Another consideration is the branding of a service.



If a website makes use of several different services, should the users of the web site see the services being used.



For example, a website that sells computers may use several services to get the computer product delivered to the customer. They may include:

1. payment process and fraud protection


2. international devliery company


3. notification of the order via text message

Now the customer may not be confident to spend money online unless they see a trusted online payment provider (such as PayPal/Mastercard/Visa). So in this scenario there may be benefit to the website to show they use PayPal as their payment provider. However, if the website sends notification of the order via text message, this is quite unique and they might not want the customer (or competitors) to know they are using an external service.

So when creating a service, it is important to understand the requirements of the service consumer and end users. In some cases it may be beneficial to make the service a private label. What this means is that the service can be re-branded by the consumer but still use the service providers infrastructure.



Another example is the use of Yahoo! email. Free email users are willing to have Yahoo add branding (this email was sent via Yahoo) if they do not have to pay. Corporate customers pay a premium for a private label service (with their own company branding)



 

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