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What Defines Online Shopping?
Online shopping, is one aspect of electronic commerce. Electronic commerce, or e-commerce, relates to a variety of business dealings conducted online. They include service providers selling services, and retail businesses selling items to customers. They also include auctioneers who create marketplaces where citizens can buy and sell goods, and business to business commerce. All of these transactions are done via the Internet. Retail business is the biggest part of electronic commerce. Instead of shopping in the traditional way, such as going to an actual retail outlet, using telephone shopping or mail order catalogues, online shopping allows companies and consumers to make their business transactions over networked computers. Online shopping could be defined as the buying and selling of goods over the Internet. Just about anything can be purchased over the internet. Examples of items consumers can buy are computers, cars, clothing, airline and event tickets, food, and pharmaceuticals. The most popular products purchased online were flowers, computer hardware and software, books, consumer electronics, music and videos, toys, and wines (Summers, Gardiner, Lamb, Hair, & McDaniel, 2003).
What is the Online Shopping Process?
Customers can buy goods from a company by logging on to their website. On the website, online retailers provide customers with pictures and descriptions of their products. Online shopping sites such as Amazon.com even provide customer reviews of their books in additions to the book descriptions. Using a credit card, customers must enter information from the credit card into the computer. Then, the modem sends out these details to a financial institution. If they have available funds, the transaction is approved almost instantaneously. The customer will then receive their goods within a specified time frame. Mail is the often the most popular and economical form of delivery that customers choose to receive their purchased items. Many online retailers now provide an additional service that lets customers track their shipments, giving them the option to check on the delivery’s progression.
Credit card is undoubtedly the dominant method of payment used to shop online. As the popularity of online shopping grows, many online retailers have increased their credit card security on their websites. Online retailers use encryption technology to make credit card information more secure and provide the “padlock� or “unbroken key� symbols in the status bar at the bottom of the screen. These symbols indicate to customers that they are entering their credit card number in a secure environment. Even credit card merchants have realised the importance that customers place in credit card security. Visa and Mastercard have introduced a new concept called “Verified by Visa� and “MasterCard SecureCode�, which require shoppers to enter their password along with their credit card details. This service benefits not only customers by providing them with added confidence and security, but it also greatly benefits online retailers, because customers will be more willing to divulge credit card information.
What is the History, Present and Future for Online Shopping?
From the late 1990s, the range of information, products, and services available on the internet grew massively. At the same time, the popularity of the Internet also grew at a phenomenal rate. Rifkin (2004, p. 34) found by the end of 1997, more than 41 million people were shopping in “electronic aisles�. In 2000 and 2001, the “dot-com crash� occurred causing many e-commerce businesses to go bankrupt. As a result of this “dot-com� crash, approximately 520 online businesses failed. Many of the dot-com businesses failure was attributed to firm’s initially spending too much money catching the attention of customers through marketing and advertising. In addition to this excessive spending, the lack of long term calculated business plans also attributed to these companies’ eventual collapse. Despite this initial setback, Rifkin (2004, p.34) stated that now “46 percent of online companies are actually making money�. The growing popularity of online shopping is supported by learning that in 1998 online retail sales were $7.2 billion, which is double the amount of sales compared to 1997. To keep abreast of the online shopping trend, all types of traditional retail companies have entered the electronic shopping market by opening their own online stores. Over the years, majority of these companies have continually endeavoured to expand their range of goods. Rifkin (2004, p.153-161) predicts that the future possibility of online shopping sites completely taking over built shopping centres is slim. This is because built shopping centres now provide more than just shopping. Instead they are places where people actually choose to spend their leisure time. Built shopping centres now provide stage shows, parades, child care, restaurants, art displays, movie theatres, video amusement complexes and much more. It was also found that browsing is still a popular leisure activity. Summers, Gardiner, Lamb, Hair, & McDaniel (2003) observed that people "still like touching the goods they are going to buy, as well as the social interaction" (p. 290).
Why is online shopping important?
