Online auctions.
When one thinks of online auctions they typically think of eBay, the largest online auction site. Like most auction companies, eBay does not actually sell goods that it owns itself. It merely facilitates the process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for individuals and businesses that use the site to auction off goods and services.
Several types of online auctions are possible. In an English auction the initial price starts low and is bid up by successive bidders. In a Dutch auction, multiple identical items are offered in one auction, with all winning bidders paying the same price -- the highest price at which all items will be sold. (Treasury bills, for example, are auctioned this way). Almost all online auctions use the English auction.
Strengths of the business model
The strategic advantages of this business model are:
1) . Bids can be placed at any time, 24 / 7 . Items are listed for between for a number of days (normally between 1 and 10) (at the discretion of the seller), giving purchasers time to search, decide, and bid. This convenience increases the number of bidders.
2) . Sellers and bidders can participate from anywhere that has internet access. This makes them more accessible and reduces the cost of "attending" an auction. This increases the number of listed items (ie.: number of sellers) and the number of bids for each item (ie.: number of bidders). The items do not need to be shipped to a central location, reducing costs, and reducing the seller's minimum acceptable price.
3) . The social interactions involved in the bidding process are very similar to gambling. The bidders wait in anticipation hoping they will "win" (eBay calls the successful bidder the "winner"). Much like gambling addiction, many bidders bid primarily to "play the game" rather than to obtain products or services. This creates a highly loyal customer segment for eBay.
4) . Because of the potential for a relatively low price, the broad scope of products and services available, the ease of access, and the social benefits of the auction process, there are a large numbers of bidders.
5) . Because of the large number of bidders, the potential for a relatively high price, reduced selling costs, and ease of access, there are a large number of sellers.
6) . The large number of bidders will encourage more sellers, which, in turn, will encourage more bidders, which will encourage more sellers, etc., in a virtuous spiral. The more the spiral operates, the larger the system becomes, and the more valuable the business model becomes for all participants.
7) . Auctions are a form of first degree price discrimination. As such, they attempt to convert part of the consumers' surplus (defined as the area above the market price line but below the firm's demand curve) into producers' surplus. On-line auctions are efficient enough forms of price discrimination that they are able to do this.
Companies that use the model
* eBay
* eBid
* Yahoo!
* popula
* Bidville
* TradeMe
* Try n Save
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News
Online Shoe Retailer Tracks Summer Footwear Trends to Simplify Online Shoe Shopping (PRWeb) </script> </script> </script> </script> </script> </script> </script> Threat to bomb Karachi shopping centre (IANS via Yahoo! India News) </script> </script> </script> </script> </script> </script> </script> Online Shoe Retailer Tracks Summer Footwear Trends to Simplify Online Shoe Shopping (PRWeb via Yahoo! News) </script> </script> </script> </script> </script> </script> </script> 'Tis the shopping season (San Gabriel Valley Tribune) </script> </script> </script> </script> </script> </script> </script> Bahrain: Shopping, fun top the list (Zawya) </script> </script> </script> </script> </script> </script> </script>
Online shoe retailer, www.Elotta.com, simplifies the summer shoe shopping experience for buyers looking for the hottest footwear trends for this summer by collecting and using sales data to rank popular brands and styles. (PRWeb Jul 30, 2007) Post Comment:Trackback URL: http://www.prweb.com/pingpr.php/RmFsdS1NYWduLU1hZ24tU3F1YS1UaGlyLVplcm8= </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script>
Karachi, July 30 (IANS) An anonymous letter apparently by Islamist extremists has threatened that a prominent shopping area in this city would be blown up if it wasn't closed down by Sep 27. </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script>
Online shoe retailer, www.Elotta.com, simplifies the summer shoe shopping experience for buyers looking for the hottest footwear trends for this summer by collecting and using sales data to rank popular brands and styles. </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script>
With summer almost over, the back-to-school-shopping season - the mad rush to purchase as many binders and pencils and solid-colored shirts as possible - begins. </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script>
Shopping and entertainment are the main purposes rather than archeological sites and the culture of the countries Bahrainis visit, according to a recent study for 302 individuals by the Bahrain Centre for the Studies and Research. </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script> </script>