EBay UKs Model of Business Provides for a High Level of Flexibility - Essay Example

E-business Name: Course: Instructor: Date: Introduction Known as electronic commerce in full refers to a very wide range of business activities running online for products and services. The parties doesn’t interact with physical interactions but rather interact electronically. It’s usually involved with buying and selling of goods over the online market while e-business on the other hand uses information and communication technology to enhance their businesses. The process of being digitized aids businesses in gaining ground and utilization of minimal resources in management of operations. E-bay UK is one of the fully digitized businesses that reach their customers through the online channel. Despite the delivery of their goods and services being done manually, the backbone of their services and marketing is a digitized platform. E-businesses are typical entrepreneurs who prefer to use the online channel as the major source of their customers. It’s through retail section that the description of their goods and services is given on their designated websites and customers can access the same at through the web. An arrangement for the payment of services is also dome on the web for the delivery of the good or service. Customers can then receive their services or goods as delivered to their location as agreed in conjunction with the business. Because of the emergence of global communications networks, the nation state is gradually losing monopoly control of information and financial flows. Private individuals and enterprises and groups now have the ability to source, package, and transmit information in compressed time and space. Through “digitization” currency, services, and even some goods can be conveyed immediately, transacted invisibly across the globe. Interactive networks are creating a new, network-linked world without borders, in which many commercial transactions are beyond the reach of national jurisdictions, laws, and taxation systems This work examines some of the advantages of using an online platform in managing the marketing of an enterprise. It states that despite some level of challenge being experienced in the field of digital marketing, the process still gives businesses a greater chance of success through limitation of expenses and expansion of the geography. Many of the successes of the E-business sector is attributed to the changing lifestyle of the current market and the advancements in technology. E- Commerce is divided into various section, consumer to consumer, business to government, business to business, business to consumer. These are the major different kind of e-commerce. E-Bay UK is selected as an enterprise of evaluation. e-bay, this is an American multinational corporation and e-commerce company. It provides various sells; business to consumer sales and consumer to consumer sales and services via the internet. It was founded in 1995 by Pierre Omidya of which it has grown to noticeable length.its now a multibillion dollar business that operates both the local and international operations in over 35 countries. E-bay is an online company for online auctioning and shopping site business foe people to buy and sell a broad variety of goods and services all over the world. In this report I examines the successes attained by eBay UK and the failures as an evaluation of the use of online marketing process. E-Bay uses the online platform as a means of marketing its goods. In the UK market, the company offers a variety of goods that range from electronics and home appliances to fashion. The company also supplies motor vehicles for personal and commercial use (Ebay.co.uk, 2016). Advantages of E-businesses The business process and the operation of eBay is made simpler through utilization of the web. As compared to the other models of business, reaching the customers through the internet offers a high level of flexibility to any business. The online channel allows business owners to use a variety of options that are convenient and cost effective. Firstly, business owners can apply the tactic of email marketing. In this process, emails are sent to prospective buyers that have been sorted through their profiles and identified as potential buyers. Perfect profiling will lead to a high volume of sales as the segmentation of the customers will have been taken into consideration. It is important to note that a perfect segmentation and identification of customers will yield a high volume of sales through identification of special needs that have to be fulfilled. Other methods that can be used by a firm in this case is to utilize articles and newsletters in the marketing process. Costs are substantially reduced in using the online channels (Kiang, Raghu and Shang, 2000, p.56). A company such as eBay can have all its customers listed in a database and emails sent to them on a regular basis. Such emails can contain the details of their new products and services which they wish to offer. The main advantage of the use of the newsletters and emails is that the cost of advertising is significantly reduced which makes their marketing cost effective. Flexibility is also experienced in the time barriers that are associated with the location of the premises of the business. In ordinary marketing and advertisement, access to the options offered by the business would be limited to the working hours or the daytime communication of the products. In online marketing, the timing of the delivery of the information would be subject to the clients’ access to the internet. Anyone with an internet