What’s Important for an E-Commerce Business Model?
A recent Knowledge@Wharton article discusses the importance of having not just a solid revenue model for your online business, but also a solid business model. In other words, yes, it’s great to start pulling in the bucks, but if you don’t have your other aspects of the business in order, you’ll end up spending more than you collect, or perhaps not spend enough to keep the collection of funds ongoing.
The article discusses the “eValue framework,” created by Professors Amit and Zott, which details four “key value drivers”—let’s think of them as essential elements—that every e-business model should have. They are:
Efficiency – use e-commerce to find a more efficient way to get something done
Complementarities – work with other goods and service suppliers to bundle your offering with theirs, thus gaining exposure, market share, and someone who wants you to succeed (your partner firms).
Lock-In: find a way to get people to want, or even need, to come back to you and buy again.
Novelty: If there’s nothing new, why should someone come back? Whether it’s new product, new service offerings, new partnerships, new info, new entertainment, etc., in today’s fast-paced world of newness, the same old thing just doesn’t cut it anymore.
So, what e-business plan factors can you come up with (either on your own or from a nifty web site of your choice)?