Wednesday, July 8, 2009

Corporate Blogging: A new marketing communication tool for companies

Blogs have become one of the hottest communication tools on the Web. Offering the opportunity for anyone to create their own free Web site, encouraging opinions and interaction, blogs provide forums for individuals to create their own highly personal presentations to the Web audience.

Corporate Blogging refers to a company producing or supporting a blog that it uses to accomplish business objectives. As with anything, there are certain “best practices” to be followed to ensure your company reaps the maximum benefits. These seven tips guidelines will help make your blog a success.


1. Fine Print. Blogging can lead to legal issues. Companies should have real concerns about liability, exclusions and limitations, and indemnity. Although there are laws that protect against libel, misappropriations and other injuries suffered as a result of posts on the Web, companies can still be held “vicariously” responsible for statements made by employees that are harmful to others.


2. Know What You’re Doing. Senior management should be educated by the corporate communications and legal department about what blogs are and how they might affect business. That way, they can be contributing members of the blog, further improving employee relations. Their support and participation is often what makes a blog more effective.


3. Create blogging policies. In any medium where an employee is sharing information, there is the possibility of leaking trade secrets or financial information. Blogging also has a tendency to become personal. A company should have a list of policies regarding blogging to ensure that trade secrets are kept secret and personal lives do not become public.


4. Avoid the Marketing Blog. Making your blog into a blatant marketing campaign is a bad idea. Customers are looking for real answers and honest opinions. They will pick up on insincerity instantly. Use the blog for what it's for, transparency. This is an opportunity to make a real connection with your customers. Don't ruin it by filling it with empty advertising.


5. Keep It Fresh. Blogs are usually judged by their amount of new content. Easy to add on to, they are designed to be updated constantly. To keep your readers coming back, make your content relevant and timely.


6. Reinforce the company’s core values. Use your blog to reflect your company's inner soul: its mission, goals and direction. A blog is just another medium by which you interact with your customers and employees.


7. Encourage employees to use it. Create an atmosphere where they are comfortable asserting their opinions and concerns. You’ll be surprised how the quietest employees will speak up when given such an opportunity.

Mobile payment systems in Malaysia: Its potentials and consumers' adoption strategies

For the adoption from Wikipedia website, Mobile payment is the collection of money from a consumer via a mobile device such as their mobile phone, Smartphone, Personal Digital Asistant (PDA) or other such device.

The mobile payment can be used to purchase any number of digital goods and physical goods. For example digital goods are ring tones, games, wallpaper for mobile phone and the booking cinema ticket and air ticket. Usually purchase digital good are through by SMS based transaction payments or Mobile Web Payment
.

Malaysians can now enjoy a secure and convenient way to conduct mobile commerce using a GSM cellular phone. TeleMoney, the country's first mobile payment service via multi-channel access for Internet and wireless transactions, was launched Tuesday, and is expected to fully operational in the first quarter of 2002.




It is a service free of banks and telco dependence; a customer with a credit card or debit card with a cellular phone can register for this service.

All one needs is a GSM phone and a TeleMoney personal identification number, connecting it to a credit card, debit card, stored value card, bank account or even the phone account.


System@Work is the mover behind TeleMoney and Hong Leong Bank has picked the former as its master merchant while the bank acts as a settlement, clearing and payment bank for the service in Malaysia.

A review on a post on Legal from My E-Commerce blog

I had reviewed a post from My E-Commerce blog. Most people like to buy the skincare products in order to become more beautiful and more attractive. Internet users especially female workers will attempt to get the skincare product such as eye mask from the internet. They should be aware and check the information frequently before making the online purchases of the products. Most of the victims were cheated because of the cheaper prices of products offered as compared to the market rate or over the shelves. The perpetrators always use the deceive tactic to tempt the internet users buy their ‘product’. They will use some exaggerate words in the advertisement to lure the internet users make the purchases. As a result, the victims loss their money and unable to find them in order to obtain their products when the payment was made but the products never arrived. Although the website has announced and warned the people that the sales of skincare line was not genuine but this is not the most effective way to avoid the people be cheated by the online purchase. The key to solve this online beauty fraud is not only relying on the effort of police to take the action but also we need to increase our knowledge about online purchase. This post is a very good example of weakness of E-buying even online purchases convenience to us.

A discussion on E-learning offered in Malaysian unoversities: Pros and Cons from the student perspective

E-learning has shown its great advantages through its accessibility to all students irrespective of their residence. E-classes help students to communicate with their tutors, get clarifications regarding their subjects and study and access teaching materials through e-libraries. Universities and colleges which provide online degrees involve more and more electronic facilities to give their online students fast and qualified assistance. Students’ interactions have become much easier than face-to-face communication!





