Explain about the e-commerce Sales Life Cycle model | e-Commerce Notes
Answer:E-Commerce sales life cycle includes the following stages:
· Pre-sale:
- Online promotions are done to create excitement about the products that are being sold through online advertisements.
- The customers place their order for the products. The process should be user-friendly and secure.
- This stage involves delivering the product to the consumer. Care should be taken in delivery with proper packaging and speedy delivery to make the customer happy.
- This stage involves following up with the customer to let him know that the product has been delivered or if he is satisfied. The feedbacks from the customer can be furthers used in improving services by the company.
Business model vs Revenue Model
| Business Model | Revenue Model |
| · Business model represents the plan implemented by the company or an organisation to generate revenue and gain enormous profit from its operations. · Any business model acts as the core architecture of an organisation’s business. · The business model is a part of a business strategy. | · Revenue model is a part of the overall business model. · Revenue model refers to the cost structure and target profit margins. · It shows how revenue is generated through sales, leasing, subscription, support, and so on. |
Role of business model
Business model represents the plan implemented by the company or an organisation to generate revenue and gain enormous profit from its operations. Business model helps an organisation do business in a particular way by helping the organisation to choose offerings, strategies, infrastructure, organisational structures, trading practices, and operational processes and policies.· A business model helps an organisation to define the structure of the business.
· A business model helps the organisation how to offer or put out the offer to the prospective customer by choosing an appropriate medium to communicate about their products and services.
· It also helps the organisation to choose the infrastructure. It also includes the software packages that they will depend on for hosting the website by studying their needs and requirements.
· It helps the organisation to decide and frame administrative structures for handing E-Commerce.
· It helps the organisation frame polices for trading in E-Commerce domain.
· It helps the organisation to decide the type of relationship they will have with the customers based on the products and services they are offering. Based on relationship, business models are- business to consumer (B2C), business to business (B2B), consumer to consumer (C2C), and consumer to business (C2B).
Business Model and Business Strategy
| Business Model | Business Strategy |
| · A business model is more generic than a business strategy. · In essence, a business model is a conceptual, rather than financial, model of a business. Business models address the fundamental structure of the business · Business model represents the plan implemented by the company or an organisation to generate revenue and gain enormous profit from its operations. | · Business Strategy is more granular exercise. · Strategies are very specific to how businesses interact with competitors in the marketplace and win customers · Business strategy describes how the company will engage competitors. · It identifies and segment customers, and responds to the actual market environment. |
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