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Module 3 Buying and selling Online

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  1. Module 3 Buying and sellingOnline

  2. Agenda • Internet shopping: buying and selling online • How it works: expectation and reality • Buyers’ perspectives • Sellers’ perspectives • Types of e-business models • Classic cases Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

  3. Why Internet Shopping? • Enables consumers to shop or do other transactions 24 hours a day, all year round from almost any location • Provides consumers with more choices • Provides consumers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons • Allows quick delivery of products and services, especially with digitized products • Consumers can receive relevant and detailed information in seconds, rather than in days or weeks • Allows consumers to interact with other consumers in electronic communities and exchange ideas as well as compare experiences • Facilitates competition, which results in substantial discounts

  4. Why NOT Internet Shopping? • Security and Privacy • Difficult to convince customers that online transactions and privacy very secure • Customers do not trust: • Unknown faceless sellers • Paperless transactions • Electronic money • Switching from a physical to a virtual store may be difficult • Lack of touch and feel online • Many unresolved legal issues • Expensive and/or inconvenient accessibility to the Internet • E-payment is not in place in many places

  5. Online consumer behaviour model

  6. Buyers and sellers in B2B e-business

  7. Buy-side and Sell-side

  8. Buyer-side and Seller-side

  9. Types of e-business models • Brokerage model: Bring buyers and sellers together and facilitate transactions • Auction broker (ebay.com, alibaba.com) • Transaction broker (paypal.com, escow.com) • Search agent (jobdb.com) • Virtual marketplace (amazon.com) • Advertising model: Extension of the traditional media broadcast model • Portal (yahoo.com) • Classifieds (classifieds.com) • Content-targeted advertising (google.com)

  10. Types of e-business models (cont.) • Merchant model: Merchants (e-tailers) expand businesses into selling online (borders.com) • Manufacturer model: Manufacturers open online channel to reach buyers directly (dell.com) • Subscription model: Web sites offering news, market survey and charging fees (nytimes.com) • Affiliate model: Revenue sharing through banner/link exchange, etc. (bravenet.com)

  11. Classic cases

  12. Classic cases: ebay.com

  13. Classic cases: amazon.com

  14. Classic cases: dell.com

  15. Classic cases: alibaba.com

  16. Classic cases: tarad.com

  17. Conclusion Q & A Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok