Last Updated 18 Jun 2020

E-Commerce Revenue Model

Words 869 (3 pages)

E-Commerce revenue models specifically describe different techniques used in generating income from the publisher's websites. As the e-commerce progress, the traditional revenue model of sales is expanded to more variety of revenue options and e-commerce business model. All of the large-scale hotel such as Shangri-La, Sheraton Seoul D-Cube City Hotel and others are more focus on e-commerce revenue models in order generate revenues from multiple income streams.

Thus, all of these hotels were successful to use the e-commerce as a marketing strategy to increasing their customers. For the purpose to become a large scale hotel, Cube Hotel required to planning the e-commerce revenue as good as possible. With e-commerce, we can start a website and engage in the selling of our services, via the Internet. All online companies generate revenues from multiple income streams such as advertising, subscription, affiliate marketing.

Consequently, we would like to discuss different of e-commerce revenue model which can implemented on the internet in order to earn revenue, produce profits, and produce a superior return on invested capital. First of all, Cube Hotel can generate revenue from sales revenue model. Sales model is sales of goods, merchandise information and services provided in the publishers' websites. Sales model is one of the revenue models that more suitable for our hotel to earn profits. We sell our own service directly without any third parties in transaction process.

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We must efficiency to introduce our hotel in website in order to easier our customers to booking without third parties and could make decision to booking any rooms without any complex process. Our hotel website should not be looks outdated compared to the competition because we need to use our website to attract more customers to launch its. Hence, we must create a window to our business that highlights the difference between our and our competitors. For example, our website must full of contents such as upload new information, photo of our hotel environment, catalogue and others.

This is because appealing content causes a site to be "sticky" - meaning that it keeps visitors clicking on links within our site, staying at our site instead of getting bored or dissatisfied, and going to another site. We do not same others companies who used e-marketplaces such as e-bay, Google, amazon. com to sell their own products or services indirectly. For example, Dell. com is generating sales revenue from its notebooks, Amazon. com is selling books, ABC Consultant may be generating income from their consultancy services online.

Besides that, our revenue will increase in the future because our website gives customers the ability to preview our services before making a purchase. Services online may benefits for our customers because they can save their time to online booking, get new information about our hotel and may more understand our hotel in different perspective. Thus, customers would choose online services rather than go to the physical storefront to purchase. Consequently, this sales strategy and program will be very profitable for Cube Hotel to earn based on the sale price.

A major percentage of Cube Hotel also can generate by the Internet marketing. Internet marketing, also known as web marketing, online marketing, web advertising, or e-marketing, is referred to as the marketing of products or services over the Internet. Internet marketing is considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media. Internet marketing ties together the creative and technical aspects of the Internet, including design, development, advertising and sales.

Cube Hotel can use internet marketing because we able to captures a wide range of customer information. Each time a visitor accesses a website they leave an information trail that includes how they got to the site, how they navigated through the site, what they clicked on, what was purchased, and loads of other information. We may know our customers need when they give comment to our hotel. Thus, knowing a customer's behavior and preferences opens up tremendous opportunities to cater to customer's needs and, if done correctly, the customer will respond with a long-lasting loyalty.

Another most important reason why our hotel needs to have an active Internet marketing strategy is because of the transformation that has occurred in how customers seek information. While customers still visit to our hotel or look through magazines, and talk to friends to gather product information, an ever-increasing number of customers turn to the Internet as their primary knowledge source. Consequently, internet marketing is its reach ability of internet around the globe and its mass appeal. No other traditional media such as print and broadcasting can reach that number of population and if does that, it can`t attain that pace of reach.

Through Internet marketing, targeting is possible with accuracy and efficiency. It gives us options to target customers with various available choices mainly depending upon their demographic, age, interests and need. In conclusion, no business can exist without top line revenues from sales, no matter how well the other functions are handled. Our business plan must detail how our plan to price and sell our services, and how much money we plan to make. The basics should cover three broad aspects: our selling tactics, our revenue model, and our sales cycle.

E-Commerce Revenue Model essay

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