Planning to Develop E-commerce Model
Search of computer science
Dr. Yousef El-Ebiary,
Computer Science and Information Technology
Al-Madenah International University
- shah Alam - Malaysia
Yousef.abubaker@mediu.edu.my
Dr.y.elebiary@gmail.com
Abstract
Key words: Management Information
System, MIS, Information System, IS,
Electronic
Enterprise,
Information
Technology, IT, Business Information
Systems, Electronic Enterprise, strategic
planning, e-Business, e-Commerce,
Business development, Business to
business, B2B, Business to Customer,
B2C, Customer to Customer, C2C.
Methodology: Case study, System
Analysis, Business Analysis, web search
and books review.
Introduction
e-commerce has emerged from years
there is no universal agreement on how
to categorize e-commerce business
models.
Despite
the
different
categorizations that are suggested every
day, it is possible to identify the generic
categorization of e-commerce business
models.
Study structure
One approach is to categorize business
models according to the different ecommerce sectors—B2C, B2B, C2C—in
e-commerce is conducting business
activities over computer networks like
Internet or extranet.
which they are utilized. It is interesting
to mention that fundamentally similar
business models may appear in more
than one sector. It is just important to
note that there is no correct or standard
way to categorize e-commerce models.
Choosing the right model depends on the
sectors the company use and on the
objectives and goals of the company.
Note that some companies use multiple
business models. Next is a description of
the most known categories of ecommerce sectors and business models
in each sector.
Business to Consumer (B2C) Business
Model: It is the most well-known and
familiar type of e-commerce in which
online businesses seeks to reach
individual customers and customers deal
directly with businesses avoiding any
intermediaries. The major business
models used in B2C are:
 Portal: It is a web site
aggregating several functions
such as news, e-mail, shopping,
instant messaging etc. all in one
place. Portals offer users
powerful web search tools to
provide ease of access to large
amount of information to web
surfers. Portals such as Yahoo,
AOL, MSN, are considered
gateway to Internet.
Portals don’t sell products directly; they
generate revenue by attracting large
audiences, charging advertisers for ad
placement, collecting referral fees for
directing customers to other sites, and
charging for premium services.
 E- trailers: It is online retail store
that come in different sizes.
Some e-trailers are referred as
“brick and click” which are
physical
stores
with
complementary online store such
as Wall-Mart and Barnes &
Noble. Others operate only
virtually such as Amazon and
BlueNile. E-trailer model seeks
Internet surfers and considers
time-starved users as potential
customers because they need an
easy shopping solution enabling
them to shop quickly without
wasting time in traffic and
shopping in physical stores.
Revenue in this model is product
base meaning that customers pay
for the purchase of their ordered
products.
 Service Provider: While e-trailer
provide products to customers
service provider as the name
implies provide services online.
Examples of service provided
online are like content sharing,
photo and video sharing, make
phone calls over Internet.
Google is considered leaders in this field
by providing services and applications
such as Google maps, Google Docs and
Spreadsheets etc. Service providers
make revenue by charging a fee, or
monthly subscriptions on customers
using their services, while others
generate revenue from other sources,
such as through advertising and by
collecting personal information that is
useful in direct marketing. Some
services are free but are not complete
such as trial versions or are not provided
with its complete features unless
customers purchase it.
 Market Creator: Market
creator acts like a middleman
between the buyer and seller
offering
the
digital
environment in which buyer
and seller can meet, display
products, search for products,
negotiate prices and make a
purchase.
The
value
proposition of online market
creators is that they provide a
platform where sellers can
easily display their wares and
where purchasers can buy
directly from sellers. eBay is
example of market creator.
eBay makes revenue by
collecting commission on
every sale based on the
percentage of the item’s sales
price in addition to a listing
fee.
Business to Business (B2B) Business
Model: B2B e-commerce is a form of ecommerce in which participants are
organizations and sell to other
businesses. It is a useful tool for
connecting business partners in a virtual
supply chain to cut costs and time. Next
is a description of major business models
used in B2B:
 E-distributor: Companies that
supply products and services to
other businesses are called edistributor.
For
example,
Grainger
is
the
largest
distributor of maintenance,
repair and operations supplies.
Grainger relied on catalog sales
and physical distribution centers
in metropolitan areas. Its catalog
of equipment went online in
1995 at Grainger.com, giving
businesses access to more than
300,000 items.
 E-procurement: it is the process
of creating and selling access to
digital electronic market. Eprocurement firms provide tools
and applications for buyers to
organize
their
procurement
process and help sellers to sell to
large purchasers.
 Exchanges: it is an independent
digital electronic marketplace
where suppliers and buyers can
conduct transactions. The main
idea behind B2B exchange is that
it
makes
it
easier
for
organizations to find goods they
needed, to complete transactions,
and to save money through the
added competition or large
amount of goods being sold or
bought. Exchanged are owned by
independent
firms
which
generate revenue by charging a
commission or fee based on the
size of the transactions conducted
among trading parties. Although
B2B exchanges gained a great
attention at its first emergence,
today they are a small part of the
overall B2B picture.
Other Business Models in Emerging Ecommerce Markets:
 Consumer to Consumer (C2C)
business model: It is a form of ecommerce in which consumers
are connected directly to
consumers to conduct sales.
Often these sale transactions are
done through web auction sites
like eBay. The growth of C2C is
responsible for reducing the use
of newspaper to advertise and
sell personal items. Another
example of C2C for customers
who hate auctions is Half.com in
which consumers sell unwanted
personal products like books,
movies, music at fixed price.
 Peer to peer business model: It is
a technology enabling consumers
to share files and services on the
web without common servers.
The main goal of P2P companies
is to help individuals make
information available for users
by connecting them to the
Internet. To date there are few
examples of successful P2P firms

outside the music and content file
swapping sites. One company
called Cloud mark that succeeded
in the use of this model outside
the two previous mentioned
areas.
M-commerce business model: It
is now become very common to
see people reading online
newspaper, watching video,
sending mail through their
mobile phones. M-commerce
stands for mobile commerce
which utilizes traditional ecommerce models and takes
advantage of new wireless
technology to permit mobile
access to the web and shop
online or make online sale
through mobile phones. The
major advantage of m-commerce
is that it provides Internet access
to
anyone,
anytime,
and
anywhere,
using
wireless
devices. The key technologies
here are cell phone-based 3G
(third-generation wireless), WiFi (wireless local area networks),
and Bluetooth (short-range radio
frequency Web devices).
Conclusion: E-commerce can be
described as an electronic market where
sellers (suppliers, or companies, or
stores) and intermediaries (brokers) and
buyers can communicate and offers its
products and services in the form of
virtual or digital, also paid for with Ecredit .
References:
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Oz,
“Management
information systems”, 6th edition
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logistics”
3. Ralph Stair, George Reynolds,
“Principles
of
Information
Systems”, 6th, 10 th edition
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Information
Systems:
A
management
Approach”,
international edition
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“Process Automation as the
Foundation for E-Business”,
VLDB, Cairo, Egypt, 2000
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DeHayes, Jeffrey A. Hoffer, E.
Wainright Martin, and William
C.
Perkins,
Managing
Information
Technology,
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Dr. Yousef El-Ebiary – 2015.
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comparison study, Dr. Yousef ElEbiary – 2015.
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2015.
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Competitive Advantage: Creating
and
Sustaining
Superior
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Prentice-Hall, 2010.
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Information Systems, twelfth
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September 2012.
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