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Amazon & eBay
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  CASIRJ Volume 5 Issue 2 [Year - 2014]   ISSN 2319  –   9202 International Research Journal of Commerce Arts and Science http:www.casirj.com Page 263  A Comparative study of eBay and Amazon in Online Shopping Ms. Jyoti Kasana Assistant Professpr Laksmibai College   (Dept. of Commerce) Delhi University E-mail-  jyoti.kasana05@gmail.com  Mr. Naveen Chaudhary Assistant Professor Laksmibai College (Dept. of Commerce) Delhi University E-mail- naveenchaudhary17@yahoo.co.in   Abstract Even though Amazon.com has received most of the hype and publicity surrounding e- commerce, eBay has quietly built an innovative business truly suited to the Internet. Initially, Amazon sought to merely replicate a catalog business model online. Its technology may have been innovative- but its business model was not. On the other hand, eBay recognized the unique nature of the Internet and enabled both buying and selling online with spectacular results. Its auction format was a winner. eBay also clearly demonstrated that profits do not have to come in the way of growth. Amazon was initially focused on BN.com as a competitor. Over time, Amazon came to recognize eBay as the competitor. Its initial foray into auctions was a spectacular failure. Now, Amazon is trying to compete with eBay by facilitating selling and strengthening its affiliates program. INTRODUCTION ONLINE SHOPPING Online shopping or e-shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the internet using a web browser. An online shop evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping center; the process is called business-to-consumer (B2C) online shopping. In the case where a business buys from another business, the process is called business-to-business (B2B) online shopping. The largest of these online retailing corporations are Alibaba, Amazon.com and eBay. Retail success is no longer all about physical stores. This is evident because of the increase in retailers now offering online store interfaces for consumers. With the growth of online shopping, comes a wealth of new market footprint coverage opportunities for stores that can appropriately cater to offshore market demands and service requirements. The largest of these online retailing corporations are Amazon.com and EbaY. Retail success is no longer all about physical stores. This is evident because of the increase in retailers now offering online store  CASIRJ Volume 5 Issue 2 [Year - 2014]   ISSN 2319  –   9202 International Research Journal of Commerce Arts and Science http:www.casirj.com Page 264 interfaces for consumers. With the growth of online shopping, comes a wealth of new market footprint coverage opportunities for stores that can appropriately cater to offshore market.   History of Online Shopping English entrepreneur Michael Aldrich invented online shopping in 1979. His system connected a modified domestic TV to a real-time transaction processing computer via a domestic telephone line. He believed that videotex, the modified domestic TV technology with a simple menu-driven human  –  computer interface, was a 'new, universally applicable, participative communication medium - the first since the invention of the telephone.' This enabled 'closed' corporate information systems to be opened to 'outside' correspondents not just for transaction processing but also for e-messaging and information retrieval and dissemination, later known as e-business. His definition of the new mass communications medium as 'participative' [interactive, many-to-many] was fundamentally different from the traditional definitions of mass communication and mass media and a precursor to the social networking on the internet 25 years later. In March 1980 he went on to launch Redifon's Office Revolution, which allowed consumers, customers, agents, distributors, suppliers and service companies to be connected on-line to the corporate systems and allow business transactions to be completed electronically in real-time .  During the 1980s he designed, manufactured, sold, installed, maintained and supported many online shopping systems, using videotex technology. These systems which also provided voice response and handprint processing pre-date the Internet and the World Wide Web, the IBM PC, and Microsoft MS-DOS, and were installed mainly in the UK by large corporations.The first World Wide Web server and browser, created by Tim Berners-Lee in 1990, opened for commercial use in 1991. Thereafter, subsequent technological innovations emerged in 1994: online banking, the opening of an online pizza shop by Pizza Hut, Netscape's SSL v2 encryption standard for secure data transfer, and Intershop's first online shopping system. Immediately after, Amazon.com launched its online shopping site in 1995 and eBay was also introduced in 1995. ebay  Founded by Pierre Omidyar in 1995 ,His wife needed a better way to lookup and trade collectibles; decided to put his computer science skills to use, never thought it would lead to a multi-billion dollar E-Commerce company Auction-based online sales of products (and sometimes services) where users try to outbid one another by placing a higher maximum amount; Dutch and Reverse-auction style also recently available in some regions Transaction fees for listing (regardless of whether item sells or not) and additional fees for Premium Auction features (i.e. extra photos, BuyItNow, Feature It!, etc) or Premium Seller memberships HISTORY DATE EVENT STOCK ($) 1995 Founded by Pierre Omidyar 1997 Menl Park, Calif (VC) 22% Stock Acquisition 1998 CEO Meg Whitman (July); IPO 1.871  CASIRJ Volume 5 Issue 2 [Year - 2014]   ISSN 2319  –   9202 International Research Journal of Commerce Arts and Science http:www.casirj.com Page 265 1999 Alliance with AOL 25.016 2000-2006 Global Expansion to over 2 dozen companies 12.708 FEB 2002 Withdrew from Japanese market & Hong Kong(where Yahoo!Auctions/Shopping had head start) 20.833 JUL 2002 Acquired PayPal 15.13 2005 Acquired Skype 49.500 eBay  Stock Price Path   Period: Mar-16-2000 , Mar-16-2007 (Source: Quicken.com, Accessed on March 17, 2007) PRODUCTS AND SERVICES eBay started out selling Collectibles and Antiques Has since grown to include incredibly diverse categories of items: Collectibles Antiques Art Coins Toys & Dolls Memorabilia Motor Vehicles Cars Boats Parts Electronics Cameras Cell phones & PDAs Computers Entertainment Movies, Music & Games DVD CD VHS Event Tickets Books Clothing Jewellery Shoes Accessories Home Improvement Décor Crafts Gardening eBay: Target Segments Primary target markets are Online Auction & Shopping communities. eBay has business strategies to target specific segments of each.  CASIRJ Volume 5 Issue 2 [Year - 2014]   ISSN 2319  –   9202 International Research Journal of Commerce Arts and Science http:www.casirj.com Page 266 Key segment is “Antiques & Collectibles”. (It was the lack of a good community-based pet collectibles company that inspired Pierre Omidyar to develop eBay. Collectibles still among highest in gross merchandise sales, boasts by far the most veteran sellers.) Motor lovers: Using credibility of leading car collector Kruse Inc., eBay expanded its categorical offerings with eBay Motors. eBay Motors became one of its most successful target segments with $2,500M Global Gross Merchandise Sales in 2002. Art lovers: eBay also had a somewhat failed strategic partnership targeting Art Collectors directly.   Business Process Online Auction Industry analysis
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