Nature of doing business, over a period of time has changed with the development in the information technology. It was believed that the reduced cost of transactions done electronically will lead to decrease or disappearance of the traditional intermediaries which will reflect a change in the electronic value chain. The effect of electronic business will restructure the traditional market – Disintermediation where the traditional intermediaries will lose its existence; Re-Intermediation where they will be forced to set apart and will re-develop in the electronic business; and Cybermediation where entirely new markets will be formed for the intermediaries.
For this assignment I have chosen two cybermediaries for fragrances (perfumes). I have discussed the similarities and differences between these cybermediaries. I have also discussed the benefits of cybermediaries to the consumers and revenue model for one of the two cybermediaries. The two cybermediaries are:
Cybermediaries are the intermediaries between the Buyer and the Seller; however they do not possess any products or services. They facilitate the customer to purchase goods and services online.
Both the cybermediaries chosen by me offer a wide range of per...
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...e product he is connected to e-bay site who may have to pay a referral fee.
• Subscription – The seller is responsible to pay these charges. It is usually a fixed fee for a limited period. As in case of Perfumefairy where a customer has to sign up before subscribing for a newsletter.
• Product or Service Sales – This revenue model is alternatively called ‘direct to customer’ model. Customer comes in direct contact through the cybermediary, if the buyer buys the product which is termed as product sale, the cybermediary can get commission as agreed with the seller. In case of Perfumefairy there is an option where the consumer is directly taken to the company site where he has the facility to purchase a product online.
• Transaction Fee – It refers to the fee which is based on each transaction. Generally, it is apt for the information based or knowledge based products.