Even today, some considerable time after the so called ‘Internet revolution’, electronic commerce, commonly known as e-commerce or eCommerce, remains a relatively new, emerging and constantly changing area of business management and information technology. There has been and continues to be, much publicity and discussion about e-commerce. According to the editor-in-chief of the International Journal of Electronic Commerce, Vladimir Zwass, ‘Electronic commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks’ (Zwass, 1996). However, the term may refer to more than just buying and ...view middle of the document...
The term "e-business" was coined by IBM's marketing and Internet teams in 1996 (Amor, 1999). Electronic business, commonly referred to as a business, can be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business (Beynon-Davies, 2004). Electronic business methods enables companies to link their internal and external data processing systems more efficiently and flexibly, to better satisfy the needs and expectations of their customers, to collaborate with their business partners and to conduct e-learning and electronic transactions within an organisation. Basically, e-business is more than just e-commerce. While e-business refers to a more strategic focus with an emphasis on the functions that occurs using electronic capabilities, e-commerce may therefore be a subset of companies e-business strategy. E-commerce seeks to add revenue streams using the Internet to build and enhance relationships with clients and partners and to improve its efficiency.
There are a range of definitions of e-commerce, with the term “Electronic Commerce” referring to conducting business using the Internet as the mechanism to complete the transaction (Beyon-Davies, 2009). A further definition, by Curtis and Cobham (2005), is “any exchange of information or business transaction that is facilitated by the use of information and communications technologies”. Electronic commerce clearly relates to the process of buying, selling, transferring, or exchanging products, services, and/or information through the Internet. The main focus is to concentrate on commercial deals among organisations and individuals demanding selective information systems under the guarantee of the firm it accepts the form of e-business (Beyon-Davies, 2009).
Types of electronic commerce business models
One of the major characteristics of Electronic commerce is that it enables the creation of new business models. A business model is the theoretical design for an organisation and/or business that describes how it generates revenue to sustain itself. The model spells out how the company is positioned in the value chain, with its survival depending or involved stakeholders such as advertisers and content providers (Turban, 2002). There are many types of Electronic Commerce business models but most common and visible models that are used in a middle-size company are summarized below.
Name your price is the first model that one middle-size company can effectively use it. This model allows a buyer to set the price he or she is willing to pay for a specific product or service. Customers may submit several bids before they get the product or service. In this case the company has the opportunity to offer products in a lower price than...