Advertisements
Advertisements
Question
Explain any five E-Commerce revenue models.
Long Answer
Solution
Apart from the regular selling of commodities, today there are many other ways by which companies can make money from the Internet.
The other forms of E-Commerce activities are:
- Affiliate site-
- It is a form of third-party marketing in which the site owner gets paid based on performance.
- This site may be a price comparison service or shopping directories or review sites or blogs that contain a link to a normal retailing site and are paid when a customer makes a purchase through it.
- The affiliate site usually attracts visitors by offering more information and tutorials on some specific product or a topic.
- Auction site-
It is a kind of website, that auctions items on the Internet and levies some commission from the sales, e.g. https://www.ebay.com/ - Banner advertisement site-
It displays advertisements of other companies in its websites and thereby earns revenue. - Bulk-buying sites-
It collects a number of users together all of who want to buy similar items; the site negotiates a discount with the supplier and takes a commission. e.g. https://www.alibaba.com/ - Digital publishing sites-
- It effectively hosts e-books or magazines on the web.
- They make profits in a number of ways such as advertising, selling, etc., https://wordpress. org/
shaalaa.com
E-commerce Revenue Models
Is there an error in this question or solution?