Marketplace analysis for e-commerce - Business models for e-commerce

3 important questions on Marketplace analysis for e-commerce - Business models for e-commerce

What is the online business model?

A summary of how a company will generate a profit identifying its core product or service value proposition, target customers in different markets, position in the competitive online marketplace or value chain and its projections for revenue and costs.

What are the main sections in the online business model?

  1. Value proposition - the heart, what to offer
  2. Customer segments - different target audiences
  3. Type of relations - type of relationship/ service (self service/ automated service)
  4. Channels - methods of delivery and audience reach
  5. Partnerships
  6. Activitities - main activities that need to be performed to deliver value prop.
  7. Resources - Types of processes and people to complete the activities
  8. Costs - different cost elements
  9. Revenue stream - the method by which business drives income

On what is the revenue maximization based?

- number and size of ad units
- capacity to sell advertising
- free levels of negotiated for different models
- traffic volumes
- visitor engagement

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