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e-business Models  «Prev 

Examples of the Merchant Model

These storefront sites are the place to find and discover almost anything you want to buy online.
Products sold at these online shopping sites may include free electronic greeting cards, online auctions, and millions of books, CDs, videos, DVDs, toys and games, and electronics.

Merchant Model

The merchant model is a business model that consists in selling goods or services over the internet. This type of e-business is the most popular amongst wholesalers and retailers, and its sales are usually made through auctions or based on list prices.
It is often the case that online merchants offer products at a discounted price, this is attributable to the way they operate because of the following reasons:
  1. Merchandise is purchased from manufacturers in large amounts
  2. Operations are usually done from inexpensive warehouses located in peripheral areas
  3. Drop shipping is frequently used as supply chain management technique, which means that the retailer does not keep goods in stock; instead it instructs the manufacturer or wholesaler to ship the purchased merchandise directly to the customer.


Consider an online music store selling audio CDs and DVDs to end users or customers through orders on Internet.
The following example implements the concept of b2c business model.
Amazon.com is the leading online retailer of products that inform, educate, entertain and inspire. The Amazon group also has online stores in the United States, Germany, France, Japan and Canada.

Advertising as a tool of communication and marketing tool is subject to many theories and explanatory and normative models. Its contents and performed functions are not yet defined in general recognized theory. Present article focuses on the analysis of advertising in terms of its specific persuasive effort and communication process. Advertising seen as a process is based on the general scheme of the marketing communication process, with a number of specific features related to its content. The persuasive effort is related to creation of favorable attitudes or reinforcing existing attitudes. This process of persuasion is closely linked to the concept of attitude. Most theories of advertising have explored the connection between persuasion and attitude, identifying possible responses that the receiver can give to advertising information. Following lines develop these two important aspects associated with advertising theory, even if they are not the only issues that are debated in the literature.