Another advantage of e-learning is its time flexibility. One can get online resources, communicate with his tutor or class mates, send his query and write term paper at any time he can get access to the Internet.

E-learning has been becoming more and more popular among students living in developing and undeveloped countries. They can afford getting higher education degrees at respectable universities and colleges by saving extra expenses for traveling, accommodation, food and high fees for tutors. E-learning can offer such students much easier and affordable way to get a good education and a prestige higher degree.

However, there are still a few disadvantages in e-learning which are enough obvious to be omitted in this article. Lack of face-to-face communication with teachers contributes lack of understanding between a student and a teacher. While a teacher cannot easily feel a student’s demands, interests and motivations, a student can simply be lazy being non-motivated enough and having free time schedule for his e-learning. This may result a low scope of the student’s knowledge and the teacher’s accusation in lack of proficiency. Next, online classes, conferences and discussions are limited in time and totally exclude emotional interactivity. Though some universities and colleges which provide online courses and give online degrees evolve voice communication through networking technologies there is still lack of gestures, vivid dialogue and feeling of your interlocutor’s presence.



E-learning as it looks today leaves so many questions and demands regarding its improvement as it gets benefits. However, its fast growing shows a great future for online degrees.

University Tunku Abdul Rahman is given a E-learning environment to students that provide a website call Web Base Learning Environment (wble.utar.edu.my) for students to access and get information about all the subject they took during the semester. In this website, there is forum which can let students and lectures exchange information about the related subject.

Review a local, transactional e-commerce site


Golden Screen Cinema known as GSC is one of the local transactional e-commerce site and the website is http://www.gsc.com.my/


The website is designed user friendly and users can find out information easy and fast. This website user friendly in term of searching information of particular movie (such as time of showing and which branches of GSC cinema is showing), pricing of the ticket and etc. Users able to know the latest and hottest movies by just a few clicks and it are convenient for customers to locate the nearest cinema to them.



This website also can help users to reserve or purchase movie ticket in advance thorough e-ticketing. Users can enjoy this convenient services provided by Golden Screen Cinema with just register as a member of GSC online. There are different ways to make payment. Users can reserve the place online and make payment at the counter of GSC before 1 hour. Users also can make the payment online by using credit card or debit card and take the ticket at the counter of GSC by just show out the user identity and credit card.


There are also some limitations in this e-commerce site. Less sits are available for reserve service. There would be more sits for those payments online like credit card and debit card. Furthermore, transaction fees will be charged RM 1.00 and not refundable. Although it is convenient, but become more expensive.


Overall of the services provided by GSC e-commerce site is convenient the users and GSC also need to include and improve the services.

The Application of pre-paid cash card for consumers

Prepaid cards look like credit and debit cards and they offer the same ability to purchase products and services but with a crucial difference – you can only spend the balance that has been preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility.


You will be give a Pin number when you purchase a card, and once money has been credited, it can be used in the same way as a debit or credit card – for high street, online or telephone purchases, as well as cash withdrawals from ATMs.


The main advantages of prepaid cards include:


· Availability - there are no credit checks, which means you can get a card without worrying about your credit history. All prepaid card providers will carry out an identity check to confirm you are who you say you are.


· Control - prepaid cards are an ideal way to budget for yourself or help to manage your children's spending. Like a credit card you get a full breakdown of spending on the card so you can see what has been purchased, who from and when.


· No debt risk - with a prepaid card there is no chance of spending too much as you are limited to the amount you put on your card.


· The card for travel – prepaid cards are a good option if you are going overseas. They are popular with students heading off on gap years and children who go abroad on school trips as parents can load them up here in the UK. However, the benefits are not restricted solely to young travellers - any holidaymaker can take advantage: prepaid cards offer a good alternative to travellers' cheques. They are safe and you will probably be offered a better rate of exchange as you spend.


In Malaysia, Touch 'n Go or TnG smart card is used by Malaysian toll expressway and highway operators as the sole electronic payment system (EPS). The credit card sized smartcard made of plastic with Philips' MIFARE microchip technology embedded in it.

The Touch 'n Go systems are designed to process up to 800 vehicles per hour to ease the queue congestion at toll plazas and if used together with SmartTAG (a non-stop electronic toll collection system), will be able to process up to 1,200 vehicles per hour.

Credit Card Debts: Causes and Prevention

Credit card is defined as any card that may be used repeatedly to purchase product and services on credit which issued by banks and financial institutions. Credit cards actually provide us with the added security when shopping but most of people tend to misuse them and may lead to credit card debt.

Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards. Debt results when a client of a credit card company purchases an item or service through the card system. Debt accumulates and increases via interest and penalties when the consumer does not pay the company for the money he or she has spent. The results of not paying this debt on time are that the company will charge a late payment penalty and report the late payment to credit rating agencies. The late payment penalty itself increases the amount of debt the consumer has. When a consumer has been late on a payment, it is possible that other creditors may increase the interest rates the consumer is paying.

There are some causes of credit card debt:

1) UNEMPLOYMENT

Households are forced to use credit card for groceries, utilities and some expenses purposes to maintain current lifestyle when the main breadwinner of the household has loss his job and could not find a new job during short periods. This may lead to a rise in debt when expenses increase in line with the reduction in income.

2) POOR MONEY MANAGEMENT

Poor money management is one of the best answers that explain why so many families have accumulated many credit card debts. It is because most of them are unaware to conduct a monthly spending plan and do not keep track of monthly bills. They have never realized that they spend too much on the product which is valueless and don’t have any use in their life. Therefore, the loss control of using credit card leads to raise the expenses and also credit card debt.

3) DIVORCE

Divorce fees such as attorney, division of assets between husband and wife, and proceeds for kids are the way to rack up huge debts by using credit card especially during financial crisis. Furthermore, it will lead to reduction in income because divorce may indirectly cause some of them to quit their job and plan to have a break in other country.


4) HIGH MEDICAL EXPENSES

Nowadays, credit card has become one of the sources of funds to pay off the medical expenses whether health insurance is not adequate to cover the medical bills or one of your family members suffers serious illness. In United States, almost everyone pays their medical expenses by credit cards to get treatment despite financial crisis.

5) GAMBLING

Gambling has become part of entertainments in our life. It is hard to stop when it becomes addictive. Some people go for gambling not because have a fun there but purposely try to gain much more money even they may lose everything. Thus, it will surely lead to a financial disaster if borrowing money through credit card for gambling.
In order to solve the credit card debt, we need to take some effective actions to prevent.

Tips to prevention credit card debt:

1) If you find yourself making interest payments every month on your credit cards, you need to assess your income and expenses. Total up your monthly expenses and subtract them from your income. This is your disposable income after expenses, and also the amount you have each month to use as you determine.

2) Stop charging items on your credit cards and pay cash for items you must buy. Then, analyze your credit card debt, pay credit card debt with highest rate of interest in priority. Use your disposable income to completely pay off the card with the highest rate. Once that card is paid off, close the account and destroy the card. Then focus your attention on the next card, and do the same until all of the debt on your cards has been completely paid off.

3) Just use one or two cards and use them as a financial tool. Remember that a credit card is not the same as free money. If you still have problem, leave you credit card at home while you are shopping.

Electronic currency

Electronic currency is a method of trading currencies through an online brokerage account. Electronic currency trading involves converting base currency to a foreign currency at the market exchange rates through an online brokerage account.

Electronic currency traders use analysis based on technical and fundamental indicators to help them forecast the movement of the currency pair being traded. Because currency trading by this method is wholly electronic, execution speeds are extremely fast, allowing the trader to quickly buy and sell currencies to cut losses and take profits at a moment's notice.

Online Forex currency trading is getting to be immensely popular. If you look online you'll find hundreds of advertisements urging you to get involved with electronic currency trading. Although a lot of people are trading and it might look like an easy way to make money, take what the advertisements claim with a grain of salt. If you want to turn a profit, there are a number of things you need to know about online Forex currency trading before you risk any of your hard-earned cash.

You Will Have to Work With Charts and Numbers to do Online Forex Currency Trading. If you want to be a successful Forex trader you will have to work with numbers and be fairly good at math. There are calculations you must do to figure out how much to invest in each trade, as well as where to take potential profits or losses. You will also have to get comfortable watching and understanding graphs. Although it is not really difficult for most people, it will take some getting used to.

Electronic Currency Trading Has Its Own Language. You will have to become familiar with the various terms used in the Forex market and what they mean. These are terms such as pip, day trading, currency pairs, spot trading, etc.

You Will Need to a Forex Education. Next, if you feel you want to learn how to trade, you will have to decide how you want to get your education. Some people prefer learning from books and videos while others prefer to physically go to classes. There are plenty of good (and some not-so-good) eBooks and videos available on the Internet that can start you going.

You Will Have to Choose the Right Brokerage Firm. If you do decide to do electronic currency trading, you will have to choose a brokerage firm to work with. It will mean evaluating what's available in order to make the right choice.

