E-Commerce Business Models and Search Engine Dependency

Tobias Klatt

doi:10.4236/ib.2013.53b041

Abstract

E-Commerce business models attracted a great deal of attention in the last years. An increasing number of bargains are realized via online transactions. However, some business models suffer distinctly under changes of search engine algorithms while others experience continuous stable traffic. This paper sheds light on the drivers of the unpunished e-commerce businesses based on a case-by-case analysis of 43 business models in the German Internet market. The analysis reveals that more stable business models are characterized by diversified customer arrivals which are obtained by a focused product management, multiple marketing channeling, freemium registration strategies and a subtle way to attract customer trust.

Highlights

The digitalization of markets sets the stage for the evolution of new e-commerce platforms, sales channels, and services
The analysis reveals that more stable business models are characterized by diversified customer arrivals which are obtained by a focused product management, multiple marketing channeling, freemium registration strategies and a subtle way to attract customer trust
The cross-case comparison reveals some striking differences among the two company sets which allow for some insights on drivers of search engine independency and successful strategizing in e-commerce business models

Summary

Introduction

The digitalization of markets sets the stage for the evolution of new e-commerce platforms, sales channels, and services. Academic research accompanied this evolution with plentiful insights on advices for the best practices of business models[1]. The success of digital businesses depends on their listings in search engine result pages (SERP) [3]. Evidence on the effects of changing search algorithms and strategies to reduce the dependency on SERP are revealed within an initial interview round with SEO experts and a follow-up case analysis of 43 business models in the German Internet market.

SERP Importance and Control

A Transaction Cost Problem

Consequences of Search Algorithm Changes

Research Design

Results and Implications

Conclusions