Online Auctioning Network on Small Business - Example

Online Auctioning Network on small business. Business Report Name: Course Professor's Name University Name City, State Date of Submission Introduction Online auction is that sale to the highest bidder activity done over the internet. Online auctioning comes in many different ways but most common is the ascending English auction and the descending Dutch auction. Sometimes the two methods of auction are performed together. This can work when one takes the element of one and forge it with another. The scope of reach of an auction has been propelled to a greater distance with the inclusion of the internet, mainly because the internet option removes the limitation of the physical location of an auction its time space and its number of audible audiences. In year 2002 the online auction was projected to compose 30% of the total online e-commerce businesses. Today statistics suggest that 40% of internet users have bought things over the internet through their desktops laptops and smart phones, tablets and other online devices[Sta10]. Objectives. To provide a platform that which small businesses can sell their product globally. To create choice to the global customer network that allows them to be able buy the best product. To provide a same avenue for which traders can interact at the comfort of their geographical locations. Critical Questions. With such a wide market area, such a business venture is prone to limitations that would prove it challenging. Participants of such business often ask themselves the following questions: From the customers Is the online auction business transaction simply a fraud? Will I get the value of the money I will pay? From the small business owner Does my online sale increase my revenue? Does this method in anyway reduce the cost of doing business that I currently incur? Is there definite growth in my business through this mode of trading? From the website developers [Net08]. Will the software used be able to accommodate a high number of bidders? Is the software prone to hacking or is it safe security wise? Is technology used able to handle/maintain the purpose of the network? All this issues are critical for the participants of the online auction and considerable measure needs to be taken to address them. Research methodology. The data in this report has been collected from sources through the use of questionnaires to the participants of the online auction network to allow them give reviews on their requirements on the market. Research answers are also based on various secondary sources that have enabled me to gain insight on the workings of the global network and its ability to create sites that enable small business owners to conduct transactions all over the globe from a single location. Results In my opinion these issues have locked the growth of the online auctioning business to the inclusion of small businesses to the idea of selling in further geographical regions. The solving of these issues affecting the online auctioning will allow more parties to participate in the venture and there by increasing the statistic higher than that mentioned above. Further it will see the inclusion of more product and services being traded in the market and the benefiting of the small businesses in the process. This paper is a business report with the intentions of creating an online auction networking process that will see the involvement of the small businesses in the sale of their products to the highest bidder through an internet auction. It will also review ways in which the global network opportunity can be used to reduce the disadvantages involved with a small business engaging in a global sale. The paper also aims to give the owner of small business ideas on how he/she can gain access to the vast global market place. In the past Successive auction required a lot of planning was done, outreach and staff time as well. These three were achieved by the idea of the administration planning an overall approach; this is the situation where the auction acquired multiple auction equipment to make sure that the auction process was continuous. They also acquired considerably attractive items for auctions to make sure that their clients were satisfied with what was available. The administrators’ of the auctions would reach out to the businesses that they wanted to participate in the auction and therefore enabling them to have a good number of actionable materials for the sustainability of the business. Time is also an issue to them and it determines the amount taken by each auction for a suitable Additionally the auction houses were prepared to offer excellent shipping and service to the customers that were willing to buy the auctioned products[Qui11]. In the parts that will follow I will seek to specifically explain the problem mentioned above and how efficiently they can be solved, it will also give my credibility in undertaking this project. Further I will propose a budget on the cost involved in the undertaking of this project and the estimated layouts of the timing of different aspects of this project. It is further impossible to neglect the possible oppositions that the project will face and thus the oppositions will be mentioned and elaborated clearly. The conclusion of this report will elaborate further on the benefits of this online auction network and also give clear advantages associated with its existence[Bra12]. Discussion The benefits of an online auction that involved small businesses include; Online auctions have enabled the owners of small businesses to manage their stock It has enabled business owners realize increased profits in doing business on a global network. It has enabled the customers of small businesses to cut their costs in their purchasing process. It has also enabled business owners to make good business sense of their undertaking. Small business owners are relieved on the time used in the dealing with paper work. It enables the businesses with unique product to realize massive profit as their goods as bidder tend to push for the price up beyond the first bidder. This encourages the small businesses to do more and hence their growth Small business get too get major customers to in their possession is large budgets. Small businesses are able to gain access to customers who are willing to buy quickly without the business having to launch a sales campaign for their goods[is413]. This section will specifically explain the solutions of the problems mentioned in the introduction above. Dealing with frauds and scams The main issue that is of concern to customers when dealing with an online financial transaction is the availability of fraud and scam associated with online transactions. This problem has faulted many potential clients to restrain from conducting online transactions. The online auction process has as well been affected with this situation. This has seen numerous set by the authorities to curb this situation. The enactment of the federal trade commission in the United States has seen the arrest of many criminals linked with fraud and the subsequent shutting down of those sites that are linked with fraud activities[Tim13]. Such enactments of these commissions that create order in the online business continue to create confidence in the online clients. Haward Beales who is the head of the Federal trade commission and the consumer –protection division says that inter –agency efforts were the key to the reduction of the first growing problem. Experts do agree that the best way to deal with the fraud problem fully is through the education of the people who use the internet in order to fully eradicate the vice. Efficiency of the software used. System procedures and software’s have been put in place to increase the efficiency of online software’s that are used in trade. The creation of online software’s that are able to work in mobile, tablets computers and desktops enable the client to conduct a transaction to where he/she is located without physically