January 5, 2013 ? 5:29 am
What precisely is an E-Commerce Business Model?
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An e-commerce business model is a strategic plan outlining and defining how an individual or company will conduct electronic trade or Internet commerce (e-commerce).
- The model provides an organized and structured guide to ensure the business makes a profit, generating enough revenue to be self-sustaining;
- Generally, the e-commerce business plan covers how to decrease operating costs and increase profits, as well as clearly define the roles of each person involved in the business;
- Specific details of each e-commerce business structure are dependent upon the type of business covered by the plan;
- Also referred to as an Internet business model, the e-commerce business model typically modifies a business plan that is already successful in businesses and adapts it to suit the specific business category.
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The model takes into consideration the differences of conducting business online, as compared to face-to-face, addressing both the risks and the rewards.
Several categories have proven to be successful as e-commerce businesses.
These include selling Internet advertising; selling various types of products and specialized services; information industries that provide knowledge and expertise in many topics; electronic publishing; and Internet-based careers, previously unknown before the advancement of technology and Internet accessibility.
Source: http://soltisconsulting1.wordpress.com/2013/01/05/what-precisely-is-an-e-commerce-business-model/
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