E-Commerce Business Models

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Abstract There are many benefits to bringing a business to the Web. An e-business can offer personalized service, high-quality customer service and improved supply chain management, to name a few of the benefits. Business to Consumer or B2C is the most well-known type of e-commerce today. That said, it is important for online businesses to apply a well-developed business plan for the success of the business despite the fact it may not be brick and mortar. A business model is defined as “a set of planned activities designed to result in a profit in a market place” (Laudon & Traver, 2012). The most basic concept of doing business is to make money! Making money is how businesses sustain a business life. By selling products or services which exceeds the operational cost of doing business produces profits thus businesses are able to sustain life. There are many different business models followed by companies which provide a plethora of services to the online customer. Not only are there many business models in which a business may follow, there are many e-businesses that fall into larger categories such as Business to Consumer (B2C) or Business to Business (B2B). These categories would also dictate using multiple business models or quite possibly merging the business model concepts into one functional unit for example Amazon.com. Looking At Amazon Amazon.com is considered, for the most part, an E-tailer business model but also operates under several different business models such as Market Creator. Amazon additionally falls into two categories of e-commerce; B2B and B2C. As a retail company or “e-tailer” Amazon conducts B2C business selling products and service to customers online. This is ideal for the consumer because it provides personalization however; it can be a complex issue for Amazon as it processes millions of transaction

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