The customer is always right!
13 years ago
Tuesday, June 23, 2009
Identify and compare the revenue model for Google, Amazon.com and eBay.
0 comments Posted by Felishia Tang at 2:18 PM
Google offers targeted advertising solutions and global Internet search solutions. Google advertising revenue model includes Google AdWords, Google AdSense and Google Content Network.
Google AdWords
Google AdWords is a pay per click advertising program designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer.
Google AdSense
AdSense is an ad serving program which can let website publishers to earn money quick and easy by displaying relevant Google advertisement on their website’s content pages. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google.
Google Content Network
The Google Network is a large group of websites and other products, such as email programs and blogs, who have partnered with Google to display AdWords ads. Advertisers have the option of running their ads on Google as well as the Google Network for no extra cost.
Amazon.com is an American-based multinational electronic commerce company. Headquartered in
Amazon Marketplace is a fixed price online market place that allows sellers to offer their goods alongside Amazon’s offerings. Buyers can purchase new and used items which sold directly by a third party via Amazon.com by using Amazon Marketplace. Amazon charges a commission rate based on the sale price, a transaction fee and a variable closing fee which is a very profitable sales strategy.
Amazon is pioneer affiliate partnership marketing. An Amazon partner website can display Amazon books directly on their website, and sends customers to the Amazon’s website when the visitor is ready to buy it. In return, Amazon pays a commission for the sale to the site owner.
eBay is an American Internet company that manages eBay.com. It is also an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. In eBay, bids can be placed at any time. This convenience increases the number of bidders. Their main sources of revenue is from fees charged to list items up, picture service fees, listing upgrade fees, final value fees and reservation fees. They charge fees to list an item. For example, for listing of regular items, eBay charges a fee which serves as a starting price. Besides, eBay also obtains it's revenue by charging a picture service fee. The first picture uploaded in its site is free but te subsequent pictures incurs fees. Other than that, eBay obtains its revenue from listing and updating fees. It provides various services to help its users to enhance their advertising or promotion of products but for a fee of course. Moreover, they also charge final value fees when there is a closing bid. If the item listed is not sold reservation fees will be charge.
Monday, June 22, 2009
E-commerce has been familiar with the world nowadays. There are so many successful examples of e-commerce however, there are also a numbers of e-commerce failures. One of the examples of an E-Commerce failure I found out is Pets.com. Pets.com is a former dot com enterprise that sold pet supplies to retail customers. It began operations in February 1999 and folded in November 2000. A high profile marketing campaign gave it a widely recognized public presence and its popular sock puppet advertising spokespersonality was interviewed by People magazine and appeared on Good Morning America.
Although sales rose dramatically due to the attention, the company was weak on fundamentals and actually lost money on most of its sales. The high public profile of Pets.com during its brief existence made it one of the more noteworthy failures of the dot-com bubble of the early 2000s. US$300 million of investment capital vanished with the company's failure.
Larry Barrett reported in Cnet news that Pets.com was shutting down because it was unable to find a purchaser or financial banker. The company said it's going to sell the majority of its assets including its inventory, distribution center equipment, content and its sock puppet brand icon. Pets.com was finally closed in 9th November 2000. For an Internet company to survive in an environment for business-to-consumer it is very hard said by CEO Julie Wainwright in a prepared release.
One of reasons that caused Pets.com to close down its business is never discuss their future investment strategies one way or another but they remain bullish on e-commerce. In fact pet supplies are not a natural e-tail market, pet owners are less likely than others to shop online said by Matt Stamski who are a famous analyst. Additionally, the e-tail pet stores have not offered a compelling reason to shop online. Although delivering pet food and supplies directly to consumers is a convenience, but the benefit is outweighed by the fact that the consumer has to wait days to receive their orders, Stamski said. Considering that pet food is available at just abo
ut any neighborhood grocery, few people have a reason to shop online, he said. Thus, this was the main reason that Pets.com going to shutting down although most e-commerce companies have been operating in the red, but Pets.com was among the more financially challenged. In every quarter of operation, the company contended with negative gross profit margins. Furthermore, employees who resign from the company were not replaced which also caused the company could not work effectively and efficiently.Sunday, June 21, 2009
What is E-commerce?
E-commerce, also known as Electronic Commerce, consist process of electronically buying and selling goods, services and information. The transactions take place over networks, mostly the Internet and other computer networks. E-commerce also can be defined as a modern business methodology to cut costs while improving the quality of goods and services and the increasing speed of service delivery, by using Internet.
History and Evolution of E-commerce
Early of 1970s, electronic commerce meant the facilitation of commercial transactions electronically with the help of the leading technologies. One of the technologies is Electronic Funds Transfer (EFT), which refers to the computer-based systems used to perform financial transactions electronically. Besides, Electronic data interchange (EDI) was then developed in the late 1970s to improve the limitation of EFT. EDI enlarged the pool of participating company from manufacturers, retailers, services, and others.
Online shopping was invented in the
When come to 1990s, there is a significant change for E-commerce due to the access to the internet. The internet is a global network that internet was quickly accepted in the business transaction due to its function for allows the business to search for the new market, Although the Internet became popular worldwide around 1994, it took about five years to introduce security protocols and DSL allowing continual connection to the Internet Besides, the World Wide Web that emerged in the years when the internet was liberalized rendered e-commerce both more accessible and more affordable. It enabled small business to sense for the first time the benefits that can be reaped from the technology of E-commerce.
The video below show the evolution of E-commerce
In conclusion, e-commerce today is still at its infancy. There are more businesses are using the e-commerce to conduct their business such as E-bay, Amazon and so on. Invisible shopping carts, annoyance-free assistance and no lines at the register and many more benefits awaits the future of e-commerce. There is a bright future of e-commerce due to the continuous development and invention of the technology.
Friday, June 19, 2009
With the evolution of technology, most companies are carrying on E-Businesses besides doing the physical world business transaction. There are many success examples of E-Commerce such as eBay, amazon.com, lelong.com
and the list goes on.
The example of a success E-Commerce I want to share is Walmart.com.. Walmart.com is as a retailer, a subsidiary of Wal-Mart Stores, Inc which founded in January 2000. The headquarters is on the
Walmart.com successful causes are as following:
- Customers Services
Walmart.com is providing an easier access to the Wal-Mart. It has over 1,000,000 good-quality merchandise available online for customers with the lowest prices. It also gives customers the convenience of ordering products online and picking them up at a local Wal-Mart.
- Effectiveness
The secret of success in retailing is their business philosophy which based on simple idea of making customers No.1 by serving the customer’s needs first. In the addition, Sam Walton's "Always Low Prices" philosophy helps to attract more customers to purchase their products all the times and indirectly it does increase the company’s profit continuously.
- Payment Method
Furthermore, the key success of Walmart.com is the convenience and safety of payment. A variety of payment methods are available for customers when they do purchase through Internet. Meanwhile, the safety banking payment process making the website private and disallow hacking on customer password by other intentional hackers.
- Webpage Presentation
Walmart.com presents a clear and simple direction for the users. It classifies all products in departments and it is easy for user to search. Besides that, users can get the products details and compare similar products in a shorter time without step out from the house.
In short, Walmart.com is passionate about combining the technology and world-class retailing in order to give customers a wide assortment of their favorite products, Every Day Low Prices, guaranteed satisfaction, friendly service, convenient hours (24 hours, 7 days a week) and a great online shopping experience.
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