The New Monetization of e-Commerce 3.0
Fremont, CA (Vocus) November 8, 2010
Plimus, Inc., the leader in complete, configured and connected hosted e-Business solutions, today released a whitepaper, “The New Monetization of e-Commerce 3.0,” which outlines Plimus’ vision for how companies must evolve and expand their monetization strategies to thrive in a new era of e-Commerce.
Traditional online subscription models – in which customers pay a fixed amount on a fixed time schedule in return for content or services – are evolving in response to changing customer demand. Plimus’ vision is for new subscription models that blend fixed-fees and schedules with ad hoc, pay-as-you-go charges that change the dynamic of the relationship between the customer and seller.
Plimus defines e-Commerce 3.0 as the ability to give the consumer the flexibility to buy anything, anywhere, from any application on any device at any time. And, the focus on delivering virtual goods through frictionless transactions enhanced by a personalized customer experience is fast becoming the crux of this new era in e-Commerce.
“We are already seeing dynamic subscription models gaining a lot of traction in the social gaming space, with vendors offering no or low-cost on-boarding fees, followed by payment for services as they are consumed,” said Pietro Macchiarella, research analyst at Parks Associates. “Whether we look at low-cost downloadable games, massively multiplayer online role-playing or Facebook-embedded games, the pay-as-you-play model is clearly helping vendors monetize their services while building better relationships with both existing and prospective customers.”
“The New Monetization of e-Commerce 3.0” also addresses how dynamic subscription models will expand beyond the gaming industry and eventually impact installable software publishers, providers of online services and software as a service companies. Plimus forecasts that by late 2011 it will be difficult to find online merchants still using the fixed-fee / fixed-subscription model.
“Industry statistics show that the average online subscriber only holds his or her monthly account subscription for three to four months,” said Simon Jones, vice president of strategic solutions at Plimus. “With dynamic subscription billing, however, online merchants no longer have to worry about losing customers. Plimus found that offering minimal sign-up fees increases the initial flow of subscribers and lowering ongoing costs associated with subscriptions, encourages subscribers to stay engaged with vendors longer. Couple that with the pay-as-you-go model for premium services and vendors will see increased revenue streams each month.”
Click here to download “The New Monetization of e-Commerce 3.0” whitepaper. Additional information on Plimus and its e-Commerce 3.0 offerings can be found at http://www.plimus.com or you can read the Plimus blog here.
Plimus, Inc., a global e-commerce solutions provider, builds, and manages online businesses for thousands of software publishers, web hosting companies, and online retailers. Plimus offers an easy-to-implement, configurable e-Business platform that allows companies to grow their e-Commerce business worldwide by marketing, selling and distributing digital goods and services online. The company’s award-winning e-Commerce Application is a flexible, hosted, and complete application that uniquely spans the entire e-Commerce lifecycle and is connected to a large global affiliate network.
Plimus helps companies and publishers of all sizes maximize online revenues and reduce the costs and risks of running an e-Commerce operation. More information may be found at plimus.com.
# # #