Question

Identify three different businesses that use the e-commerce model and their successful descriptions for solutions to information systems?

Answer 1

The following are the three different type of businesses that use the e-commerce model

1. Drop shopping
2. Wholesaling And Warehousing
3. White Labeling and Manufacturing

1. Drop shopping

Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead they transfer the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. so their primary objective is to minimize the time of reaching the product to the customer. This is the easiest form of e-commerce that eliminates the hassle of managing stocks, inventories or dealing with packaging. They just handle the orders and payments system and some reports show that approximately 33% of internet retailers may use drop shipping as their main method for order fulfilment. Wacky Hippo is the best example of drop shipping e-commerce model.

2. Wholesaling And Warehousing

This model is used when you buy products in bulk and store them in a warehouse somewhere like DollarDays and Alibaba are an example of wholesaling. DollarDays have a massive product catalog that includes over 260,000 products. They generally sell the product to the retailer as well as the public. People most commonly use this in a Business to Business(B2B) market as opposed to a Business to customers(B2C) model. They immerse in a key strategy for retailers in this space, which helps them maintain a higher profit margin. The main objective of this system is to cover all the area where particular products are not able to deliver within a limited time.

3. White Labeling and Manufacturing

A white-label product is a product or service produced by one company or the producer that other companies or the marketers rebrand to make it appear as if they had made it. Because of this, retailers have the ability to make changes to the product to develop their own, unique brand but actually, the product is not manufactured by them but your licensing contract allows you to put your name or brand on it as if you are the manufacturer. Which help to increase the supply of the products, reduces the cost of production, improve customer access and Faster innovation.