The e-commerce models

BtoB

Ecommerce Statistics of India

• India’s e-commerce market was worth about $2.5 billion in 2009.

• About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).

•  Online Retailing comprises about 12.5% ($300 Million as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30%

References: Consumer Ecommerce India

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Markets

Improve

Efficiencies

Retain

Customers

Fundamental

Business

Drivers Have

Not Changed

Leveraging Internet to Help

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How Three-tier Architecture Operates

Fig 8-5 Three-Tier Architecture

Fig 8-4 Three-Tier Architecture

user tier server tier database tier

Dell

The brand e-portal

www.dell.comThe company sells computers to other companies via the internet. The interaction can also be done via the phone.

Alibaba

The wholesale portal

www.alibaba.comWholesale retailers get in touch with business buyers and bargain over the internet the products. They can also enter in contact via the phone.

BtoC

Amazon

The retailer

www.amazon.comThe portal proposes different articles from different brands offering the consumer a large choice of products.

Carrefour

The online hypermarket

www.ooshop.comThe hypermarket proposes its products on line.

Cashstore

The rewards retailer

www.cashstore.frThe portals gives rewards to the consumer each time he purchases on the site. The consumer will then be able to spend his rewards for further purchases on the website.

Saveur Bière and Popcornopolis

The hyper niches

www.saveur-biere.com and www.popcornopolis.com Hyper specialised retailer portals. Very specific segment and very particular products.

iTunes and Harvard Business Review

The Content Providers

www.apple.com/itunes/store and www.hbsp.harvard.eduUser pays to get the entertainment content provided by the site.

Carol

The E-commerce of services

www.carol.comThe user can buy online medical prescriptions and get advice.

CtoC

eBay

The e-auctions site

www.ebay.comThe user sells to the user by auctions.

The social shoppingHighlights on a specific case of CtoC

Social Network + E-commerce !

• Use of the user social network to sale product online

• Social shopping is the next generation of e-commerce

• The viral effect is broader in this model

Social Shopping

LaFraise

The production based upon votes

www.lafraise.comThe user votes for the design he prefers. The most popular design will then be created and the user can purchase the final product.

Shopwiki

The social search

www.shopwiki.comThe search is made based on customers recommendations on products. Once you found the product, you have a list of recommended e-shops where you can find this product.

Zlio

The rewarding recommendation site

www.zlio.comThe users can select products partering with Zlio. They create their own shop with these products and get % of the sales each time somebody buys a product through the user’s customized e-shop.

Shopit and Cartfly

The widget commerce

www.shopit.com and www.cartfly.com The user creates his own e-shop with own products he has to sell. Then he can adverstise about his e-shop thanks to widgets.

NEW TRENDS IN E-Commerce

Word-of-Mouth CommunicationsWord-of-Mouth CommunicationsOpinion Leaders:

Influence consumer behavior through

word-of-mouth communications.

Market Mavens:

Consumers who know about many kinds of products,

places to shop, and other facts of the market, and they

like to share this information with other consumers.

Viral Marketing

A recent large-scale study from college students revealed that the influence of WMC ( % ), is twice as

influential in new-product purchases than either PRICE ( %) or ADVERTISING( %)

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Viral Marketing with SN

Fig. 8-14 Traditional marketing at MRV

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You, Your Friends, Their Friends, and so on Form a Relationship with MRV’s SN

Fig 8-16: Viral Social Network Marketing Possibility

Sample Viral Social Network Marketing Outcome

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