History & Growth
In what year did most e-commerce's revenues see solid growth?
2006
What is an E-tailer?
Sells physical products directly to consumers or to individuals businesses.
What is an advertising revenue model?
A website generates revenue by attracting a large audience of visitors who can then be exposed to advertisements.
What is ubiquity?
Ubiquity is the fact of appearing everywhere or of being very common.
What is long-tail marketing?
It's the ability of firms to market goods profitability to very small online audiences, largely because of the lower costs of reaching very small market segments.
How much does e-commerce continue to grow each year?
12%-15%
What is a community provider?
Provides an online meeting place where people with similar interests can communicate and find useful information.
What is a sales revenue model?
When a company derives revenue by selling goods, information, or service to customers.
What is information density?
The total amount and quality of information available to all market participants, consumers, and merchants alike.
What is the wisdom of crowds?
The belief that large numbers of people can make better decisions about a wide range of topics and products than a single person or even a small committee of experts.
What day/year did eBay launch?
Labor day, 1995
What is a portal?
Provides initial point of entry to the web along with specialized content and other services.
What is a free/freemium revenue model?
When firms offer basic services or content for free and charge a premium for advanced or special services.
What is information asymmetry and which market experiences it more?
When one party in a transaction has more information that is important for the transaction than the other party.
Traditional markets experience this more.
What does NFC stand for?
Near-Field Communication.
What month/ year did Amazon launch its online bookstore?
July 1995
What is a content provider? (Also provide 2 examples)
Creates revenue by providing a digital environment where buyers and sellers can meet, search for products, display products, and establish prices for those products.
Ex: WSJ.com, GettyImages.com, Apple Music, MSN Games
What is a transaction fee revenue model? Provide an example of a company that uses this model?
When a company receives a fee for enabling or executing a transaction.
Ex: Ebay, ETrade, Venmo
Which market has more richness?
Traditional markets
What is a micropayment system and who pioneered it?
A micropayment system provides content providers with a cost-effective method for processing high volumes of very small monetary transactions.
This system was pioneered by Apple.
What year was the E-commerce stock bubble?
2001
What is a transaction broker? (Also provide 2 examples)
Saves users money and time by processing online sales transactions and generating a fee each time a transaction occurs.
EX: ETrade.com, Blue Nile
What is an affiliate revenue model? Provide an example of a company that uses this model?
A website that sends visitors to other websites in return for a referral fee or percentage of the revenue from any resulting sales.
Ex: Amazon, Yelp
What is disintermediation and are you more likely to see this in digital or traditional markets?
Disintermediation is the removal of organizations or business process layers responsible for intermediary steps in a value chain.
More likely to see disintermediation in digital markets.
Electronic Data Interchange- The direct computer-to-computer exchange between two organizations of standard businesses transactions, such as orders, shipment instructions, or payments.