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Briefly discuss the varying types of business models which exist online. What are the new types...

Briefly discuss the varying types of business models which exist online. What are the new types of business models that are emerging online? Do you think these will be sustainable? How will it change the nature of eCommerce in the future?

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Answer #1

If we speak about business models, there are few key business models online. These are

  • B2C = Business to consumer. In this type of businesses an organization sells their products or services to the consumers. Electronic products sold to consumers in sites such as Apple are B2C businesses.
  • B2B = Business to business. In this type of business an organization sells their products or services to other businesses. Corporate deals made by Dell computer with other organizations are example of B2B business.
  • C2B = Consumer to business. In this type of business the organization obtains products or services from consumers. For example websites like Autotrader prompts users to sell their cars online to them. It is a C2B model.
  • C2C = consumer to consumer. In this type of businesses the individuals tend to deal with another individuals through a platform. For example, websites such as Fiverr are platform that allows C2C transactions.

The last business model (C2C) is a comparatively new model that has emerged due to presence of internet. Such business models tend to crowdsource services for people who are looking for a particular service. It also provides an avenue for people to meet customers from all over the world. While this is a competitive landscape, it is a growing idea in the online business and most likely this will only increase. Now there are platforms that enable fundraising, product purchase, petition, etc. This shows that the online support for various agendas are increasing. This is why I think these new models will be sustainable.

E-commerce so far has been usually B2C business. However, companies like Amazon and eBay has attempted to make it a C2C model as well. One of the key reason is that this tend to lessen the company’s burden of stocking, supply chain management, overheads, etc. Using such models the e-commerce companies will look for ways to reduce their supply chain cost, streamline businesses, and become more competitive. This may result in companies like Walmart struggle online due to their traditional business model.

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