e-business model

8 types of E-Business Model in Digital Marketing

In my previous article, I have looked at the differences between e-commerce and e-business in Digital Marketing. This analysis has also shown some of the features to look out for when you are discussing these twoconcepts.

 I have also done justice to the four models of e-commerce, I now want to look at the eight models of E-Business. Follow me as I will do that in this article.

 

I said it in one of my articles that e-business goes beyond buying and selling. It has much to do with creating a platform where both front and back offices are brought forward in order to do business from the customers ‘perspective.

 

Now the models…

#1 Brokerage model

As we all know, a Broker is someone that brings buyer and seller together in order to facilitate a transaction. The broker is only paid commission for the services rendered to the organisation. Such brokers are not the original owner of the product, their own is to introduce the buyer to seller and get a commission for their service.

 

#2    Infomediary model

The infomediary model does not really have any product that they are selling. They are not brokers as well. Their own interest is to review products and guide buyers on how to make the best decision. So, when you get to any site and they provide information on different products, know that they are running the infomediary model of e-business.

 

#3 Merchant model

The merchant model is an e-business model where both wholesalers and retailers of particular product and services try to reach out to the customer directly. Take for example automobile companies. Some of the manufacturers sell directly to customers. There are some that also have dealers that sell directly online.

 

#4 Manufacturing Model

Under the manufacturing e-business model, we will observe that organisations that are manufacturers exclusively reach out to target customers through this means in order to sell their products and services directly.

 

#5 Affiliate Model

The Affiliate e-business model offers an incentive to potential affiliates who help to sell products and services on behalf of the manufacturers. These are promoted through the sharing of links that lead people to pages where such products and services can be purchased.

 

#6 Advertising model

Under the Advertising e-business model, this model displays information about products and services in the form of banner or text ads which consumers can use to purchase the organisation products or services.

 

#7 Subscription Model

Under the subscription model of e-business in any organisation that has its presence online, it has to do with an arrangement where a member pays a subscription fee in order to have access to high-quality contents or services. Subscription to a hosting or domain service is part of a subscription model.

 

#8 Utility model

In this kind of e-business model, members are also allowed to subscribe with a different category of subscription packages. They only have to pay for the services that they want to enjoy.

 

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