a. What is meant by an online community and how is it important for e-commerce?
ANSWER:
Online community is a term that refers to individuals, groups, and organizations that share their common interests via the internet. Online communities allow two-way communication/ interaction and encourage contribution of ideals between members in a dynamic environment.
Some online communities are open (require no registration) and others are more secure that require members to log on so that information is only available to those with access.
Online communities are important for e-commerce as it allows businesses/organizations to interact with other potential customers that would not normally be accessible via traditional means, thus potentially expanding customer base and assisting in market orientation.
b. 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?
ANSWER:
Yes… All sites are similar in terms of user experience, and have direct access to e-commerce and online community groups allowing interaction amongst generally users, customers and businesses mostly associated with the site’s host country. ie. local currency, local postage and handling charges, international postage and handling charges, local pickup opportunities, common English language.
ii. What electronic payment systems are used? Are they globally acceptable?
ANSWER:
PayPal is used and preferred for the three sites. PayPal may be associated with internationally recognized credit cards (VISA, MASTERCARD) and/or with user’s bank accounts. PayPal acclaims it has become a global leader in online payment solutions with more than 153 million accounts worldwide, available in 190 markets and 18 currencies around the world by making payments possible across different locations, currencies and languages (http://pages.ebay.com.au/aboutebay/paypal.html)
iii. What are the benefits to of an online auction sale to a buyer, a seller and E-bay owners?
ANSWER:
Online auctions allow a convenient method to conduct auctions. For example,
1) Buyer’s perspective: the buyer may remain anonymous and submit bids remotely at any time before the auction closes. There is opportunity to contact the seller at any time to obtain additional information before bidding or before the auction closes (e., postage costs, item’s details). The buyer must be a member to actually bid on a item, however, anybody (ie. Non members) are still able to view the details of the item. The use of PayPal allows for a safer transaction between the seller and buyer by not disclosing confidential financial information ie. credit card details, bank account number. The buyer is able to view the seller’s profile and historical ratings based from previous customer dealings to gauge their reliability and trustworthiness before committing to the transaction.
2) Seller’s perspective: the seller is able to have their item viewable on the internet, allowing greater exposure to global potential bidders. They are also able to directly contact and respond to enquiries from bidders and are able to utilize PayPal’s payment system for a safe and secure transaction. Similarly to buyers, sellers are able to view the buyer’s profile and historical ratings based from previous buyers’ dealings to gauge their reliability and trustworthiness before committing to the transaction.
The sellers are able to utilize online auctions to reduce their physical overheads (staff, cleaning, building maintenance, printing of catalogues)
3) Ebay Owners’ perspective: Ebay owners are able to host various online communities mostly associated with their online auctions, including both buyers and sellers. Also, by promoting the PayPal system as the preferred method of payment, the Ebay owners are able to generate another stream of income.
c. Find three others examples of an online business using an online community approach.
ANSWER:
1. http://au.yahoo.com
2. http://www.amazon.com
3. http://www.auctionbidz.com.au
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?
ANSWER:
Amazon began in 1995 with the concept of selling books online, however, customers demanded other products to be included such as music, videos, DVD’s and other consumerables. Over the last decade Amazon has established itself as a reliable and trustworthy organization for quality, service and value . It is able to use this leverage to expand their business portfolio.
Amazon used three strategies to gain competitive advantage (http://wiki.media-culture.org.au/index.php/Companies_-_Amazon#What_is_Amazon.com.3F):
1) cost – leadership: ensuring the cost of products available from competitors is less, whilst maintaining quality
2) customer differentiation: provides current and prospective customers with differentiation though design, quality or convenience and Amazon.com always selects a differentiator that is different among the competitor. So, Amazon.com consumers can recognize and differentiate its product from competitors.
3) focus strategy: Amazon.com fouses on outstanding customer service as a niche but not the whole market because each niche has its own demand and requirement.
The process of purchasing a book is listed below : (http://www.amazon.com/gp/help/customer/display.html/ref=hp_navbox_lnor_new?nodeId=524700)
1. Find the Items You Want
2. Add the Items to Your Shopping Cart
3. Proceed to Checkout
4. Sign In/Create a New Account
5. Enter a Shipping Address
6. Choose a Shipping Method
7. Provide Payment Information and a Password
8. Review and Submit Your Order
9. Check Your Order Status
b. Is there any secure transactions not involving money?
ANSWER:
It seems that all financial transactions at Amazon use the secure sockets layer (SSL) security. Financial transactions are associated with credit card details which are registered at Amazon.com. The credit card details are not provided to sellers on the site. Non financial transactions also utilized SSL security such as: Tracking orders, updating profiles and account settings, providing feedback and personalization.
c. What is the range of items that you can buy?
ANSWER:
The range of items that are available at Amazon are illustrated on the home site page:
- Books
Books
Kindle Books
Textbooks
Magazines
Movies, Music & Games
Movies & TV
Blu-ray
Video On Demand
Music
MP3 Downloads
Musical Instruments
Video Games
Game Downloads
Digital Downloads
Kindle Store
Video On Demand
MP3 Downloads
Amazon Shorts
Game Downloads
Kindle
Kindle 2
Books
Newspapers
Magazines
Blogs
Computers & Office
Computers & Accessories
Software
PC Games
Computer Components
Office Products & Supplies
Electronics
Audio, TV & Home Theater
Camera, Photo & Video
Cell Phones & Service
MP3 & Media Players
Car Electronics & GPS
Video Games
Home Appliances
Musical Instruments
All Electronics
Home & Garden
Kitchen & Dining
Furniture & Décor
Bedding & Bath
Home Appliances
Vacuums & Storage
Home Improvement
Patio, Lawn & Garden
Pet Supplies
Sewing, Craft & Hobby
Grocery, Health & Beauty
Grocery
Natural & Organic
Gourmet Food
Health & Personal Care
Beauty
Toys, Kids & Baby
Toys & Games
Baby
Apparel (Kids & Baby)
Books
Movies
Music
Video Games
Software
Apparel, Shoes & Jewelry
Apparel & Accessories
Shoes
Jewelry
Watches
Sports & Outdoors
Exercise & Fitness
Camping & Hiking
Action Sports
Team Sports
Cycling
Golf
Fan Gear
All Sports & Outdoors
Tools, Auto & Industrial
Power & Hand Tools
Outdoor Power Equipment
Home Improvement
Lighting & Electrical
Plumbing Fixtures
Automotive
Motorcycle & ATV
Industrial & Scientific
i. List the steps involved and comment
ANSWER:
The steps involved in purchasing an item is listed in Question2(a). The purchasing process is based on a 1-Click process that is intuitive and easy to follow, especially for first-time users and other inexperienced users.
3. What happens with new models such as price comparison sites?
ANSWER:
Price comparisons sites (such as Shopbot.com.au) search the internet to find the “best deals” and is able to redirect potential customer’s enquiry to its members. The concept is based upon making it easier for potential customers to search the internet for items and providing the customer is reliable and reputable online businesses.
