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VI Semester BBA
6
...
Ranganatha B S
Assistant Professor, NHC-M

UNIT 1 :

E-BUSINESS

Introduction, E-Commerce – definition, History of E-Commerce , types of E-Commerce
B to B etc
...
E-Commerce
business models – major B to B, B to C model, Consumer-to-Consumer (C2C), Consumerto-Business (C2B) model, Peer to-Peer (P2P) model – emerging trends
...

Introduction of E-Commerce:

E-business, is the application of Information and Communication Technologies (ICT) in support
of all the activities of business
...
Electronic commerce focuses on the use of ICT(Information and Communication
Technologies) to enable the external activities and relationships of the business with individuals,
groups and other businesses or e business refers to business with help of internet (i
...
) doing
business with the help of internet network
...

In 1997, IBM marketing, with its agency Ogilvy & Mather began to use its foundation in IT
solutions and expertise to market itself as a leader of conducting business on the Internet through
the term "e-business
...
Gerstner, Jr
...

After conducting worldwide market research, in October 1997, IBM began with an eight-page
piece in the Wall Street Journal that would introduce the concept of "e-business" and advertise
IBM's expertise in this new field
...
However, this
proved to be too successful and by 2000, to differentiate itself, IBM launched a $300 million
campaign about its "e-business infrastructure" capabilities
...
E-business strategy is more complex, more focused on
internal processes, and aimed at cost savings and improvements in efficiency, productivity and
cost savings
...
E-Business
includes customer service (e-service) and intra-business tasks
...
When it
is facilitated electronically, it becomes part of E-Business
...


Meaning of E-Commerce:
(a) E-Commerce
is defined as those commercial transactions carried out using the
electronic means, in which goods or services are delivered either electronically or in
their tangible or intangible form
...

(b) Electronic payments:
When we are buying goods online, there needs to be a mechanism to pay online too
...

Electronic payments reduce the inefficiency associated with writing the Cheque books
...

Main difference between E-Business and E-Commerce
E-BUSINESS

:

E-Commerce

E-Business covers the online transactions, but E-Commerce
refers to the online
also extends to all the internet based transactions (i
...
) buying and selling of goods
transactions with the business partners, and/or services over the internet
...
These online
interactions are aimed at improving or
transforming the business processes and
efficiency
...

A brief history of E-Commerce :
(1) 1887: US statistician Herman Hollerith (1860–1929) sets up the forerunner of IBM
(International Business Machines), a company that will pioneer electronic forms of doing

business in the decades that follow
...

With American Airlines, IBM develops an OLTP system called SABRE (SemiAutomatic Business Research Environment) that revolutionizes airline reservations
...

(3) 1970: US company Docutel invents the ATM (automated teller machine, also known as
the "cashpoint"), which works using online transactions made through bank computers
...

(4) 1980s: CompuServe, Prodigy, and AOL (America Online) let people shop from home
using their computers and telephone lines
...

(6) 1994: Jeff Bezos (1964–) founds Amazon
...

(7) 1994: Marc Andreessen (1971–) develops the Netscape Navigator web browser, which
ships with a feature called SSL (Secure Sockets Layer): built-in encryption that allows
credit card transactions to be carried out securely online
...
com phenomenon begins
...
com bubble bursts and over 750 online businesses go to the wall
...
com's share price plunges to less than 10 percent of its original value
...
4 percent of total sales
...
2 billion (adjusted for seasonal variation)
...
7 percent of total sales (up from 4
...


Electronic Fund Transfer
It is a very popular electronic payment method to transfer money from one bank account to
another bank account
...
Fund transfer can be done
using ATM (Automated Teller Machine) or using computer
...
In this case, customer uses website provided
by the bank
...
He/she
then places a request to transfer certain amount to that account
...
Once amount is transferred to other account, customer is notified of the fund
transfer by the bank
...

Traditional Commerce
No
...

dependency on person to person information

exchange
...

Manual
automatically
intervention is required for each
communication
communication or transaction
...


or transaction can be done in
way
...

standard practices in traditional
commerce
...

no human intervention
...

heavily on personal communication
...

the globe
...

