E Business Model

1 - E-Business Concept
The e-business concept describes the rationale of the business, its goals and vision, and products or offerings from which
it will earn revenue. A successful concept is based on a market analysis that identifies customers likely to purchase the
product and how much they are willing to pay for it.

2 - Value Proposition
The value proposition describes the value that the company will provide to its customers and, sometimes, to others as
well. With a value proposition the company attempts to offer better value than competitors so that the buyer will benefit
most with this product.
3 - Sources Of Revenue
Depending on the business model, several revenue sources may be available to an e-business. Many online businesses
will have a three or four of these sources. A mix of revenue sources is often referred to as a revenue model but may be
mistakenly called a business model. Some of these sources of revenue are:
 Advertising
 Affiliation
 Agent commissions
 Licensing
 Sales commissions
 Sales profits
 Sponsorship
 Subscription
 Use Fees

With small fast-growing companies such as e-Business startups, investors often track expected revenues and revenue
growth and may make changes to increase revenue. However, after the Dot-Com boom ended, more traditional
measures such as cash flow and earnings have came back into favor as means of evaluation.

Activities, Resources And Capabilities

The activities, resources and capabilities of a business are sometimes known as its requirements. In order to perform the
activities required to carry out the mission of the business, certain resources are needed; for example, employees with
certain skills, or capabilities, are needed to perform activities correctly and efficiently. Also, inventions, processes and
other intellectual property may add to the individual knowledge of an employee to develop a competence in the
performance of the required activities.

Brokerage Model
The first model is the Brokerage model. According to this model, the broker offers some services to different parties and
charges them for that. The offered product does not mainly belong to the broker and therefore it is categorized in the
service and intermediation group. According to the offered service/immaterial, the broker generates revenue and since this
amount depends on the services, it is mainly defined as the commission. However, there is another option, where the broker
has the ownership of products or services produced by other companies. That means the broker takes the responsibility of
the offered items acting as the seller of the product. In this case, the broker generates direct revenue as well.
Advertising Business Model
The second model is the advertising model in which the e-commerce company offers advertising services and products.
The revenue method varies, depending on the offered product. If the company provides the services for the publication of
advertisements on the websites and appears more like the broadcaster of the advertisements, then it better fits the
service/immaterial category with an intermediation role. In this case the revenue is based on commission. This
 commission depends on the type of agreement and may not be fixed.
On the other hand, when the e-commerce advertising company is producing an advertisement package, which can be
considered as the goods that the company is producing, the revenue is direct. As a conclusion, a company may combine
different alternatives and generate the revenue in different ways.

Infomediary Business Model

For the traded item in the infomediary business model, both services/immaterial and the supplementary products are
possible. That is because most of the companies are providing a service/immaterial to other businesses in order to enable
companies to do the analysis for the marketing campaign themselves. In supplementary products, the company has
ownership of the product as shown in Table 3. Even when the service/immaterial is offered for concepts like customer
behavior analysis, it is still considered as a production ownership, due to the process of analysis on the raw data that
creates a new package of information that can later be offered to the business partners. The revenue, which is made in this
business model, is based on the direct type since the company receives money, mainly based on the service or the product
it offers to the business partners.

Merchant Business Model

In the merchant model, the company provides service/immaterial, goods and the merchant takes the responsibility of the
products: for example she or he buys the products in advance and later sells them to a customer. If the merchant offers
some supplementary products, such as a device or a tool, which actually supports the usage of another traded item, then
the ownership is considered in the production section and the revenue would be direct.

Affiliate Business Model

The next group is the affiliate business model. In this model, the company offers some incentives to other affiliates who
can redirect the customers to them. The ownership of the products and goods is from the production type since they belong
to the company and therefore the revenue generated is direct.

Manufacturer Business Model

In the manufacturer business model the producer of the goods offers the products which indeed gives a direct revenue
and complete ownership. The traded item in this model is considered as goods.

Community Business Model

In the community business model, some parts of the service/immaterial are mainly offered to the users in order to
contribute to a professional problem solution. Here the nature of the contributors is the same and therefore the ownership
of the service for the company is a content ownership. If the company provides some tools or products in order to support
the customer's or partner’s activities, then the traded item would be supplementary and thus belongs to the production
ownership. The revenue generated depends on the product type. If the traded item is supplementary then the revenue
would be direct. In the content ownership the company receives a commission for broadcasting advertisements on the
webpage. There is also another category of generating revenue in this model, which is based on submission fees.

