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Leading Players in E-Commerce [Continued] [Ecommerce Notes]

Leading Players

(Source: www.dell.com)

Things you should know about Dell:
  • Most of the Fortune 100 companies want to do business with Dell.
  • Dell has emerged as the preferred desktop and laptop of enterprises in the US and Europe.
  • Dell has emerged as No. 1 PC supplier to small and medium businesses in the United States for 10 years in a row
  • Dell has emerged as the world’s leading provider of flat panel displays.
  • About 140,000 systems shipped per day, on average – that’s more than one every second.
    The 10 largest U.S. companies run on Dell.
  • The top 6 Internet service companies run on Dell.
  • The top 5 U.S. commercial banks run on Dell
  • Isn’t aforesaid data cool!

Yes, one of the most successful e-commerce companies: Dell. Dell, Inc. is a multinational corporation that develops, manufactures, sells, and supports personal computers and other computer-related products. Dell grew during the 1980s and 1990s and has emerged as the largest seller of PCs and servers. The company currently sells personal computers, servers, data storage devices, network switches, software, and computer peripherals. Traditionally, Dell has sold all its products using a direct-sales model using Internet and Telephone network. Dell employs negative cash conversion cycle (CCC) i.e it receives payment for the products before it has to pay for the materials. Further, Dell practices just-in-time (JIT) inventory-management. It utilizes the "pull" system by building computers only after customers place orders and by requesting materials from suppliers as needed. Dell's e-commerce presence is widely publicized. It is able to sell much merchandise over the Web. In building web site to attract these buyers, Dell may be able to lure away customers from other vendors who do not offer such a service. This gives Dell a competitive advantage over its competitors that lets it increase its market share. There is also a widely held belief that once a customer starts working with a vendor/manufacturer, it is much easier to keep that customer than it is to bring in new customers. So if you can build brand loyalty for web site early stages, it gives you an advantage over other vendors who try to enter the market later. Dell implemented its Web site very early, and that presumably gives it an advantage over the competition! E BAY (C2C) EBay Inc.: A Short History (source…www.ebay.com) eBay Inc. is an American Internet company manages eBay.com which is an online auction and shopping website in which people and businesses buy and sell a broad variety goods and services worldwide. EBay was born in 1995 and since then has evolved as the world's largest online marketplace. It’s a virtual marketplace as practically anyone can sell there anything at any time. Today Ebay has strong presence in 39 markets, including the U.S., and have approximately 84 million active users worldwide. , eBay has changed the face of Internet commerce. According to the statistics in 2007 the total value of sold items on eBay's trading platforms was nearly $60 billion. eBay deals with millions of appliances, computers, furnishings, equipment, vehicles, and other miscellaneous items. In 2005, EBay launched its Business & Industrial category.

Some items listed there are rare and valuable. You can visualize it in this way that anything may be offered for sale as long it is legal and does not violate the eBay Prohibited and Restricted Services. Even large international companies like IBM use eBay for selling their newest products and offer services Separate eBay sites such as eBay US and eBay UK have been set up to allow the users to trade using the local currency. Software developers are free to create applications that can be easily integrated with eBay through the eBay API by joining the eBay Developers Program. In short, eBay provides an open trading platform where the market determines the value of items that are sold. Site has now emerged as a cultural barometer that provides a view into what objects consumers want most at any time. Since 1998, the company has continued to grow, innovate and connect people. It made two critical acquisitions have established eBay Inc. as a global leader in online payments and communications as well. eBay Inc. acquired PayPal in October 2002; Paypal provides any individual or business having email address a service to conduct secure online transaction. Using PayPal any one can easily and quickly send and receive payments online. PayPal utilizes financial infrastructure of bank accounts and credit cards and uses the world's most advanced proprietary fraud prevention systems for providing safe payment solution. A PayPal account can be easily funded with an electronic debit from a bank account or by using a credit card. The recipient of a PayPal transfer can request a check from PayPal. One can establish own deposit account with PayPal or request a transfer to their respective bank account. PayPal performs payment processing for many online vendors, auction sites and other commercial portals. PayPal charges fees for the same. Sometimes Paypal may charges a transaction fee for receiving money. This depends upon the payment option used, the country of the sender, the country of the recipient, the amount sent and the recipient's account type. You will find that PayPal has today emerged as a global leader in online payment solutions. It has around 149 million registered users and is accepted by millions of merchants worldwide.

PayPal is an example of a payment intermediary service that facilitates worldwide e-commerce. In October 2005 eBay Inc. made another important acquisition. It has acquired Skype which is the world's fastest-growing Internet communication company. Skype has revolutionized the way people talk online.
It allows people everywhere to make unlimited voice and video calls online for free using its software. It is available in around 28 languages and is used by many countries world wide. This business unit generates revenue through its premium offerings. Apart from these acquisitions eBay Inc.'s has some more key acquisitions to its achievement. It acquired shopping.com, a pioneer in online comparison shopping; Stub hub, a leading online marketplace for the resale of event tickets; rent.com, the most visited online apartment listing service in the U.S and many more. eBay business model is based on auction system. eBay offers several types of auctions. Some of them have been listed below:

  1. Auction-style listings : This style allows the seller to offer one or more items for sale for a specified number of days.
  2. Fixed Price format : This format allows the seller to offer one or more items for sale at a Buy It Now price. In case any buyer agrees he needs to pay that price and win the auction immediately. He does not need to submit a bid in this case.
  3. Dutch Auctions : Dutch Auctions allow seller to offer two or more identical items in the same auction. Bidders are free to bid for any number from one item up to the total number offered.
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