It makes it possible to shop from homes, offices, video game systems with an Internet
connection and mobile phone devices
...
e
...

Example: An example includes the ability to access the Internet wherever there is a Wi-Fi
hotspot, such as a cafe or airport
...

From the customer’s point of view, ubiquity reduces the transaction costs(i
...
) the cost of
participating in the market
...

At a broader level, the ubiquity of E-Commerce
lowers the cognitive energy required
to transact in a market space
...
Humans generally seek to reduce cognitive energy outlays
...

(2) Global reach:
Technologies within ecommerce seamlessly stretch across traditional cultural and national
boundaries and enable worldwide access
...
The Internet and multilingual Web sites, as well as the ability to
translate a Web page, allows international visitors all over the globe to access company Web
sites, purchase products and make business interactions
...
Pearson owns educational media brands
including Addison–Wesley, BBC Active, Bug Club, eCollege, Fronter, Longman,
MyEnglishLab, Penguin Readers, Prentice Hall, Poptropica and Financial Times Press
...
Consequently, universal standards help to simplify the
interactions
...
Similarly, when an
individual creates an online account, the site generally requires an individual to create a
username and password so he can access his account
...
For the customers, it reduce the “search costs(i
...
) the efforts required to find
suitable products
...
With the E-Commerce
technologies, it is possible for the first time in the history, to easily find all the
suppliers, prices and delivery terms of a specific product, anywhere in the world
...
Users can access and utilize text messages
and visual and audio components to send and receive the information
...
An individual may see information richness on a company's blog, if a
post contains a video, which is related to a product and hyperlinks that allow him to look at or
purchase the product and send information about the post via text message or email
...

(5) Interactivity:
E-Commerce technologies are interactive means it allow for two way communication
between the merchant and the customer
...
As a result, ecommerce technologies can adjust to each individual’s
experience
...

(6) Information Density:

Information density means the total amount and quality of information available to all
the market participants, consumers and merchants alike
...
At the same time, accuracy and timeliness increase; thus,
making information accurate, inexpensive much more about the consumers and plentiful
...

A number of business consequences are resulting because of the growth in the
information density
...

Price transparency refers to the ease with which the consumers can in out the variety of
prices in a market
...

Also, there are advantages for the merchants as well
...
e
...

(7) Personalization / Customization :
Technologies within E-Commerce
allow for the personalization and customization of
marketing messages groups or individuals receives
...
An example of personalization
includes product recommendations based on a user's search history on a Web site that allows
individuals to create an account
...

The technology also permits customization
...
Given the interactive nature of ECommerce
technology, a great deal of information, about the consumer can be
gathered in the market place, at the moment of purchase
...

The result is a level of personalization and customization, which is unthinkable with the
existing commerce technologies
...

Emerging trends in E-Commerce

Online businesses have picked up momentum lately, and now people are no more skeptical about
shopping online
...
In this collaborative world, here are the 10
rising trend related to E-Commerce technology
...
Most online retailers have facilities
to chat online, get suggestions and answer all your queries
...
e
...

Using Mobiles and Android Apps for Transaction: With the mobile devices
outnumbering the desktops, the use of these devices for buying will increase in the near
future
...
We have many kinds of apps now that assist consumers to check out on
his own, use payment wallet, store coupon codes like India plaza coupons
(http://www
...
com/indiaplaza
...
There are also apps that will let you compare the
prices of the same product at different outlets
...
This will encourage the IT directors to invest in commerce
packages, E-Commerce POS systems and CRM systems
...
This has been a
concept that has been drawing the interest of the E-Commerce site owners, and it is
here to stay
...
In a nutshell, it allows retailers to understand
the hidden consumer patterns
...
Personalized
recommendations will find more prominence in the market!
Valuing Customer Engagements than Conversion Ratio: Till date the conversion rates
were given the most priority but with the rise in E-Commerce
sites, gathering new
customers will be very tough
...
Customer engagement will ensure people develop a liking for your
site and follow you regularly
...
Messaging notifications, basket notifications for selective items
on your home page- are all going to catch up momentum
...


