1. This work is supported by National Science and Technology Planning Project (Project Number: 2007BAH10B00)
A Study on the Profit Model of the Port E-Commerce Platform
WANG Ying-chun1,2
, ZHANG Lei1
, WANG Lu1
1
Management School, Tianjin University of Technology, Tianjin 300384 P.R.China
2
Management School, Tianjin University, Tianjin 300072 P.R.China
(e-mail:stonelei1207@sina.com)
Abstract - Proceed from the commerce view, a perfect
combination of port and e-commerce is the new
breakthrough point that would make port income creating.
This paper makes e-commerce thoughts and technologies
applied for the traditional port transaction, excavates the
value on the base of the port e-commerce platform, studies
the profit model of the port e-commerce platform on the
aspects of competition structure, the key to the success of
industry-driven factors, value creation configuration, the
core of business, marketing way, the basic and channel of
value and so on. Moreover, it builds an evaluating model by
using multistage fuzzy evaluation method.
Keywords - E-commerce, port, profit model, fuzzy
evaluation
I. INTRODUCTION
The organic integration of e-commerce and port
construction can be considered on two aspects. The first
one, beginning with the port services, the works such as
the marina, customs, warehousing, distribution,
transportation and other logistics information between
various departments and important files transferred and
certificated and so on can be made effectively
implemented by using e-commerce technology. The other
one, at a business point of view, holding a large number
of port cargo business information, the dealer can change
information to business opportunities and enhance
resource utilization through effective information
integration. The business transaction here labels entity
goods and logistics services as commodities and both
parties in the transaction can make use of opportunities
provided by the port for the convenient transaction,
saving wear and tear of the resources in the middle part.
II. THE PORT E-COMMERCE
PLATFORM MODEL
As an operating company, the port e-commerce
platform uses e-procurement model to stock the products
consumed in the operation. It is by the comparison
between the supplier and facilitated transactions method
that reduces purchasing costs. Introducing electronic-
auction function to trade of logistics services and the
introduction makes transaction more user-friendly and
practical. The platform implements membership system,
sets up port-based virtual business community and
members interact through information, appends the
information to a higher value. The platform is a third-party
trade lieu with market conditions issuance, in addition to
the information matching the transaction to cause
transaction, offering payment and insurance and other
finance business support, which is a complete set of
transaction. With the support of decision-making support
system and other technologies, it is a value chain business
integration model application that making logistics and
trade information effectively filtrated and matched,
making original valueless data being a valuable business
opportunity. The platform effectively links supplier of
logistics services and clients such as goods and vessel
agencies with transaction and then procures revenue,
which is a typical realization of online information
intermediary. The provision of payment service is bound
to have a certification institution as a protection.
Platform’s providing clients with a secure and credible
market place by using its credibility and authority
certification service, which is pivotal to maintain an
integrated platform with a strong support from
government agencies.
In the process of comprehensive using typical
e-commerce models, the establishment of a unique
e-commerce platform mode for port, the barrier-free
circulation of information flow, business flow, logistics,
capital flow, looking on the overall port information and
electronic trading operations in the synergistic view,
planning port e-commerce platform from the system
perspective, which adapted to the systematic trend of port
development.
III. THE PROFIT MODEL OF THE PORT
E-COMMERCE PLATFORM
A Competitive Structure
Regardless of unique nature of information, authority,
or multi-coordination, the port e-commerce platform has
great priorities, due to the direct co-operation and support
of government agencies, but price competition exists
between the platform and other private counterparts in the
same line. To enhance the "no-leave" is the key to
compete. Competitors collect more scattered users, while
the platform should give the role of cooperation full play
to the railway, bus operators and other customers, make
effort to expand the user base. In addition, security of
payment and other services which can be independent of
the port operation business exist competition with the
current major e-commerce businesses. Breaking the
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2. original market distribution and encroaching with the
market share, which is the approach to open markets for
the platform.
B The key to the success of industry-driven factors
Network scale. With the increase of member’s
number, the value of the network increases, while the
increase in value will attract more members to join, thus
expand the platform information base and result in
increasing returns to set up a monopolistic position.
Network scale can decide whether or not the platform is a
virtuous cycle and will achieve long-term operation.
C Value creation structure
It mainly reflects on the value of the network. Main
business is not necessary the main source of income,
while arresting users towards platform with free
information is the down-lead of value creation, followed
by lush facilitated value-added services, which is the
fundamentality of value creation. The port e-commerce
platform mainly serves as the role of go-between, who
combines the two sides together, and if both buyers and
sellers feel that go-between bring the value for them, for
intermediaries could be profitable.[4]
Fig.1. The circle of user value
D The core of business
(1) Connect the two sides such as both in transactions or
the business documents come-and-go.
(2) Promote communion with customers in depth- breadth,
and provide customers with the complementary. [4]
z Information services (the issuance, query, matching
of information; the transmission, validation, verification of
business documents; qualification inquiry, etc.)
z Business support services (payment protection; bank,
insurance, financial support; negotiation; auction sites)
z Certification authority (qualification identification,
the evaluation of the credibility, etc.)
z Logistics services (proxy service, logistics program
recommendations, cargo tracking, etc.)
E Marketing mode
Platform’s cooperation with customs, inspection and
quarantine, taxation and other departments makes some
port conventional business linked to platform, which
compels the user to complete these businesses through the
platform, the moment that marketing is completed in a
circular way. On the basis of the above, with the "internal
pulling" approach, the high value information is used to
attract customers, and the value-added services are used to
consolidate customer base, at one time network externality
theory is used to the implement marketing.
F The running costs
This is a hybrid e-commerce platform with high tech-
nology, requiring a higher pre-development cost. Otherw-
ise, the seamless connection with many departments and
the unimpeded transmission of information flow, capital
flow needs a good system maintenance, which will take
some maintenance costs. Platform is operated by the
specialized operators in information, network and other
departments, so there is no inventory, distribution, returns
and other problems but a more stable cost.
G Elements of a profit model
(1) Profit Point
z Both sides in business can feel all-around
authoritative differentiated services
z The provision of services platform to both sides in
business is convenient for the business operation
z The provision of trading platform to both sides in
business reduces the cost at the same time
(2) Profit target
z Seek for cooperation with the railway, telecommu-
nications and other sectors to achieve "win-win"
z Absorb scattered customers
(3) Profit lever
Intermediary business services establish a network
made by two sides business provide services and
equipment. [4]
(4) Profit barrier
z Ability -- Unique information, the mutual reliant and
friendly relations with clients, the proprietary operations
of authority sector as well as the platform protection
system are competitive advantage difficult to be imitated.
z Persistency -- Joint with important relevant depart-
ments cooperation manner, cultivate clients loyalty and
then form a virtuous circle of the customers value.
(5) The source of profits
z Membership fee. For scattered users, the member-
ship system is not only the authenticity constraint for their
issued information, but also an effective way to improve
customer loyalty. Through the real-name authentication of
accreditation institution, user must pay fee to enjoy the
services in the platform as a member. In the paying
circumstances, bartering real information for real infor-
mation will create a good atmosphere, which is beneficial
to long-term business platform. Parts of businesses with
the “no-leave” in this platform provide a good oppor-