Related links :

http://en.wikipedia.org/wiki/Electronic_currency
http://www.investopedia.com/terms/forex/e/electronic-currency-trading.asp

The Application of 3rd party certification programme in Malaysia

In this IT era, E-commerce is important for every developed country. Third party certification is an assessment carried out to ensure compliance with a publicly available technical specification, such as SP203. Importantly, the assessment is carried out by an independent, third party organization that is qualified and licensed to issue certification when the assessment is successfully completed.



This means that rather than an organization or company claiming to comply with industry standards, they have taken their commitment to quality further and invited in an external third party to verify that their product or service does indeed comply with the industry standards.

In Malaysia, MSC Trustgate.com Sdn Bhd is a licensed Certification Authority (CA) operating within the Multimedia Super Corridor. MSC Trustgate was incorporated in 1999 to meet the growing need for secure open network communications and become the catalyst for the growth of e-commerce, both locally and across the ASEAN region. At present, MSC Trustgate has 12 million in paid up capital.


Trustgate is licensed under the Digital Signature Act 1997 (DSA), a Malaysia law that sets a global precedent for the mandate of a CA. As a CA, Trustgate’s core business is to provide digital certification services, including digital certificates, cryptographic products, and software development.


Trustgate are committed to provide the finest Public Key Infrastructure (PKI) to assist all types of companies and institutions conducting their business over the Internet. The state of the art back-end infrastructure that costs RM 14 million is one of the best in the region.

How to safeguard our personal and financial data?

Today, most people rely on computers especially the Internet to create, store and manage critical information. Information transmitted over the Internet is more vulnerable and has a higher degree of security risk than internal networks because they are open to anyone. Therefore, it is important that users take measure to protect their data from loss, damage and misuse.

Use a credit card with a small limit for mail-order and online purchases. It's all too easy for a dishonest sales clerk to use your credit card information. If the card you use for these purchases has a low credit limit, at least thieves won't be able to rack up many bills before hitting a wall.
Choose your PIN wisely. While you want to choose something you'll remember, you don't want it to be something that a clever thief could figure out just by learning your birth date or your child's name. A combination of uppercase and lowercase letters, numbers, and symbols will offer you more security.

Use and maintain anti-virus software and a firewall - Protect yourself against viruses and Trojan horses that may steal or modify the data on your own computer and leave you vulnerable by using anti-virus software and a firewall. Make sure to keep your virus definitions up to date.
Regularly scan your computer for spyware - Spyware or adware hidden in software programs may affect the performance of your computer and give attackers access to your data. Use a legitimate anti-spyware program to scan your computer and remove any of these files. Many anti-virus products have incorporated spyware detection.

Keep software up to date - Install software patches so that attackers cannot take advantage of known problems or vulnerabilities. Many operating systems offer automatic updates. If this option is available, you should turn it on.

Use passwords and encrypt sensitive files - Passwords and other security features add layers of protection if used appropriately. By encrypting files, you ensure that unauthorized people can't view data even if they can physically access it.

Phishing: Examples and its prevention methods

What is phishing?

Phishing can be identified as the criminally & fraudulently process of attempting to acquire sensitive information, such as usernames, passwords & credit card details by fraud as a trustworthy entity in an electronic communication. Phishing is typically carried out by e-mail, eBay, PayPal, msn, Citibank, and Yahoo. In order to steal information from users, perpetrators had created a fake website instead of legitimate one. The fraudulent email address that they had sent always will redirect to the perpetrator’s website which is fake. It is one of the examples of social engineering techniques which directs users to enter details at a fake website whose look almost same with the legitimate and original one.

Example of phishing from e-mail:

Prevention Method:

1) Never reply to e-mail message that request your personal information

We need to be cautious when opening any attachment or downloading files from e-mails that you received. You also need to aware regardless of who sent the e-mail to you. When you surf the internet, you need to be aware for the fake website which directly ask for your detail financial and personal information. Do not simply to login the website, try to solve the problem at the bank itself.

2) Don’t click links in suspicious e-mail, the link might not be trustworthy

All the domain name of the company should be recorded and try not to click the link that is available inside the suspicious website. It may contain any fake website that will attract you to click in and steal your sensitive information.

3) Use the strong or different password for each of your accounts and change them frequently

Strengthen of passwords can be determined by the combination of uppercase and lowercase letters, numbers, and symbols. Complicated combination passwords will make them difficult for other people to guess and access. Use a different password for your each account and change them frequently can help you in avoid them to access.