(9) Mobile POS and Accessing Via Mobile: The idea of Mobile POS to make each and
every employee work and allow the customer transact without being to the billing
counter
...
2 Jellybean and iOS 6 that allows apps that lets the
customer do endless jobs with such apps
...

BENEFITS OF ELECTRONIC COMMERCE

E-Commerce
has revolutionized the concept of conducting business by providing equal
chance to all the business to mark their global presence
...
With the introduction of E-Commerce
business,
communication has become effortless and has also changed a lot in recent years for the better
...
The benefits of Electronic commerce is Classified in to three categories
those are:
(a) Benefits of E-Commerce

to Businesses

(b) Benefits of E-Commerce to Consumers
(c) Benefits of E-Commerce to Society

Its brief explanation is as follows:
(a) Benefits of E-Commerce

to Businesses:

It helps to reach Global: E-Commerce enabled business now have access to people all
around the world
...
E-Commerce
expands the market place to national and
international markets
...

 Cost effective: E-Commerce is proved to be highly cost effective for business concerns
as it cuts down the cost of marketing, processing, inventory management, customer care
etc
...
It can
also collect and manage the information related to the customers efficiently which in turn
will assist the consumer in developing efficient promotional strategy
...
In addition to these two drivers, online retail is also driven by traffic
from search engines
...
This
additional source of traffic can be the tipping point for some ecommerce businesses
...
This
greatly cuts on the cost of paper work in terms of the time taken and the man power
required
...





Reduction in Inventories: A reduction in inventory is desirable to enable reduction in
storage, handling, insurance and administrative costs
...

The process starts from the customer orders and uses just-in-time manufacturing
...
Using such information, the delivery schedules are “fine turned” for justin-time manufacturing, rather than maintaining large inventories
...

This provides a great competitive advantage to businesses
...



No Middlemen: There is a direct contract with customers in E-Commerce
through
internet without any intermediation
...




Reduced Production lead Time: The production cycle time is the time taken by a
business to build a product, beginning with the design phase and ending with the
completed product
...

The reduction in the production cycle time helps to reduce the fixed overheads associated
with each unit produced
...


Improved Customer relationship: Customer service can be enhanced using the internet
based E-Commerce by helping the customer to access information before, during and
after a sale
...
On the status of an order or may need online help in the installation or use of a
product he has purchased
...

 Lower Sale and Marketing Costs: The internet allows businesses to reach many
customers globally at lower costs
...
For example, advertisements on the internet can cut down the cost of printing
and mailing the pamphlets or brochure
...

 Lower Telecommunication Costs: The Internet is much cheaper than value added
networks (VANs) which were based on leasing telephone lines for the sole use of the
organization and its authorized partners
...
The cost of installation and running these
systems was very high and beneficial only to the larger firms and enough business
volumes to justify the cost
...




Increased supply chain efficiencies: E-Commerce
inefficiencies, reduces inventories, reduces delivery delays
...
The internet helps to expedite access to remote
information, thus adding speed to transactions and processes
...
a

minimizes supply chain

firm can e-mail its customers relating new products and new offers and can solve their
product related quires and welcome suggestions
...
With E-Commerce , consumers can search the
specific product or service they require and can even find the direct manufacturer
from where they can purchase products at comparatively less price
...
In addition to it, consumers also get to see the reviews
of other consumers that will help in making beneficial purchase decision
...
Wide variety of goods are available than ever before
...
A large
number of vendors/manufacturers are marketing and selling their products/services on
the internet
...
g
...

 Convenience of Shopping at Home: allows the consumers to shop went it is
convenient for them not strictly during store hours
...

 Ensure Secrecy: the various security measures that are in built are used in ECommerce transactions to prevent any unauthorised access to information on the
internet for ensure secrecy they maintain encoding, encryption and passwords
...
Consumers can make comparison shopping
...

Access to Greater Amounts of Information on Demand: Consumers can have
access to large amount of information online on products and services, their features
and prices
...

 Time compression: Time is not a factor with Internet communication between firms
and their stakeholders
...

 Quick Delivery of Digitized Products/Services: E-Commerce
allows quick
delivery in the case of digitized products such as music, software etc
...
There
are several online services that allow customers to browse multiple ecommerce
merchants and find the best prices
...

