Electronic commerce

Online goods and services Streaming media Electronic books Software Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. ... Image File history File links No higher resolution available. ... Streaming media is multimedia that is continuously received by, and normally displayed to, the end-user while it is being delivered by the provider. ... An ebook is an electronic (or digital) version of a book. ... Computer software (or simply software) refers to one or more computer programs and data held in the storage of a computer for some purpose. ...

Retail product sales Online shopping Online used car shopping Online pharmacy Online shopping is the process consumers go through to purchase products or services over the Internet. ... Online Used Car Shopping is an act of using the Internet to shop for a used car. ... Recently, a number of pharmacies have begun operating over the internet. ...

Retail services Online banking Online food ordering Online flower delivery Online DVD rental Online banking (or Internet banking) is a term used for performing transactions, payments etc. ... Online food ordering services are websites that feature interactive menus allowing customers to place orders with their local restaurants. ... Online flower delivery services are websites that allow you to place floral and allied gifting orders by browsing an online catalogue. ... This article does not cite its references or sources. ...

Marketplace services Online trading community Online auction business model Online wallet Online advertising Price comparison service An online trading community exists to provide its members with a structured method for trading, bartering, or selling goods or services. ... A online wallet is a program or web service that allows users to store and control their online shopping information, like logins, passwords, shipping address and credit card details, in one central place. ... Online advertising is a form of advertising utilizing the Internet and World Wide Web in order to deliver marketing messages and attract customers. ... On the internet, a price comparison service (also known as shopping comparison or price engine) allows individuals to see lists of prices for specific products. ...

E-procurement E-procurement (Electronic Procurement) is the business-to-business purchase and sale of supplies and services through the Internet as well as other information and networking systems, such as electronic data interchange (EDI) and Enterprise Resource Planning (ERP). ...

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The online auction business model is one in which participants bid for products and services over the Internet. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved. Image File history File links Question_book-3. ... This article is about a term used in economics. ... This article needs additional references or sources for verification. ... Auction software is application software, that can either be deployed on a Web server for online auctions or as stand-alone software for live auctions, that handles all aspects of conducting an auction. ...

eBay, the world's largest online auction site, is one of the better known examples. Like most auction companies, eBay does not actually sell goods that it owns itself. It merely facilitates the process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for individuals and businesses who use the site to auction off goods and services. This article is about the online auction center. ...

Several types of online auctions are possible. In an English auction the initial price starts low and is bid up by successive bidders. In a Dutch auction, multiple identical items are offered in one auction, with all winning bidders paying the same price -- the highest price at which all items will be sold (treasury bills, for example, are auctioned this way). Almost all online auctions use the English auction method. In an English auction (also called an Open-outcry auction), the auctioneer begins the auction with the reserve price (lowest acceptable price) and then takes larger and larger bids from the customers until no one will increase the bid. ... Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneers price, or a predetermined reserve price (the sellers minimum acceptable price) is reached. ... Treasury Securities are bonds issued by the U.S. Treasury. ...

Globalisation and the reach of the internet have allowed the auction business model to extend beyond its traditional realm of the trade in goods into the area of service provision. Outsourcing companies exist, such as guru.com and getafreelancer.com that now provide services such as programming and web design as the result of a competitive bidding auction process. Others, such as earn.co.uk have taken the auction model to the provision of local services.

Strengths of the business model

The strategic advantages of this business model include: The term business model describes a broad range of informal and formal models that are used by enterprises to represent various aspects of business, such as operational processes, organizational structures, and financial forecasts. ...

1. No time constraints. Bids can be placed at any time (24/7). Items are listed for a number of days (usually between 1 and 10, at the discretion of the seller), giving purchasers time to search, decide, and bid. This convenience increases the number of bidders.
2. No geographical constraints. Sellers and bidders can participate from anywhere that has internet access. This makes them more accessible and reduces the cost of "attending" an auction. This increases the number of listed items (ie.: number of sellers) and the number of bids for each item (ie.: number of bidders). The items do not need to be shipped to a central location, reducing costs, and reducing the seller's minimum acceptable price.
3. Intensity of social interactions. The social interactions involved in the bidding process are very similar to gambling. The bidders wait in anticipation hoping they will "win" (eBay calls the successful bidder the "winner"). Much like gambling addiction, some bidders may bid primarily to "play the game" rather than to obtain products or services. This creates a highly loyal customer segment for eBay.
4. Large number of bidders. Because of the potential for a relatively low price, the broad scope of products and services available, the ease of access, and the social benefits of the auction process, there are a large numbers of bidders.
5. Large number of sellers. Because of the large number of bidders, the potential for a relatively high price, reduced selling costs, and ease of access, there are a large number of sellers.
6. Network economies. The large number of bidders will encourage more sellers, which, in turn, will encourage more bidders, which will encourage more sellers, etc., in a virtuous circle. The more the circle operates, the larger the system becomes, and the more valuable the business model becomes for all participants.
7. Captures consumers' surplus. Auctions are a form of first degree price discrimination. As such, they attempt to convert part of the consumers' surplus (defined as the area above the market price line but below the firm's demand curve) into producers' surplus. On-line auctions are efficient enough forms of price discrimination that they are able to do this............

