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Internet User Shopping Patterns and Demographics Essay

In this age of e-business, a lot of creativity is required in order for various businesses whose revenue is sources through the use of computer technology to operate within acceptable profitability margins. It is therefore necessary for the e-business framework to be organized accordingly by means of unique entities referred to as internet business models. Internet business models can be referred to as value creating networks that are based on the internet (Rayport 1999:20).

Another scholar Timmers described the term internet business model to mean and refer to a unique architecture for used in the flow of products, services and information. This according to him also included the descriptions of the certain business actors and their accompanying roles. With these roles are the various descriptions of the various benefits of the business actors and a clear description of the main business sources of revenue (Timmers 1998:4). Various organizations employ unique internet models in order for them to achieve their main objective of profit maximization.

The increasing of bottom lines of an organization must therefore require a thorough planning of its internet business model to include the necessary entities and parameters together with the necessary correlations between the entities and the customer. Popular

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online stores such as E-bay and Amazon have very unique business models. These models even though serve their purposes are not perfect. In this paper, we analyse the various advantages and disadvantages of these business modes with an aim of coming up with the best recommendations to improving them. EBay business model

The eBay business model can be best described as e-auction business model. This type of business model has been described and identified by various scholars such as Timmers (1998). This type of model can be used by both Business-to-Business (B2B) and Business-to-Customer (B2C) entities. It has the advantage of being able to offer convenience to both the business and the customers. The advantages of this model are: The first advantage is that e-auction is efficient. This is because it improves the overall process of purchase and therefore results to a reduction of errors.

The system is also characterised by minimal management processes which results in the saving of work related burdens. The other advantage is the fact that it results in transparency in terms of the procedures and hence results in easier auditing at any instant by users who may belong to various levels of access. E-auction is also characterised by acceleration in the reception of orders. The e-auction system also has the added merit of being able to provide reports on a daily, weekly and monthly period. This is essential for the planning of future corporate strategies.

The system also has the advantage of reducing administrative spending and the conservation of the environment due to its paper-less nature. Disadvantage: the major one is that there are cases of online fraud where buyers may pay and the good never get delivered. The goods delivered might not meet the expected specifications and quality. The Amazon Business model The Amazon business model is an e-shop model. This model has the advantages of increased sales through the possibility of reaching a wide customer base regardless of the spatial and temporal limitations of distance. The disadvantage is that of online fraud.

Buyers may use stolen credit cards to do their purchases. This usually ends up bringing various legal tussles within the company Bibliography Bakos, Y. (1997): Reducing Buyer Search Costs: Implications for Electronic Marketplaces. Management Science. Vol. 43, No. 12, p. 1676-1692. Bigne, Enrique. (2005) The Impact of Internet User Shopping Patterns and Demographics on Consumer Mobile Buying Behaviour. Journal of Electronic Commerce Research, VOL. 6, NO. 3. EXELSUM (2010) e-Auctions Benefits. http://www. exelsum. com/296–Products_-_e-Auctions_-_e-Auctions_Benefits. html Jarvenpaa, S. L. , & Todd, P. A. (1997).

Consumer reactions to electronic shopping on the world wide web. International Journal of Electronic Commerce, 1, 59–88. Rayport, J. F. and Sviokla, J. J. (1996): Die virtuelle Wertschopfungskette – kein fauler Zauber. HarvardBusiness Manager. Vol. 18, No. 2, p. 104-113. Timmers, P. (1998): Business Models for Electronic Markets. In: EM – Electronic Commerce in Europe. EM -Electronic Markets. Vol. 8, No. 2, p. 3-8. Wigand, R. T. and Benjamin, R. I. (1995): Electronic Commerce: Effects on Electronic Markets. In: Journal ofComputer-Mediated Communication (JCMC), Vol. 1, No. 3. http://www. ascusc. org/jcmc/vol1/issue3/wigand. html, 2001-06-25.

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