(c) Benefits of E-Commerce to Society:




Enables More Flexible Working Practices: Which enhances the quality of life for a
whole host of people in society, enabling them to work from home
...
It also
potentially reduces environmental pollution a fewer people have to travel to work
regularly
...


Facilitates Delivery of Public Services: The health services available over the Internet
on-line consultation with doctors or nurses, filing taxes over the Internet through the
Inland Revenue website
...
As a result,
shopping at those retail outlets is reassuring and refreshing
...




System and data integrity: A computer virus is a program that clones itself when an
injected piece of program code is executed
...
data protection from
the viruses that causes unnecessary delays and can clean up all stored information must
...




E-Commerce Delays Goods: Ecommerce websites deliver to take a lot longer to get
the goods into consumer hands
...
An exception to this rule is in the case of digital goods an e-book or a
music file
...


System scalability: It means regular up graduation of the website is required when the
number of website users increase over period of time or during busy seasons
...

 Dependent on internet: E-Commerce is dependent on internet
...
Furthermore, there are
many hackers who look for opportunities, and thus an ecommerce site, service, payment
gateways; all are always prone to attack
...

 Many Goods Cannot Be Purchased Online: Despite its many conveniences, there are
goods that consumer cannot buy online
...
It could order both of them online, but consider the
inconvenience
...
Unless
the seller was willing to make a huge loss, the cost of shipping that Popsicle would far
exceed the cost of the Popsicle
...
For example: Furniture users want to
touch ant they want to sit on it, feel the texture of the fabric
...
In many
cases, customers want to experience the product before purchase
...
If they buy a music system, they cannot play it online to check if it sounds
right? If they are purchasing a home-theatre system, they would much rather sit in the
“experience centre” that several retails store set up
...
A business cannot survive
without a loyal customer
...
It’s something online stores lack of
...
The lowered barriers to
entry might be a great attraction to the aspiring ecommerce entrepreneur
...
This could lead customers to restrict their online
purchases to famous ecommerce websites
...
In many cases ecommerce websites are able to harvest
other information about our online behaviour and preferences
...


Some of the very important E-Commerce
follows:

models are elaborately explained as

(1) Business - to - Business (B2B):

Business - to - Business (B2B) is a transaction that occurs between two companies, as
opposed to a transaction involving a consumer
...

Business - to - Business (B2B) is a transaction that exists between businesses, such as
those involving

a manufacturer and wholesaler, or,


a wholesaler and a retailer
...
As an example, a wholesaler places an order from a
company's website and after receiving the consignment, sells the end product to final
customer who comes to buy the product at wholesaler's retail outlet
...
amazon
...
As we know, www
...
com is an online
store that sells various products from various companies
...
In this case, the publishers have the option of
either developing their own site or displaying their books on the Amazon site
(www
...
com), or both
...
flikart
...
Do Now, to do this, the publishers
need to transact with flipkart, involving business houses on the both the ends, is the B2B
model
...
ABC company sells automobile parts and XYZ company
assembles these parts and then sells the automobile to customers
...
XYZ therefore, a request for more
information about ABC and finally, decides to purchase automobile parts automobile
from ABC
...
After ABC receives
the order details, it validates the information
...
Finally, ABC sends an acknowledgement of payment to
XYZ and delivers the goods as per the shipment details decided between the two
organizations
...
www
...
com: It is an innovative B2B service based company that has
revolutionized the small business email marketing niche
...

2
...
Incorporate
...
com who have reduced the cost and streamlined the
process of creating, limited liability companies
...
There are the cost areas that are significantly reduced
through the conduct of B2B E-Commerce :
(a) Search costs:

Buyers need not go through intermediaries to search for information about suppliers,
products and prices as in a traditional supply chain
...
So effort, time and money can be saved
...

(b )Processing cost:

Reduction in the costs of processing transactions (e
...
invoices, purchase orders and payment
schemes), as B2B allows for the automation of transaction processes and therefore the quick
implementation of the same compared to telephone and fax
...

(d) Transparency in pricing:

The gathering of a large number of buyers and sellers in a single e-market reveals market
price information and transactions processing to participants
...

