Which of the following is not a variation of the e-tailing business model?
A) Market creator
B) Virtual merchant
C) Bricks-and-clicks
D) Manufacturer-direct
Correct Answer is A) Market creator
Which of the following is not a variation of the e-tailing business model?
Explanation:
E-commerce has revolutionized the way we shop and has given rise to various business models that leverage the power of the internet to sell products and services online. One of the most popular e-commerce business models is the e-tailer model, which refers to online stores that sell products directly to consumers. While there are various variations of the e-tailer business model, some of them may not fit the definition of an e-tailer. In this article, we will discuss which of the following is not a variation of the e-tailer business model.
Statement: Which of the following is not a variation of the e-tailing business model?
Online Marketplace
An online marketplace is a platform that allows multiple sellers to list their products and sell them to consumers. While an online marketplace does sell products directly to consumers, it differs from the e-tailer model in that it does not own or directly manage the inventory. Instead, it acts as a middleman between the sellers and buyers, providing a platform for sellers to list their products and buyers to browse and purchase them. Examples of online marketplaces include Amazon, eBay, and Etsy. Therefore, an online marketplace is not a variation of the e-tailer business model.
Direct Sales
Direct sales refer to a business model in which products are sold directly to consumers through a network of independent sales representatives or consultants. Direct sales companies often use a multi-level marketing (MLM) structure in which sales representatives can earn commissions not only from their own sales but also from the sales of their team members. While direct sales companies do sell products directly to consumers, they differ from the e-tailer model in that they do not operate an online store. Instead, products are sold through individual representatives who often hold parties or events to showcase and sell the products. Examples of direct sales companies include Avon, Mary Kay, and Tupperware. Therefore, direct sales are not a variation of the e-tailer business model.
Brick-and-Mortar Stores
Brick-and-mortar stores are physical retail locations that sell products directly to consumers. While brick-and-mortar stores may have an online presence, they differ from the e-tailer model in that they rely primarily on physical storefronts to sell products. While some brick-and-mortar retailers, such as Walmart and Target, have expanded into e-commerce, their primary revenue stream still comes from in-store sales. Therefore, brick-and-mortar stores are not a variation of the e-tailer business model.
Subscription-based Services
Subscription-based services are businesses that offer recurring services to consumers for a monthly or yearly fee. While subscription-based services may sell products directly to consumers, they differ from the e-tailer model in that their primary revenue stream comes from subscriptions, not product sales. Examples of subscription-based services include Netflix, Spotify, and Blue Apron. Therefore, subscription-based services are not a variation of the e-tailer business model.
Conclusion
In conclusion, the e-tailer business model refers to online stores that sell products directly to consumers. While there are various variations of the e-tailer model, including online marketplaces, direct sales, and brick-and-mortar stores, these are not considered e-tailers because they differ in their business model and revenue streams. Online marketplaces act as middlemen between sellers and buyers, direct sales companies sell products through independent representatives, brick-and-mortar stores rely on physical storefronts to sell products, and subscription-based services generate revenue primarily through subscriptions rather than product sales. By understanding the differences between these business models, entrepreneurs can choose the model that best suits their needs and goals.