Difference Between Ecommerce and Ebusiness

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Dynamic Pricing Model –Use creative pricing approach to generate business online. Buying in bulk has always driven prices down, and there are now websites that allow you to find lower prices by joining with other buyers to purchase products in large quantities. Bartering and Offering rebates are the other ways in which companies are keeping prices down on the Internet.

- Name your price model

- The name your price model is variant, which empower customers are allowed to state the price they are willing to pay for the products or service.

- The player in this model has flexibility on price owing to low overhead costs and value chain manipulation.

- Many of this business that offers this service have partners with leaders in various industries, such as travel, lending, and retail.

- These industry leaders receive received the customer’s desired price from the eBusiness players, which act as intermediaries, and decide whether or not to sell the product or service the customers wants.

- If the price offered by the customer is not acceptable to the firm, the customer may offer another higher price and if accepted, the customer is obligated to make on-the-spot or an online purchase.

- Comparison-pricing model

- This model allows customers to poll a variety of merchants and finds desired products or services at the lowest prices. These types often generate revenue from partnership with a particular merchant

- Demand-Sensitive pricing model

- This model works on a concept that the more people who buy a product in a single purchase, the lower the cost per person becomes. Selling products individually can be expensive because the vendor must price a product or service so that it covers selling overhead cost while it generates profit.

- When customers buy in bulk, these cost shared among products, and the profit margin is increased.

- Bartering model

- This model traces its origin in the old way of doing business where one product or item is exchange online for another.

- Online companies of these types allow individual and business organizations to post their products and the seller makes an initial offer with the intention of bartering to reach a final agreement with the prospective buyer.

- Rebates

- This model is premised on the notion that the regular buyers deserve some kind of payback or rebates in the hope by doing so. The transaction will evolve into continuing and cycle to the mutual advantage of both the seller and the buyer.

- Offering products for free.

- This model presumes that any product or service offered for free is basic advertising and promotional tool used in the brick-and-mortar business that can be also effectively employed in the world of eBusiness.

- This is considered particularly effective in a new kind of product delivered in a non-traditional way- as in this case doing business online.

The Portal Model – The portal sites give visitor a chance to find almost everything they are looking for in one place. Portals often offer news, sports and weather information as well as the ability to search the web. It considers also as horizontal portals or portal that aggregate information a broad range of topics.

Other portals are more specific, offering a great deal of information pertaining to a sing area of interest, and these are called vertical portals.

Online Shopping Mall – Is another variant of storefront model. It presents a wide selection of products and services as well as a convince advantage in searching and shopping in an online storefront.

- eBusiness Solution

Essentially refer to aspects and services relating to: Programming, Web Design Building Services, Electronic Consulting, Marketing and Other forms of products/ services as well as hardware and software meant to operationalize eCommerce/eBusiness options.

CAN BE A… Customized System/ Specifically Designed System or Simply Purchased on-the-shelf

Types of eBusiness Solution

END-TO-END BUSINESS SOLUTION – Offers services to build websites from conception to implementation

- Provides design

- Development and Deployment Services

- Capabilities:

- Accepting PAYMENTS ONLINE

- Implementing NEW TECHNOLOGIES

- Monitoring their services

- Provides EASY ADAPTATION

- FULFILLMENT

- Payment Authorization

- Account Settlement

- Distribution

- Shipping

- DATA MANAGEMENT

CONTENT MANAGEMENT

- Deals with the contents of the web page

- Providing

- Updating

- Managing

- Covers managing information put online to enhance the company’s competitive advantage

- Enables the firm to manage information

- Efficiently

- Financially

- Technically

- Content is King

OTHER eBUSINESS SOLUTIONS – There are varieties of options that can assist prospective users or eBusiness concepts from initial planning or conceptualization to operations and management.

- Caution and Drawbacks on eBusiness

H.M Deitel

- Has a word of caution for parties who want to engage in eCommerce/eBusiness

- Certain Precautions that need to be addressed

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