a. What is meant by an online community and how is it important for e-commerce?
An online community can be best described as a gathering of individuals via a Virtual(Online)Social Networking service that allows interaction with one another virtually rather than face to face via Instant Messengers(Online Chat), emails, newsletters, forums etc. This allows people with common interests to exchange views with one another or many others with the ease of a couple of clicks.
Social networking sites like Hi5, MySpace and Facebook have millions of users worldwide.
They contain applications like Facebook's Marketplace which allows users to advertise what they sell or want to buy. This allows users to interact and make requests to purchase the items for sale. With the growing number of Users online, advertising on Social Networking sites can help boost E-Commerce and promote business on an international scale. This is indeed vital and key and important promoting online businesses and E-commerce.
Visit the three auctions sites at http://ebay.com, http://ebay.co.uk and http://ebay.com.au:
i. Is there a common thread and a local community sense in action?
The 3 ebay sites emphasize on the same look and maintain similar GUIs. As each caters to their locales (ebay.com for US, ebay.co.uk for UK residents and Australia for ebay.com.au) minute differences exist. The products advertised on the site are country specific however the option is available to make it globally visible. Hence there is a common thread and local community sense in action.
ii. What electronic payment systems are used? Are they globally acceptable?
Paypal Payment Gateway is used on the Ebay sites. PayPal is a world renowned payment gateway (system) and is becoming widely used among many E-Commerce sites around the world as it supports over 190 countries and regions worldwide. Other payment methods include Credit Card, Personal or Bank cheques, Money Orders, Bank Deposit or Bank Deposit Express and Cash on Delivery.
iii. What are the benefits to of an online auction sale to a buyer, a seller and E-bay owners?
Benefits to the Buyer:
- One stop shop for products in hundreds of categories.
- Buyers can search and browse the products listed locally and internationally and make comparisons based on usage, condition of the products and products sold by other sellers.
- Easy access to the Seller and direct liaison. This eliminates the middle man and other additional fees. Ebay is free.
- Online bidding which allows the buyer to get good deals on product which maybe worth more
Benefits to the Seller:
- No restrictions to the seller. He can keep his product up for sale 24/7 based on the bidding cycle.
- Exposure to buyers locally and internationally.
- Advertising options
- Reduced cost of operation as they are not subjected to tax internationally and no requirement of personal to sell the product.
- Direct contact with the buyer allowing negotiation on the pricing.
Benefits to the E-bay-Owners
- Revenue Generated from each transaction.(Based on Insertion Fee and Final value)
- Income for Ad-Banners
- Exposure Internationally acquiring world renowned recognition as well acceptance and usage
c. Find three others examples of an online business using an online community approach.
i.
http://www.autolanka.com/
Sri-Lanka's first online automobile magazine for buying, selling and renting cars, vans, any vehicle accessories and to be updated with the latest news in Sri-Lanka's Car market. The forums and discussion boards allow drivers to interact with one another discuss news, views and reviews on automobiles events.
ii.
http://www.lanka.info/index_srilanka.jsp
Kapruka focuses on the srilankan community allowing buyers to send gifts from anywhere around the world to anyone in sri-lanka. Sending gifts is made easy and fast and the on line shopping has been proved reliable at Kapruka. The variety of gifts consist the fresh and beautiful flower arrangements produced by the expert florists at Kapruka, the fabulous and irresistible food items and perfectly presented fruit baskets and hampers, also the gifts which suits any special occasion.
iii.
http://www.pcworld.com/
PC World has become the most widely-read computer or business magazine with a readership of over 4.8 million. Winning of more editorial awards than any other computer publication, PC World has focused to meet the informational needs of Tech-Savvy Managers, both at work and at home. With its monthly Reviews and Rankings backed by the PC World Test Center, news, how-to articles, features, and special reports, PC World helps managers plan, buy, use, and integrate the technologies that keep them and their companies ahead of the competition.
2. Visit the famous online store front at http://www.amazon.com
a. Why has it been a successful site? How does the purchase of a book work?
Amazon.com(Launched in 1995) is a online store with now one of the worlds largest product supplies. It is one of the first companies to sell products by housing them all in warehouses and distributing products from partner companies.
Amazon's success relies on their focus to cater to their customers, tracks their tastes and uses this information to create a unique customer experience. This cultivates relationships that lead to customers liking and trusting them. This kind of service surpasses the most brilliant technology in use today. Amazon brought in the world of successful one-to-one marketing, a personal touch from another era.
Their success also stems from keeping their prices reasonable and the user experience easy.
Purchasing a book is as easy as
- Logging on to the site www.amazon.com via an Amazon account (Sign up is required)
- Selecting the Category Books and searching the book title.
- Adding the selected books to a shopping cart and in a few clicks making the purchase via your selected payment method
b. Is there any secure transactions not involving money?
Yes. There are pages that involve processes or transactions that does not involve money (eg. discussion, reviews, forums, user management(Membership)). These web pages are protected by Secure Sockets Layer (SSL) communications protocol and are distinguished by the 'https:' showing at the beginning of Web page address.
c. What is the range of items that you can buy?
Amazon.com has a long list of items that can be purchased.
i. Logon to www.amazon.com
Select the search category. (In this example Books)
Search the book by typing the keywords of the name of the book via the search box located next to the Search Category.
For Eg: http://www.amazon.com/gp/product/093852920X/ref=s9_simx_gw_s0_p14_i1?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-1&pf_rd_r=1R2MMVW1JV3ZCGK2AA12&pf_rd_t=101&pf_rd_p=470938131&pf_rd_i=507846
ii. Add the book into shopping cart. Click 'Add to Shopping Cart' button on the book detail page and continue shopping if necessary.
iii. Once the book(s) in the shopping cart have been finalised and click 'To Buy Now' button to checkout process.(Proceed to Checkout)
iv. Sign in or Create a new account. Enter e-mail address and click 'Sign in' button.
v. Enter a shipping address. Enter the correct address.
vi. Choose a shipping method. Items requiring special shipping and handling.
vii. Provide payment information and password. Accepted credit cards are
American Express, Diners Club, Discover, MasterCard, and Visa.
viii. Review and submit the order. Check the validity and accuracy of your information and make any necessary adjustments.
ix. Check order status. Review or change about the order that was placed before it enters the shipping process.
3. What happens with new models such as price comparison sites?
Price Comparison sites allow online shoppers, vendors and other users to refer a central location and make comparisons on products via listings of the product and availability of the product at the respective online shopping site. This gives the user a higher level view of where to make the best deal and purchase saving time and money. This also gives vendors to know their competitor's pricing and also slash theirs to meet with the demand. It creates a competitive shopping experience however most of the Price Comparison sites may not list all products or sites to compare with.
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