Question 10

E-tailer is the business model that involves creating an online store.

An e-tailer operates by selling goods directly to consumers through an online platform, effectively functioning as a digital storefront. This model allows businesses to reach a wider audience without the overhead costs associated with physical retail locations.

A) Transaction broker

A transaction broker facilitates transactions between buyers and sellers, typically without holding inventory or providing the products themselves. This model does not involve creating an online store, as it focuses on connecting parties rather than selling goods directly.

B) Service provider

A service provider offers services online, such as consulting, web hosting, or software as a service (SaaS). This model does not involve selling physical goods through an online store, making it distinct from the e-tailer model.

C) E-tailer

An e-tailer is specifically designed to sell products directly to consumers through an online platform. This model encompasses the creation of an online store, allowing businesses to showcase and sell their inventory directly to customers.

D) Content provider

A content provider focuses on delivering information or entertainment, such as articles, videos, or music, rather than selling physical products. This model does not involve the direct sale of goods through an online store, distinguishing it from the e-tailer model.

Conclusion

The e-tailer model is distinctly characterized by the direct sale of products via an online store, making it the correct answer. Other options, such as transaction brokers, service providers, and content providers, focus on different aspects of online business that do not include the creation of a retail storefront. Thus, e-tailer stands out as the only model that directly aligns with the concept of an online store.