24/7 is an abbreviation which stands for 24 hours a day, 7 days a week, usually referring to the availability of a service. ... Ask price, also called offer price, is a price a seller of a good is willing to accept for that particular good. ... Compulsive gambling is an urge or addiction to gamble despite harmful negative consequences or a desire to stop. ... Price discrimination exists when sales of identical goods or services are transacted at different prices from the same provider. ... Supply curve shift Consumer surplus or Consumers surplus (or in the plural Consumers surplus) is the economic gain accruing to a consumer (or consumers) when they engage in trade. ... This article or section does not cite any references or sources. ...

Criticism

1. Auction sites are now garnering a reputation as a place for criminals to unload stolen, diverted and counterfeit products.^[1] Stolen goods are so rampant that major law enforcement organizations now use such websites to catch criminals and recoup stolen goods.^[2]

1. Retailers are now lobbying Congress in the U.S.A to require online auction sites to share information on high-volume sellers whom are suspected to be engaged in illegal activity.^[3]

Companies that use the model

eBay headquarters in San Jose, California.

• Amazon.com
• Bidorbuy
• DoveBid
• eBay
• eBid
• Millionairesbay.com
• Overstock.com
• Oztion
• Prosper (web site)
• QXL
• SalvageSale, Inc.
• TradeMe
• uBid
• Yahoo! (Yahoo! Auctions is now defunct in America, but remains active in other countries such as Japan.)^[4]

Image File history File links Download high-resolution version (1365x926, 386 KB) Summary The headquarters of eBay in San Jose, California. ... Image File history File links Download high-resolution version (1365x926, 386 KB) Summary The headquarters of eBay in San Jose, California. ... For other uses, see San José. Nickname: Location of San Jose within Santa Clara County, California. ... Amazon. ... Bidorbuy is South Africas largest internet auction website,[1] run by bidorbuy (Pty) Ltd. ... DoveBid is a valuation and auction firm originally founded in 1937. ... This article is about the online auction center. ... eBid is an online auction website founded in December 1998. ... The introduction to this article provides insufficient context for those unfamiliar with the subject matter. ... Oztion company logo. ... Prosper is an online auction website where people can buy loans and request to borrow money. ... QXL is a European UK based online auction with 4 million registered users. ... SalvageSale, Inc. ... TradeMe is (as of 2007) the largest internet auction website operating in New Zealand, and is managed by the company Trade Me Ltd. ... uBid Inc. ... Yahoo redirects here. ...

See also

• Auction sniping
• Online auction tools
• Bidding fee scheme
• Car dealer auctions
• Marketing
• Reverse auction
• Auction software
• Strategic management
• Tenders

Auction sniping is the process of watching a timed online auction (such as on eBay or Yahoo!), and placing a winning bid at the last possible moment (often literally seconds before the end of the auction), giving the other bidders no time to outbid the sniper. ... Online Auction tools is application software, that can either be deployed on a Web server or a Desktop. ... A bidding fee scheme is a grey area business model for online auction sites that allow them to make large profit margins on goods by charging non-refundable fees for bidding. ... Millions of vehicles are sold at dealer auto auctions every year. ... For the magazine, see Marketing (magazine). ... A reverse auction (also called procurement auction, e-auction, sourcing event, e-sourcing or eRA) is a tool used in industrial business-to-business procurement. ... Auction software is application software, that can either be deployed on a Web server for online auctions or as stand-alone software for live auctions, that handles all aspects of conducting an auction. ... Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives[1]. It is the process of specifying the organizations objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies... Tenders are special procedures to generate competing offers from different bidders looking to obtain an award of business activity in works, supply, or service contracts. ...

Further reading

• Nissanoff, Daniel (2006). FutureShop: How the New Auction Culture Will Revolutionize the Way We Buy, Sell and Get the Things We Really Want. The Penguin Press. ISBN 1-59420-077-7.  (Hardcover, 246 pages)

References

1. ^ http://www.csoonline.com/read/080105/auction.html
2. ^ http://www.networkworld.com/community/node/18955
3. ^ http://www.retailwire.com/discussions/sngl_discussion.cfm/12540
4. ^ Yahoo! US Auction sites are retired!