Subscription Business Model

The subscription business model company is mainly a company that offers some services to the customers to facilitate
their communication and interaction. The traded item would be service/immaterial and the service is dependent on both
sides that have the same nature, therefore it has a content ownership. In case the company offers some special products,
which should be paid in advance, the offered product or data is considered as goods and the ownership is production. In all
cases the revenue is generated according to the subscription fees, however, if the company publishes advertisements on the
website, then it would also be a commissioning type of revenue.
 The results of this research indicate that the main difference between the community and the subscription model is that
the community has more professional aspects, while the subscription model has more social interactions. The difference
shows itself in the traded item criterion.

Utility Business Model

In this model a service/immaterial is provided to some customers (of mainly the same kind) and therefore the company
has the content ownership of the information. The revenue is mainly based on the subscription fee or, in other words, the
rent of the service used. It is not considered as a direct sales category because the main revenue generated from the usage
fee where the customer owns the service or has access over a certain period or amount.

E- Business (Tools and Techniques)

The explosive growth of information and communication technologies over the past decade has radically transformed the
way we communicate, learn and do business. The Internet and mobile solutions have brought many benefits to
businesses, especially lowering information and communication costs, providing new channels of distribution and
permitting 24/7 global reach.

For small businesses in developing countries, the Internet is a modern and efficient platform to promote and transact
with target export markets. Mobile devices give small and isolated farmers a link to marketplaces by checking market
prices, advertising their products and connecting them with buyers.

Some important E business tools are :

• Web and CMS : Software designed to allow you to simply control the content of your web site and keep it up-to-
date.
• SEO : Strategy and techniques used to increase your site’s ranking on search engines such as Google.
• CRM : Software that enables you to manage interactions with current and future customers.
• Social media :Virtual communities, amongst the most popular are Facebook, Twitter and Liked In.
• Email : Electronic mail is widely available from different providers.
• VoIP and webinars : Voice over Internet Protocol can be used for obtaining telephone services computer
networks. Webinars are on-line events.
• QR codes : Quick Response code can contain far more information than just listing your URL and can be specified
by the user.
• E-accounting : Online software packages allow a business to keep and maintain professional quality accounts.
• E-commerce : Business that is conducted over the internet using one of a variety of software applications. All
segments are covered, business to business, business to consumer, consumer to consumer and even consumer to
business.
• Payment platforms : Ways to receive payments over the internet with a number of providers with lots of options.
• VPN : Virtual Private Networks create a secure network connection meaning you can work from home.
• Cloud backups : Storing data securely on the internet (in the cloud) which can be accessed remotely.
• Cloud subscription : Many services available today such as CRM, CMS, e-accounting and cloud storage are
available for a small monthly or annual fee.
• Intranets and extranets : Internal websites that helps staff get things done and private networks that allows
secure access to businesses information.

E Commerce – Vendors and Suppliers

E-commerce vendors are needed to supply the software and services used to start and operate most online stores.
However, they are more prominently known for supplying consumable and durable goods to online shop owners so that
they can resell the items at a profit. As many people realize their dreams of store ownership by opening their own
electronic retail stores, there is an increase in the need for suppliers for this fast paced niche sector within the retail
industry. E-commerce store owners must choose suppliers that are agile, flexible and quality oriented, or they risk being
driven out of business by competing e-shops that have leaner, more reliable supply chains

Types of E-commerce vendors

One of the most exciting ways that online stores can get up and running very quickly and with plenty of product offerings
is by using drop shipping vendors.These vendors allow retailers to take orders from customers over their websites, and
the vendors deliver the products directly to the purchaser. It sounds very easy, but there are some drawbacks. For
instance, the online retailer must rely on the drop shipper to make appropriate deliveries of undamaged products to their
customers within specified time periods. Since the vendors have many different customers, there are bound to be
mistakes. The online retailer must be ready to field customer complaints when this happens. Also, the profit margins on
the drop shipped items are low because the e-commerce vendors are doing most of the logistical work and inventory
storage. The wholesaler is another type e-commerce vendor. Online store owners can purchase items from wholesalers
that are below list prices and resell them to their online customers for a profit. Even though higher shipping costs are
involved, the profit margins that online retailers gain by using overseas wholesale suppliers are almost always larger than
when they use domestic wholesalers. However, online retailers must watch for quality issues when using overseas supply
companies that beat out the competition through the use of cheap labor. Online retail business owners who sell specialty
goods often find that the best e-commerce vendors are the manufacturers of the goods. These e-shop owners can
establish purchase agreements with manufacturers, and the results are lower prices and potentially higher profits from
sales.

