Difinition of E-marketplace. E-Marketplaces. Advantages of E-marketplaces

Transcription

1 Difinition of E-marketplace a location on the Internet where companies can obtain or disseminate information, engage in transactions, or work together in some way. E-Marketplaces Assist. Prof. Dr. Özge Özgen Global E-Business and Trade Two basic functions: matching buyers and sellers; facilitating the exchange of information, goods, services, and payments associated with market transactions; and providing an institutional infrastructure, such as a legal and regulatory framework, which enables the efficient functioning of the market E-Marketplace Components Customers Sellers Selling Items Services and Infrastructure Advantages of E-marketplaces Greater information richness Lower information search costs for buyers Diminished information asymmetry between sellers and buyers Ability of buyers and sellers to be in different locations 1

2 When You Select E-Marketplace Features of the E-marketplace Coverage area You also do not want to be involved in a marketplace if your competitor is the major owner. Costs You should compare the costs of joining the marketplace Savings and efficieny gains from joining the marketplace Look for costs such as commissions for completed transactions, membership fees, listing fees, value added services (delivery, etc). Ease of Use / Support: An e-marketplace should be easy to use and should not require a lot of training for your staff Industry Fit Marketplace Participation: having a lot of buyers and sellers Security / Privacy Be sure that the transaction information is not published or available for a third party or a competitor. Other Services Case: ebay History of ebay ebay Today! ebay is the world's largest online marketplace anyone can buy and sell practically anything. More than 100 million active users globally (as of Q4 2011) Founded in 1995, ebay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. Their collective impact on ecommerce in 2011, the total value of goods sold on ebay was $68.6 billion -- more than $2,100 every second 2

3 Buying Basics of ebay buying something at a fixed price, or take part in an auction-style listing to win item Auction Style Format You bid up from the seller's starting price along with other buyers to get the best deal. You can watch the item to see how the bidding is going. When the listing ends, the highest bidder wins the item and completes the purchase. Benefits: Bidding can be lots of fun. You can find some great deals. Considerations: You need to wait until the listing ends to buy the item. You might be outbid. Auctions English Auction Open auctions in which buyers successively raise their bids until only one buyer remains Open auction all of the bidders know the amount of the highest bid at all times If the final bid reserve price, the item is not sold Reverse-Price English Auction Type of auction in which several sellers offer their items for bidding, and compete for the price which a buyer will accept. Dutch Auctions Auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price (the seller's minimum acceptable price) is reached. The winning participant pays the last announced price. 11 3

4 Examples of Reverse Auction Web Sites Auctions 37% of ebay auctions received bids within the last minute, 12% within the last 10 seconds People believe that if they bid early, item can be perceived as so valuable The winner s curse Some people pay higher price for auctioned products than they would pay an online retailer Entertainment benefit of online auctions 14 Buy It Now You can buy the item immediately at a fixed price. This can also be an option in auction-style listings. If a seller offers this option, you'll see Buy It Now in the listing and search results. Benefits: You can buy the item right away. You don't compete with anyone else for the item. Once you buy it, it's yours. Considerations: If you want the item, you have to act fast. Buy It Now Variations Items that only have a Buy It Now price Items that have a bid price and a Buy It Now price Items that include a Best Offer option You can use Buy It Now to purchase the item right away. You can place a bid or use Buy It Now to purchase the item immediately, before bidding starts. If a seller offers this option, you can suggest a price that you're willing to pay for the item. 4

5 . How Fees are Calculated Fees for Business & Industrial Equipment Insertion fee When you list an item on ebay, you may be charged a listing (or insertion) fee. If applicable, you're charged one insertion fee per listing, per category, regardless of the quantity of items. What you get for free up to12 pictures per listing are free with ebay picture hosting, including zoom and enlarge features Final value fee If the item sells, you're charged a final value fee. Final value fees are calculated based on the total amount of the sale and are charged per item. Insertion fee (per listing, for any duration, including Good 'Til Cancelled) Final value fee (per item) $20 1% of the total amount of the sale. Maximum fee is $250 Examples of Fee Calculations You re selling business & industrial equipment with an auction-style listing. You select a starting price of $1,000. You offer local pickup. You add a Buy It Now price of $1,500. A buyer ends the listing with the Buy It Now price of $1,500. Since you aren't charging the buyer for shipping or any other costs, $1,500 is the total amount of the sale. The final value fee is $15, or 1% of $1,500. Insertion fee: $20.00 Final value fee: $15.00 Buy It Now fee: $0.25 Total fees: $35.25 You make $1,464.75, or approximately 97% of the sale price. 5

6 Describing Item Provide global sizes and other product specifications to avoid confusion or buyer dissatisfaction. Include foreign sizes for clothing and provide measurements in metric units. Some electronics and media may not work in all countries due to differences in voltage, plugs, or formats. State any international limits to your return policy or warranties. Research trade restrictions Communicating with International Customers Be clear about international response times. Communicate more with your international buyers. Consider having a special & FAQs for your international customers. Emphasize your international experience. If you have expertise in selling to certain markets or specialize in any international services, make this clear in your listing. Include an international section in your listing. Take care with your terminology. Keeping your descriptions clear and simple makes it easier for your international buyers to understand and translate. Shipping Time and Charges Specify shipping destinations and rates. Be clear about the specific regions or countries you ship to, and your international shipping costs, in the "Shipping Details" section of your listing. Explain customs, duties & tax responsibilities. Represent the value of the item (closing price) accurately on customs forms. Offer multiple shipping services. Some buyers will pay more for fast, trackable service, while other buyers may prefer a longer shipping time to save money. Offering a trackable service can dramatically improve the customer experience, especially for international buyers. 6