Online Auctions, Virtual Communities, and

Web Portals and Case on: Old Metamora

Team Strawberry:
Ang, Karen
Baladiang, Reuben
Liao, Aislynn
Panajon, Anton
Reyes, Bianca
Ting, Regine Leor
Vizcarra, Maria Gracia

1I

NAME OF PRESENTER

Chapter Overview

From Virtual Communities

to Social Networks

Mobile Commerce

Summary

2I

Online Auctions

Case: Old Metamora

NAME OF PRESENTER

Virtual Communities &

Early Web Communities

Jennifer Xavier

3I

NAME OF PRESENTER

Virtual Communities
Also know as web/online communities
It is a group of people with the same interests sharing ideas and
collaborative work through the use of the internet.
General exchange of various information for people to be able to
interact and discuss topics/issues of same interest.
Virtual community types: Forums, online chat rooms, specialized
information communities, email groups
Virtual communities are social aggregations that emerge from
the Net when enough people carry on those public discussions
long enough, with sufficient human feeling, to form webs of
personal relationships in cyberspace.
- Howard Rheingold, The Virtual Community

4I

NAME OF PRESENTER

Virtual Communities
Bulletin Board System (BBS)

BBS is a software that emulates the traditional cork and pin bulletin board
found in households, schools and other public areas where people can post
messages, advertisements etc.

First collaborative software available that enables 2 or more computers to

communicate.

This electronic mail and conferencing system used in the 1980s to early 1990s
was developed by Ward Christensen in 1978 in Chicago Illinois

BBS is accessible through dial up modem, Telnet or the Internet even before
the existence of the World Wide Web

Many BBS were free however due to its popularity, commercial enterprises
further developed this tool to make it accessible to many users. Companies
such as Compuserv and Genie charged monthly membership fees and sold
advertisements.

5I

NAME OF PRESENTER

Virtual Communities
Bulletin Board System (BBS)

A classic BBS had:

A computer
One or more modems
One or more phone lines
A BBS software package
A sysop - system operator
A user community

The BBS software provides:

Menu Systems
One or more message bases
File areas
Voting Booths
Usage Statistics
Online games (single player)
Multi-user chat
Networked message forums

6I

NAME OF PRESENTER

Virtual Communities
Usenet

Usenet was developed in North Carolina in 1979 to carry news

between Duke and North Carolina University.

Since then, it has been a collection of forums called newsgroup

wherein users can post messages called articles. These notes are
distributed to subscribed members through various newsgroup servers.
Other users can log in at any server to see new messages in the
channel
Usenet can be regarded as a combination of an email and web forum
Compared to BBS which stores messages in one server, Usenet uses
repositories called news servers or news feeds that contain new
articles. Articles have a certain retention time (usually 30 days) to make
room for new messages in the server
7I

NAME OF PRESENTER

Early Web Communities

The WELL
The WELL is an acronym for Whole Earth 'Lectronic Link
developed by Stewart Brand and Larry Brilliant in 1985 in San
Francisco. WELL founders envisioned an virtual space where
political and social misfits can freely share their ideas
The WELL is the oldest operational virtual community that
features message board discussion on various topics such as
hobbies, religion, government and entertainment.
It is said to be the precursor of more popular social
networking sites like Facebook, MySpace and Twitter

8I

NAME OF PRESENTER

Early Web Communities

Geocities
Once a popular web hosting service
and at one point became the 3rd
most accessed site in the World
Wide Web next to Yahoo and AOL.

This service was developed in 1994

that allowed users to create
webpages. The service allocated
15MB of web space to create pages
based on personal interests
Developed by David Bohnett and
John Rezner, geocities aimed to
create cyber cities where in users
are able to choose the city they
want their page to be categorized
under.
9I

NAME OF PRESENTER

Early Web Communities

Geocities
5 Cities: Beverly Hills, Silicon Valley, Capitol Hill, Tokyo, Paris
In 1996 Geocities sold advertisements on every page to make higher profit.
Soon after Yahoo bought Geocities with its current base at 1.8 million users

Geocities model was taken to the next level trough social networking sites
like Friendster and MySpace. Social networking or friending appealed to
more users than just visiting personal web pages.
After 10 years, Yahoo closed Geocities due to an outdated website offering
compared to the newer web hosting services and cyber communities.
The social network craze and blogging were the 2 big internet threats that
brought down Geocities.

