Chapter 2: E-commerce Business Models and Concepts
2. Examine the experience of shopping online versus shopping in a traditional environment. Imagine that you have decided to purchase a digital camera (or any other item of your choosing). First, shop for the camera in a traditional manner. Describe how you would do so (for example, how you would gather the necessary information you would need to choose a particular item, what stores you would visit, how long it would take, prices, etc.). Next, shop for the item on the Web or via a mobile app. Compare and contrast your experiences. What were the advantages and disadvantages of each? Which did you prefer and why?
Shopping online is very different from shopping traditionally at a mall or some store. I personally believe shopping online is easier and way better. Although, sometimes you don’t get the right item you purchases and therefore shopping at a mall can be considered better. They both have their pros and cons. The item I decided to purchase is a new jacket. Shopping for a jacket in the traditional way is nice because you actually know what you are paying for because the item is right in front of you and you can try it on if you’d like. I wouldn’t have to visit more than one store because I know that the company has it in stock. Jackets come in all different sizes and they vary by company meaning one jacket of yours could be from a certain company and be a size L, then a different company might have that jacket in a size XL, but both be the same size, just different labels. When shopping online, I wouldn’t be able to try the jacket on, it’s basically a guessing game. The prices online are usually the same as in the store, but sometimes they do special offers, in store or online. I prefer shopping online for electronics and computer accessories, but when I need new clothes I like to go to the store and shop traditionally.
3. Visit eBay and look at the many types of auctions available. If you were considering establishing a rival specialized online auction business, what are the top three market opportunities you would pursue, based on the goods and auction community in evidence at eBay? Prepare a report or slide presentation to support your analysis and approach.
There are two buying opportunities on eBay, and auction option or a buy-it-now option. If you choose the auction option, you will be going against other people who also want the item. Basically you are competing against them to pay more than them in order to get the item. When you choose the buy-it-now option, that is a for sure response to wanting an item. I like the buy-it-now option because there is no other competition and you know you will receive that item. Establishing my own rival online auction business, I would try to make my prices a little lower than others and also ad on free shipping for all the items. Once that is settled, then the advertising will have to be set up in order for people to know about my website and the items offered.