3. tunity to implement the membership fees system.
z Melon-cutting. For railways, bus companies and
other departments which have long-term cooperation and
relatively stable business with the port, membership fees
system is clearly inappropriate. A large number of unique
information is hold by these departments and port in their
own hands, if sharing information and making full use of
its commercial value in e-commerce platform, the trans-
action will have a “win-win” benefit. The establishment of
income distribution principle for both sides in business
brings on long-term and stable cooperation, which not
only makes platform gain a stable operating earnings, but
also makes the port more economically and rationally
allocate the capacity based on the sharing information.
That means more rational allocation of resources, more
effective work on any side.
z The charge for enterprise certification. Platform
establishes its own certification institution, connecting the
registration information database to public security,
taxation, customs, etc, where clients can get the appro-
priate authentication about evaluation of quality and
credibility and examine each other's assessment infor-
mation of the transaction, which provides transactions
security services. This platform is to provide certification
services to clients in exchange for income, like banks
prove their credit level for credit card users.
z Bid ranking, keyword search. A great deal of
searching applications determines the importance to locate
forefront of the information items in the search results.
Users put forward for a thought-right price, and then enjoy
the keyword queuing in some position a period of time [3]
.
The port e-commerce platform uses this method for
reference in enterprise promotion, supply and demand
information, the recommended program, etc.
z Advertisement. Insert the relative ads in different
interfaces, which will not increase user’s antipathy and
ensure a very good effect to the ads. Port e-commerce
platform with the highly targeted customers are more
convenient for the arrangements for ad placement.
z Mobile value-added services. Cooperated with
mobile communications business. Add additionally such
as short message communications businesses to expand
the extension of the platform services. The platform
operator receipts the service charge from the customers
who enjoy value-added services and the melon-cutting
from the cooperation with mobile communications
business to achieve a win-win purpose. One service, two
proceeds. Open thinking will dig more value-added items.
z Pay protection. There have been many successful
precedents, such as Alipay of Alibaba, PayPal of eBay, etc.
In addition to carrying on payment operations of port
e-commerce platform, the payment instrument can service
for other payment activities outsides the platform as an
independent value-added service with highlight business
characteristics. Bearing certain risk security, the operator
with widen thinking could joint insurance companies and
extrusion corresponding businesses in order to obtain
cooperation melon-cutting and payment instruments
income, doubling the harvest.
IV. THE EVALUATING METHOD FOR PLATFORM
PROFIT MODEL BASED ON MULTISTAGE FUZZY
EVALUATION METHOD
The evaluation for profit model is to establish a
specifical guide-line system, make objective, fair and
accurate evaluation for the operation status of platform
using multistage fuzzy evaluation method.
Fuzzy comprehensive evaluation method extended
the fuzzy set theory created by ZADENIA. The method
does a comprehensive evaluation that will get the results
as objective as possible and achieve better practical results.
[5]
A Multistage fuzzy evaluation model
(1) Determine the evaluation framework
Use Delphi method, expert scoring method and other
qualitative analysis to determine multilevel evaluation
guideline, as row in TABLE I:
TABLE I
CALCULATING WEIGHTS AND REMARKS
WITH FUZZY EVALUATION METHOD
Determine remarks set U = (U1, ... ... Un) , as row in
TABLE I, this case takes U = (excellent, good, medium,
bad).
(2) Determine the weight of multistage guideline
Use FAHP, Delphi method, experts investigation and
other methods to determine the weight of this case:
Level-1 guideline weight:
V = , 0 (1)
Level-2 guideline weight:
(2)

