Final answer:
A Direct-to-consumer (DTC) e-business model is one where companies handle all aspects of production, marketing, sales, and shipping themselves, without intermediary stores. Amazon exemplifies this successful approach, allowing it to compete effectively on price including shipping costs, as opposed to brick-and-mortar, wholesale, or dropshipping models.
Step-by-step explanation:
The e-business model where companies build, market, sell, and ship their products directly to consumers without relying on traditional stores or intermediaries is known as Direct-to-consumer (DTC). This model disintermediates the conventional retail model, enabling firms to sell their products directly online. A famous example is Amazon, which has been exceptionally successful with this model, selling a wide range of products, including books, to customers worldwide. Amazon's cost structure and production model allow the company to offer competitive prices even after including shipping costs, which is a significant factor in their ability to undercut competitors' prices.
The Direct-to-consumer model has become increasingly popular as companies seek to increase margins, gain more control over their brand image, and forge a closer relationship with their customer base. This contrasts with models such as brick-and-mortar, where physical stores are the primary retail outlets, wholesale, where products are sold in bulk to retailers, and dropshipping, where products are shipped to customers directly by third parties.