Social media business models are advantageous to consumers, according to one internet business owner.

Retailers offering parcel delivery services have been urged to consider social media ecommerce as advantageous to consumers.

Consumers can purchase goods and services at discounted prices, in an intuitive way, which is why it functions as a business model, according to Lee Jong-han, chief executive of We Make Price.

Speaking to the JoonAng Daily news, Mr Lee also underlined some of the challenges of social media business models.

When asked whether social media could be a temporary fad, as some analysts have suggested, he explained: "The problem lies in gaining trust. We consider that our biggest challenge at present.

"And as we start to resolve this problem of trust, I believe the concerns you mentioned will naturally go away."

Recent research by Strong Mail indicated that more than half of businesses plan on increasing their social media marketing budgets in 2011.

Posted by Laura Rathbone

Article Added: 31/12/2010 09:50:52