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Showing posts with label week 3. Show all posts
Showing posts with label week 3. Show all posts






Business trading is changing rapidly from time to time. From the earliest barter system, evolve into money trading and now card system. In the ancient people have to travel months or maybe years from one region to another to exchange goods, but e-commerce allow consumers to purchase anything from anyplace and anytime.

Electronic commerce, also known as e-commerce, is defined as buying and selling products or services through the internet. Basically, electronic commerce as the name implied is the doing business transaction electronically, using technology such as Electronic Data Interchange (EDI) and ElectronicFunds Transfer (EFT) . The function of e-commerce has been improved since it was first introduced. Back to the late 1970s, e-commerce allowing business to deliver and receive purchase order or invoices electronically. Later on at 1980s, credit cards, automated teller machines (ATM) and telephone banking were growing and the public have massively using these services to do their daily transactions. Which make e-commerce become more and more general.. All documents and data were handle in paper-less, information can be transfer and found in just seconds. The technology had played an important role in assisting people to deal business electronically.

Nowadays, with just a personal computer or Smartphone in hand we can do a e-commerce. There are many websites on the internet that are helping consumers to buy and sell things, for example




Anyway they are also certain individuals that prefer to set up their own website to sell their things. They create their own webpage and promote their products and services, or even blogging too. E-commerce was made to be more effective and efficient thanks to easy online payments system such as http://www.blogger.com/www.paypal.com. Goods can be deliver to consumers at anyplace by courier companies such as FedEx, UPS ect.





EPORIA.com known as a company that provides ecommerce web design and development for businesses throughout USA. In EPORIA, they provide services such as ecommerce web design, ecommerce software, internet marketing and search engine optimization (SEO) services for their clients who come from all sizes of industries. Throughout these years, their clients have come to them with one common need, which is selling more. So, EPORIA had met the client’s needs by putting their businesses in the fast track for a higher sale. EPORIA had been successfully developing and marketing ecommerce websites including books and magazines, home décor and furniture, industrial products and more.



Here are some reasons why EPORIA can be succeeded. First and foremost, EPORIA had advanced core technology. With the advanced technology, EPORIA can design the website that cam meet the needs of their clients. Hence, EPORIA can put their customers’ online businesses in the fast and right track.

Moreover, EPORIA has extensive experience in developing the ecommerce website for more than a decade. Designers and developers of EPORIA know what works online and what doesn’t. The most important is, they know what are the most effective techniques in designing and developing the ecommerce website nowadays. Thus, EPORIA puts their customers in the fast track for higher sales.

Besides that, there is an ecommerce solutions blog written by EPORIA. From this blog, the clients can learn the tips, tricks, and best practices of ecommerce. A case in point, the latest post of EPORIA is ‘’ecommerce reality check for success’’. Clients can get useful tips in order to manage their online business well.

References:
1. Ecommerce solutions blog. 19 June 2009, from http://eporiablog.wordpress.com/about-us/
2. The eporia method. 19 June 2009, from
http://www.eporiaecommerce.com/40259/The-EPORIA-Method.html

Revenue model is description of how the company or an E-commerce project will earn revenue. It is include 5 models such as sales revenue model, transaction fees model, subscription fees, advertising fees, advertising model, and affiliate model.

Sales revenue model is companies generate revenue from selling merchandise on their web site of from providing a service
Transaction fees is company receives a commission based on the volume of transaction made.
Subscription fees are customers pay fixed amount, usually monthly, to get some type of service. Fee from subscribers is in exchange for access to content or service.
Advertising fees is companies charge others for allowing them to place a banner on their sites.
Affiliate fees are companies receive commissions for referring customers to other Web sites.

Now, let me compare each revenue model for Google, eBay, and Amazon.com.

Sales Revenue Model: The main representative is Amazon.com
The major revenue of Amazon.com is selling book, CDs, DVDs, software and so on. Amazon.com reported over 1.3million sellers sold products through Amazon’s worldwide web sites in 2009. Not only Amazon.com, eBay also make revenue through sales revenue model as well. However, Google seldom involve in such model as it major business is search engine.

Transaction Fees model: eBay is classical example for this model.
eBay is platform let people buy and sell their goods through their website. It become the intermediate in this trade and received transactions fee between them. Amazon.com and Google not much this kind revenue compare with eBay.

Subscription Fees Model
: These three companies all got this kind of model.
(1) eBay
(2) Amazon.com
(3) Google


Advertising Fees Model: it is Google major revenue source.
Almost 99% sources revenue of Google is advertising fees, such Google Adwards and Google Adsense

Clickriver Ads can place advertisement on the Amazon.com

Same as the Amazon.com, eBay also got some this kind of model.

Affiliate Fees Model: Pay-Per-Click is most popular that Google use it generates revenue. As compare with eBay and Amazon, Google also very famous in this. Nowadays, affiliate program is also become more popular compare with advertising as it also part of the advertising. eBay and Amazon trend to become most using it as well..

References:
www.eBay.com
www.Amazon.com
www.Google.com



Boo.com started operating it's head office in London in 1998, the founder of this company is Ernst Malmsten, Kajsa Leander and Patrik Hedelin. The vision of the company is to become the worlds first online global sports retail site. Their targeted maket is people within 18-24 years old and people interested in sports and fashion brands stocked by Boo.com

Boo.com provide very good visual effect to customer in their website , when customer drag the products to models, and can zoom in and rotate, so that customer could see the products in different angles. There is an analyst of New Media Age, Nik Margolis said:" What i saw at Boo.com is simply the most clever web experience I have seen in quite a while." He think that the way of presentation the product is so imaginative. Initially, their business is very suceesfull with on-time delivery and the approach rate is 100%.

Before launch, Malmsten explain meeting to Larry Lenihan, representative from Pequot Capital who had made successful investment in AOL and Yahoo. The management team of Boo.com able to provide sales forecast but they were unable to answer many basic question.
For example, “How many visitors are you aiming for?” “What kind of conversion rate are you aiming for? How much does each customer have to spend? What’s your customer acquisition cost. And what’s your payback time on customer acquisition cost?” Because of management team couldn't answer those question, so investors are not interested in investing in the company.

Till 18th May 2000, Boo.com liquidated because of investors refuse funding in the company.

The reason of Boo.com liquidate are as follow:

i) Multiple Currencies
If a company decide to trade globally, they can't only offer US dollar, they need to find out some way to handle multiple currencies ranging from dollars to pounds and etc. The way to set up the pricing schema should be decided earlier.

ii) Multiple Languages
Basically, grammatical rules may be differ from different country. For example, British English and America English is totally different. The catalogue created by Boo.com doesn't take this issue into consideration.

iii) Front End is not technology
This is the main reason that can explain why Boo.com will be closed down. Front-end team should be the first to report to business development and marketing. A web-site is just an interface design, no matter how nice is it, it is not a marketing exercise. Boo.com should have be hired staff that expert in marketing also but not only people who knows how to desgin webpage.
There is people critics that : No matter how good your backend system are, the users will only remember your front end. Fail there and you will fail.

Reference:

  1. Learning from the largest European dot-com failureContext. 17 June 2009, from http://www.davechaffey.com/E-commerce-Internet-marketing-case-studies/Boo.com-case-study
  2. Strom, D. (2000). Lessons learned from the demise of Boo.com, 17 June 2009, from http://www.strom.com/awards/199.html

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H3LLO, let's introduce our group member in Paradise. They are Pong Zi Kang(Gary), Gary Choo Wai Kit, Chua Sheng Ann and Soon Yoon Yee. We are glad to be in the same team because we all like sharing information with the others. Hope out blog can bring more information to you all ^^

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