examples:- Shophive, tcs-connect, Amazon , BlueNile , DrugStore
Bricks-and-Mortar (Only have Physical Store’s)
Examples:- All offline Retailers
(Have no Presence over the Internet/Web )
Bricks-and-clicks (Online as well offline)
Examples:- Jc-Penney , Wal-Mart, Staples
Catalog merchant | LLBean.com (also process orders via and Phone)
Manufacturer-direct | Dell.com
Shopping Mall | malloflahore.pk
Low barriers to entry | Cost for entering into a E-Retail is low than startup a
Physical Retail Store.
Revenue model: Direct Sales, Advertisement
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6. B2C Models: Community Provider
Provide online environment (social network) where people with similar interests can transact, share content, and communicate
Examples: Facebook, LinkedIn, Twitter, Pinterest and
About.com . Visitors can share tips and buy recommended books
from amazon, giving about.com a commission on every purchase.
Well.com provides forum for technology and internet related discussions
Fool.com which provides financial advice , news and opinions.
Revenue models:
Typically hybrid, combining advertising, subscriptions, sales, transaction fees, and so on
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

7. B2C Models: Content Provider
Sell or provide digital content (News, music, video, text, artwork) on the Web:
Examples: consumerreports.org, wallstreatjournal.com, CNN.com, espn.com OR
Sell or provide Intellectual Property on the Web
Intellectual Property: refers to all forms of human expression that can be put into a tangible medium such as text, cd’s or the web
Revenue models:
Subscription; pay per download (micropayment); advertising; affiliate referral
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

8. B2C Models: Transaction Broker
Process online transactions for consumers
Primary value proposition—saving time and money
Site that processes transactions for consumers that are normally handled in person , by phone or mail.
Examples: travelocity.com, xpedia.com, rozee.pk, ubl.com,
bukharigroup.com.pk
Revenue model:
Transaction fees
Industries using this model:
Financial services
Travel services
Job placement services
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

9. B2C Models: Market Creator
Create digital environment (a C2C ecommerce website) where buyers and sellers can meet, display products , search for products and establish a price for products.
Examples:
Priceline
eBay
Revenue model: Transaction fees, fees to merchants for access
B 2 C
B 2 C
C 2 C
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

10. B2C Models: Service Provider
Use IT / IS Infrastructure of well known companies . . .
Web 2.0 applications such as photo sharing, video sharing and user- generated content(Blogs, WIKI’S and Social networking sites) are all services provided to customers.
SAAS – Software as a Service Providers (Examples)
Google Developing online applications such as
Google Maps, Google Drive, Sky Drive, Gmail, Salesforce.com etc.
Value proposition
Valuable, convenient, time-saving, low-cost alternatives to traditional service providers
Revenue models:
Sales of services, subscription fees, advertising, sales of marketing data
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

11. Summary