4) Block the phishing e-mails by various spam filters, keep your PC updated & use
antivirus software

Perpetrators are usually use e-mails as “bait” to attract the potential victims. They can send out large amount of spoofed e-mails which are seemed from legitimate organizations. The perpetrators hide their identities when sending the spoofed e-mails, therefore, if anti-spam systems can determine whether an e-mail is sent by the attackers, the phishing attacks will be decreased dramatically. Besides that, antivirus software will help to protect PC from attack and increases the defense level that makes perpetrators difficult to send the fraudulent e-mail to the user.

Others method:

-Do the business only with companies you know & trust.-Monitor your transaction, using just one credit card for online purchases makes it easier to
track your transactions.-Use credit cards for transactions on the internet instead of debit cards to avoid the big credit
limit from your bank account.

The Threat of Online Security: How Safe is Our Data?

In recently years, people more rely on computers to create, store and manage critical information. Therefore, it is important for users to aware that computer security plays a major role in protecting their data from loss, damage, and misuse. Similarly, online security has been online trader’s main concern in protecting their websites from potential threats, such as phishing, security hacking, information theft, virus, worms and etc.

Most businesses that have made the move towards an online presence have experienced some kind of security threat to their business. Since the Internet is a public system in which every transaction can be tracked, logged, monitored and stored in many locations, it is important for businesses to understand possible security threats to their business.

Security has three main concepts. There are confidentiality, integrity, and availability. Confidentiality allows only authorized parties to read protected information. Integrity ensures data remains as is from the sender to the receiver. Availability ensures you have access and are authorized to resources.

There are many threats to e-commerce that may come from sources within an organization or individual. The followings are some of the potential security threats that can be found.

MALICIOUS ATTACKS

Attacks that specifically aim to do harm are known as malicious attacks. They can be further broken down into attacks caused by malicious code and those caused by intentional misrepresentation. Misrepresentation is most often seen with regard to online fraud and identity theft. Malicious code, on the other hand, is at the root of so-called "crackings" and "hackings" - notable examples of which include computer viruses, data theft, and Denial of Service (DOS) attacks.

i. Computer Viruses

The "Melissa" virus/worm of 1999, which caused about $80 million in damages worldwide, was malicious code imbedded in a Word® document that, when opened, would send itself out as an attachment to the first fifty people in an electronic mail client address book. The May 2000 "I LOVE YOU" virus was even simpler -- a small piece of code attached to electronic mail. Double-clicking on the executable caused it to send an e-mail to everyone in an address book, subsequently damaging victims' machines. Fast-spreading viruses like "I LOVE YOU" cause e-mail servers to overload and businesses to shut down email correspondence. For example, in one day, the "I LOVE YOU" virus caused over $100 million in United States damages and over $1 billion in worldwide losses.

ii. Denial of Service Attacks

Denial of Service Attacks is another form of malicious attack which is not new, yet they are growing in sophistication. Traditional DOS attacks usually involve one computer attacking another, but the use of multiple computers in a highly organized attack is becoming increasingly common. Such attacks, known as Distributed Denial of Service attacks (DDOS), were witnessed in a number of large corporate computer shutdowns in 2000.

These attacks precisely reveal the vulnerabilities inherent to the Internet. A DDOS attack functions by overwhelming a server with a deluge of messages that appear to be normal. The DDOS attacker strategically builds an army of key players including:

1. One client machine for coordinating the attack.

2. Three to four host machines, which are battlefields under the attacker's direct control.

3. Potentially hundreds of broadcasters, which are the legions that run the code to generate the flood of packets that attack a target system (consisting of at least one machine). Broadcasters are recruited by port scanning software that determines the machines on which the attacker can gain root privileges. On these machines, the attacker can embed hidden programs that wait for instructions from the Host machines.

iii. Data theft

Data theft is the term used to describe not only the theft of information but also unauthorized perusal or manipulation of private data. In 1996, a 16-year-old British youth and an accomplice stole order messages that commanders sent to pilots in air battle operations from the Air Force's Rome Laboratory in New York. The two also used the Air Force's own computers to obtain information from NATO headquarters and South Korea's Atomic Research Institute. In April 2001, two employees of Cisco Systems were indicted for obtaining unauthorized access to Cisco stock. These two men, who worked in the company's accounting division, broke into the computer system that handled stock distribution and were able to transfer stock shares to their private portfolios. The total value of their shares over two separate transfer attempts was nearly $6.3 million, according to the US Department of Justice.

ONLINE FRAUD

Online fraud is a broad term covering Internet transactions that involve falsified information. Some of the most common forms of online fraud are the sale via Internet of counterfeit documents, such as fake IDs, diplomas, and recommendation letters sold as credentials; offers of easy money, such as work-at-home offers that claim to earn individuals thousands of dollars for trivial tasks; prank calls, in which dial-up connections lead to expensive long distance charges; and charity facades, where donations are solicited for phony causes.