10 I

NAME OF PRESENTER

Social Networking in the

Second Wave of Online
Communities
Regine Leor Ting

11 I

NAME OF PRESENTER

Social Networking in the Second

Wave of Online Communities
As the Internet and Web grew:
Experience of sharing new online communication
faded
New phenomenon in online communication
began
Multiple common bonds joined people with all types of
common interests

12 I

NAME OF PRESENTER

Social Networking in the Second

Wave of Online Communities
Social networking sites
A website that allow individuals to create and
publish a profile, create a list of other users with
whom they share a connection (or connections),
control that list, and monitor similar lists made by
other users

13 I

NAME OF PRESENTER

Social Networking Emerges

Social networking sites
Six Degrees
Friendster
LinkedIn
Tribe.net
YouTube
MySpace
Twitter
Google+
14 I

14

NAME OF PRESENTER

Six Degrees (1997-200)

One of the first sites of the second wave
Based on the idea that no more six persons
separated anyone in the world from any other
person
Unable to generate sufficient revenue to
continue operations and closed in 2000

15 I

NAME OF PRESENTER

Friendster (2002)

Founded by Jonathan Abrams in 2002

First website to include most of the features
found today in all social networking sites
Redesigned into a social gaming site in 2011

16 I

NAME OF PRESENTER

Linked In
Founded in 2003
Profitable since 2006
Most popular social networking site devoted
to facilitating business connections
Allows users to create a list of trusted business
contacts
Designed to find jobs, find employees, or
develop connections to business opportunities

17 I

NAME OF PRESENTER

YouTube
video stream viewing and sharing site
Popularized inclusion of videos in social
networking sites

18 I

NAME OF PRESENTER

Tribe.net

19 I

NAME OF PRESENTER

MySpace
(2003)
Emphasis on music
Popular with young web users

20 I

NAME OF PRESENTER

Twitter (2006)
Users can send short 140-character messages to other users
who sign up to follow their messages referred to as tweets
Considered as microblogging; informal

21 I

NAME OF PRESENTER

Google+ (2011)
Owned and operated by Google Inc.

22 I

NAME OF PRESENTER

Social Networking in the Second

Wave of Online Communities
Basic idea behind social networking
People invited to join by existing members
Site provides directory
New members work through friends established in the
community

23 I

23

NAME OF PRESENTER

 Cengage Learning 2013

24 I

24

NAME OF PRESENTER

 Cengage Learning 2013

Leading social networking sites around the world

25 I

NAME OF PRESENTER

Blogs
Web logs (Blogs)
Web sites containing individual commentary on
current events or specific issues
Form of social networking site

Early blogs focused on technology topics

26 I

26

NAME OF PRESENTER

Blogs
Blogs can become businesses in themselves
Must generate financial support (fees, advertising)

27 I

27

27

NAME OF PRESENTER

Blogs

Retailers embracing blogs

Way to engage visitors not ready to buy from site

Marketing and supply managers saw social
networking benefits of enhancing B2B
relationships

Business uses
CNN
Blog information included in television newscasts
Example
Encourages reader of the
blog to get into travelling
with the intention they
book their flights and hotels
with Skyscanner.
28 I

28

NAME OF PRESENTER

Social Networking
Business uses
Newspapers
Inviting information and opinion contributions
Targeting 18- to 35-year-old generation

Participatory journalism
Trend toward having readers help write the online
newspaper

29 I

29

NAME OF PRESENTER

Social Networking
Social networking Web sites for shoppers
Social shopping
Practice of bringing buyers and sellers together in a
social network to facilitate retail sales

Example: craigslist
Operated by not-for-profit foundation
All postings free (except help wanted ads)

Example: Etsy Web site

Marketplace for selling handmade items
We Love Etsy: Etsy buyers, sellers share information
30 I

30

30

NAME OF PRESENTER

Social Networking
Idea-based social networking
Social networking sites form communities based
on connections among people
Idea-based virtual communities
Communities based on connections between ideas

Idea-based networking
Participating in idea-based virtual communities
Examples: del.icio.us site, 43 Things site

31 I

31

NAME OF PRESENTER

Social Networking
Virtual learning networks
Distance learning platforms for student-instructor
interaction
Ex. Blackboard
Tools include:
Bulletin boards, chat rooms, drawing boards

Moodle and uPortal

Open-source software projects devoted to virtual
learning community development

Open source software

Developed by a programmer community
Software available for download at no cost
32 I

