Walmart, Amazon, and Ebay: Who Will Dominate Internet Retailing?

Last Updated: 08 Apr 2020
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There are many different business trends shaping e-commerce today. For one, ecommerce remains the fastest growing form of commerce when compared to physical retain store, services, and entertainment. Another trend is that the online demographics of shoppers broaden to match those of ordinary shoppers. Also, small businesses and entrepreneurs continue to flood through the e-commerce marketplace, often riding on the infrastructures created by industry giants and increasingly taking advantage of cloud-based computing resources.

Lastly, pure e-commerce business models are refined further to achieve higher levels of profitability, whereas traditional retail brands use e-commerce to retain their dominant retail positions. 1b Name and describe three technology trends shaping e-commerce today. There are many different technology trends shaping e-commerce today. One technology trend is that wireless internet connections grow rapidly. Also, powerful handheld mobile devices support music, Web surfing, and entertainment as well as voice communication. Podcasting and streaming take off as mediums for distribution of video, radio, and user-generation content. c List and describe the eight unique features of e-commerce. There are eight different unique features of e-commerce today. First, ubiquity, which means that e-commerce is available everywhere; it is available at home, work, and elsewhere via mobile devices. Mobile devices extend service to local areas and merchants. Next, global reach makes e-commerce unique because technology can reach all the way around the Earth. E-commerce is also unique because of universal standards; there is one set of technology standards, namely internet standards, making communication between computer systems easy.

Richness is a unique quality because it makes video, audio, and text messages possible. They are integrated into a single marketing message and consumer experiment. Interactivity is unique because it allows the technology to work through interaction with the users. Another unique feature of e-commerce is information density because the technology reduces information costs and raises the quality. Personalization is a unique feature because the technology allows personalized messages to be delivered to individuals as well as groups.

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Lastly, social technology is a unique feature of e-commerce because it allows the user to use social networking to share with personal friends, content of many different forms. 2a Name and describe the principal e-commerce business models. There are several principal e-commerce business models. E-tailer sells physical products directly to consumers or to individual businesses. Transaction brokers save users money and time by processing online sales transactions and generating a fee each time a transaction occurs.

The market creator business model provides a digital environment where buyers and sellers can meet, search for products, display products, and establish prices for those products. The content provider model creates revenue by providing digital content such as news, music, photos, or video over the Web. The customer can pay to access the content, or revenue may be generated by selling advertising space. A community provider provides an online meeting place where people with similar interests can communicate and find useful information.

The portal business model provides initial point of entry to the Web along with specialized content and other services. Lastly, a service provider provides Web applications such as photo sharing, video sharing, and user generated content as services. Other services are also provided such as online data storage and backup. 2b Name and describe the e-commerce revenue models. There are several different e-commerce revenue models that describe how the firm will earn revenue, generate profit, and produce a superior return on investment. The advertising revenue model is the most widely used revenue model.

In this model, a Web site generates revenue by attracting a large audience of visitors who can then be exposed to advertisements. In the sales revenue model, companies derive revenue by selling goods, information, or services to customers. In the subscription revenue model, a Web site offering content or services charges a subscription fee for access to some or all of its offerings on an ongoing basis. In the free revenue model, firms offer basic services or content for free, while charging a premium for advanced or special features.

In the transactions fee revenue model, a company receives a fee for enabling a transaction. Lastly, in the affiliate revenue model, Web sites send visitors to other Web sites in return for a referral fee or percentage of the revenue from any resulting sales. 3a How do social networking and “the wisdom of crowds” help companies improve their marketing. Social networking helps companies improve marketing because they link people through their mutual business or personal connections, enabling them to mine their friends for sales leads, job hunting tips, or new friends. The wisdom of crowds”, it is argued that a large number of people can make better decisions about a wide range of topics or products than a single person or a small group of experts. It helps improve marketing by suggesting that firms should consult with thousands of their customers first as a way of establishing a relationship with them and to better understand how their products and services are used and appreciated. 3b Define the social graph and explain how it is used in e-commerce marketing.

The social graph is a map of all significant online social relationships, comparable to a social network describing offline relationships. It is a small world that links people more tightly than they think. Overall, marking with social media is still in early stages and companies are experimenting in hopes of finding a winning formula. It is used to shape social networks, connecting people all over the world to businesses. 4 Explain how Internet technology supports business-to-business electronic commerce.