Identity theft is a major form of online fraud, or misrepresentation. In the online world, electronic commerce information can be intercepted as a result of vulnerabilities in computer security. Thieves or perpetrators can take information (such as victims’ credit card numbers) and do with it what they will. This is one of the reasons for which it is critical that users and organizations avail themselves of appropriate computer security tools, which serve to prevent many such interceptions. For example, in January 2001, the entire municipality of Largo, Florida lost e-mail service for over a week when an unknown company based in Spain compromised its identity. The company hacked into the city's e-mail relay system to steal the Largo.com identity. Soon enough, e-mail spam seemingly from Largo.com addresses flooded the net, and many Internet Service Providers blacklisted all incoming and outgoing electronic messages from the city.

How to prevent the threat?

Nowadays, the computer systems in an organization are very important because when it s attacked by the computer viruses, it will cause the important files to be damaged and lost. Therefore the organization should take an action to prevent its computer attacked by viruses. The action that can be taking is to install the updated anti-virus software such as Kaspersky Antivirus and AVG Antivirus software. All these antivirus software will directly to delete the malicious program when the software found it. However, organization are suggested that should not use the trial version or free version antivirus software because the software is not complete in function.

Revenue Models of Google, eBay, Amazon

Revenue model is a description of how the organization will earn revenue, produce profits, and produce a superior return on invested capital. 5 major revenue models nowadays are sales, transaction fees, subscription fees, advertising fees, and affiliate fees revenue model.

Google

Google has multiple revenue models. One of the revenue models be used is advertising revenue model such as Google AdWords and Google AdSense. Google AdWords is pay per click advertising program of Google designed to allow the advertisers to present advertisement to people are looking for information related to what the advertiser has to offer. Google generate most of the revenue from Google AdWords. As you can see from the figure, AdWords also generates affiliates fee for Google which allow company receives commissions for referring customers to others web sites.

Google AdSense is another ad serving program run by Google. Website owners can enroll in the program to enable text and video advertisements. Advertisers are required to pay Google a fee for each time a user clicks on the advertisement. Froogle is a price engine website launched by Google Inc. It is a service from Google that makes it easy to find information about products for sale online. Besides AdWords, AdSense and Froogle, Google is currently testing a new advertising program which called Cost-Per-Action. This program pays site owners based on a Cost-Per-Click model.

eBay

eBay does not have inventory like Amazon.com. It only provides technology platforms and tools for e-commerce. eBay popularized the auction format listing. eBay does not actually sell goods that it owns itself. It merely facilitates the process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for individuals and businesses that use the site to auction off goods and services. eBay generated its revenue through transaction fees by using online auction business model. It earns transaction fee from owning PayPal or an online paying service system for users to buy items online more conveniently. eBay also gains sales from the service of listing customer’s product to be sold to other users as well as some advertisement fee. eBay generated overall revenue around $6 billion from its three primary business: auctions, payments (PayPal) and communication (Skype).

Amazon.com

Amazon generates revenue primarily by selling books, videos, electronics, and kitchen equipment on domestic and international Web sites, such as Amazon Marketplace. Amazon Marketplace allows sellers to offer their goods alongside Amazon’s offerings. Buyers can buy new and used items sold directly by a third party through Amazon.com using Amazon Marketplace. This sales strategy and program has been very profitable for Amazon.com. Amazon.com uses similar revenue model to eBay, they also offer items listing to be sold online. Amazon.com generates revenue from commissions from suppliers when there is a sale of product. In their main websites, there are few advertisement displays in the page where users browsing through some items. Moreover, Amazon.com also generates revenue by Affiliate revenue model. Amazon was one of the first online businesses to set up an affiliate marketing program. AStore is an Amazon.com affiliate product which website owners can use to create an online store on their site. The store does not allow website owners to sell their own products directly.

An example of an E-commerce failure and its causes.

An example of the e-commerce failure is Toys R Us Company. This company is the leading retailers of toys, children's apparel and baby products. In order to provide the customers the products and services whenever and wherever they need, Toys R Us announced its plans to create an e-commerce subsidiary- ToysRus.com.

In 1999, ToysRus.com has established as a premier online toy, video game and baby store outlet. Failing to handle the orders flushed into its website, the company totally lost track of thousands of orders or failed to deliver them on time. The Federal Trade Commission fined Toys R Us $350,000. Although the company had pumped millions of dollars into setting up its own online operation and distribution network for order fulfillment it had to announced 75% slump in profit 2000.

