Web E-Commerce
Ch. 3 Lecture Notes

Objective #1: Explain the Web Catalog revenue model.

  • using brand image (Sears & Roebuck, Montgomery Ward, Lands' End, etc.) to convince shoppers to buy online after viewing available products in an online catalog
  • replacing printed catalogs with online ones
  • examples: computers - Dell, books - Amazon, clothing - Lands' End (Live chat, virtual model, personal shopper), music - CDnow, etc.

Objective #2: Explain the Digital Content revenue model.

  • selling access rights to proprietary information
  • examples: LexisNexis for legal information, ProQuest for academic research information, Dow Jones news information

Objective #3: Explain the Advertising-Supported revenue model.

  • selling ads on websites
  • this model went flat during the DotCom Burst for a number of years (2000-2002)
  • examples: about.com, Yahoo (web portal), monster.com

Objective #4: Explain the Advertising-Subscription Mixed revenue model.

  • examples: New York Times, ESPN

Objective #5: Explain the Fee-for-Transaction revenue model.

  • examples: Travelocity, carsdirect.com, eTrade, Ticketmaster, realtor.com

Objective #6: Explain the Fee-for-Service revenue model.

  • example: MSN Games, RealOne SuperPass

Objective #7: List and explain the steps for creating an effective web presence.

  • identify the audience
  • identify the needs of visitors
  • accessibility
  • trust & loyalty

Objective #8: List other revenue models.

  • subscription-based - Wall Street Journal
  • prepaid access - some telephony companies
  • brokers - creating a market that brings buyers and sellers together, classified ads
  • sales representative - affiliate programs, referral fees, used at Amazon
  • auctions - open auctions like eBay and reverse auctions
  • identify the needs of visitors