Model Of E-Commerce

Private Office Model

The office model is an extension of the company website which is only visible to the client. The client is provided with a user ID and password. This model is best suited to service businesses with high- value products.  It also works well for collaborative projects or transactions or for services or markets with complex security arrangements.

Shop Model

This is the familiar e-shop. The basic core is a catalogue. Customers search and browse the catalogue choose items, which are added to a virtual basket or trolley. The ‘shopping is moved to the checkout are which is a secure area. Payment can be verified and funds transferred, while the customer is online. It is suitable for shippable and downloadable products and low human intervention means a potential cost saving but also potential risk. You will know the largest online stores and high profile websites that use this model. What is perhaps not obvious is that most successful sites are supported by:

·     Innovative online processes e.g. record of previous transactions, targeted sale on entry, accounts maintenance, ‘1 click’ to system for subsequent orders.

·       High quality offline processes, such as customer service, delivery speed, telesales, and cross-selling programmes.

·        Integration of business processes with the shop front and back ends.

Membership Model

The membership model is about creating communities that are of commercial interest to the business. Superficially the membership model seems to have no obvious business value. Actually it is a very creative marketing strategy where all parties can benefit. Companies can often afford to give away expertise in specialist areas e.g. online newsletter on antique clocks, posting facility for the active knitting community. For the business, self-selecting buyers come to the business. It can be so rewarding to create a community that it is all too easy to loose site of the commercial goals. It is therefore important to plan the commercial activity before designing the membership system.

Hybrid Model 

Most sites are a combination of these models. For example amazon.com is a membership model combined with a shop model; buzzsaw.com is a membership and portal combination.