E-Commerce Business Models

Introduction

In partnership with Conseil québécois du commerce de détail

"What are the most appropriate business models for retail businesses wishing to take advantage of e-commerce opportunities?"

Nowadays, the good use of information, the quality of data, efficiency of the sales force and the originality of marketing are the components that are useful and necessary to a firm's successful functioning. However, these are insufficient in the new computer age economy. The advent of information and transaction exchanges via the Web is a new key component for businesses. In fact, the advent of the Internet has created new business models as well as a new type of interactions with outside entities. From one industry to another, the new business models are slowly making old models disappear and are even replacing them. They also allow producing added value both for end-consumers and for businesses. It is thus important to grasp that the economic environment is in mutation, that the use of this key component brings about new business models, that the comprehension of business models in e-commerce allows us to better understand what is going on around us and that the adoption of this new method may make it poss ible to increase one's competitiveness on the markets.

Although the use of e-commerce is accessible to both consumers and businesses from different sectors of activity, this article is written from the point of view of the retail business sector. We will examine the case of business owners who would like to sell their products to companies and consumers and at the same time buy supplies from producers or manufacturers.

To orient business owners in the new world of e-commerce, it is necessary to understand the environment, the players involved and how it functions, as well as know about the different existing business models.

More precisely, it is necessary to know the types of players present in the e-commerce environment, i.e.:

• pure play online commerce;
• independent or integrated multichannel commerce.

It is also necessary to have a global understanding of all the steps and mechanisms involved in using e-commerce.

• catalogues;
• auctions;
• value chains;
• the barter model;
• community alliances;
• buying groups;
• vertical hubs;
• functional/horizontal hubs (logistics, transport, etc.).

Finally, the article ends with a self-evaluation questionnaire that allows business owners interested in e-commerce to position themselves. Answering basic questions about their main activities and employee management tools will allow them to choose the most appropriate business models as well as the operational services that they need to begin.