The Ways by Electronic-Commerce Companies use Social Media to Enhanc Business Model - Essay Example

E-commerce Companies use Social Media to enhance their Business Model Table of Contents Introduction 3 Finding and Analysis 5 Finding and Analysis 7 Conclusion 8 Reference 10 Introduction Social networks have changed the conveying, offering and searching information style of the users. Users use these networks as well as on regular routine update, his/her profile share photographs and connections to friends, which demonstrates that user, discover these networks dependable. As we all are aware that online market places every day interact with strangers and the likelihood of making misrepresentation is high because of the reason users play with their reputation system byartificially expanding their reputation values. Social media is assuming a very critical role in conveying data to the people and the association. (Ambrosini and Bowman, 2009). Here we have an example of Overstock closeout comparable like ebay and Amazon in sense of sales management firm however it’s different because of its integration of social network into the social group. It encourages users to establish online presence through personalized home page with personal information and history, photographs, connects their online shopping preferences and return policies. User can become a member of social network by becoming friend with an already user and 2ndly the one who purchase or sell become the piece of business network where each connection connecting two users implies one or more earlier budgetary transactions. E-commerce Models The emergence of e-commerce and its related technologies had lead to the creation of numerous different vigorous applications that are commonly grouped into several categories of e-commerce. The most widely recognized example of a B2c application is a retail web site featuring the business items or services that might be directly purchased by the consumer. The importance of B2c varies significantly from organization to organization. For some companies that run a chain of retail stores, B2c ought to be one of the most critical pieces of their Internet strategy (Maddox and Blankenhorn, 1998). Business to Business (B2B) - Forging new relationships between businesses is becoming basic for businesses to survive and bloom in this increasingly quick paced world. Examples of B2b applications include encouraging transactions for products/services between companies, selling merchandise/services on the Internet to businesses, and production network integration. Another example is online procurement of products starting with one organization then onto the next (Maddox and Blankenhorn, 1998). Consumer to Consumer (C2C) - C2C applications involve consumers directing commerce directly with other consumers. This clearly means that the organization encouraging the transaction must discover some non-customary revenge stream. This could be a little reduced of the transaction, a service fee, advertising, or some consolidation of these. E-sound is an excellent example of a C2C application that is extremely well known with consumers (Maddox and Blankenhorn, 1998). Auction Model - The Web offers numerous different sorts of auction sites. Auction sites go about as gatherings through which Internet users can log-on and assume the role of either bidder or seller. As a seller, one can present an item on sell, the base price he requires to sell his item and a deadline to close the auction. As a bidder, one can search the site for accessibility of the item he is seeking, view the current offering action and place an offer. Moreover, there are sites designed to search existing auction sites in order to pinpoint the lowest prices on an available item. Despite the fact that auction sites typically require a commission on sales, these sites are just a gathering for online purchasing and selling. They get the commission from both parties once the deal is over (Delone and Mclean, 2004). Online Trading Models - Another quickly developing area of e-commerce is online securities trading. Trading sites permit one to research securities, purchase, and sell and manage the majority of his investments from his desktop. (Delone and Mclean, 2004). Finding and Analysis Current Happenings in the E-Commerce World Industries are moving the greater part of their operations online, as it becomes clear that the Web, not constrained by geographic boundaries, is a more efficient vehicle for their services and permits them to chip away at a positively worldwide scale. Money as we know it may cease to exist, replaced by more convenient technologies, for example, brilliant cards and advanced money. Intelligent projects will take care of the money related and logistical aspects of the interactions between both the people and the organizations that populate the Internet. All that a person needs to do shopping is a connection, a computer, and an advanced manifestation of payment (Kock, 2008). No single block and-mortar store can offer 50,000 items, yet an online store has the capacity to offer a limitless number of them. There are services for discovering the best deal on items for consumers. An increasing measure of consumer data, for example, consumers testimonies, item overviews, examination graphs, is being made available, leading to better deals for customers. Notwithstanding business-to-consumer operations, for example, electronic stores, business-to-business marketplaces and services are likewise taking their place on the Internet. A business which orders items from a supplier online not just completes the transaction with greater speed and convenience additionally can keep