The causes of the e-commerce failureWe think part of the problem is when the big company jump into the e-commerce system, they forget some common factors that will affect their company during the holidays. Shipping product takes man power and during the holiday season, it tends to slow the process down simply by the sheer volume of orders of the mail service industry receives in that short period of time. Frankly, not all the companies have the capitol to invest in such a large expansion, if they are going into the e-commerce industry, they can't afford not to put in that investment.

On top of that, the other causes of the e-commerce failure in the Toyrus company is the inability of the customer to chose products that are more effectively sold online than in the real world. Clothing shopping online requires the customer to guess at what they had looked like in the garments presented on a Web site. Attempts to sell automobiles online without the test drive have been woefully unsuccessful. And even provisions are a hard sell, the people still want to pick out their own product that look for and prefer, in spite of the inconvenience of having to go to out to do it themselves.

An example of an E-commerce success and its causes

ebay is the one of the example for an E-commerce success. eBay was born over Labor Day weekend in 1995, when Pierre Omidyar, a computer programmer, wrote the code for an auction website that he ran from his home computer.


Today, Omidyar's hobby is known as eBay, the world's largest online marketplace - where practically anyone can sell practically anything at any time. It's an idea that BusinessWeek once called "nothing less than a virtual, self-regulating global economy."


With a presence in 39 markets, including the U.S., and approximately 84 million active users worldwide, eBay has changed the face of Internet commerce. In 2007, the total value of sold items on eBay's trading platforms was nearly $60 billion. This means that eBay users worldwide trade more than $1,900 worth of goods on the site every second.


What has helped to make eBay as successful as it has been?


Selection and Value - eBay offers variety of goods and services. These various attractive products selection tends to be price competitive.


Performance and Service -eBay’s website make like simple because of its easy navigation. The information required by customers can be searched very fast and thus save time.


Look and Feel - The homepage of eBay is accommodates with attractive web storefront, website shipping areas, multiple product catalog pages as well as shopping features.


Advertising and Incentives - eBay webpage advertising and e-mail promotions, discounts and specials offers to all its customers. By those advertisements, customers can enjoy the benefits of online transactions.


Personal Attention - eBay also focus on personal web pages, personalized product recommendations, web advertising and e-mail notices as well as interactive support for all customers. For instance, ‘welcome you in next return’.


Community Relationship - eBay maintains virtual communities of customers, suppliers, company representatives through newsgroups and chat rooms.


Security and Reliability - eBay creates an environment of trust and safety that will allow the users to come back after sales.


Related link :
http://news.ebay.com/about.cfm
http://only4fact.wordpress.com/2009/06/20/an-example-of-e-commerce-success-and-its-causes-ebay/
http://www.youtube.com/watch?v=eTnf2cJUxLQ

The history and evolution of E-commerce

The History of Ecommerce

E-commerce is one of the most popular activities on the Web is shopping. We as a customer can shop when leisure, anytime, and in our pajamas. Literally anyone can have their pages built to display their specific goods and services.


History of ecommerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites.


At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically.


In 1994, the Internet began to advance in popularity among the general public, but it took approximately four years to develop the security protocols (for example, HTTP) and DSL which allowed rapid access and a persistent connection to the Internet.


In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services. Although the dot-com collapse in 2000 led to unfortunate results and many of ecommerce companies disappeared, the “brick and mortar” retailers recognized the advantages of electronic commerce and began to add such capabilities to their web sites (e.g., after the online grocery store Webvan came to ruin, two supermarket chains, Albertsons and Safeway, began to use ecommerce to enable their customers to buy groceries online). At the end of 2001, the largest form of ecommerce, Business-to-Business (B2B) model, had around $700 billion in transactions.


According to all available data, ecommerce sales continued to grow in the next few years and, by the end of 2007, ecommerce sales accounted for 3.4 percent of total sales.
Ecommerce has a great deal of advantages over “brick and mortar” stores and mail order catalogs. Consumers can easily search through a large database of products and services. They can see actual prices, build an order over several days and email it as a “wish list” hoping that someone will pay for their selected goods. Customers can compare prices with a click of the mouse and buy the selected product at best prices.

Evolution of E-commerce

E-commerce has evolved from online billboards to a fully functional, personalized shopping experience over the past decade. While there were admittedly a few bumps along the road, the path from 1994 through the 2004 holiday shopping season is full of crucial milestones of Internet pioneers and technology innovators.

In 2000s, people began to define the term ecommerce as the process of purchasing of goods and services available over the Internet using secure connections and electronic payment services. There were a great number of business companies in United States and Western Europe represented their services in the world wide web (WWW).