Advantages and Disadvantages of B2B Model
Advantages:






It can efficiently maintain the moment of the supply chain and the manufacturing and
procuring processes
...

B2B is global trade market, where we can but anything at anytime
...
It refers to the online online selling of
products, or, e-tailing, in which the manufacturers or retailers sell their products directly
to the consumers over the internet
...
A customer can
view products shown on the website of business organization
...
Website will send a notification to the business organization via

email and organization will dispatch the product/goods to the customer
...
com, dell
...
A business house, www
...
com, displays and sells a range of
bags on their Website
...
He therefore, logs on to the site and selects a gift from the catalog
...
Finally, when he decides to buy the gift, he places an order for
the gift on their Web site
...
The credit card details will be passed to the bank for
verification
...
On
verification of the information the order is processed
...

The example of the www
...
com site also involves the B2C model in which the
consumer searches for a book on their site and places an order, if required
...
For example, www
...
com includes the B2B model in which the
publishers transact with flipkart and the B2C model in which an individual consumer
transact with the business organization
...
Fashion & Lifestyle
Sunglassesindia
...
com, Shopperstop
...
Custom designed T-shirt, mug, calendar etc
Myntra
...
com
3
...

Infibeam
...
com, Giftsandlifestyle
...

 High investment in terms of hardware/ software
...

 Consumer Shopping Procedure
Steps used in B2C E-Commerce :
Types of B2C:

Different types of B2C Ecommerce are: direct sellers, online intermediaries, advertisingbased models, community-based models and fee-based models
...
Some B2C businesses utilize more than
one type to reach different audiences
...
The business allows non-B2C companies
to reap some Altering the price-setting processes
...
Brokers offer buyers a service and help by

(a) Direct Sellers

Direct sellers, such as online retailers, sell a product or
service directly to the customer via a website
...
Etailers are electronic retailers that either ship products
from other their own warehouses or trigger deliveries
from other companies Product manufacturers use the
Internet as a catalog and sales channel to eliminate
intermediaries
...

 It can display information, pictures, and prices of products or services without
spending a fortune on colourful advertisements
...

 It can operate on decreased, little, or even no overhead
...
Internet shopping can be done at time either day or night
...

Disadvantages:

1) Disadvantages for the Business:
 Many websites offering the same product to the customers
 Technological problems can cause the website to not operate properly thereby
loosing the customer
...

2) Disadvantages for the consumer:
 Security issues, especially credit card information which is very sensitive
...




Customer service may not be satisfactory for the consumers
...

An example of C2C would be the classifieds section of newspaper, or an auction
...
The goal of a
C2C is to enable this relationship, helping buyers and sellers locate each other
...

Website following C2C business model helps consumer to sell their assets like residential
property, cars, motorcycles etc
...

Website may or may not charge the consumer for its services
...

consumer-to-consumer (C2C)
Consumers sell directly to other consumers

Example of Consumer to Consumer (C2C) Model
Let us take an example of E-Bay
...
Then, the seller can host his product on www
...
in
which in turn charges him for this
...
If the
buyer comes across such a product, he places an order for the same on the Web site of E-Bay
...
In this way, though
the transaction is between two customers, an organization acts as an interface between the two
organizations
...
Consumers can not only buy, sell and trade items, but also conduct other
transactions such as housing and job searches
...
Sellers pay a fee or commission to sell
their items and buyers can shop and make purchases for free
...
Monetary
transactions are typically completed through PayPal, a service for online money transfers
...

3) Examples of other C2C websites:
 www
...
in
(internet classified)
 www
...
com (internet classified)
 www
...
com
(internet classified)
Key features of a C2C model:

 Consumers interact directly with other consumers
...

 Opinions about companies and products
 There is also an exchange of goods between people both with consumer auction sites
such as e-bay, swapitshop
...

 In more recent times the blogging phenomenon has incorporated this business model
well
...
Most current C2C sites, such as E-Bay, have both streamlined and globalised
traditional person-to-person trading, which was usually conducted through such forms as
garage sales, collectibles shows, flea markets and more, with their web interface
...

