Business Model Canvas in E-Commerce Companies

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Business Model Canvas
The platform business concept refers to a business model where value is created by enabling exchanges between producers (sellers) and consumers (buyers). In order to facilitate the exchange of goods between sellers and buyers, platforms build and harness extensive, scalable systems of users and resources that are easily accessible via the internet. The platform is a community where incremental benefits are enhanced every time a new user joins the network. These network effects are the most incredible resource to the platform business because they allow a more significant number of buyers and sellers to interact and transact (Johnson). Unlike linear businesses, most platform businesses do not need a supply chain to control or create inventory. However, since the business concept is to help small and large companies improve their online operations, the business will take care of customer support and logistics.
Third-party sellers will transport bulk products to the business’s warehouses and fulfillment centers for packaging and shipping to customers. Sellers will also take care of their inventory, whereby the business will collect orders from the seller’s warehouse and choose the most effective fulfillment approach. Moreover, some third-party sellers may choose to list their products on the website and conduct all of the storage and fulfillment facets of the process by themselves. On the whole, the business’s essential activity is to create meaningful online connections between buyers and sellers and reduce transaction costs. This business model is feasible in today’s internet age given its ability to deliver faster business expansion rates and generate large profit margins concerning return on capital (Guillen and Reddy). In addition, modern platforms have revolutionized the business landscape with efficient information flows that allow them to expand their networks while incurring m...