Rui.Ean.Agu. Not Simply E-Commerce: E-Commerce

Showing posts with label E-Commerce. Show all posts

Monday, June 16, 2008

Revenue Model for Google, Amazon.com and eBay.

Google Inc. is an American Public Corporation, earning revenue from advertising related to its Internet Search, Gmail, Google Maps, Google Messenger, YouTube and Picasa as well as selling advertising-free versions of the same technologies. Google was co-founded by Larry Page and Sergey Brin while they were students at Stanford University and the company was first incorporated as a privately held company on September 7, 1998. Google's initial public offering took place on August 19, 2004, raising US$1.67 billion, making it worth US$23 billion.

The Google’s revenue model are Google Adwords and Google Adsense. Google Adwords is a pay per click advertising program of Google designed. It is to allow the advertisers to present their advertisements to people at the moment the people are looking for information, which related to what the advertiser has offer. When the user searches the Google’s search engine. Pay per click is an online advertising payment model in which the payment is based on the qualifying click-through. An advertiser has to pay when every time his ad receives a click. It is means that the advertiser only pay when the people click on the ad on it, and it is easy to control costs. When a user searches the Google’s search engine, ads for relevant words are shown as ‘’sponsored link” on the right side of the screen

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

Amazon.com, Incorporation is an American electronic commerce (e-commerce) company in Seattle, Washington. It was one of the first major companies to sell goods by Internet. Amazon.com started the business is the on-line bookstore, but later vary to the product lines of DVD, music CDs, MP3 format, computer software, video games, electronics, health and personal-care items, furniture, food, toys, beauty products, musical instruments, groceries, industrial and scientific sip plies, kitchen items, and etc. It also provides global shipping to certain countries for some of the products. Thus, Amazon.com's revenue model is majorly generated from sales of goods and partly from advertisement.

eBay Incorporation is an American Internet company, which is manage by th eBay.com. 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 of the comuputers, furniture, equipment, vehicles, and other miscellaneous items are listed, bought, and sold everyday. Anything can be sold as long as it is not illegal and does not violate the eBay rules and regulations policy. The services and intangibles items also can be sold. The international companies, such as IBM, will sell their latest products and offer the services on eBay, by using the competitive auctions, and fixed-priced storefronts.

eBay generates revenue from a number of fees. The eBay fee system is quite complex; there are fees to list a product and fees when the product sells, plus several optional fees, all based on various factors and scales. The U.S.-based eBay.com takes $0.20 to $80 per listing and 5.25% or less of the final price (as of 2007). The Mexican eBay "mercado libre" takes 1% (price of the article × number of articles to be sold), and 4.99% of the final price if there is a successful trade. The UK based ebay.co.uk takes from GBP £0.15 to a maximum rate of GBP £3 per £100 for an ordinary listing and from 0.75% to 5.25% of the final price. In addition, eBay now owns the PayPal payment system which has fees of its own.

Hence, the revenue models that used by eBay is Transaction Fees (commissions paid on volume of transactions) ,Subscription Fees(monthly or yearly fixed amount paid to get some services) and Advertisement Fees (payments from advertisers).

Reference:

Prepared by Rui

All right reservced by EnT02 Group Rui,Ean and Agu™

How E-Commerce can reduce cycle time, improve employee's empowerment and facilitate customer support

cozElectric commerce which is known as e-commerce, was growing rapidly in this few year till now and created a huge benefits such as increase our lifestyle, standard of living and economic growth. E-commerce usually applied in buying and selling of products and services over electronic systems such as the Internet and other computer networks.

In this blog I will separate it in 3 sections on how E-commerce can help reduce the cycle time , improve employee's empowerment and facilitate customer support.

1. How E-Commerce can help reduce the cycle time?

From what we observe, try and learn, E-Commerce actually creates much easier way for us to handle our daily tasks such as business transaction without any barriers of time and place. Every click on the screen or the mouse can help us to manage our transaction. It is so simple just click on it! Moreover, it also reduce our time to go to mall or outlets and it also help the sellers to increase their sales.

Let's us compare with the traditional services with E-commerce services, first as I stated is the time we consumed on services was reduced. Secondly, E-Commerce usually operates in 24 hours per day. Lastly, E-Commerce is more systematic compare to traditional services which is more complex.

2.Improve Employee's Empowerment

By adopting E-Commerce , the informations are collected from all around the world and centralized it thus, it will enables the employees easier to get the data. Besides that, the software that we are using normally will upgrade from time to time and of course it will applied on E-Commerce too, so it will enhances their performance and also increase customer services.