Importance of e-Commerce Business for Vendors & Customers

With increasing the need of ecommerce industry, every businessman is looking to have an online store where they can
sell their range of products and services. One can get a lot of benefits by opting for ecommerce as it delivers a
comprehensive range of benefits to retailers and merchants.
Electronic Commerce is also known as e-commerce that consists of the purchasing and selling of products or services
through electronic systems like computer networks and the Internet. In this modern world of technology, e-commerce is
becoming a very significant option for many businesses as there are lots of companies that are interested in developing
their online stores.

With increasing demand for online purchasing, more and more businesses are moving to e-store from brick and mortar
stores. In the US, more than 60% of people are purchasing goods online from the comfort of their home and this figure is
increasing constantly. By considering this percentage, we can say that e-commerce is expanding tremendously because of
its complete range of benefits that any industry vertical can enjoy.

Today, e-Commerce has revolutionized the way companies are doing business. Now, consumers can purchase almost
anything online 24*7 a day and get an ultimate shopping experience. Before you opt for an e-Commerce business, have a
look on its comprehensive benefits that you can enjoy:

 Convenience & Easiness

 Offer Product Datasheets
 Attract New Customers with Search Engine Visibility
 Comprise Warranty Information
 Decreasing cost of inventory Management
 Keep Eye on Consumers’ Buying Habit
 Competence
 Allow Happy Customers to Sell Your Products
 Selling Products Across the World
 Stay open 24*7/365
  Economy
 Boost Brand Awareness
 Decrease Costs
 Advertising & Marketing Cost
 Personnel
 Eliminate Travel Cost
 Offer Huge Information
 Analytics
 Expand Market for Niche Products
 Scalability
 Ability of Multi-site

Advertisement in e-commerce
The rapid growth of the Internet and the incredible flow of information that the Internet has made possible, has
transformed the business of advertising.

An advertisement in e-commerce, also known as online advertisement and internet advertisement is a paid message on a
Web site, online services or rather interactive medium, such as instant messaging). 2)

There are numbers of different forms of online advertisement:

 Display ads, banner ads,
 Rich media ads
 Search engine advertisement
 Sponsorships
 Referrals (affiliate relationship marketing)
 E-mail marketing
 Online catalogs
 Online chat
 Blog advertisement

E Commerce for Service Industry

The E commerce for service Industry are explained below
E-Services
The delivery of services via the internet to consumers or other businesses can be referred to by the generic term
of e-services. There is a wide range of e-services currently offered through the internet and these include
banking, loans, stock trading, jobs and career sites, travel, education, consultancy advice, insurance, real estate,
broker services, on-line publishing, and on-line delivery of media content such as videos, computer games, etc.
This list is by no means exhaustive and it is growing all the time. In this lecture, we will give an overview of
eservices.
In order to bring some order to the discuss of these wide variety of e-services, we organize them into the
following categories, namely
1. Web-enabling services, which were previously provided by humans in office agencies and/or their branches.
The primary purpose here is that these services help to save time and effort for the user; bring convenience,
and improve the quality of life. In many cases, it can result in a reduced cost for the consumer.
E-services that fall into this category include
o Banking
o Stock trading
o Education
 In some cases, this may bring a new dimension to the original service, enhancing and altering it. E-education is
an example of this. It may also bring into the catchments new groups of consumers of the service to whom it
might not have been previously accessible.
2. Matchmaking services. These take a need from an individual or business customer and provide mechanisms
(from providers) for matching that need.
E-services that fall into this category include
o Jobs and employment sites
o Travel
o Insurance
o Loans including mortgage loans
o Real estate sales
o Brokers
The advantage of this kind of matchmaking through the internet is that the ability to search electronically over
a wider area to satisfy the customer need and to more precisely meet the customer need is greatly facilitated
by both computerization and communication over the internet.
3. Information-selling on the web. This group essentially sells information content of one sort or another and
includes ecommerce sites that provide on-line publishing such as web-based newspapers
o consultancy advice
o specialized financial or other information
4. Entertainment services. These provide internet-based access to videos, movies, electronic games, or theme
sites. This E-entertainment sector is expected to grow rapidly in the next few years, with a convergence of TV
and internet-based technologies.
5. Specialized services such as auctions. Many different auction sites have appeared and these are discussed
further in this lecture. It is not possible to discuss all the different eservices in this lecture and so we will
briefly sample only a few examples for each category.

