E Commerce Application


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E Commerce Application

  1. 1. E-Commerce Application Web Auctions
  2. 2. Auction Basics <ul><li>Earliest known auctions were in Babylon around 500 B.C. </li></ul><ul><li>Entire Roman Empire was auctioned in 193 A.D. after the death of Emporer Pertinax </li></ul><ul><li>Buddhist temples held auctions to sell the possessions of deceased monks </li></ul><ul><li>Auction firms Sotheby’s and Christie’s began in the 17 th century </li></ul>
  3. 3. Auction Basics <ul><li>English Auctions </li></ul><ul><ul><li>Bidders publicly announce their successively higher bids until no higher bid is offered </li></ul></ul><ul><ul><li>Minimum price can be used to set the price at which the auction will begin </li></ul></ul><ul><ul><li>Reserve price is the minimum price the seller will accept </li></ul></ul><ul><ul><li>Yankee auctions allow the bidder to choose the quantity of multiple items offered at the auction </li></ul></ul>
  4. 4. Auction Basics <ul><li>Dutch Auctions </li></ul><ul><ul><li>Form of open auction in which bidding starts at a high price and drops until a bidder accepts the price </li></ul></ul><ul><ul><li>Usually the seller offers a number of similar items for sale </li></ul></ul><ul><ul><li>Good for moving large numbers of commodity items quickly </li></ul></ul>
  5. 5. Auction Basics <ul><li>Sealed-Bid Auctions </li></ul><ul><ul><li>Bidders submit their bids independently and are usually prohibited from sharing information with each other </li></ul></ul><ul><ul><ul><li>First-price sealed-bid </li></ul></ul></ul><ul><ul><ul><ul><li>Highest bidder wins </li></ul></ul></ul></ul><ul><ul><ul><li>Second-price sealed bid </li></ul></ul></ul><ul><ul><ul><ul><li>Highest bidder wins, but at the second-highest bidder’s price </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Encourages all bidders to bid their private valuations, reducing collusion </li></ul></ul></ul></ul>
  6. 6. Auction Basics <ul><li>Double Auctions </li></ul><ul><ul><li>Buyers and sellers each submit combined price-quantity bids to an auctioneer </li></ul></ul><ul><ul><li>The auctioneer matches the seller’s offer (lowest price, then up) to the buyer’s offers (highest price, then down) </li></ul></ul><ul><ul><li>New York Stock Exchange conducts sealed-bid double auctions of stocks and bonds </li></ul></ul>
  7. 7. Six Major Auction Types Figure 10-1
  8. 8. General Consumer Auctions <ul><li>eBay </li></ul><ul><ul><li>Search for specific items </li></ul></ul><ul><ul><li>Browse by categories of items </li></ul></ul><ul><ul><li>Seller options include bold-face type and featured listings </li></ul></ul><ul><ul><li>Rating system to provide feedback to alleviate fears concerning seller reliability </li></ul></ul>
  9. 9. eBay Home Page
  10. 10. Additional General Consumer Auctions <ul><li>Auction Universe, owned by Classified Ventures, a partnership of eight major newspapers </li></ul><ul><ul><li>Apartments.com </li></ul></ul><ul><ul><li>Cars.com </li></ul></ul><ul><ul><li>NewHomeNetwork.com </li></ul></ul><ul><li>Yahoo! and Excite have created auctions based on the eBay model </li></ul>
  11. 11. Excite Auctions Home Page
  12. 12. Additional General Consumer Auctions <ul><li>Amazon.com </li></ul><ul><ul><li>Offers “Auctions Guarantee” to reimburse any buyer for merchandise purchased that was not delivered, or “materially different” than represented </li></ul></ul><ul><ul><li>Provides escrow service for items over $250 </li></ul></ul><ul><li>Klik-Klok Dutch Auction </li></ul><ul><ul><li>Short time-period auctions for quantity offerings </li></ul></ul>
  13. 13. Klik-Klok Dutch Auction in Progress Figure 10-4
