ECOMMERCE & DIGITAL MARKETING

2014

10 Online Business

Models EDM

Manpreet Singh

U N I V E R S A L B U S I N E S S S C H O O L K A R J A T

EDM Online Business Models

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1. Olx.in : Olx is a website where users can sell new & old things. It is a website

for second hand goods between Customers to customers. Anybody wants to

sell anything can do so on olx. Just go to olx.in, signp create your profile and

upload the picture of the product you want to sell.

How Olx makes money?

OLX mostly makes money from advertising. OLX displays text ads on listing,

search and item pages, but does not display advertising on the home page. They are one

of the few online businesses where advertising works well and is a sustainable business

model.

Advertising works well on OLX because users are in a search behavior – they are

looking for something. As a result their contextually relevant ads have a high click

through rate. Combined with the high value of their top categories – real estate, jobs

and real estate – it leads to a reasonably successful and sustainable business model.

Being a free ad supported site, it generates much low revenues.

Isko OLX pe bech do !!!

EDM Online Business Models

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Astroyogi.com is India's first fully translated Astrology portal in Hindi. It

houses over 10,000 pages of unique content covering all areas of astrology and

spirituality, including numerology, tarot, vaastu, fengshui and Chinese astrology. With

a registered user base reaching a million and over 10 million page views a month.

The astrology market in India is pegged at 40,000 cr and a large part of the audience is

online. Astroyogi.com is a company dedicated to providing Astro services with a large

pool of astrologers and several experts on its panel and this enables Astroyogi.com to

bring to its customers the collective domain knowledge.

It follows a Freemium business model, Where basic facilities like daily, weekly,

monthly & yearly horoscopes are free according to different zodiac signs. But a user

wants personalize horoscopic readings or if S/he have any questions, astroyogi will

charge them. As india is a religious country which believes a lot on these type of things,

astroyogi , till now is a successful business till now

EDM Online Business Models

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Freekaamaal.com In 2010, when e-commerce was a big buzz and everybody was

talking about daily deals and group buying sites, FreeKaaMaal.com was started with

the aim of providing low priced deals, offers and free stuff to its readers. A website

which was initially started as a simple blog with Rs.1500 investment (domain purchase

+ web hosting) has evolved into a big portal within just one year, serving more than

50,000+ users daily.

FreeKaaMaal.com was founded when everybody was talking about e-commerce in

India, but apart from e-commerce there is a second industry of deals and coupons.

Initially the aim of FreeKaaMaal.com was just to provide information about various

free sampling campaigns run by FMCG companies but with the boom of e-commerce,

they started giving information about low priced deals and coupons. Their model works

on the principle of collective intelligence where other shoppers share deals with them

and they select the best deals out of it and promote it on the home page.

Today, FreeKaaMaal.com is more than three-and-a-half years old and serving more

than 4.5mn visitors per month.

Their main source of revenue is the commission which they get if the deal is done with

the selling website. Also advertisement is a big source of income for them.

EDM Online Business Models

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Jeetle.in: Brand New Iphone for Rs 6!!! Yes you read it right.

Jeetle.in is a reverse auction website. Where products worth of thousands are sold for

as low as Rs 0.01. You must be wondering how it works? The answer is, sign up on

www.jeetle.in and select any of the listed products. You have to bid for the product. Bid

should be lowest as well as unique. The concept is explained above in the image.

Usually website charge Rs. 6 or Rs. 4 per bid. Each product is listed for a limited period

of time (usually 72 hours). The bid which is the lowest & Unique gets the product.

Started in 2010, website now has 18lakh+ users. 7900+ winners. Products worth Rs

6Cr have been sold at an average price of Rs. 200.

EDM Online Business Models

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LocalBanya.com is an online grocery store currently operating in Mumbai.

It follows „just in time‟ delivery where it aggregates orders on its site and buys goods in

the evening and delivers them next day. It has suppliers such as German wholesale

company Metro Cash & Carry, among others, and manages its logistics and supply

chain itself.

Currently, it handles 200 orders a day and average ticket size ranges from Rs 1,300 to

Rs 1,500 per order. Its specialty: vegetables such as French Purple Cabbage and kafir

mint leaves.

“Even for big retailers, it is difficult to cater to niche vegetables and fruits. Our

shoppers can also buy groceries apart from specific vegetables,” says Nitin Mukadam,

director at MN&C Supply Links, the operating company of LocalBanya.com.

The grocery market in India is in many lakhs of crores (of rupees). The year-old

company is looking at a business of Rs 23 crore this year and looking for cash break-

even in one or two months.

The business has less than two per cent returns despite “no questions asked policy”.

But the market is huge.

BUYING GROCERIES ON Localbanya On Localbanya.com, customers can browse items and select size and quantity to add to their cart. Once done, they can place orders online. Customers need to select a day and time slot, and a delivery mode. They can order stuff like grocery, beverages, personal care products, baby products, frozen items and so on. Mumbai-based LocalBanya is eyeing Pune and Delhi; it plans to raise funds from venture capitalists

EDM Online Business Models

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65 Hours.com is a timebank. A way to pay for services with time, rather then

money. As explained, it works on the concept of timebanking. Time banking is a

pattern of reciprocal service exchange that uses units of time as currency.

