E-commerce Applications · Web Technology

E-business Models

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E-Business Models

1. E-Commerce vs E-Business

  • E-commerce — buying and selling of goods/services and funds transfer over electronic networks (primarily the Internet). Narrow, transaction-focused.
  • E-business — the whole electronic envelope of doing business: e-commerce plus e-procurement, supply-chain management, ERP, CRM, HR, intra-firm collaboration, knowledge management.
E-business⊃E-commerce+ERP/SCM/CRM+internal digital processes\text{E-business} \supset \text{E-commerce} + \text{ERP/SCM/CRM} + \text{internal digital processes}

2. The Major B2x Models

Model Parties Example Typical revenue
B2B — Business to Business firm ↔ firm; the largest volume (supply chains, procurement portals) Alibaba.com, IndiaMART, supplier EDI subscriptions, transaction fees
B2C — Business to Consumer retailer ↔ end customer Amazon, Flipkart, Netflix retail margin, subscription
C2C — Consumer to Consumer consumer ↔ consumer via a platform OLX, eBay, Airbnb (hosts) listing/commission fees
C2B — Consumer to Business individual supplies to business freelance portals (Upwork), stock photos payout to contributor
B2G — Business to Government firm ↔ government (e-procurement, tenders) GeM (India) contract sales
P2P peer-to-peer sharing BitTorrent, UPI-style payment apps fee/ads

3. Revenue Models (how e-tailers earn)

  1. Sales — direct sale of goods (retail margin).
  2. Subscription — access fee (Netflix, Office 365, OTT/news).
  3. Transaction fee / commission — cut of each deal (brokerages, marketplaces, ticketing).
  4. Advertising — paid display/sponsored listings (Google, Facebook).
  5. Affiliate marketing — referral commission.
  6. Freemium — free base service, paid premium tier.
  7. Data/licensing — selling aggregated data, white-label platform.

4. Market Structure: Pure vs Partial vs Brick-and-Click

Type Meaning Example
Pure play (virtual) exists only online Netflix, Zerodha
Bricks-and-clicks (click-and-mortar) physical stores + web channel Reliance Retail/JioMart, Target
Aggregator/marketplace platform hosting many sellers Amazon marketplace, Uber

5. Framework — Eight Components of E-Commerce (Laudon & Traver)

  1. Business — vision, value proposition, revenue model
  2. Technology — platforms, protocols, mobile
  3. Organisations — structure, culture, partners
  4. Society — users, governments, regulation
  5. People
  6. Process
  7. Marketing & advertising
  8. Policy — privacy, taxation, IP

Value proposition levers: lower search & transaction costs, wider selection, price transparency, personalisation, 24×7 availability, global reach.

6. Classic Strategy Case Studies (case-study material)

  • Amazon — long-tail selection, aggressive logistics build-out, AWS as a by-product of internal infrastructure.
  • eBay — pure C2C auction → reputation system solved trust without brick-and-mortar.
  • Alibaba — B2B platform first, then B2C (Tmall) and payments (Alipay) — platform network effects.
  • Dell — direct-to-customer build-to-order model, disintermediating resellers.
  • Netflix — subscription streaming; disintermediated video rental.

Disintermediation — removing middle layers (manufacturer sells direct);
Re-intermediation — new digital intermediaries appear (comparison sites, aggregators).

7. Business Enablers and Constraints

Enablers: Internet penetration, mobile & UPI payments, logistics networks, cloud hosting, digital advertising.
Constraints: trust & security perception, digital divide, logistics for returns, tax/regulatory issues (GST, data protection laws), fraud.

8. Exam Points

  • Explain the various e-business/e-commerce models (B2B, B2C, C2C, C2B, B2G) with examples — 10 marks (very frequent).
  • Differentiate e-commerce and e-business — 5 marks.
  • Explain revenue models of e-commerce firms — 5-7 marks.
  • Short note on disintermediation and re-intermediation — 3-5 marks.
  • Discuss any two e-commerce case studies (Amazon/eBay) — 7 marks.
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