Online shopping is important because it offers buyers convenience that has never before been achievable. The technology that is now available allows customers to shop on the internet 24 hours a day and seven days a week, without having to leave their homes or offices. Shoppers are provided with an abundance of merchant sites where almost any goods on earth can be bought. Consumers can also compare prices from a variety of different retailers with greater ease, compared to them physically going to shop in a built shopping centre to check prices.
What are the Central Issues Associated with Online Shopping?
Sub-topics:
Online Shopping - Benefits for Buyers
Online Shopping - Benefits for Sellers
Online Shopping - Affiliates
Online Shopping - Dell.com
Online Shopping - Customer Concerns
How is this topic related to other topics in the Encyclopedia?
Online shopping is related to Global Communication because it explores how new technologies have made it very easy to interact with other people and businesses from all parts of the world. Factors such as time and distance are no longer a barrier when it comes to making online purchases.
References
Julietsneddon 14:08, 1 Sep 2004 (EST)
What Defines eBay and uBid and their growing popularity?
EBay and uBid are both extremely popular online auctioning sites that are changing the way consumers buy, sell and shop within today’s world. EBay is the most popular online auctioning site, with its beginnings as a modest antique flea market trying to find a way to reach a gap in the exchange of antiques between different geographical locations. Today it sells much more than antiques, from DVD players to sports memorabilia to clothes and accessories. It has risen to become the world leader in online auctioning, with over 5.77 million listings being put up for auction and being sold each day. Ebay, also due to its increasing size has branched out to own separate eBay companies within most technologically advanced countries, allowing for the transfer of goods to be more convenient and easier to access.
UBid is known as the ‘brand name marketplace’, where primarily big brand names and items such as hi-fi systems, mobile phones, and designer clothing are sold at “lower than wholesale prices� (www.ubid.com, 2004) to over 4.5 million registered users. It works on the same principle as eBay, whereby registration is free however to sell items requires a small fee, and to auction and purchase requires the use of a credit card. Ubid offers a free tutorial, to help those who are not so comfortable with buying and selling online to join in on its growing success. Both sites are extremely popular, and are changing the way people view and execute their shopping, and also challenges the boundaries set in place by conventional retail shopping.
What are central issues associated with eBay, uBid and their growing popularity?
Some issues central to this growing market of online auctioning, in particular eBay and uBid is their growing popularity and the reasons for such a success within the online market place. Due to technological advances and the public becoming both more Internet Savvy and leading more demanding lives, its rise to such popularity is of particular interest as not long ago such methods of buying, selling and shopping barely existed, let alone used on an everyday basis by everyday people. Another topic of interest associated with both companies is the origins and their history, in particular how they came to be two of the most successful and popular websites and virtual online auctioning sites within today’s society. Further explored will be the affiliations eBay, uBid and other auctioning sites have created, to help meet the growing demand for an even greater ease and use of eBay in buying and selling. Such a company who has recognized and chosen to ride on this huge wave of success and popularity is the organization iSold It, where the hassles associated with posting a product on the site is taken care of, adding to the effortlessness and convenience online auctioning is becoming synonymous with. Finally, the topic of growing concern to both uBid and eBay is the fraudulence and insecurity issues associated with online auctioning. Due to the nature of online auctioning and its ease of selling, the rise in counterfeit artefacts being sold is of particular distress. This and the steps being taken to stop such illegal activities will be explored in depth.
Why is it important to understand eBay and uBid's popularity and success?
The exploration of these two online auctioning sites and the advantages and disadvantages associated with such an online market place is of particular importance within today’s world. Due to the ever-changing economy, sites such as uBid and eBay offer convenience in today’s hectic society, meaning that more and more people are turning to such sites to sell everyday items they were no longer able to sell through standard methods. With such organizations, there are no limitations, consequently characterizing a large portion of today’s shopping and selling within this Internet/Technology savvy world. With the ease of a computer and the Internet, people wishing to sell are able to reach audiences never thought possible, an impressive advantage over regular shopping conventions and a significant reason as to why the understanding of such companies and online auctioning sites is necessary.