  14. 14. Specialty Consumer Auctions <ul><li>Technology-related items auction sites </li></ul><ul><ul><li>Haggle Online </li></ul></ul><ul><ul><li>CNET.com </li></ul></ul><ul><ul><li>ZDNet </li></ul></ul><ul><ul><li>Onsale uBid, and Bid.com </li></ul></ul><ul><li>Numerous specialty auction sites </li></ul><ul><ul><li>Golf Club Exchange </li></ul></ul><ul><ul><li>Cigar-Bid.com </li></ul></ul>
  15. 15. Golf Club Exchange Web Auction Figure 10-5
  16. 16. Business-to-Business Auctions <ul><li>Typically used to dispose of excess inventory </li></ul><ul><li>Large companies use liquidation specialists to find buyers for unusable inventory, create their own auction sites </li></ul><ul><li>Smaller companies often sell their excess inventory to liquidation brokers, who, in turn, create auction sites </li></ul>
  17. 17. CompuUSA Auctions Home Page Figure 10-6
  18. 18. Examples of Third-Party Auction Sites <ul><li>Auction IT </li></ul><ul><ul><li>Computer equipment </li></ul></ul><ul><li>Going, Going...Sold! </li></ul><ul><ul><li>Laboratory equipment </li></ul></ul><ul><li>FastParts.Com </li></ul><ul><ul><li>Electronic components </li></ul></ul><ul><li>J.R. Metals Quick Bid Auction </li></ul><ul><ul><li>Steel </li></ul></ul>
  19. 19. Auction-Related Services <ul><li>Escrow service </li></ul><ul><ul><li>Independent party holds buyer’s payment until the item is received and the buyer is satisfied with the purchase </li></ul></ul><ul><li>Directory of available auctions </li></ul><ul><ul><li>Auction Guide </li></ul></ul><ul><ul><ul><li>Guidance for new auction participants </li></ul></ul></ul><ul><ul><li>AuctionInsider </li></ul></ul><ul><ul><ul><li>Links to auctions sorted by category </li></ul></ul></ul>
  20. 20. AuctionInsider Directory Figure 10-7
  21. 21. Seller-Bid Auctions and Group Purchasing Sites <ul><li>Reverse auctions </li></ul><ul><ul><li>Sellers of goods and services bid the prices at which they are willing to sell </li></ul></ul><ul><li>Group purchasing sites </li></ul><ul><ul><li>Items are posted with a price, as the number of bids increase, the seller negotiates a better price with the item’s provider </li></ul></ul>
  22. 22. Virtual Community Strategies <ul><li>Gathering places for people and businesses that does not have a physical existence </li></ul><ul><ul><li>Usenet newsgroups </li></ul></ul><ul><ul><li>Chat rooms </li></ul></ul><ul><ul><li>Web sites </li></ul></ul><ul><li>Helps companies, customers, and suppliers plan, collaborate, transact business, and interact in a mutually beneficial way </li></ul>
  23. 23. Milpro Business-to-Business Virtual Community Site Figure 10-8
  24. 24. Web Communities <ul><li>WELL </li></ul><ul><ul><li>W hole E arth ‘ l ectronic L ink </li></ul></ul><ul><ul><li>Predates the web, began as a series of dialogs among San Francisco authors and readers </li></ul></ul><ul><ul><li>Purchased by Salon.com </li></ul></ul><ul><li>GeoCities </li></ul><ul><ul><li>Free web space for members </li></ul></ul><ul><ul><li>Sells advertising to generate revenue </li></ul></ul><ul><ul><li>Owned by Yahoo! </li></ul></ul>
  25. 25. Web Communities <ul><li>Tripod </li></ul><ul><ul><li>Similar to GeoCities </li></ul></ul><ul><ul><li>Owned by Lycos </li></ul></ul><ul><li>Theglobe.com </li></ul><ul><ul><li>Created by Cornell University students </li></ul></ul><ul><ul><li>News feeds, art gallery </li></ul></ul>
  26. 26. Web Portal Strategies <ul><li>Combinations of virtual communities, search engines, and Web directories </li></ul><ul><li>Provide a high degree of “stickiness” that is extremely attractive to advertisers </li></ul><ul><li>Examples include AOL, Excite, Infoseek, Lycos, MSN, Netscape Netcenter, Snap, and Yahoo! </li></ul>
  27. 27. Web Portal Strategies <ul><li>Typically ask members to provide demographic information about themselves </li></ul><ul><li>Very high potential for targeted marketing </li></ul><ul><li>High visitor counts yield high advertising rates </li></ul>
  28. 28. 10-9 homebid.com Home Page Figure 10-9