ECOMMERCE Revenue Models
ECOMMERCE Revenue Models
ECOMMERCE Revenue Models
Web catalog
a. Business
According to OroCommerce (2017), Web Catalog is defined as a content
management tool catered for the needs of the client. This enables to personalize
websites from categories to the different variations of the customer information. Web
Catalogs consists of nodes such as System Page, Product, Product Collection,
Category, and Landing Page.
From the previous years, KCRONA (2011) has stated that the mail order catalog
revenue model or the selling of printed information to prospective buyers was very
successful in showcasing the different variety the catalog has in store. The range of the
catalog from consumer items, apparel, computers, electronics, housewares and gifts has
been widely seen. However, companies may shift to the web catalog online by placing
the information seen in the printed catalogs to their very own website
b. Technology
A study conducted by BigCommerce (2018) as stated by iPaper (2019), 82% of
Smartphone users utilize their mobile phones by researching for a product before
proceeding to purchase. Through web catalogs, an organization of the collection for sale
is presented to B2B and B2C in order to make products appealing and easy to go
through. Products are also easy to find because of its searchability.
c. Society
Due to the shift of the companies to the online world, USPS Delivers (2018) gave
the following reasons as to how using an online web catalog is better. A few of these
reasons are the collection of customer data. Gaining customer data ensures a more
personalized experience for the buyer. An online overstock store works well because it
reaches more people than a physical store and it can be updated more frequently than a
printed overstock catalog (KCRONA, 2011). It is convenient to browse through the items
they are interested in. On the other hand, Catalogs has an influence on purchase
decisions. What the consumer sees that gives no interest to them suddenly gives them
interest and an option to purchase. Overall, because of online catalogs, ease,
convenience, and relaxation is instantly brought to the customer.
II. Fee for content revenue
a. Business
According to Lewis (2017), digital content revenue model is a way to find out how
much can the website earn. One of the ways for a business to generate revenue is to
establish a partnership with another company that will benefit both you and the other
company. This will increase traffic and have a chance in partnering up with the large
companies that may sponsor or give a fixed rate of a permanent advertisement within a
period of time. With this, the company will be able to generate revenue in a period of
time.
Another way to generate revenue is subscription based pricing. This is when you
allow a website visitor to pay a subscription fee to either stream the video or constantly
get updates. With this, the web creator will constantly get money as the subscriber is
paying an on-going fee.
b. Technology
Digital media companies are competing with one another for getting the users
and revenue. Due to the switch to the usage to technology, many are switching to
watching movies online, checking news on applications, and even paying to receive
online content.
Nowadays, people use online streaming services such as Netflix, Amazon, or
Hulu to watch television shows and movies anytime they want to. People are willing to
pay for these content as it is convenient for them to watch any shows they desire at any
time. Another one is that due to the usage of technology, people obtain news from their
applications with just a single news alert from their mobile phones. With this, people are
updated anywhere at anytime. Lastly, people are also willing to pay to receive content
online. They would get subscriptions so that they are constantly updated or would
receive content that are exclusive.
c. Society
The society is affected that many are willing to pay at a cost for their convenience
as web applications or sites are imbedded in their everyday lives. As said earlier,
customers are willing to pay application or subscribed at a website to constantly be
updated on news, shows and movies. This concludes that the usage of technology is
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increasing rapidly that people are not using the original source of entertainment
anymore.
b. Technology
Business.com (2018) stated that majority of the people use at least one social
media. Despite the fact that advertising online is a no-brainer thing to do, social media
such as Facebook, Twitter, Instagram, Youtube and the like offer thousands of
advertising platforms for the users who would like to sell banner ads and advertorial ad
spaces online. In these websites, there are thousands of users visiting and since we are
in a technology-based generation, people spend most of their time surfing the internet,
therefore, users are motivated to advertise online so that more people could see their
advertisements and at the same time it increases their target audience.
c. Society
Being able to advertise your company online will for sure target their specific
market as everyone uses their gadgets most of the time. Spending on advertisements
will result to revenue as they are able to reach their target market. Therefore, investing in
advertising cost, even though expensive, will increase its chance to get a wider reach.
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revenue is created through transaction fees by the customer paying a fee for a
transaction to the operator of a platform. From a business perspective, the offer or the
fee amount is dictated by people as customers offer their goods online and are acting as
sellers. The amount of the transaction fee can be both fixed and percentage calculated.
An example of this would be ebay and amazon.
b. Technology
In a technology perspective, revenue models rely heavily on technology in this
age. Online models not only sell goods or services but also contacts (e.g. banner) and
information (e.g. user-data).The revenue is generated through transaction fees by the
customer paying a fee for a transaction to the operator of a platform. The company is a
marketplace operator providing the customer with a platform to place his transactions.
During this process the customer may be presented as a buyer as well as a seller. To
actively participate in this e-market or the world thriving in the tech world, customers
must register, so both parties of a transaction taking place are identified.
c. Society
A lot of companies companies, both tech-oriented and otherwise, strive to rely on
the transactional revenue model, and for good reason of following a method that is one
of the most direct ways of generating revenue, as it entails a company providing a
service or product and customers paying them for it.
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common in companies like telecoms and cloud-based service industries where it
is commonly pay-per-usage or what we call today as service charge.
b. Technology
Based on a journal from Yale School of Management and Goldman Sachs
Foundation: Partnership on Nonprofit Ventures (2003), Bookshare.org is a subscription
service providing an extensive online library of digital books for blind and low vision
adults, there are alot of people who find the convenience in using Benetech's computer
reading machine technology; and even both students and adults with learning
disabilities. Exempt from US copyright laws, Bookshare.org is allowed to offer its
materials to people with specific disabilities. Bookshare.org's technology allows
thousands of people who scan books to share them, while removing effort duplication to
produce accessible books much quicker than other providers at a fraction of the cost.
Subscribers download books using Bookshare.org's software in two formats: digital
Braille or talking books.
c. Society
In a societal perspective, fee-for-service is a business model that helps social
workers and organizations engage in social work balance the necessity for operating
capital with the aim of providing services to a society at little or no cost. A community
health center, for instance, may charge patients a fee to see a doctor, thus providing a
service for a fee. Social work organizations change this model a bit so that funds
accrued are given for the benefit of the community, rather than for profit. Membership
organizations and trade associations, schools, museums, hospitals, and clinics are usual
examples of fee-for-service social firms.
References
Bettina Oksen Bendorf. (2017, September 15). How Online Catalogs Are Changing eCommerce
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September 15). How Online Catalogs Are Changing eCommerce Sites For the Better.
USPS Delivers. (2018, June 28). 10 Reasons Why Catalogs Are a Marketing Powerhouse.
Retrieved from
https://www.uspsdelivers.com/10-reasons-why-catalogs-are-a-marketing-powerhouse/
http://en.ecommercewiki.info/fundamentals/revenue_models#targetText=Transaction%20Fee%
20Revenue%20Model,for%20enabling%20or%20executing%20transactions.&targetText=The%
20revenue%20is%20generated%20through,the%20operator%20of%20a%20platform.
https://www.business.com/articles/how-technology-is-changing-online-advertising/
https://www.feedough.com/revenue-model/
http://www.4lenses.org/setypology/ffs