1.

Pure-Play Platform model facilitate the transaction between buyer and seller, where in Pure-Play
merchant, It buys from the Providers/Developers & then directly sell to key consumers.

2. Merchant model yield higher profit because of direct association with the users wherein Platform
model tend to have less profits because of indirect association.

3. Merchant model yield high cost of maintaining(i.e. Delivery, Inventory etc.) goods/services where
in it might be negligible in case of Platform model.

4. Since Platform work as intermediary, they carry less risk and risk are carry forward to Seller. In case
of Merchant model, this risk is carry forward to Re-seller from seller.

List two differences between a pure-play platform model and a pure-play merchant model.
1. Pure merchants, means that the vendor/seller has to manage assets (inventory of goods)
and assume risk that is assumed by sellers on digital platforms. Pure play platforms work
as an intermediate so risk is shared if not transferred to sellers.

2. Pure merchants have full control on the sailing process from the beginning until the
consumers. In the other side, in the pure two-sided platforms, sellers have that control.
Just put sellers and buyers in connection.
3. Pure Merchant model has higher benefits/profits as he has direct contact with buyers,
where in Platform model tend to have less benefits/profits.

List any three factors that shift the choice of an online business between a platform and merchant
model. 

Why a PLATFORM MODEL :

1. One of the key factor for determining between these two model is "Operational Cost". Merchant
mode has high operation cost and will handle risk than in the platform model. When the goods
are digital goods, the merchant should opt for Platform model.

2. when we don’t know the consumer demand. The intermediary, will revert to sellers the
consumer preferences and the sellers will develop their products according and take all
respective risk.

3. the product quality is assured between sellers and intermediates.

4. When the sellers is connected with the consumers without any forcing from the intermediary

Why a MERCHANT MODEL :

1. when intermediate and networking affect the benefits/profits (they are higher than the product)

2. when seller can create more added values and profits from consumers, the seller must take
control