3. Faciilitate Customer Service

The CRM system can helps to increase customers' satisfaction. Creative web page designed will provide accurate/relevance information to customers and it helps to reduce their doubts and problems. The latest update can be obtained immediately compare to traditional method. Customer can log in to the forum to search for more opinions from others forumers before they make a decision. FAQ is provide within the website to helps to minimize the uncertainty and increase the feeling of secure.There are many applications can enhance the customer support, these applications has improved our living standard and it bring the feel convenience.

refrences/article:
-http://en.wikipedia.org/wiki/E_commerce

Prepare by:Ka Leong

Sunday, June 15, 2008

An Example of an E-commerce success and its causes

Dell is a multinational company base in round rock, Texas which is develop manufactures, sell, and support personal computers , servers , data stores devices, network switches, software, televisions, computer peripherals, and other technology-related products. Dell is also defined as an E-commerce company.Dell was creating its first wed site in 1994 and moving many of its business activities to the internet ahead of its competitors. Because of Dell is an direct model sell via online,i so it is an competitive advantage for Dell company in selling online.Dell also its a build-to-order manufacturing processes, its make a convenience to their customers and more easy to customer to order the products online.

It is not an easy task to build a goodwill and trust towards customer via E-Commerce. Consumer are facing too much internet unsecurity, fraud, phising, privacy concern and also legal restriction. Those factors are critical issue to deny E-Commerce growth dramatically, which is technological and non-technological limitation.

Dell has successfully build their reputation while dealing with customer via B2C Model. They overcome all the limitation by providing a price cut compare with their competitor, but providing same quality or even higher quality than their competitior. These quality not only product quality but also service quality. Service is one big issue when company dealing with customer, customer service are very difficult to be made and accept by customer.Unlike others, Dell providing high security trading process for customer, which avoid any privacy issue for customer. They also provide various kind of payment model which are verified as safe by other parties.

Dell routes technical support queries according to component-type and to the level of support purchased. Dell Inc brands its service agreement at five levels for their business customers:

Basic support provides business-hours telephone support and next business-day on-site support.

Silver support provides 24×7 telephone support and 4-hour on-site support after telephone-based troubleshooting.

Gold support provides additional benefits over and above Silver support, including: customer-declared severity; priority access to support; expedited escalation of support; 4-hour on-site support in parallel with telephone-support.
Platinum Plus support provides additional benefits to Gold Support, including: performance benchmarking; real-time tracking; custom planning and reporting; a dedicated technical account-manager.

2-hour on-site support, offered in some cities: mostly limited to major metropolitan areas.

Let's make a small summary over these, Dell Inc can make a great sucess in their E-Commerce model are based on a strong service foundation and a favourable price advantage over their competitors. Dell fulfill the 3 element which are desired by customer: Cost( Low cost), Convenience (Easier than traditional shopping), and Control (Customer can make their own decision without hearing any "expert opinion") and it leads to its sucess in this highly competitive market.

Reference:

Prepared by Lew Pei Ean

All right reservced by EnT02 Group Rui,Ean and Agu™

The History and Evolution of E-Commerce

Before we go through the topic, lets have a flashback to build a scope for you to explain what is E-Commerce. Simply put, e-commerce is the online transaction of business, featuring linked computer systems of the vendor, host, and buyer. Electronic transactions involve the transfer of ownership or rights to use a good or service. Most people are familiar with business-to-consumer electronic business (B2C). Common illustrations include Amazon.com, Dell.com and AirAsia.com

Due to the risen of Internet, the user of internet sharply increased in few years. While the Internet was developed in the late 1960s, the WWW came into existence more than a decade ago - in the early 1990s. Since then, however, it has grown phenomenally to become the most widely used service on the Internet. Beside, the numbers of user increase, the oppurtunity to build a market via Internet is no more a dream.

Not only entertainment, business also have been engaging in a form of electronic commerce, known as electronic data interchange, due to the risen of Internet. Electronic Date Interchange (EDI) occurs when business transmits computer-readable data in a standard format to another business. In the 1960s, businesses realized that many of the documents they exchange related to the shipping of goods - such as invoices, purchase orders, and bills of lading - and included the same set of information for almost every transaction. They also realized that they were spending a good deal of time and money entering these data into their computers, printing paper forms, and then re-entering the data on the other side of the transaction. Although the purchase order, invoice, and bill of lading for each transaction contained much of the same information such as item numbers, descriptions, prices and quantities - each paper form had its own unique format for presenting that information. By creating a set of standard formats for transmitting that information electronically, businesses were able to reduce errors, avoid printing and mailing costs, and eliminate the need to re-enter the data.

While Internet played an important role in the late 1960's, E-Commerce become a new business form and improved while techonology innovation. The new implication and support from technological frontier including hardware and software strengthen the advantage and growth of E-Commerce. The liberalization of the telecommunications sector and innovations such as optic fiber and DSL which has helped to expand the volume and capacity of communications that helped in the process of rapid growth. Beside, innovative hardware stabilize the process and running of E-Commerce such as providing a 24/7 working server, which can allowed the users and administrator access to the database in just a few second. This techonoly advancement greatly boost E-Commerce up and bring a big impact in traditional market and supply chain management.

Lastly, E-Commerce can be said as the biggest impact in recent year which involves conducrt business over the internet with the assistance of computers, overcome geographical limitation and create a true Global Village. Beside, E-Commerce stimulate the innovation and improvement on SPM( Supply Chain Management),CRM(Customer Relationship Management) and other business model. E-Commerce,which build on the foundation of Internet, not only playing an important role now, but will bring more impact in future buying and selling process.