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    Brokerage Model for Websites

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    The "brokerage model" is one of the eight models that are used for designing web sites. I need research on the "brokerage model". Also an analysis on what is trying to be achieved by using the model as with Amazon.com. Does the "brokerage model" work or not with these websites. Does these particular websites employ other models? If so, identify the secondary model and how it's being applied.

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    Business model is a design of the business of the firm to create value for the firm and its stakeholders.


    Broking is one of the popular business models. It is a link between buyer and seller, and aim at satisfying both of them by charging fees from both or any of them. Broker does not own any goods. It means that they don't take the ownership of the goods. Let us discuss this by taking the example of amazon.com

    Amazon.com is amazing online super mart selling numerous items including book for which it is famous for. Now it is one of the world's leading online retailers with over 17 million customer accounts in over 150 countries. The company sells books, music, DVDs, videos, toys, electronics software, video games, home improvement products amongst others. Through its marketplace services- amazon.com auctions, zshops etc. the company has created web-based marketplaces where buyers and sellers enter into transactions involving a wide range of products.

    As the company states in its 199 10-k:

    "We offer our customers a superior shopping experience by providing high value through selection, convenience, ease of use, low prices, product information and an intense focus on customer service. We are a proven technology leader, having developed electronic commerce innovations such as 1-click technology, personalized shopping services, easy to use search and browse features, secure payment protections, and wireless access to our stores."
    In their 2005 SEC filing, Amazon describes the vision of their business as to:
    "Relentlessly focus on customer experience by offering our customers low prices, convenience, and a wide selection of merchandise."

    Online Superstore
    Amazon has efficiently used the partnership, alliances and affiliation programs to develop its business model. It used this to supplement its own product lines (Discussed in the other business models). Amazon's platform and complete bouquet of services is made available to sellers to offer additional goods and services and Amazon earns the fees in return (" Syndicated stores program"). It has got partnership with many such organizations, for example, in the UK, Waterstones (www.waterstones.co.uk) is one of the largest traditional bookstores. It found ...

    Solution Summary

    1365 words including references on how the brokerage model is and is not working for Amazon, also specifying secondary website models they're using.