How are the sites eBay, uBid and their associated issues related to other topics in the Encyclopedia?
It is related to other topics within the encyclopedia such as the broader topic of online auctioning, the growing rise in online retail, and the Internet and its ability to advance and change the world. Through understanding these two large online auctioning sites in depth, a better understanding of the Internet and how technology in general is changing the way consumers view the world, in particular buying and selling.
What are other topics related to this subject?
A topic related to that of online auctioning case studies is ECommerce - eBay, as it focuses on ebay and its function in the rise of eCommerce. Also related is the entry Amazon, as it discusses online auctioning as well, only with a different case study.
Online Auctioning Sites - eBay & Popularity
Online Auctioning Sites - eBay & History
Online Auctioning Sites - uBid's History and Popularity
Online Auctioning Sites - Affiliations with online auctioning
Online Auctioning Sites -Security and Fraudulency
Online Auctioning Sites - References
Email: [1]
Angela Klein 15:10, 7 Sep 2004 (EST)
What defines online auctioning?
Online auctioning is a relatively new phenomenon that is simply a community of people buying, selling and exchanging items on websites through the Internet. It is much like a real life auction where potential buyers place bids for a particular item and whoever places the highest big over the reserve price becomes the new owner of that good or service. Unlike real life auctions, however, the sellers place a time limit on how long the auction will run for, either hours, days or weeks. The largest and most successful online auction site is currently Ebay which registers approximately 5.7 million items on any one day.
What are the central issues associated with online auctioning?
One of the primary issues associated with online auctioning is the reason behind its popularity and astronomically high level of growth throughout the past five years in particular. This issue ties in closely with the advantages of auctioning online over real life auctioning, as the multitude of advantages that online auctioning posseses, such as convenience and larger market share, are one of the biggest reasons behind online auctionings popularity. Other important issues to investigate in regard to online auctioning include its evolution since its conceptionin the mid nineteen ninties, the many different types of online auctioning that can take place online (such as classical and Dutch auctions) and some of the disadvantages of online auctioning. More detail is provided on each of these sub topics by following the links.
Online Auctioning - Popularity
Online Auctioning - Advantages
Online Auctioning - Evolution
Online Auctioning - Different types
Online Auctioning - Disadvantages
What are the history, present and future of online auctioning?
Online auctioning is a relatively new concept that was initiated in the mid nineteen nineties. Many large retail companies began putting an online auction site on their websites as an alternative to having in store sales to clear stock. Soon sites specialising solely in online auctions, such as Ebay, emerged. They started off very small but quickly grew to having hundreds of millions of users each year. Currently online auctioning is an extremely popular way to shop and to sell unwanted goods to a world-wide market. People can sell almost anything including clothes, musical instruments, collectable items and mobile phones. As the world becomes increasingly reliant on technology and the world-wide-web, it is almost certain that online auctioning will continue to grow significantly and become even more technologically advanced.
Why is online auctioning important?
Online auctioning is important, as it is an example of how technology is becoming more and more important in everyday life. As people become busier with their lives and have more pressures from their careers and less free time, they are able to buy things at auctions online in the space of seconds rather than taking extra time to attend real life auctions (which can sometimes take hours). Online auctioning is an important tool for making life somewhat easier in the new millenium's fast paced environment. Online auctioning is also important as it offers users a sense of security when they are transacting in a world where crimes such as credit card fraud are rife. As Dysart states in his article 'Place Your Bids', "Online auctions offer consumers safer buying since they can pick out sellers who have extroadinary records for customer service" (Dysart, p.22, 2003).
How is online auctioning related to other topics in the encyclopaedia?
Online auctioning specifically relates to the larger topic of online retail, which is outlined on this page. Online retail is the term used for any type of online buying or selling, including buying new products from sites such as Myer or Woolworths.
See also:
Emily Fraser 15:41, 7 Sep 2004 (EST) Angela Klein 15:58, 24 Aug 2004 (EST). Julietsneddon 15:59, 24 Aug 2004 (EST).
