Type of e-commerce/E-business model

Broadly categorized as :

• E-Business model based on relationship of transaction parties
• E-Business model based on the relationship of transaction types
• Classification by revenue model
• Classification by distribution channel

Classification by revenue model

A revenue model may comprise –

(a.) Product Sales Model that charges customers directly for the products or services they buy;

(b.) Subscription Model that charges a fixed monthly or annual rental for the service;

A revenue model may comprise –

(c.) transaction fee model that charges a service fee based on volume and value of the transactions offered;

            advertising support model that charges advertisers instead of charging users; and

            sponsorship model that provides sponsorship by companies for non-financial reasons

Classification by distribution channel

A distribution channel may comprise –

(a) Direct marketing where manufacturers such as Dell, Nike, Lego or Sony market directly from company sites to individual customers;

(b) Pure play e-tailors who have no physical stores, only an online sales presence. Eg-Amazon.com

(c) Click-and-mortar retailers who are traditional retailers with a supplementary website, like walmart.com