connection will receive the marketing information so long as they reach their emails or read the newsletters that they subscribe. The main advantage here is that the use of the online channels eliminates the geographical timelines that are associated with the use of traditional marketing methods (Ilieva, Baron & Healey, 2002, p.67). Collection of feedback is also made simpler. In most institutions such as eBay that avail their products for sale through the internet, the priorities of the customers are collected through the same channel. The channel makes the information timely and concise. Most users will provide adequate and interactive information about their products as they use the same. In ordinary retailing, the provision of feedback normally takes a longer time as customers have to physically come back to the premises to give their feedback. At times when giving the feedback about the efficacy of goods, the goods have not been tested or tried. Disadvantages Despite the numerous benefits that eBay UK receives in the operation of its retailing channel through the online platform, there are challenges that are given in this model of business. The most common challenge is the level of exper6tise that is required to operate this kind of business (Kiang, Raghu & Shang, 2000, p.32). Operating an online business requires more that the average computer knowledge to effectively manage. This includes the knowledge to avoid unauthorized access and modification of the information. The owner of the business needs to ensure that the customers’ information is protected from unlawful access and modification. The financial data is also to be protected from the same breach and unlawful use. All these protection requires more that the ordinary level of computing. The result of this limitation is that companies such as eBay will employ technical staff that will reduce their profits. Apart from the employment of the staff, developing relationships is an important aspect of the operation of the business. Customers will tend to trust organizations that have a reputation in the protection of information and the ability to deliver the products specified. Some online companies would describe a product with additional benefits that have not been implemented by the producers. This is often done with the aim of attracting more customers to buy the same product. When the same product is delivered, the specifications described could be missing (Figallo, 1998, p.73). eBay, however, has gained a reputation of supplying products that are from trusted manufactures with only the implemented features described in the brochures. As such, the company has no issue to deal with in the management of the reputation of the brand. Additionally, all the customers are guaranteed of the delivery of the products that they order and pay. While eBay offers a wide range of products and services, the nature of the business that it can provide is still limited by the internet. For instance, product differentiation especially with the services is still a challenge. In a restaurant business, if a company’s main selling point is the difference in aroma or any other aspect that can be felt, clients can only be told of the same. They cannot feel the product differentiation and this makes their selling difficult. There are various implications surrounding the digitalization of ebay UK. One being the loss of control over the customer relationship as brands are facing a loss in the information monopoly and a shift towards two-way communication and conversation. It is vital that brands embrace the shift in consumer power and find ways to make it work for mutual advantage. There is also the need to engage digitally with suppliers and employees. Organizations should look to integrate procurement into their supplier relationships to reduce manual processes and improve invoice tracking, or develop secure portals for real-time collaborative forecasting with suppliers to better manage inventory. And lastly an Increased competition and the risk of commoditization, It is through differentiation and innovation that organisations can create the shift in mindset necessary to win in the digital game. Conclusion In conclusion, eBay UK’s model of business provides for a high level of flexibility. The geographical time limits are not experienced by the business which makes it easier for the owners to successfully operate a timeless marketing. The cost effectiveness of the marketing is another reason for the preference of this model of business. The company has a wide variety of options of marketing that can be targeted to provide high returns in marketing. However, the use of the online marketing channel also comes with disadvantages that need to be properly managed. This includes the reputation of the business in managing the privacy and client’s information, coordination and logistics involved as it is a technical venture and accuracy in developing the market niche. These aspects should be properly managed to produce the best results for companies that utilize online distribution channels. Bibliography Ebay.co.uk. (2016). Ebaycouk. Retrieved 25 March, 2016, from http://www.ebay.co.uk/ Figallo, C., 1998. Hosting Web communities: Building relationships, increasing customer loyalty, and maintaining a competitive edge. Ilieva, J., Baron, S. and Healey, N.M., 2002. Online surveys in marketing research: Pros and cons. International Journal of Market Research, 44(3), p.361. Kiang, M.Y., Raghu, T.S. and Shang, K.H.M., 2000. Marketing on the Internet—who can benefit from an online marketing approach?. Decision Support Systems, 27(4), pp.383-393. Read More