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Module 3 Buying and selling Online - PowerPoint PPT Presentation


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Module 3 Buying and selling Online Agenda Internet shopping: buying and selling online How it works: expectation and reality Buyers’ perspectives Sellers’ perspectives Types of e-business models Classic cases

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Presentation Transcript
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Module 3

Buying and sellingOnline

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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

why internet shopping
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
why not internet shopping
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
types of e business models
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)
types of e business models cont
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)
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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