Internet technology supports business to business electronic commerce because it has potential to have trillions of dollars released for more productive uses, consumer prices would fall potentially, productivity would increase, and the economic wealth of the nation would expand. Business to business e-commerce refers to the commercial transactions that occur among business firms which flow through a variety of different Internet-enabled mechanisms. Transactions are automatically transmitted through networks, eliminating the printing and handling of paper. a List and describe important types of e-commerce services and applications. There are many important types of e-commerce services and applications. Location based services is built with a GPS and compass that can identify your precise location and where the phone is pointed. It can put adds on a website based on a person’s location and can allow business to market over the internet based on a person’s location. Banking and Financial services let customers manage their accounts from their mobile devices.

Mobile advertising and retailing is where companies can put ads on different aps for smartphones to advertise or have their own aps where a person can download and get coupons and deals just by walking into the store and logging into the application on their smartphone. Games and entertainment platforms are offered on Smartphones where a user can play games, watch TV or videos, etc. and connect to other game players and users all around the world. 5b Describe some of the barriers to e-commerce. There are a few barriers to e-commerce. One barrier is security concerns.

With this there are risks of identity theft, viruses, and much more that consumers are worried about because they do not want their information stolen, especially because the internet is so easily accessible. Another barrier through e-commerce is that over the internet, a consumer cannot tough and feel a product, such as a book. There are Kindle apps where you can virtually buy and read a book, but people like reading actual books in their hand. Education also acts as a barrier because with e-commerce, new processes are coming to the surface all of the time making employees having to adapt.

This is hard because a lot of people don’t want to change their ways. 6a List and describe each of the factors that go into the building of an e-commerce Web site. There are many factors that go into the building of an e-commerce Web site. First, a team has to be assembled with the right skills to make decisions about technology, site design, social and information policies, and hardware, software, and telecommunications infrastructure. The customer’s demands need to drive the site’s technology and design. The site can eight be built in-house or parts, if not all, of the site can be outsourced to be maintained.

With outsourcing, companies need to be aware of their Web-site budget and maintenance. 6b List and describe four business objectives of a typical e-commerce Web site. One business object of a typical e-commerce Web site is to display goods, meaning, making the goods and products easily accessible and viewable to consumers in order to be productive. Another is the objective of a personalized/customized product. This makes the seller stand out from other businesses, making their product stand out and be more appealing than others. This makes the customer want to purchase the unique product.

Businesses providing product information is another objective. Consumers do not want to purchase something that they know nothing about; therefore it is important to tell the customer what they need to know. Lastly, the objective of coordinating marking/advertising is important because companies need to advertise their product to consumers in order for them to want to purchase it. Without marketing, the product would not be known and less people would buy it because of this. 6c List and describe four system functionalities of a typical e-commerce Web site.

There are many different system functionalities of a typical e-commerce Web site. One is a product database, which is database of all of the company’s products, allowing the company to know how much they are selling and what they have in inventory. The shopping care and payment system functionality allows the user to put interesting items in their virtual shopping cart to purchase. Once they have finished shopping, they can view the total price, edit their order, and continue to check-out all over the internet. A site tracking and reporting system is a great function that allows the company to see who is purchasing what and from where.

This is a helpful tool that allows companies the ability to change their market audience to an audience closer to what the site tracking system is displaying. Lastly, a digital catalog is important for a site so consumers can see what exactly a company is selling or offering. 6d List and describe four information requirements of a typical e-commerce Web site. There are several information requirements of a typical e-commerce Web site. Product descriptions, stocking numbers, and inventory levels are important information to have because the business needs to know what and where their consumers are buying so it can be efficiently shipped.

Secure credit card clearing is important because consumers want to be able to trust a company with their purchasing information, knowing that the information will not be hacked leading to identity theft. The customer ID, product, date, payment, and shipment date is important for the company to have because it acts as a log of prior business and they can track profitability and productivity. The number of products purchased is important because the company needs to know if they are underestimating or overestimating their sales and must act accordingly.

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Walmart, Amazon, and Ebay: Who Will Dominate Internet Retailing?. (2017, May 25). Retrieved from

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