Electronic Commerce Ninth Edition

1. Electronic CommerceNinth Edition Chapter 3Selling on the Web: Revenue Models and Building a Web Presence

2. Electronic Commerce, Ninth Edition 2 Learning Objectives In this chapter, you will learn about: Revenue models How some companies move from one revenue model to another to achieve success Revenue strategy issues that companies face when selling on the Web Creating an effective business presence on the Web Web site usability Communicating effectively with customers on the Web

3. Electronic Commerce, Ninth Edition 3 Revenue Models Web business revenue-generating models Web catalog Digital content Advertising-supported Advertising-subscription mixed Fee-based Can work for both sale types Business-to-consumer (B2C) Business-to-business (B2B) Can use same revenue model for both types of sales

4. Electronic Commerce, Ninth Edition 4 Web Catalog Revenue Models Adapted from mail-order (catalog) model Seller establishes brand image Printed information mailed to prospective buyers Orders placed by mail or toll-free telephone number Expands traditional model Replaces or supplements print catalogs Offers flexibility Orders placed through Web site or telephone Payments made though Web site, telephone, or mail Creates additional sales outlet for existing companies

5. Electronic Commerce, Ninth Edition 5 Web Catalog Revenue Models (cont’d.) Computers and consumer electronics Leading computer manufacturers Sell a full range of products on the Web Dell allows product configuration flexibility Creates value Crutchfield Expanded successful mail-order catalog operations to include Web sites Best Buy, J&R Music World, Radio Shack Web sites sell same products as in stores