In the beginning, the Internet was characterized by slow dial-up connections and online billboards. Netscape came on the scene in 1994 with its point-and-click Web browser that opened the door to the billion-dollar revenues e-tailers enjoy today. Two of the first online purveyors were, of course, eBay (Nasdaq: EBAY) and Amazon.com (Nasdaq: AMZN)
Looking at Amazon's evolution offers a pretty clear picture of the evolution of e-commerce, according to Nielsen//Netratings (Nasdaq: NTRT) senior retail analyst Heather Daugherty.
"Amazon has been around since almost day one," Daugherty said. "They were the first ones to offer one-click ordering that people now expect to find. Although Amazon certainly had a lot of skepticism from the street as to when it was going to become profitable, the company kept at it."

Monday, June 22, 2009

The girl...Jia Jia...

My name is Tan Jia Jia. I come from Klang, as everyone knows that the delicious food is Bak Kut Teh. My hobbies are playing badminton, playing online games, watch movie, and also shopping.
The five websites that I prefer are Google, Facebook, Cari.com, Asiaparttime, and Maplesea.
The website I visit the most is Google, Google provide me the information that I needed when I doing my assignments. Google provide the search engine of searching information, image, news, groups, scholar and also books.
The next website I always visit is Facebook. Nowadays, people are busy for their work and study; they do not have much time to gathering. The best way they still keep in touch is by Facebook. Facebook able to let me know my friends activities and I able to keep contact with them.
Cari.com which is a popular forum in Malaysia. In this website, everyone can give comment or suggestion toward the topic they like. The topic I interested is the discussion about the clothing, make up and hair care.
Asiaparttime, the website that provide part time job for those who have free time, and willing to earn extra money. I will visit this website because this website can let me know more about the part time job, and also the requirement for those jobs.
I love Maplesea website because it is cute. I am an online games fans, it is a website provide me a games called MAPLE with cute characters. This website provides me the information of the latest news for this online game such as “meso drop rate”.
The top five internet activities are playing online games, searching information about assignments, find part time job, chatting with friends and also check e-mail.

The boy... KOK~

Hello, everybody… I’m Kok Ying Jie, as you can call me “KOK”. I come from Ipoh, Perak, a place where full of delicious foods and beautiful girls. My hobbies are playing online games, football, eat and many others.
When I free, I will visit to some of the interested website. The top five websites that I visit are Google, Youtube, Facebook, Yahoo and Hotmail.
The reason I use Google because this website help me find any link and information that related to my needs. It helps me a lot when doing assignments and the most useful on this website is that it is fast in terms of searching information.
Youtube will be another website I preferred to visit. Youtube provide various type of video clip that can entertain me when I was boring, especially those funny video clip, such as the Korean DHL commercial (http://www.youtube.com/watch?v=kquiJR3j_5w).
Facebook is the website that cannot be excluding in my life because it helps me to meet new friends and keep contact with all my friends and families. Facebook also entertain me by providing flash game such as Restaurant City.
Yahoo will be another search engine that same as Google, but Yahoo is attract me because at the homepage of Yahoo provide many latest news and advertisements that update my information about the world.
Hotmail is important in my life because nowadays in this IT world, I use Hotmail interact either formally or informally with my peers. I use Hotmail for online registration for any other websites such as http://www.garena.com/.
The top five internet activities I will do is chatting with friends using MSN, playing online games, listen music online, watch movie online and searching information for assignments.

The boy...Nyi Hong...

My name is Wan Nyi Hong. I’m 22 years old. My hobbies are playing badminton, watching sports match and internet searching.
The top five websites that I visited the most are Google, Msn, Youtube, Facebook, and Sina.
Most of the time I visited Google is to find the information needed for assignment. Sometime I use Google to search the article, journal, and statistic database.
Msn is one of my top visited website which provides a way to communicate with each others. I normally use Msn to send the mail and chat with my friend through Window Live Messenger. Besides that, I also can know the latest news from Msn.
Youtube is the one website I use to watch the entertainment video. Most of the times I prefer to watch the music video such as R&B music, Hip-hop, and Chinese music.
Besides that, I also use Youtube to watch the funny video in order to reduce the stress of study and forget all the unhappy things.
Facebook is the most popular website that used to build relationship with people. I use it for knowing more people, adding them as my friends and communicating with them. I can see the photos of them, their current condition and their characteristic through Facebook website. It is very useful for my future life.
Sina is the website that similar with Google and Yahoo. My purpose to visit Sina is mainly focus on Sports event. I always check the latest result of the Sports event through Sina especially football and tennis.
The top five internet activities I will do are searching the awesome music, chatting with my friends, playing online games, watching funny and interesting video, and searching the latest news such as sports news, local news and foreign news.