4. (3) Determine the fuzzy estimation matrix
Use expert evaluation method to determine the
various guidelines. Aim at the distribution frequency of
remark in each level to determine the fuzzy
matrix , ija expresses the membership
degree of remark “j” in guideline “i”, as the data in row
in TABLE I.
(4) Level-1 comprehensive evaluation

5. 11 1 11 1
1
1 1
n n
i i i ik
i in k kn
r r a a
R V A v v
r r a a
§ · § ·
¨ ¸ ¨ ¸
Ÿ¨ ¸ ¨ ¸
¨ ¸ ¨ ¸
© ¹ © ¹
$
$
(3)
getting 1R , 2R , 3R from this case, which express the mem-
bership of every evaluation in every level-1 guideline.
(5) Level-2 comprehensive evaluation

6. 1
2 1 2 3 4
3
, , ,
R
B V R B B B B
R
§ ·
¨ ¸
¨ ¸
¨ ¸
© ¹
$
(4)
Calculate B and make B normalized, getting B
(6) Comparison of the weight values in B and the guideline
corresponding to the maximum is the comprehensive
evaluation results for this model.
B Example for algorithm
Using the above methods and apply Delphi, experts
investigation method to get the evaluation data of the port
e-commerce platform as followed TABLE II:
TABLE II
THE WEIGHT AND REMARK OF PORT
E-COMMERCE PLATFORM
Level-1 fuzzy comprehensive evaluation, the
followed expresses the evaluation for every level-1
guideline
1
0.24 0.30 0.27 0.19
R = 0.50 0.20 0.30 o 0.18 0.39 0.32 0.11 = 0.24 0.30 0.27 0.19
0.15 0.45 0.24 0.16
§ ·
¨ ¸
¨ ¸
¨ ¸
© ¹
2
0.21 0.45 0.20 0.14
0.25 0.43 0.21 0.11
R= 0.21 0.30 0.14 0.35 o = 0.25 0.35 0.21 0.14
0.19 0.38 0.32 0.11
0.25 0.45 0.20 0.10
§ ·
¨ ¸
¨ ¸
¨ ¸
¨ ¸
© ¹
3
0.18 0.39 0.29 0.14
0.20 0.40 0.35 0.05
R = 0.21 0.25 0.26 0.28 o = 0.25 0.28 0.25 0.14
0.18 0.49 0.20 0.13
0.25 0.40 0.25 0.10
§ ·
¨ ¸
¨ ¸
¨ ¸
¨ ¸
© ¹
Level-2 fuzzy comprehensive evaluation
0.24 0.30 0.27 0.19
B= 0.42 0.30 0.28 o 0.25 0.35 0.21 0.14 = 0.25 0.30 0.27 0.19
0.25 0.28 0.25 0.14
§ ·
¨ ¸
¨ ¸
¨ ¸
© ¹
Make B normalized, get B = 0.248 0.297 0.267
0.188 .
According to the principle of maximum membership
degree, the good weight accounts for the proportion of the
largest 0.297, so the overall fuzzy evaluation for this
e-commerce platform is good. From the data analysis, the
e-commerce platform in the financial performance,
marketing influence and the platform effect three aspects
develops relatively balanced, and the evaluations of all
aspects are good, in which the evaluation of marketing
influence is particularly high, accounting for the highest
good proportion of 60%. By contrast, the financial
performance with the greatest impact on the overall
evaluation is slightly less, for the proportion of poor
evaluation is 46%. Based on the above analysis, operator
should frame the operating program focusing on
improving financial performance and take active and
effective measures, aiming at improving the net assets
profitability, capital turnover rate and profit rate. The
reforms need to be focused on the emphasis in order to
win the most income with the least pay, which will make
effectively it easy to improve the overall estimate of
e-commerce platform.
As can be seen through the above example, the use of
multistage fuzzy evaluation method, synthetically thinking
over the guideline for evaluating the operation of
e-commerce platform, on the basis of the data from
experts scoring methods, the fuzzy matrix computation, all
above makes the whole evaluation system reasonable and
objective.
V. CONCLUSION
In the view of business, organically combine port
affairs and e-commerce, then build an e-commerce
platform in the background of port. Mine profit channels
from the platform mode and build the profit model for the
e-commerce platform. The use of multistage fuzzy

7. evaluation method helps the port operator understand
platform performance and according to evaluation results
in any layer, the port operator can find the problems on
performance from application of this model in this
enterprise, so he could take effective measures in order to
enhance the platform profit results.
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