Select two major E-commerce websites (serving in the same domain) and write a report to differentiate between them based on the following criteria:
(a) Give a brief description of the website and services it provides. Including the type of the EC transactions (i.e. B2C, ect).
(b) Describe its Business and revenue model.
(c) Does the site provide Global reach? If so, how is this implemented? If not, provide suggestions in this matter.
(d) Does the Website offer personalization / products and services customization? Mention them. If no, then provide suggestions in this matter.
(e) Social networking: Does the Web site offer ways for consumers to share opinions and preferences? How? If not, then provide suggestions in this matter.
(f) Explain how the Internet and the Web make e-commerce possible. Briefly discuss at least four features or services that support e-commerce.
Two major E-commerce websites
a) Amazon comes in the leading stores of today’s e-commerce world. Amazon is an US-based platform and considered as the popular marketplace for buyers. Different manufacturers from all around the world for various famous brands can be found on Amazon.Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable compute capacity in the cloud. It is designed to make web-scale computing easier for developers.
Alibaba is a China-based portal which is also popular among the several manufacturers. Alibaba was developed in 1999 by a Chinese company and is considered as a deeply rooted platform with a well-established marketplace for everyone. Whether you are a buyer or supplier, Alibaba will surely accommodate you well.The real benefit of Alibaba is the ability to work directly with a manufacturer.Transaction level ,the supplier sell more products and get more payment, this score will get higher, so this score cannot totally verify whether this company has scammed.
b)Amazon has evolved to become an ecosystem over the past 20 years. Everyone who has ever accessed internet must have encountered an Amazon service. Amazon’s business strategy is so well planned and well-designed that it has multiple and independent revenue resource.
Amazon Marketplace – Revenue generated through commissions and other charges from sellers.
Amazon Books – The company earns revenue by selling books on Amazon marketplace, book depository, and AbeBooks, audio books on audible, comics on ComiXology, and through Amazon publishing. It also created an all new e-book demand by introducing Kindle in the market. Amazon also owns physical bookstores in some countries.
Amazon Music and Videos – Amazon Business Model includes star websites like IMDB and Twitch which makes loads of money for Amazon. Amazon Music and Videos also add to the revenue.
Amazon Gaming – Amazon’s subsidiary, Amazon Game Studios, is one of the renowned names in the game development industry. Amazon Digital Game Store sell third-party games as well.
Amazon Web Services – The company is among the top IT infrastructure providers in the world which also provide support to CIA and Netflix.
Amazon Fire Products – Amazon launched its fire range of products which include phones, tablets, Tv and Mobile OS.
Amazon Prime – The company provides premium membership to its every service through Amazon prime.
Amazon Patents – Amazon holds more than 1000 patents many of which are licensed by other companies.
To dig more intensely about Amazon Business Model, we have to first learn about How Big is Amazon and what all products and services it offers.
Amazon Marketplace
Amazon Marketplace (Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more) is an e-commerce platform where products from Amazon and third parties are sold to the users.
Amazon Marketplace, just like usual marketplace model, is run by sellers and buyers. Amazon just provides the world-class facilities to them.
Unlike the basic marketplace business model of Alibaba.com, Items sold on Amazon by third-party sellers are either Fulfilled By Merchant (FBM) or Fulfilled By Amazon (FBA). FBM goods are kept in the third-party seller’s inventory, and shipping and customer service are handled by the third-party merchant. FBA goods are stored in Amazon’s fulfilment centres, and shipping and customer service are handled by Amazon.
Amazon charge commission (referral fee) from third-party sellers. These commissions differ for different types of goods sold. FBA fee, which includes a pick, pack, and weight charge, is also charged from third-party sellers who choose to use FBA.
With millions of active user accounts and a worldwide reach, Amazon also charges its sellers to advertise and promote their brands and products by listing them on the top of the search results (and on the homepage)
To understand the Business model of Alibaba, we need to
understand Alibaba.
The best way to understand Alibaba is as a mix of Amazon, eBay and
PayPal with a dash of Google thrown in, all with some uniquely
Chinese characteristics.
Alibaba has different companies to serve different categories of
customers, different websites with different domains:
* Alibaba (1688 - in China) (Alexa Ranking - 71) - an international
Trading Platform for the sale-purchase of wholesale, used
extensively for Import & Export
* taobao (Alexa Ranking - 3) - a local website in China, where
local shop-keepers & customers do the Business
* tmall (Alexa Ranking - 18) - unlike "taobao", only the Branded
Companies sell off their goods through this website in China.
**They have the busiest websites in the World.
As the website are serving different customers with different
Domains, they have different Business Models for each of
them:
* Alibaba - like Amazon & Flipkart, they act as the mediator of
the Deals and keep a margin of each & every sale/purchase that
is being done through the website. Moreover, they offer annual
subscriptions to maintain their Accounts/Online Shops.
* tmall - The model similar to Alibaba is being followed. The
company charges these people because they are capable to pay. They
are earning so much because of the extensive production of goods in
China and a large Customer Base (due to its population).
But, its most exclusive website, which is following an entirely
different Business model:
* taobao - No money is being charged for the maintenance of
Accounts and No Commission on any of the sale that is being done.
All the sale/purchase is done for free and the sellers get the
complete money of their sales.
The company earns profit by Advertising (like Google Ads) the
people, who pay for the Ads on the website. Being the Biggest
market-place in the country, they get a large number of
Advertisements and earning Huge Profits from there.
As the accounts are for free, so they have some exclusive features
missing, which are being offered in their Premium services like -
Alibaba & tmall.
Other than that:
* Company has its own website for Payment Gateways (that is
Customer Oriented)
* Aliexpress - for sale/purchase through their Own Gateways
* They are establishing Few Banks in Collaboration with
Government
* They have a major stake in "Sina Weibo" (China's micro-bloging
website like twitter)
* They have stakes in Other Companies as well and Rules the entire
China Online Market Place.
c) Yes Amazon provide Global reach by ,
Even alibaba website has global reach
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