Selling on the Web: Revenue Models and Building a Web Presence. Revenue Models in Transition. Several companies have changed their revenue models over the years in response to their new and changing Web customers: Subscription to Advertising-Supported Model Slate Magazine
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Selling on the Web: Revenue Models and Building a Web Presence
Several companies have changed their revenue models over the years in response to their new and changing Web customers:
Channel conflict or cannibalization can occur when sales activity on a company’s website interferes with existing sales channels.
Web sites provide product information but directs customers to online and physical stores where goods can be purchased.
Goods purchased on company website can be returned to physical store thereby stressing retailers’ time and causing further inventory management.
Solution: Channel cooperation:
Retail stores are credited with inventory and labor costs for each Web site return they handle, while catalog division managers are given credit for customers who purchase goods from the Web site.
When two or more companies join forces to undertake an activity over a long period of time
Example: Amazon.com has partnered with Target, Tool Crib of the North, Borders, Toys R Us, drugstore.com