Manufacturer Model
In this model a single rural manufacturer reaches the consumers directly using the power of the web and compressing the distribution channels. This model is good for those products like Kolhapuri Chappals that already have an established brand name.

Third Party market Place
This is an emerging model in which the companies leave web marketing and maintenance to a third party. The value of this model comes from the members who add their information onto a basic environment provided by a virtual community company. The revenue model is the membership fees and transaction revenue.

Catalog Model
Catalog Model brings together the best in the offline and virtual worlds. The basic idea is to send a catalog to the interested users and web should act as a medium for checking the catalog experience. This model helps in expanding the customer reach and provide more penetration.

The exact distinction between each of these models is hazy however the basic focus should be on providing excellent customer service and to maintain the exclusivity of the products. The products should have a premium attached to them and it should not be positioned based on the price discounts.

Rural E-Commerce - An Advantage & A Challenge

The obvious advantage of rural e-commerce is the removal of digital divide between the rural and urban folk. Instance has been cited that availability of access facilities and training prevents digital exclusion in remote rural location and can generate viable economic and e-transaction activity linked with overseas market demand. In Philippines, students from remote villages, equipped with programming knowledge acquired in free tutorials, low cost technical schools or through internet, come together to do programming job for overseas customers.

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* Contributed by -
Lijo Isac,
MBA (FT), Batch of 2006,
Faculty Of Management Studies,
Delhi University, Delhi.