getting to the auction. The availability of the virtual space created by them to enable traders to sell their produce and buyers to buy without a limit to how many can bid for a single element creates a market place that is effective and efficient. Additionally the software’s contain built-in management software’s that manage all the aspects of the online auction process. This whole process efficiently creates an effective business through the online automation of the processes required. Companies undertaking the online auction venture also have management teams that concentrate on the maintenance and repair of the websites to make sure that they operate efficiently. Software that is able to perform such efficiency includes the Auction Management software and the Auction Worx Enterprise among others. Technology is however an ever developed process and it involves updates and new process and procedures at the market therefore research on the best way to improve efficiency should continue. Qualification and experience. The creation of an online auction requires both innovations an experience. Through my research on this project I have been able to learn a lot on what needs to be done to sustain this type of venture. Additionally I have undertaken the global network course in my institution and therefore uniquely qualified. Never the less the business needs experience and therefore I will nee d to involve a person who has gained previous experience with auctions. This will create a team to solve or avoid any stagnation that might occur in future. The partner should be an educated person with the ability to converse and of sound mind to allow for understanding between the two of us. Budget: One of the merits of a web based start-up is the fact that, they cost little to setup[Cha10]. Iwill fund the business with a $ 20,000 to act as the initial loan. The cost that is associated with the start up of the business is listed in the table below; Item Category One Time Cost Recurring Cost (per mo.) Business Incorporation Legal $200 Register of Internet Domain Names (2 years) Marketing $70 $6 Auctioning Software Software $200 Stock Certificates and Corporate Seal Legal $100 Web Hosting Web Hosting $400 $400 Website Design Services Web Hosting $600 $0 Content for - First 10 lessons w/ 5 lessons every six weeks following Content $2,000 $667 Link Building Marketing $300 Programming (English Website) IT $2,400 Total $5,970 $1,373 Start-up Budget Operating Budget The monthly budget is based on known operational expenses that have been known on a monthly basis. Although information networks are free to the consumer there exists a maintenance fee for those that maintain them[Cho12]. This cost associated with running the business is listed below in the table; Hosting $ 15 PayPal $ 130 News Letter Creation $ 29 Shopping Cart $ 5 Online Backup for the computers $ 5 Updates and software’s $ 150 Internet and Telephone Charges $ 100 Salary Expenses $ 200 Total $ 634 Task Schedule. The task for the launch of the online auction for small businesses is as follows: Soliciting for capital for the start of the business – 2 months Creation of the online website by a website developer - approximately 1 month Acquiring of the license to practice auctioning online- Less than one week. Employment of an experienced team to help manage the business – 1 week Approaching small business and educating them on the advantage of auctioning in the website - 2 Weeks Invite bidders to participate in the online auction – 3 Days Opposition Sometimes the bidding time offered for a product is note enough, Depending on the product some bidding tome run for minutes others for hours. This works when the item on sale is on high demand. Such creates a disadvantage to other bidders for the product and therefore the losers tend to get annoyed with the buying situation. This situation though a disadvantage it consists of an advantage to it. It enables the small business to flash sale all what it has at a considerable amount that is advantageous to him at that very moment. The winners as well get to be loyal customers as often goods sold in this method are those that have a high demand and are selling at an offer price[Min11]. When there is high traffic in the internet on that specific site then the bidders have to be fast in the placement of their bids or otherwise they would see their bids loosing in the process. One needs to be a fast browser to be able to achieve a desired item. This method is very disadvantageous to the slow bidders and therefore leaving them vulnerable to loss. To the fast browsers they have the ability to win the binds and earn their product while to the small business they have the perfect opportunity to clear their sales fast and therefore enabling them to operate effective and fast profit making business. The probability of an over payment always exists in an auction opportunity. Whenever a products value goes more than its real value then the final bidder of that bidder is likely to have overplayed for the product. to the client this might seem very unfair to them while to the owner of the item it would seem advantageous. Bidding enables the small business owner realize maximum profit for that good that is sold through bidding process thereby enabling the small business to grow. Online bidding does not allow the client to physically examine that thing that he/she is buying and therefore at times they are prone to receiving fake materials of goods. This creates mistrust on the part of the online auction and its client therefore disadvantaging them both. The auction office must therefore verify that the auction material sold is of good and original quality[Adm11]. Online transaction is today a target for many con artistes that look to fraud the transistors at various sites. Online auction sites are no different to this situation. Both buyers and sellers of in the auction markets can fall victim to this kind of situation. Some instances the items paid for never get delivered or an item is delivered but no payment is made. Other traders engage in scam to push up the bids and make the price higher for the other traders to start bidding from in order to earn more profit[Adm11]. Traders and transistors of this form of business should thus be more careful with the transactions that they under take to make sure that there are not subject to these scams. Conclusion. The presence of this report in existence will create a giant virtual market place for the small businesses. It will allow the owners of small market place to sell their goods to a global market enabling them to expand their businesses in the long run. Clients and customers as well have the opportunity to get a wide range of products that have the opportunity to have substitutes and therefore the creator make sure that they are of the best possible quality before they are presented for sale. With the high traffic associated with the online auction sites[Ent15], small business owners looking to sell their products have the ability to do so with the push of a button. This enables them to start selling their product almost immediately. To that small business, the owner gets to avoid the over head cost or the upfront cost that the trader would have had to consider in order to trade if the mode of transaction was not online. The trader as well gets to do away with cost associated with the payment of staff and the distributers of his/her product. Additionally the business enjoy the fact that there is no initial investment costs that would be associated with the advertising in the auction site and finally the business is not required to maintain its own internet website to be allowed to trade via the internet. Reference Sta10: , (Statista, 2010), Net08: , (Net security, 2008), Qui11: , (Quinn, 2011), Bra12: , (Brady, 2012), is413: , (is4profit, 2013), Tim13: , (Times Wire Services, 2013), Cha10: , (Chandoo, 2010), Cho12: , (Chowdhury, 2012), Min11: , (Mine, 2011), Adm11: , (Johnson, 2011), Ent15: , (Entrepneur Staff, 2015), Read More