1.1.1 Discuss the 3 categories of the e-commerce business model (6)
1.1.2 Which e-commerce model is Mark Vadon using for his business? (1)
1.1.1
Business-to-Business (B2B) Model
A business model based on selling to business customers electronically
Business-to-Consumer (B2C) Model
A business model based on selling to fnal customers electronically
Consumer-to- consumer models (Aucton Sites)
Web-based businesses ofering partcipants the ability to list products for bidding
1.1.2
Mark Vadon is using the Business-to-Consumer (B2C) Model
Question 1.2
Discuss any 4 benefts of starting up a business on the internet. Substantiate your answer
by using examples of the case study. (8).
1. Provides small businesses with the opportunity to compete with larger frms in larger
markets.
2. Helps with cash fow problems by compressing the sales cycle most sales are credit
card sales ensuring the immediate fow of money.
3. Builds better customer relatonships through better service. Electronic Customer
Relatonship Marketng (eCRM)
4. An electronically based system that emphasizes customer relatonships
The components of a physical delivery includes the following
1. Transportaton – intermediaries are classifed as common carries (for hire to the
general public, contract carriers (contracts with individual shippers) and private carriers
(shippers)
2. Storage and materials handling – This includes warehousing as well as forklifs,
special containers and packaging