Chapter 3 class notes: Selling on the web

REVENUE MODELS-before the sale-how is the transaction going to take place

Web Catalog (putting product info/inventory lists on the web)
Books and CDs:
Clothing and Apparel:
Computers and electronics:
Luxury goods:
Flowers and gifts:
General discounters:

Digital Content (IP) (intellectual property – stuff you own the copyright too or licensed the copyright too – you have the right to distribute)
Journal articles
Research studies
Industry reports

Advertising Supported (attach to search engines and high traffic sites)
Web directories/portals
Search engine
Shopping directories
White/yellow pages
Free email/chat rooms
Games
Calendars
Newspaper publishers (advertising appear on content pages)
Classified advertising sites

Mixed model advertising-subscription supported
-advertising fees as well as subscription fees for content products (fee for access to product – must have something to offer/sell to customers)

Fee for transaction (every single sale or transaction – a piece of the profit goes to the website or e-commerce site – getting paid based on each transaction or the number of transactions-doesn’t matter the size of the purchase at the time-flat fee)
Travel agents
Automobile sales
Insurance brokers
Stock brokers
Event tickets
Real estate brokers
Online banking
Online music
Examples

Fee for service (paying for the value of the service provided – usually professional services, etc)
Online games
Concerts and films
Professional services
Examples

Web usability
-usability tests, flow of website-easy to navigate

Web presence
Attractive and easy to use
Ranks high on stickiness (not only attracting web visitor to website but also retaining them and getting them to do further shopping - ex: having a site load quickly to ensure customers do not get frustrated and leave)
Provides quick links/content
Provides help and support
Portrays consistent image
Reinforces positive image
Builds trusting relationship ** - GOAL - meet expectations
Engages for return ability - updated content - social presence sites (forums) - have new and exciting information so people are encouraged to come back and check it out

Strategic issues – sale has already occurred – how is the transaction going to affect the back end processes/stakeholders
Channel conflict/cannibalization
Alliances/distribution management
Mobile commerce