Identify and compare the revenue model for Google, Amazon.com and eBay

Google is an American public corporation. The Google’s revenue model are Google Adwords and Google Adsense. Google Adwords offers pay per click advertising, This program includes local, national, and international distribution which present the advertisements to people at the moment the people are looking for information through Google’s search engine. The payment model is based on the qualifying click-throughs. When a user uses the Google’s serach engine, advertisements for relevent words are shown on the right side of the screen.



Adsense is an ad serving program, which is run by the Google. Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google. Google advertisers are required to pay Google a fee each time a user clicks on one of their ads displayed on Google Network members’ web sites.

Amazon.com is an American electronic commerce (e-commerce) company which started the business is the on-line bookstore, but later varies the product lines. It allows users to submit reviews to the web page of each product and able to rate the product on a rating scale in order to give a reference for other users. 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 turn, Amazon pays a commission for the sale to the site owner.


eBay is an American Internet company. It is an online auction and shopping website that the people and businesses buy and sell goods and services worldwide. eBay Incorporation also owns Paypal and Skype.


Millions items are listed, bought, and sold everyday. The services and intangibles items are also included. Anything can be sold as long as it is not illegal and does not violate the eBay rules and regulations policy.


References:




by Lim Hui Min
Posted on 8:03 PM by 4EvEr and filed under | 0 Comments »

An example of an E-Commerce failure and its causes

E-commerce has evolved since the late 1990s. Many companies and individuals have been using e-commerce to do business. Besides, it allows people to do shopping online. Many have succeeded, and many have failed as well. Let us now look at the reasons for the failure.

There are 10 reasons for the failure of E-commerce included:
1) Trying to sell the wrong product online
2) Lacking of marketing
3) A poorly designed website
4) Falling behind time
5) Poor checkout procedures
6) Not testing your site
7) A hard-to-find or nonexistent privacy policy
8) Poor order fulfillment
9) Straying from your objective
10) Poor customer service

Dell Computer Corporation (www.dell.com) is one of the largest firms consisting of approximately 30,000 employees. They are located throughout the United States and contain high top quality supplies and security services. In order for a large company like Dell to grow with all the competitors in the industry, the organization must be willing to take chances, to expand the corporation.

Dell’s success over the years has caused concern for the future of the young company. Dell’s business-to-business (B2B) exchange failed for a number of reasons. The primary reason is the lack of insight in the research and development area. A lack of knowledge in this area proved to be detrimental because the company was unprepared for the lack of cooperation that other businesses showed in this new idea.

Dell gave up too early in the game because their expected profits were not met. If the business allowed more time to prove itself, it might have been able to salvage some of its profits. They should have focused on showing consumers that they are not just a PC firm. One way to do this would be to advertise the B2B and demonstrate their reliability and value of their computers. This would target their faithful customers, aiming to enhance the loyalty in the Dell brand name.

Another downfall may have been due to Dell’s choice of suppliers. 3M, Motorola, and Pitney Bowes are second-rate firms compared to companies such as Compaq, Hewlett-Packard and Gateway. Last May, these three firms joined forces and formed an Internet-based exchange.
On the other hand, if Dell incorporated smaller companies, they would have had more support and the potential for a larger growth. On the other hand, if they select a well-known firm which is closely related to the computer industry, it could have provided consumers with a high degree of reassurance. For example, combining with Canon or Epson may have been a better B2B E-commerce strategy. These companies are closely related and can all be used with a Dell computer.


The B2B exchange is an opportunity for the future of the company, yet it needs to reinvest in research and development before it continues with this idea. Dell recklessly jumped into this market and as a result failed after four months. They were not able to obtain the profits they originally predicted. Luckily Dell is a strong company and was able to survive after the loss. With the future of the B2B commerce looking very bright, it would be a good idea for Dell to continue on this project with an optimistic outlook.


Reference:
Success and Failure of e-commerce
http://www.allbusiness.com/sales/internet-e-commerce/3972-1.html

Dell Computer Corp.: Failure in B2B E-Commerce Strategy
http://web.syr.edu/~efedelma/dell.html

by Foo Seow Min
Posted on 7:56 PM by 4EvEr and filed under | 0 Comments »

An example of an E-Commerce success and its causes


The PayPal (http://www.PayPal.com/) is the result of a March 2000 merger between Confinity and X.com. Documentation was founded in December 1998 by Max Levchin, Peter Thiel, and Luke Nosek, initially as a Palm Pilot payments and cryptography company. X.com was founded by Elon Musk in March 1999, initially as an Internet financial services company. Both Confinity and X.com launched their websites in late 1999. Both companies were located on University Avenue in Palo Alto.

