E-commerce Business Models

What is the difference between B2B and B2C e-commerce models?

• B2B e-commerce involves transactions between businesses, while B2C e-commerce involves transactions between a business and individual consumers.

• B2B e-commerce focuses on selling products, while B2C e-commerce focuses on providing services.

• B2B e-commerce typically has lower transaction volumes compared to B2C e-commerce.

• B2B e-commerce involves transactions between businesses, while B2C e-commerce involves transactions between a business and government entities.

Explain the subscription-based e-commerce model.

• Customers pay a recurring fee at regular intervals to access products or services.

• Customers pay a fee only if they are satisfied with the product.

• Customers receive products for free.

• Customers pay a one-time fee for each purchase.

How does the marketplace e-commerce model work?

• Only one seller lists products for sale

• Customers sell products directly to each other

• Multiple sellers list products, customers browse and purchase, marketplace earns commission.

• Marketplace buys products from sellers and resells to customers

Discuss the advantages and disadvantages of the dropshipping e-commerce model.

• High startup costs, need for extensive inventory storage

• Limited product selection, lack of flexibility

• Higher profit margins, no reliance on suppliers

• Advantages: Low startup costs, no need for inventory storage, wide product selection, flexibility. Disadvantages: Lower profit margins, reliance on suppliers for stock availability, potential shipping delays.

What is the meaning of the omnichannel e-commerce model?

• Limited product availability

• A single-channel shopping experience

• A seamless shopping experience across multiple channels

• In-person shopping only

Explain the peer-to-peer e-commerce model with examples.

• Peer-to-peer e-commerce involves only businesses selling to consumers.

• Examples of peer-to-peer e-commerce are Amazon, Walmart, and Target.

• In peer-to-peer e-commerce, transactions are always anonymous.

• Peer-to-peer e-commerce is a model where individuals sell directly to other individuals without intermediaries. Examples include eBay, Etsy, and Airbnb.

What are the key features of the direct-to-consumer e-commerce model?

• Limited control over branding

• Indirect customer interaction

• Lack of access to customer data

• Cutting out middlemen, direct interaction with customers, control over branding and pricing, access to valuable customer data

Discuss the freemium e-commerce model and its benefits.

• Freemium e-commerce attracts fewer users compared to traditional models.

• Premium services in freemium e-commerce do not contribute to customer loyalty.

• The freemium e-commerce model provides basic services for free and charges for premium features, attracting more users, upselling premium services, and fostering customer loyalty.

• The freemium e-commerce model charges for basic services and offers premium features for free.

How does the affiliate marketing e-commerce model function?

• Affiliates receive a fixed salary regardless of sales

• Affiliates are responsible for manufacturing the products they promote

• Affiliates earn a commission for promoting products/services through unique links, getting a percentage of the sale when a purchase is made.

• Affiliates can only earn money through direct sales on their own website

What are the challenges faced by the e-commerce industry in implementing new business models?

• Technological limitations, customer adoption, competition, regulatory compliance, scalability issues

• Weather conditions, social media trends

• Supply chain efficiency, employee satisfaction

• Marketing strategies, customer service quality