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.

Ad  B2B Digital Marketing Strategy
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.

The marketing of Women's Jeans applied the Merchant Model

The merchant model is a business approach that involves buying products in bulk from manufacturers and then selling them at a markup to customers. When it comes to marketing women's jeans using the merchant model, there are a few key strategies that can be effective:
  1. Targeting a specific market: One approach would be to target a specific market segment for women's jeans, such as women who are looking for high-quality denim or women who want jeans with a specific fit or style. By understanding the needs and preferences of this market, you can stock and market jeans that appeal to them.
  2. Offering a range of options: Another approach would be to offer a wide range of options when it comes to women's jeans, including different styles, sizes, colors, and price points. This can help attract a larger customer base and increase sales.
  3. Emphasizing quality and value: With the merchant model, it's important to offer products that are high-quality and provide good value for the price. This can be emphasized in your marketing efforts by highlighting the quality of the denim, the durability of the jeans, and the affordable prices compared to other brands.
  4. Creating a unique brand identity: Finally, to stand out in a crowded market, it's important to create a unique brand identity for your women's jeans. This can be done by developing a distinctive logo, creating a memorable tagline, and using social media and other channels to build a community of loyal customers who are passionate about your brand.

Customer Experience Strategy