Online Business Models

I love shopping online – who does not love the thought of the whole world of possibilities and offerings is just a click and a week away from arriving at your home – I have never really understood what’s behind my laptop screen and how the money get moved around.

Online based businesses as much as any other businesses need to Understand their Consumers, the Communities, and most of all their Business Models, in this case Digital Business Models.

6 Models

  1. Brokage Model – pretty much an online market where buyers can meet sellers – they’ve got to pay a fee to attend the market – this case transaction fee – Ebay (10% I think, from personal experience)

Other examples: Hotel booking sites

  1. Advertising Model – Google, Youtube (and pretty much websites)

Everyone once in a while get annoyed with ads popping up on their screens. So Ad blocker apps are used more than ever

What some brands do for instance, Forbes does not let you use their site unless you turn off your Adblocker

  1. Merchant Model – ASOS!
  2. Infomediary – Amazon
  3. Subscription Model – Netflix
  4. Community Model – Wikipedia

Businesses do not just adopt one model to operate and sustain itself and generate revenues.

For example, aside adopting advertising model to provide free service for users and earn revenue from advertiser, Google also focus its efforts on Adwords supporting programs, Android software developments, Chrome web browsing and other various Google Applications.

After looking into this, I finally gained an understanding of the difference between Ebay and Amazon.

Although both of them operate in e-commerce, acting as the middle party for consumers and suppliers, they adopt different business models and revenue schemes to differentiate themselves and their product offerings.

Exciting news, Amazon is coming to Australia!!

And yes the sharing economy – Utilising all the resources we have to build the world a better and more convenient place – Uber, Airbnb, Grab (Asian Uber – with delivery services), Carhood, Parkhound, Locals, Tablo, etc.


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