track of the shipment continually. B2b e-commerce Web sites are likewise channels that permit operation between different business and additionally the outsourcing services that are and will continue to be vital to the Internet economy. The move from block and-mortar businesses to "clicks" business is happening in all sectors of the economy. It is presently possible for a business to work without an office, because the employees can direct all correspondence by means of phone, voice mail, fax, e-mail and the emerging capabilities of the Internet. Numerous e-businesses can personalize the users experience, customizing web pages to their individual preferences, searching utilizing counterfeit consciousness techniques and letting them sidestep irrelevant content. Personalization is making it easier and more pleasant for some people to surf the Internet and find what they need. E-commerce happens record-breaking as an organization uses electronic technology for leading its business. Consequently an e-commerce could be anything from a sales pitch on a web site to an electronic exchange of information. Numerous companies have chosen to embrace e-commerce as they have realized that it is an approach to improve efficiency, offer new and innovative services, and increase the nature of their business. The vital point to be taken into record here is that e-commerce carries a fundamentally different method for working together, instead of being simply a new instrument to fit into old methods (Deeter-Schmelz and Kennedy, 2004). Finding and Analysis As we know, Facebook is most popular social networking site and it has most active user than other social media networking sites. The most e-commerce companies use facebook as platform to sale their product or service by positing advertisements. Below table is showing, five top most brand in facebook according to their fan follower. Top Five Companies (according to fan follower in Facebook) Pos. Company 1 Coca Cola 2 Pringles 3 Adidas 4 Starbucks 5 Apple Student However, above companies are not e-commerce companies, but the social media’s users are following these companies. Here are three top most e-commerce companies of the world according to their revenue. The below table is stating that Amazon is leading e-commerce company among the other two companies. Top Three E-Commerce Company Rank Company Revenue (in USD billions) Market Capitalization (in USD billion) Source 1 Amazon $ 74.45 $ 160.49 (Google Finance, 2014) 2 eBay $ 16.05 $68.51  (ebay inc, 2014) 3 Rakuten $ 5.56 $ 35.58 (Google Finance, 2014) In the world, Amazon and eBay are most famous e-commerce companies. They are targeting their customers via social media (like facebook, twitter) by advertising their products. Since, we all know, the number of active user in facebook and twitter are very high. The active users of social networking sites are getting attract towards the ads of Amazon and eBay and purchase their product by clicking on those ads. These strategy of e-commerce companies are very unique to earn more revenue. Conclusion Our theoretical overview discriminatingly review the effect of Social networks on e-commerce, Social networks sourcing the increasing in high sales volume, marketing benefits, item development, however it is becoming the bringing about problems like protection, security, intellectual property security issues saimentainouly. Numerous enterprise are currently enjoying the products of the soil of social networks as they are recommended by friends to friends over the internet simply making by one click, so verbal phenomena has become without a doubt moment and it chop down the expense of advertisement that are huge in conventional methods of marketing. As the number of user are sign up every day on social networks there is more room being generated for beginning up the new and unique method for social imparting. Sites wiki revolutionized the advancement of marketing the items, companies started composition writes on the their item use, and industry they in which they are operating, RSS feed played an imperative role in the social networking marketing, anyone can have the membership of companies new item, press releases, and month to month or weekly news letters are additionally giving a chance of keep in contact with customer and keep them up date with companies items. Reference Ambrosini, V. and Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management?. International Journal of Management Reviews, 11(1), pp.29--49. Deeter-Schmelz, D. and Kennedy, K. (2004). Buyer-seller relationships and information sources in an e-commerce world. Journal of Business \& Industrial Marketing, 19(3), pp.188--196. Delone, W. and Mclean, E. (2004). Measuring e-commerce success: Applying the DeLone \& McLean information systems success model. International Journal of Electronic Commerce, 9(1), pp.31--47. ebay inc, (2014). Financial Releases - eBay Inc.. [online] Available at: http://investor.ebayinc.com/financial_releases.cfm [Accessed 26 Jul. 2014]. Google Finance, (2014). Financial Statements for Amazon.com, Inc. - Google Finance. [online] Available at: https://www.google.com/finance?q=NASDAQ:AMZN&fstype=ii&ei=6jMJUaCeKoOckAWR1 AE [Accessed 26 Jul. 2014]. Google Finance, (2014). Rakuten Inc: TYO:4755 quotes & news - Google Finance. [online] Available at: https://www.google.com/finance?q=TYO:4755&ei=_FyRUoCaIa3p0QHSyAE [Accessed 26 Jul. 2014]. Kock, N. (2008). E-collaboration and e-commerce in virtual worlds: The potential of Second Life and World of Warcraft. International Journal of e-Collaboration (IJeC), 4(3), pp.1--13. Maddox, K. and Blankenhorn, D. (1998). Web commerce. 1st ed. New York: Wiley. Read More