 C2C sites make money by charging fees to sellers
...

Advantages and disadvantages of C2C Model:
Advantages:
 Customers can directly contact sellers and eliminate the middle man
...

 Sellers can reach both national and international customers and greatly increase their
market
...

 The transactions occur at a swift rate with the use of online payments systems such as
paypal
...
Other times, websites may charge a commission when
products are sold
...

 Identity theft has become a rising issue
...
These
sites will ask for personal information including credit card numbers
...

 Illegal or restricted products and services have been found on auction sites
...

(4) Consumer - to - Business (C2B):
Definition of Consumer to Business (C2B):
Consumer to business E-Commerce refers to the transactions taking place between consumers to
business organisations
...


Customer to business (C2B), sometimes known as Consumer to Business is the most recent ECommerce
business model
...
This business model is the opposite of
the traditional B2C model
...

In this model, a consumer approaches website showing multiple business organizations for a
particular service
...
For example, comparison of interest rates of personal loan/ car loan provided by various
banks via website
...

Consumer2business (C2B)
Individuals use the Internet to sell products or services to organizations

The C2B model involves a transaction that is conducted between a consumer and a business
organization
...
In this kind of a transaction, the
consumers decide the price of a particular product rather than the supplier
...
In the C2B model, a
consumer provides a business with a fee-based opportunity to market a product or service on the
consumer’s website or blog
...
In most cases, paid advertisement
space is also available on the consumer website
...
The consumer could
be any individual who has something to offer a business, either a service or a good
...

This could also be someone answering a poll through a survey site, or offering job hiring service
by referring someone through referral hiring sites
...

 Online Advertising sites like Google Ad sense, affiliation platforms like Commission
Junction and affiliation programs like Amazon are the best examples of C2B schemes
...
Individuals are directly commissioned to provide an
advertising/selling service to companies
...
Individuals offer the service to reply to the company’s survey and
companies pay individual for this service
...
A classic
example of this would be individuals selling their services to businesses
...
Consumer places an estimate of amount he/she wants to spend for a particular
service
...

Example: Comparison of interest rates of personal loan/ car loan provided by various
banks via website
...
Users in a P2P network can pool their resources, sharing
each other’s files, storage systems, and applications, thereby paving the way for extensive
collaboration and efficient information sharing
...
The required software
should be installed by both sides so that they can communicate on the common platform
...
It consists in mutual help of consumers
...

Peer – to – to peer (P2P) technology enables the internet users to share the files and
computer resources directly without going to the central web server
...

Example:

(A) Napster
...
, which was established to aid the internet users in finding and sharing
the online music files known as MP3 files, is perhaps the most well known example of
Peer – to – to peer(P2P) E-Commerce
partially


...


Since 1999, entrepreneurs and venture capitalists have attempted to adapt various aspects of
peer-to-peer technology into peer-to-peer (P2P) E-Commerce
...

Security, of course, is a major concern for businesses looking to implement P2P networks
...
Another obvious security concern was the
heightened need to safeguard against malicious or careless P2P users uploading viruses directly
into other’s computers
...
Like C2C model, P2P model links users, enabling

them to share the files and computer resources without a common server
...
Historically, P2P software technology has been used to allow the sharing of
copyrighted music files in violation of digital copyright law
...

Internet revenue model:

For a publisher or other media site owner, eight types of revenue model are possible online
...
Revenue from subscription access to content:

The subscription model applies to the companies that charge subscribers a fee, normally
to view text or graphical information
...
Here, one of the main challenges the companies are facing is,
marketing to a much smaller niche audience who are willing to pay the regular fees, as
opposed to a much larger audience that might use the services at no charge
...
com for access to the digital technology section for around ‚ 80
GBP per year a few years ago
...

2
...
It may or may not be protected with a password or Digital Rights Management
...

Digital rights management (DRM) The use of different technologies to protect the distribution of
digital services or content such as software, music, movies, or other digital data
...
Revenue from CPM display advertising on site:
(e
...
banners ads and skyscrapers)
...
CPM stands for "cost per thousand" where
M denotes "Mille"
...
com charges all the advertisers a rate card price
(for example 50 GBP CPM) according to the number of its ads shown to site visitors
...

