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What is the E-Business Model?

A business model outlines how an organization garners revenue. An e-business model defines how a company obtains revenue using ecommerce strategies. Ecommerce gained popularity in the 1990s with the commercial rise of the Internet.

  1. History

    • Many online businesses emerged when the Internet first became popular in the 1990s. However, by 2000 many of those online businesses began to face financial turmoil. In hindsight, the failed businesses emphasized a basic need of business models--business models have to generate more money than the costs to operate the business.

    Types

    • A wide range of e-business models exist. Ecommerce has breathed new life into older business models, i.e. auction brokering. Additionally, some e-business models have evolved from traditional business models, such as the advertising and merchant models.

    Considerations

    • An online business may incorporate more than one e-business model into the business's business plan. For example, according to Digital Enterprise the subscription e-business model is commonly combined with the advertising e-business model.

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