There are 3 main causes for the success of PayPal. Firstly, PayPal makes convenient for people to pay or get paid as PayPal operates in 190 markets, and it manages over 164 million accounts. PayPal allows customers to send, receive, and hold funds in 18 currencies worldwide. These currencies are the Australian dollar, Canadian dollar, Chinese renminbi yuan (only available for some Chinese accounts, see below), euro, pound sterling, Japanese yen, Czech koruna, Danish krone, Hong Kong dollar, Hungarian forint, Israeli new sheqel, Mexican peso, New Zealand dollar, Norwegian krone, Polish zloty, Singapore dollar, Swedish krona, Swiss franc and U.S. dollar. PayPal operates locally in 13 countries. With this, PayPal has quickly become a global leader in online payment solutions.


Secondly, it is safe for trading in PayPal due to its safety and protection policies. According to PayPal, it protects sellers in a limited fashion via the Seller Protection Policy. In general, the Seller Protection Policy is intended to protect the seller from certain kinds of charge backs or complaints if seller meets certain conditions including proof of delivery to the buyer. So, they can feel safe when both parties decide to use the PayPal. In early 2007, it also has provided security key as an additional protection against fraud. The users can prevent their account being compromised by a malicious third party without access to the physical security key.

Lastly, PayPal has received more than 20 awards for excellence from the internet industry and the business community- most recently the 2006 Webby Award for Best Financial Services Site and the 2006 Webby People's Voice Award for Best Financial Services Site. It has developed the good reputation and people trust it can provide the better services to them. It becomes the good choice for people to make the payments and do business.


In 2002, PayPal has been acquired by eBay.

References:


by Koh Suh Tyng
Posted on 12:10 PM by 4EvEr and filed under | 0 Comments »

The History and Evolution of E-commerce


E-commerce is any business related transactions partially or totally carried out by electronic medium especially on internet using Open networks or Closed network. The most important feature accountable for the success of internet is electronic commerce that allows people to buy or sell anything they want at anytime of the day or night. The process of advancement in Information Technology to develop into a business transaction is the e-commerce history.

The term e-commerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically.

The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing. Perhaps it is introduced from the Telephone Exchange Office, or maybe not. The earliest example of many-to-many electronic commerce in physical goods was the Boston Computer Exchange, a marketplace for used computers launched in 1982. The first online information marketplace, including online consulting, was likely the American Information Exchange, another pre-Internet online system introduced in 1991.


  • In general the first business deal carried out on telephone or via a fax is mainly considered as first e-commerce transaction.
  • In 1960’s Electronic Data Interchange (EDI) was formulated. This is a set of standard instructions to interchange data and to carry out business deals electronically.
  • 1969: ARPANET, was developed by Americas department of defence for researching new reliable networks and later this enhanced into Internet that was purely used as a research tool for nearly 20yrs.
  • 1984: EDI, or electronic data interchange, was standardized through ASC X12. the ASC X12 standard became stable and reliable in transferring large amounts of transactions.
  • 1992: The National Science Foundation lifted restrictions on the Internet allowing commercial use. CompuServe offers online retail products to its customers. This gives people the first chance to buy things off their computer.
  • 1994: Netscape arrived which providing users a simple browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer.
  • 1995: Two of the biggest names in e-commerce are launched which is EBay and Amazon.com. Generally, B2C websites are the bridge that link customers to suppliers such as EBay, online auction. Beside that, the B2C concerns itself with selling to the end user such as Amazon, online book retailers. On the other hand, the e-commerce that is conducted between businesses is referred to as B2B such as Microsoft sell his software to other organization.
  • 1998: DSL, or Digital Subscriber Line, was launched into the market that provided much faster access and persistent connection to the internet. AOL swamped the market and had about 1.2 billion sales over a period of 10 weeks from online sales. E-commerce spread to a significant group globally within a span of 4 years from 1996 to 2000.
  • Today the largest electronic commerce is Business-to-Business (B2B). Businesses involved in B2B sell their goods to other businesses. In 2001, this form of e-commerce had around $700 billion in transactions. Other varieties growing today include Consumer-to-Consumer (C2C) where consumers sell to each other, for example through auction sites.


In the very beginning, many people will have doubt on e-commerce but now it is become a modern tool, not only e-commerce revolutionized the world of wholesale, but also retail. As a result of that, the businesses are now continually searching for new ways to meet the needs of the online market such as Wal-Mart, they target on integrating consumer relationship with e-commerce industry to increases their customer base.


The technology used for e-commerce is young, but it's expanding faster than any before it and will soon be the most advanced system the world has ever seen and e-commerce is still one of the leading forces of economic growth today.

http://www.ecommerce-journal.com/articles/electronic_commerce_aka_e_commerce_history

http://ecommerce.networksolutions.com/ecommerce_what_is_ecommerce.asp

by Wong Leed Chen

Posted on 10:39 PM by 4EvEr and filed under | 0 Comments »