Answer to Question #318686 in Management for Rishi

Question

NMIMS Global Access School for Continuing Education (NGA-SCE)

Course: E-Business

2. With the rapid evolution of technology and penetration of the technology enabled devices, e-businesses are gaining more and more prominence thereby generating sustainable revenue. Discuss the various revenue models and the associated issues for an e-business.

(10 Marks)

"I WANT FULL LONG ANSWER"

Answer 1

An e-commerce revenue model is a plan for generating revenue for an online business. While e-commerce revenue models share many similarities with brick-and-mortar businesses, they also enable you to reach customers around the globe and offer more diverse methods of generating sales. 5 Common Ecommerce Revenue Models That Work;

• Sales Revenue Model - here profits are achieved by selling products or providing services online versus, or in addition to, brick-and-mortar stores. Any business selling items through the internet, regardless of their business model, is following the sales revenue model.
• Advertising Revenue Model - The advertising revenue model is when popular platforms allow others to advertise with them for a fee. Media sites, such as magazines, newspapers, and TV channels also frequently use this model. 
• 3 Subscription Revenue Model - there are also many popular subscription box brands like Bark Box, Hello Fresh, Ipsy, and Harry’s. Regardless of the offering, with this model users are charged a recurring fee (monthly or annual) for using services or having existing products replenished and delivered regularly. 
• Transaction Fee Revenue Model - This model charges a fee every time a transaction is made through their platform. For example, eBay charges sellers a fee whenever an item is sold; PayPal charges users a fee for transferring money; eTrade gains a transaction fee whenever a stock is sold.
• Affiliate Revenue Model - With this model, businesses earn revenue just by promoting and selling another person’s (or company’s) product on their site.