Ecommerce Lecture 11 Market Mechanisms Shopping Carts An

E-commerce Lecture 11

Market Mechanisms • Shopping Carts – An order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop – In this respect it is similar to the shopping cart in the physical world.

Market Mechanisms • Shopping Carts – the software program of an electronic shopping cart allows customers to: • • • select items review what has been selected make changes and then finalize the list. clicking on "buy" will trigger the actual purchase.

Market Mechanisms • Shopping Carts – B 2 C VS B 2 B cart • Shopping carts for B 2 C are simple carts. that a uses for his or her shopping. (www. amazon. com) • A B 2 B shopping cart is more complex

Market Mechanisms • Shopping Carts – B 2 C VS B 2 B cart • A B 2 B shopping cart could enable a business customer to shop at several sites while keeping the cart on buyer's website to integrate it with the buyer's e-procurement system. • A special B 2 B cart was proposed for this purpose by Lim & Lee(2003) where, in addition to the cart offered at the seller's site. there is a buyer's cart. • buyers cart is also known as b-cart that resides on the buyers sites.

Market Mechanisms • Online Auctions – One of the most interesting market mechanisms in e-commerce is electornic auctions. – They are mainly used in B 2 C, B 2 B, C 2 C, G 2 B, G 2 C – They are also used in other parts as well if needed.

Market Mechanisms • Online Auctions – A competitive process in which seller solicits consecutive bids from buyers (forward auctions) or a buyers solicits bids from sellers (backward auctions). Prices are determined dynamically by the bids.

Market Mechanisms • Online Auctions – There are several types of auctions, each with its own motives and procedures. – Auctions can be done online or offline. – they can be conducted in public auctions sites such as at www. ebay. com. They also can be done by invitation to private auctions.

Market Mechanisms • Limitation of Physical Auctions – They generally last only a few minutes, or even seconds, for each item sold. – This rapid process may give potential buyers little time to make a decision, so they may decide not to bid – The sellers may not get the highest possible price. – In many cases the bidders do not have much time to examine the goods. – Bidders have difficulty learning about auctions and cannot compare what is offered at each location.

Market Mechanisms • Limitation of Physical Auctions – Bidder must usually be physically present at auction. thus many potential bidders are excluded. – It may be difficult for sellers to move goods to an auction place. – Commissions are fairly high because a location must be rented. – The auctions needs to be advertised. – An auctioneer and other employees need to be paid.