Brief History of Ecommerce

1970’s innovation like EFT routed electronically from one organization to another but it was limited to large corporations only. EDI electronically transfer routine documents that application en large, pool of participating companies to include manufactures, retailers and services. IOS Inter organization structure like travel reservation system and stock trading in 1969 with US government experiment the internet came into being which was initially used by technical audience of government agencies academic researchers and scientist. Then in 1990’s the internet was commercialized and the users flocked to participate in the form of; Com’s or internet startups. It was an innovative application ranging from online direct sale to E-learning experiences. Most medium and large size organization has a website and a most large US organization has a comprehensive portals. In 1999 the emphasis of shifted from B2C to B2B and in 2006 the emphasis shifted from B2B to B2E, C commerce, E commerce, E learning and most prominently mobile commerce.

Ecommerce Business Model

Business model is how to do a business to generate revenue to sustain itself. There are many popular business models. There is a clear difference between business model and revenue model. Revenue model is by which a company generates revenue for example subscription fee, Transaction fee, advertisement fee and affiliation fee etc.

Popular Business Models

Some of the popular business models are as follow;

Online Direct Marketing

Online direct marketing is a business model in which organization do the marketing of their products and services directly or in other words organization directly communicate with their customers through messages, mails, newspaper , letters etc.

Electronic Tendering System

Electronic tendering system business model is the reverse of online auction because in online auction the buyer with the highest price is the winner and in the Electronic tendering the buyer with the lowest price is winner.

Name Your Own Price

Name your own price is the business model in which the buyer or the customer give or set the price and the seller provide the product or service at that given price.

Affiliated Marketing

Affiliated marketing is the type of business model in which a third party refers to you a client’s business product. The involvement of third party refers to Affiliation.

Group Purchasing

Group purchasing is also known as quantity purchasing. It is done to get discount over the product.

Online Auction

Online Auction is the reverse of electronic tendering system because here the buyer with the highest price is winner.

Electronic Exchanges

Electronic exchange is also known as electronic market place where online buying and selling of goods and services occur.

Information Brokers

Information broker is the type of business model in which a third party between company and investor is present who provides the information about the investor to the company.

introduction to business

December 10, 2018