How it works??

Register yourself on www.65hours.com

Fill in all your details and Complete your profile to let people know what skills

you have and where you are.

Take a look at what skills other people are offering and if you could make them

handy then get in touch

Once the job is done pay for it using the credit from your 65hours account.

Build up your credit again by doing jobs for other people.

EDM Online Business Models

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Firstcry.com founded in 2010, is an Online Portal for Baby and Kid‟s Products.

They sell baby and kids products in following categories - diapers, baby food, infant

accessories, gears (strollers and high chairs), nursery furniture, clothes & footwear and

back to school products.

They have over 70000+ items from 400+ International and Indian brands like Mattel,

Ben10, Pigeon, Funskool, Hotwheels, Nuby, Farlin, Medela, Pampers, Disney, Barbie,

Gerber, Zapak and Mee Mee.

They act as a common marketplace for different buyers & sellers.

The seller lists its product on the website. The website then showcase the product on

the website & on receiving the order from customer, website forward the order to the

seller who then supplies the product to website & the website the ships it to the

customer. Different payment modes are available. The model is similar to just in time

theory & involves no inventory stickups.

EDM Online Business Models

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Quirky With the crowd sourcing, Quirky aims to “make invention accessible”.

Budding entrepreneurs submit their ideas to a willing community, where products or services can be co-designed and built in real-time.

This is then taken further, by suppliers being able to set a minimum amount of pre-sales and if this is met, the dream becomes a reality, with the plans becoming a physical product. Revenue from any sales online is shared proportionately with the community, the initial inventor and those who contributed

EDM Online Business Models

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Printvenue.com is the first of its kind, online portal that enables ordering

personalized gifts and accessories as well as office stationery which includes business

cards, letterheads, and cardholders. User can signup on the website, choose a product

from the wide range available on the portal, customize it according to their will, print

photos on it, write names on it etc customization is possible. Company not only serves

its own brand products but brands such as parker, Cross etc. also are available.

The company has been doing business with individuals and corporates with a

pan India presence in Delhi NCR, Bangalore, Mumbai, Chennai,

Kolkata, Hyderabad, Pune, Ahmedabad, Chandigarh, Indore and Jaipur. It also has an

international presence in Singapore.

Besides their own label, they also engrave Brands like Parker, Cross etc.

The company, in just a year's time, has made commendable achievements; it has served

a million Indians, and serviced 1000 orders within the first week of its launch. The

company was launched with only 5 products and 11 employees; it has today grown to

200 products and 75 employees. It has serviced 11 Blue Chip corporate clients and 100s

of SMBs and SMEs across all over India. Printvenue.com has essentially brought

customization to the convenience of the consumers' homes and offices

EDM Online Business Models

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Lulu‟s business model follows a LongTail type, print on demand (POD) model . A

version of the printed copy is only printed when a customer orders a copy.

Conventional publishing companies print multiple copies at once, and leads to authors

and publishers buying many copies and later having to sell them at a discount.

With lulu.com, a user simply creates a user account, follows the prompt menus,

uploads their work they wish to have published and select printing options. It is then

stored in databases until there is a need to print-which is contracted out. A

conventional publishing company seeks to find and nurture talent, fund the author‟s

writing process, distribute and sell the book to the widest possible audience and build

author brands and protect copyrights . Lulu.com‟s product mix and POD separates it

from the traditional publishing companies at it lowers their inventory and does not

need to make a physical presence

I consider the unique advantage of lulu similar to a cross between Dell and Netflix.

Dell prospered on serving customers on a per order basis, where netflix toppled

Blockbuster by serving many quality movies, having no physical location and riding a

the longtail.

Lulu.com creates value for the customer by differentiating itself from conventional

publishers. Publishing is customizable and lets you publish in paperback, hardcover or

ebooks. It puts your published pieces online via Amazon, Barnes&Noble, iBooks and of

course Lulu.com. It allows authors to print only when needed which means zero

inventory and volume discounts starting at 15 copies. It also allows you to be in control

of your own content and set your own price of the book. It puts the power into the

hands of the customer (author) and diverts it away from other publishing companies. It

becomes more cost efficient and is a direct method to have you book published and

selling.

EDM Online Business Models

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Citation

http://www.business-standard.com/article/companies/spurred-by-amazon-model-online-supermarkets-push-ahead-

113071900746_1.html

http://www.afaqs.com/perl/media/media_newslets/index.html?id=42046

http://yourstory.com/2014/03/freekaamaal/

http://www.redgage.com/blogs/chrisabraham/how-does-olx-support-itself.html

http://dianeisabelle.com/2013/09/25/lulu-com-business-model-and-competitive-advantages/

Business model generation book.