This week we learnt that Yahoo! had agreed to sell itself to Verizon for $4.1 billion. We give you an approximate timeline of the birth and growth and decline of yahoo, along with a tongue-in-cheek rendering of the internal discussion at each juncture. Our take away lessons are in dark blue.
We listed out the various Business Models in the previous post. Today we talk about how to choose which is a good Ecommerce Business Model for you…
For the most part, people go into businesses like the image below, with their eyes shut tight. As a result, the rate of success in startups is abysmal – as low as 5%.
Here are a few aspects of various Ecommerce business models that you need to consider.
Starting today, I am planning a series on Ecommerce. This has come out of my interaction with scores of entrepreneurs who come to our training events in Mumbai. We will go through various basic subjects as well as subjects that are quite abstract and only known to people who have a few years experience in Ecommerce. Our first post today is about Ecommerce Business Models. Let’s dive right in!
There are basically 4 different models that are universally acknowledged.
B2B – Business to Business ( you create a website that sells to businesses)
B2C – Business To Consumer( a website that sells to end users.)
C2B – Consumerto Business ( a website that aggregates other services for the use of the Consumer)
C2C – Consumer to Consumer ( a website that allows peer to peer business such as OLX, Quikr)
Some also consider these formats as business models:
G2B – Government to Business
G2C – Government to Citizen
B2G – Business to Government
When you have started off setting up your business on these models, you can always consider a mix of models. So if you are already selling to Business or Government, you must consider selling to consumers at a different level.
Or when you are selling to the end user, you must always keep the option open of selling to Businesses and Government.
Coming Soon: How to choose a business model ?
|Deep Janardhanan is the founder and CEO at International School of Success – a startup training and advisory firm set up in Mumbai, India. He has vast experience of creating and managing startup companies as well as projects for multi-nationals. His one day classes for entrepreneurs are a hit with startup founders who want to get going in a hurry – while minimizing risk of loss and failure.Want to start doing SEO for your website? Go to Deep’s website at http://ischoolofsuccess.com and download the Basic Search Engine Optimization e-book for Free!
This session was conducted on May 31 2015. The slides here were used for the live session.
We talked about action points for taking your Idea to an active ecommerce business.
Points discussed : Idea Validation(offline & online), Product Creation, ECommerce Website setup, Payment Gateways, Launch, Marketing Your Site.
Here’s a list of costs that you must account for when deciding how much capital you need for your startup to function. All businesses may have all costs but most will have most of these costs.
Market Research Costs
Trademark Search and Registration Costs
Business Registration Costs