Drake Schellbach

CH.2 E-commerce business models and concepts

 

 

  1. Dollar shave club starts off by having their customers subscribe for as low as $1 per month. Its competitors such as Gillette you don't subscribe and instead you have to go to the store and buy it, instead of receiving one every month with a subscription like dollar shave club has done.
  2. Dollar shave club ships it to your house, ultimately saving the consumer time and money. Dollar shave club has designed the razors for simplicity instead of adding useless value, so their price is more appealing, ultimately making that one of its key elements.
  3. Dollar shave club uses subscription for its revenue model. By dollar shave club doing the subscription they are keeping loyal customers. This also makes it easier for the consumer by not having to go buy a new razor and instead get a new one every month.  This helps dollar shave club get monthly returns.
  4.  Dollar shave club online business strategy is simple but yet effective. Dollar shave club has made it easy for their customers to get their products every month at an unbeatable convenience for the buyer, and also creating a monthly income from each customer.
  5. Dollar shave clubs’ competitors have responded to their marketing strategy by doing similar marketing that Dollar shave club has done. In 2017 Gillette started Gillette on demand service, Gillette did this so they can keep their top rank in the razor market. Gillette’s strategy includes the customer sending a text message instead of having a subscription, and receive every fourth order for free.

 

Projects

 

  1. For my ecommerce app I chose Amazon, because it's the one I use the most. Amazon's Business model is very simple but yet effective, it is getting the customers’ needs fast. Amazon had been in the game for a while, and that was another strategy that they had, to not jump into the business right away, but yet ease into it. Amazon’s customer value proposition is more valuable than any other competitors, no one else can offer all of what Amazon can offer making it more valuable for each customer. The marketplace Amazon operates in is endless, if Amazon itself doesn't offer it, someone will go through Amazon's platform to sell it online, so amazon can potentially sell it all which makes its market place unbeatable. Amazon's main competitors are eBay and Google’s play store. These companies you can also buy their products all online. And as amazon is getting into the live streaming service Netflix will become a big competitor as well. eBay’s market strategy is similar to amazons, by having other people post for sale while they make a small profit every sale. eBay’s market strategy is still to have other people put stuff up for sale on their platform while the make a little bit every sale. eBay’s management is under its CEO who is Devin Wenig who believed in consumer to consumer and Business to consumer.
  2. If I were to be shopping for a camera, I would first go to the nearest Walmart or target and try looking at a couple different brands, I would then test the few cameras that I pick out to later buy and compare the quality of the pictures. This would take me up to 2 hours to go to the store and try out the different cameras, and I would be stuck at a price and wouldn't be able to compare the same product to different prices like I can online. Now if I shop off of my phone on amazon, I can see just off of the first search over 100,000 cameras, and then I filter the junk ones out by making the product I am looking for have to have 4 stars or higher, ultimately saving me time. In a matter of minutes, I have found a four-and-a-half-star camera for 60 dollars less than I would have paid for at Walmart. So, in the end shopping online can save you time and money, while making it very convenient for the consumer.