Steps in building an E-business application-

1. Start with a Strategy
2. Choose a Domain and Platform for Your Ecommerce Website
3. Design Your Store and Add Products
4. Decide on Pricing and Set Up Payments
5. Create a Great Checkout Experience
6. Market Your Growing Business
7. Improve Your Online Sales with Data

1. Start with a Strategy

To ensure success while building an ecommerce website, start with a sound strategy. Even the simplest
ecommerce platforms have details that need to be just right for you and your business.

For instance, everyone says that they have excellent customer service, but you’re headed into a world where
your life could depend on your ecommerce site. Don’t you want 24/7 customer support and friendly staff
available to troubleshoot anything that might arise?

2. Choose a Domain and Platform for Your Ecommerce Website

Is a custom domain essential for your ecommerce website? The short answer is no. When you register for a free
14-day trial , you instantly get your own sub-domain, like “mysite.xyz.com.” This may suffice for your ecommerce
website needs. However, if you plan to sell a wide variety of products and develop or extend your brand, a
custom domain is the way to go.

3. Decide on Pricing and Set Up Payments

There are three key aspects of payments as you build an ecommerce website: How you will price your products,
how customers are going to pay you, and how you are going to get those payments into your own bank account.
You may be starting from scratch or extending your local business online. Either way, the online world has
different expectations for how you will put a price on your product.

4. Design Your Store and Add Products

Next step in building an ecommerce site, it’s time to design your store. Think about what, in addition to your
products, you plan to include.
At the very least, you will want to include an about page and a contact page as you build an ecommerce website
to help potential buyers connect with you. You can also add video and text onto your pages.

5. Create a Great Checkout Experience

Shopping cart abandonment is the plague of online sales. In 2017, the Baymard Institute took the average of 37
cart abandonment studies and found that the average online shopping cart abandonment rate is over 69%!

6. Market Your Growing Business

Once you start building an ecommerce website, you need to promote your product to increase traffic and drive
sales. Many vendors choose to sell from marketplace sites like Ebay or Amazon but find themselves struggling
because of high fees and other limitations.
After building an ecommerce website you’ll need a solid marketing plan to bring the right customers to your site
and to keep their affection for return business.

7. Look after SEO and analytics

Track the performance of your ecommerce website with an analytics solution. In addition to the business
reporting within dashboard, integrates with Google Analytics so that you can gain deeper insight into how your
marketing efforts and ecommerce SEO are performing.
This will help you monitor your site and product pages so you can improve them for more sales, reach, and
effectiveness.

How to Create a Website Using Google Sites

1. Open Google Sites. Go to https://sites.google.com/ in your web browser. This will open the Google Sites
page if you're logged into your Google account.
If you aren't logged into your Google account, enter your email address and password to log in before
continuing.

2. Click New Google Sites. It's on the left side of the page. Doing so opens the most recent version of
Google Sites.

3. Click "New" . Red circle with a white "＋" icon on it is in the lower-right side of the page. Your new site's
page will open.
4. Enter a title for your home page. Type the title that you want to use into the "Your page title" field at the
top of the page.
5. Create a Google Site address. Click the "Enter site name" text field in the top-left corner of the page,
then type in the word or phrase that you want to use for your Google Site. Your site name must be
unique, so you may be prompted to choose a different, unique site name at a later point.
6. Upload a cover photo. You can add a photo to the top of your home page by hovering over the image at
the top of the page, clicking Change image at the bottom of the image, clicking Upload in the drop-down
menu, selecting a photo, and clicking Open.
7. Click PUBLISH. It's a purple button in the top-right corner of the page
8. Click PUBLISH when prompted. Doing so will create your Google Site at the
domain https://sites.google.com/view/sitename.