4
...
Advertisers are charged not simply for the number of times
their ads are displayed, but according to the number of times they are clicked
...

Typical costs per click can be surprisingly high, (i
...
) they are in the range GBP 0
...


The revenue for search engines or publishers from these sources can also be a fair proportion of
this
...
For me,
the Google's content networks are one of the biggest secrets in online marketing with search
engines such as Google generating over a third of their revenue from the network, but some
advertisers not realizing their ads are being displayed beyond search engines and so not served
for this purpose
...


5
...
For example, bank HSBC could
sponsors the Money section on a media site
...
It may also be part of a reciprocal arrangement, sometimes known as a "contra-deal"
where neither party pays
...
This is no longer a concern since he earned $1,000,000 in 4 months when he set up
his Million Dollar Homepage
...
Alex spent £50 on buying the domain name
(www
...
com) and a basic web-hosting package
...

6
...
For example I display Amazon books on my personal
blog site DaveChaffey
...

Such an arrangement is sometimes known as Cost Per Acquisition (CPA )
...
For example, in 2005 manufacturing company Unilever negotiated CPA deals
with online publishers where it paid for every e-mail address captured by a campaign rather than
a traditional CPM deal
...
After all, the publisher cannot influence the quality of the ad creative e to click
which will affect the Click through rate on the ad and so the CPM
...
Subscriber data access for e-mail marketing:

The data, a site owner has about its customers, is also potentially valuable since it can said
different forms of e-mail to its customers if they have given their permission that they are happy
to receive e-mail either from the publisher or third parties
...
A related approach is to conduct market research
with the site customers
...
Access to customers for online research:

An example of a company that uses this approach to attract revenue from surveys is the teen site
Dubit
...
To assess how effective
different pages or sites in their portfolio are at generating revenue, they will use two approaches
...


This looks at the total they can charge (or cost to advertisers) for each page or site
...
This is why you will see
some sites which are cluttered with ads
...

This is particularly important for affiliate marketers who make money through commission when
their visitors click through to third party retail sites such as Amazon, and then purchase there
...
Online auctions
remove the physical limitations of traditional auctions such as geography, presence, time,
space and target much wider audience
...

Web Auction is a simple auction designed for organizations or individuals who want to hold an
auction
...
Products
can have pictures, price, minimum bids, bid increments, and more
...
Anyone can sell an item and anyone can bid on an item
...

The largest online auction website is E-Bay followed by other sites such as Yahoo ad
Amazon
...
The sale is generally
based on a system of trust, but some people are finding profit in abusing the trust of others,
while some are stretching the limits of the law via online auctions
...

 Auction-Warehouse - http://www
...
com
 Craigslist - http://www
...
org
 E-Bay – http://www
...
com
Online auctions are a widely accepted business model for the following reasons:
 No fixed time constraint
 Flexible time limits
 No geographical limitations
 Offers highly intensive social interactions
 Includes a large numbers of sellers and bidders, which encourages a high-volume online
business

Online auctions include business to business (B2B), business to consumer (B2C), and
consumer to consumer (C2C) auctions
...

The online auction business model continues to evolve according to market needs
...
E-Bay and other providers
encourage legitimate bidding activity through bidder block lists
...

Like other online services and activities, online auctions can attract stolen or pirated products
...
We can either host the auction on
our own web server or set up our own auction on our servers for free
...
We can create your own categories, set the start dates and end dates for our auction,
select a custom header and footer, and enter the product categories that we want to have in our
auction
...
Each
product can have a minimum bid, open and close date, a photo, and a preferred bid increment
associated with it
...
The
winner will receive an email when the auction is closed with instructions on how to proceed
...
Virtual auctions facilitate online activities between buyers and sellers in
different locations or geographical areas
...

Types of Online Auctions:
There are six different basic types of online auctions:
Benefits of Online Auctions:
Online auctions hold two other potential benefits for small businesses, as well
...

Second, auctions can help new businesses-or those offering new products-to establish market
prices based on supply and demand
...
Furthermore, companies can
collect such information quickly and informally, rather than investing in time-consuming and
expensive market research
...


