The Top 10 Most Significant Ecommerce Developments

This article clearly shows how the ecommerce had brought different developments in today’s way of doing business. There are lots of companies who are part of the ecommerce trend in the businesses. As in chapter 10 as well as in previous chapter, we use examples of companies like Google, eBay and others. This article shows the impact of such business on the overall operation of business.

The Software& Information Industry Association (SIIA) had unveiled a list of the top most significant ecommerce developments during the past decade on the 10th anniversary of the Framework for Global Electronic Commerce. From events to products to websites, the SIIA’s list of significant ecommerce developments of the past 10 years encompasses a wide range of innovations. This list was compiled and ranked by panel of policy and industry expert who were selected by SIIA’s staff.

Google (September 1998): The search engine is now used by 30% of internet users for services including maps, blogs and video.
Broadband Penetration of U.S. Internet Users Reached 50 % (June 2004): It took broadband 4 years to reach 50% of the population. By the end fo 2007, the number will reach an estimated 90%.
eBay Auctions(September 1997): After the growth of eBay, thousands of people quit their jobs and now earn money exclusively through online auctions.
Amazon.com (May 1997): The template for online stores, Amazon gained tremendous popularity through its ease of use and selection, and heralded the important role of ecommerce in the U.S.
Google Ad Words (2000): This was the beginning of keywords ads, which now represents 40% of the market share of online advertising.
Open Standards HTML 4.0 (released 1997): The World Wide Wed Consortium, which is not controlled by any company or government, oversees HTML standards. The opne standards allow entire industries to grow as benefit to everyone.
Wi-Fi 802.11 (Launched 1997): The Internet went from home and office into the worlds as Internet users were able to connect anywhere without cables and wires.
User-Generated Content (Youtube 2005): Youtube may have started with shaky, amateurish videos, but it is not an integral part of 2008 presidential campaign, the center pf copyright battles, and a place where anyone and everyone can express themselves.
iTunes (2001): In a world of pirated music and CD sales in decline, iTunes popularized the sale of legal music downloads, which has now generated more than $2 billion.
Blackberry (1999): This all-in-one communication device took the business world by storm, delivering Web in the palm of person’s hand.

These are the major companies that have and will be talked about when it comes to the evolution of technology. It’s so amazing to see the impact of such revolutionary in the development of e-commerce.

Scott Koerwer
Information Today; Sep 2007; 24, 8; ABI/INFORM Global

Can eBay Continue Growing?

Q1. What is eBay’s business model and business strategy? How successful has it been?
Ans: The business model of eBay is a web-based automated auction service, founded in 1995 by Pierre Omidyar and Jeff Skoll. eBay earns its revenue mainly from fees and commissions, associated with its trading services; basically through transmitting of information. The company itself holds no inventory and is not responsible for shipping.

The company’s growth strategy focuses on expansion and continuing innovations, to enhance the variety of products on its sites. It assists buyers and sellers trade high-end goods and chattel; fine arts, automobiles, jewelry to clothing, consumer electronics and house wares.

The company has been successful and profitable attracting more than 200 million users by 2006. eBay now employs more than 8,000 full-time workers and has operations in 32 countries, including services in Mexico and eight South American countries. In 2005, the eBay users listed 1.8 billion items for auction; resulting in $40 billion worth of goods. In 2006, it was expected to be surpassed by 2 billion.


Q2. What are the problems that eBay is currently facing?
Ans: eBay is currently facing several problems:
a) With the increased seller fees, the growth rate in the United States and Germany had been slowed, though the losses were covered by the rapid growth in France and Italy.
b) eBay had trouble penetrating the real estate, travel, new car sales and expensive collectibles market.
c) Increasing competition in the auction site obstructs eBay from monitoring its compliance with diverse laws and regulations as it expands internationally.
d) eBay failed in ensuring a secured trade environment with fraud protection.
e) The company’s customer service department struggles with the task of satisfying online buyers and sellers.