Electronic Commerce Business Model

Electronic commerce or e-commerce is business or a segment of a large business that enables individual or company to conduct business over an electronic network, mainly the internet. Business model are defined as a way or a method of doing and develop business by which a company can sustain itself which to generate revenue. Therefore, Electronic commerce business model are defined as way or method to doing business online which a company can generate revenue or income. Electronic commerce is first developed when in the year 1979, Michael Aldrich who is an inventor, innovator and entrepreneur first developed an online shopping, when he first encountered problem when he has to go to shopping weekly and he always complain to his wife that the

The top five most successful business model are Business to Business model (B2B), Business to Consumer model (B2C), Business to Government (B2G), Government to Citizen (G2C) and Customer to Customer (C2C).Business to Business model (B2B) is defined as transaction of commerce between businesses, for example business occur between a manufacturer and a wholesaler or between wholesaler and retailer. A typical supplier company often involves in many Business-to-Business transaction. This is because most companies need raw materials and component for manufacturing this product. Transaction between two or more businesses is called Business to Business model (B2B). Furthermore, Brokerage model also applied this Business to Business model (B2B).One of famous example of Business to Business model(B2B) is Amazon.com. Amazon.com started as provided service wholesaler selling book to retailer. Advantages of Business to Business model are it less cost through long-term customer loyalty. Less cost through long-term customer loyalty means that customer in Business to Business transaction is more loyal because when the customer loyal to a certain company, the company will give discount of loyalty. Other than that, Business to Business model also give opportunity businesses to expand and grow because businesses can transact far more their local region and customer from different regions will expand their businesses and their revenue will continue to grow. The disadvantages of Business to Business model (B2B) are it has limited market. Business to Business model transact or sell to other businesses and face a small buying pool. It’s means that it does not have a wide range of buyers. Besides that, the advantages of Business to Business model that the sales process will take longer because businesses often need to have meetings, and will be driven in many factor before