Virtual Community:
A virtual community is a group of people who share common interests, feelings or ideas, or
pursue similar goals over the Internet or over any collaborative network
...

One of the most pervasive types of virtual community operates under social networking services
consisting of various online communities
...

One of the first champions virtual community was Howard Rheingold, who created one of the
major first major Internet communities, called “The Well” In this book, The Virtual Community,
(1993) Rheingold defines virtual communities as “social aggregations that emerge from the
Internet when enough people carry on public discussions long enough and with sufficient human
feeling to form webs of personal relationships in cyberspace”
...
In it, Rheingold describes the virtual community as social aggregations
that emerge from the Internet when people continue discussions long enough and with enough
emotion to form real human relationships within cyberspace
...
Here are some common examples of
virtual community types: Forums, online chat rooms, and specialized information communities,
email groups these are made up of people who either discuss or share about a common
topic/theme
...
Virtual
worlds the people in virtual worlds share the common interest of the world itself
...
" Social networks Facebook,
Twitter and Google+ are the most common social networking hubs, and they all allow people to
form smaller communities based on other interests
...

Benefits of Online/Virtual Community:
 Gives your business worldwide exposure: One of the benefits of online communities is
that it gives your business a worldwide exposure
...
An online
community was developed so that people have a common place where they can share
information on significant topics
...
Interact with other people who are members of your online community and put
their principles into practice, whenever it is appropriate
...
Approach
people/businesses, which complement yours and ask them if they are interested in
working with you towards a common goal
...




Maximize your presence in your online community: Keep in mind that you are not
only building a relationship when you join an online community you are also marketing
your business in a subtle way
...




Be wise in choosing your online community: Verify who the members are in the online
community you are planning to join
...
It would be to your
advantage if you go with people/businesses that are highly relevant to your business
...




Builds relationships: The last and probably the most important benefit of online
community is that it gives you a chance to build a relationship with people
...
And one of the least expensive
ways to build a relationship with customers/prospects is through the use of online
communities
...
Keep in mind that this relationship that you build is
not for a one time sale only but you are building a relationship through online
communities for the long term
...


a
...

b
...

WEB PORTAL:

A web portal or Public portal refers to a Web site or a service, that offers a broad
array of resources and services, such as E-Mail, forums, search engines and online
shopping malls
...


The first web portals were online services, such as AOL, that provided access to the
Web, but, by now, most of the traditional search engines have transformed themselves
into web portals to attract and keep a larger audience
...
By using portal technology, an organization
can lower development and deployment costs and significantly increase productivity
...
Portals help to harmonize content, commerce, and collaboration with business goals
...
The role of the user in an
organization may determine which content can be added to the portal or deleted from the
portal configuration
...
Apart from
this common search engines feature, web portals may offer other services such as e-mail,
news, stock quotes, information from databases and even entertainment content
...
The features available
may be restricted by whether access is by an authorized and authenticated user (employee,
member) or an anonymous site visitor
...
There are
different types of portals, they can be categorized into:
(1) Vertical Portals:
(2) Horizontal portal
Its brief explanation is as follows:
(1) Vertical Portals:
A vertical portal (also known as a "portal") is a specialized entry point to a specific market or
industry niche, subject area, or interest
...

These are web portals which focus only on one specific industry, domain or vertical
...
As the web has become a standard tool for business
...
wine
...
Such portals offer information and services
customized for the niche audience
...
VIPs provide news,
editorial content, digital publications, and E-Commerce capabilities
...

(2) Horizontal portal:
A horizontal portal is used as a platform to several companies in the same economic sector
or to the same type of manufacturers or distributors
...
They focus on general
audience and try to present something for everybody
...
Classic examples of
horizontal portals are yahoo
...
com etc which provide visitors with information and on a
wide area of topics
...
Sites
like
“http://www
...
com”
“http://www
...
com”
These sites always contain search engines and provide the ability for a user to
personalize the page by offering various channels(i
...
) access to the other information
such as regional weather, stock quotes, or news updates
...

Their financial models are built on a combination of advertising and/or “click-through”
revenues
...




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