32

32

NAME OF PRESENTER

Revenue Models for

Social Networking Sites

Bianca Reyes

33 I

NAME OF PRESENTER

Revenue Models for Social

Networking Sites
Advertising-supported Social
Networking Sites
Mixed-Revenue and Fee-for-Service
Social Networking Sites
Fee-based Social Networking
Microlending Sites
Internal Virtual Communities
34 I

NAME OF PRESENTER

Advertising-supported Social Networking Sites

Social networking websites
Appealing to advertisers because many visitors spend
considerable time on these sites
Demographic information given by visitors makes the
potential for targeted marketing very high
High visitor counts = high advertising rates
Stickiness
A Web sites ability to keep visitors on the site & attract
repeat visitors
Important element of a Web sites attractiveness to
advertisers
One rough measure is how long each user spends at the
Web site
NAME OF PRESENTER

35 I

Advertising-supported Social Networking Sites

Example - Facebook

36 I

NAME OF PRESENTER

Mixed-Revenue & Fee-for-Service Social

Networking Sites
Mixed-Revenue
Social networking sites that use a combination of revenue channels
E.g. Advertising and fee-for-service

Fee-for-Service
Some social networking sites charge a fee for some services

Monetizing
Conversion of existing regular site visitors seeking free
info/services into fee-paying subscribers or purchasers of
service
Concern over visitor backlash
How many existing visitors will pay for services previously offered
in some form for free?
37 I

NAME OF PRESENTER

Mixed-Revenue & Fee-for-Service Social Networking Sites

Fee-for-Service Example Google Drive Storage Plans
Additional fee for more storage

38 I

NAME OF PRESENTER

Mixed-Revenue & Fee-for-Service Social Networking Sites

Mixed-Revenue Example Yahoo Mail
Advertising on the free email + Added fee for Ad Free Mail

39 I

NAME OF PRESENTER

Mixed-Revenue & Fee-for-Service Social Networking Sites

Mixed-Revenue Example TheStreet.com
Offers some finance-related info for free and offers even more
info/services for its paid subscribers

40 I

NAME OF PRESENTER

Fee-based Social Networking

Charging a fee for a specific service
Example:

41 I

NAME OF PRESENTER

Microlending Sites
Microlending
Practice of lending very small amounts of money to individuals
starting/operating small businesses, especially in developing countries
Key element working within a social network of borrowers
Borrowers provide support for one another
Borrowers also give an element of pressure to ensure the loans are repaid
by each group member
Example: www.kiva.org

42 I

NAME OF PRESENTER

Internal Virtual Communities

Internal Web sites being built by an increasing number of organizations

Provide opportunities for social interaction among their employees
Run on intranets
Save money on printing and distribution of newsletters, memos, etc.
Provide easy access to employee handbooks, info on benefits, etc.
Beneficial for employees dispersed globally
Example of a second-wave combination of technology with a business
strategy from the first wave
Second wave = wireless communications
First wave = internal Web portals

43 I

NAME OF PRESENTER

Mobile Commerce

Anton Panajon

44 I

NAME OF PRESENTER

What is Mobile Commerce?

Also known as M-Commerce
The use of wireless handheld devices such as
smart phones, tablets, laptops, and others for
conducting commercial transactions online.
Mobile commerce transactions often include the
ff:

45 I

Purchase and Selling

Online Banking
Bill Payment
Information Delivery
NAME OF PRESENTER

Mobile Commerce: Operating Systems

Mobile companies created these systems to
do basic tasks such as:
Calendar appointments
Managing contacts
Retrieving e-mail

Advancements in OS developments:
Mobile wallets/POS Terminals
Software applications (App Stores)
46 I

NAME OF PRESENTER

Mobile Commerce: Operating Systems

Primitive Operating systems such as:
Palm
Initial Blackberry models

Advanced OS:

47 I

iOS
Android (Open-sourced)
Windows Mobile (Open-sourced)
Symbian (Open-sourced)
Late BB models
NAME OF PRESENTER

Mobile Commerce: Applications

Here are some current applications of MCommerce:
Mobile Ticketing
Money Transfer
Content Purchase & Delivery
Information Services
Mobile Banking
Mobile Browsing
Mobile Marketing
& Advertising
48 I

NAME OF PRESENTER

Mobile Commerce: The Future

Currently, businesses are implementing a mobile
version of their websites to be optimized on mobile
devices.
Mobile payments are being used more often (ex:
Airfare, hotel, concerts, etc.)
Medical tests are being developed using iOS (EKGs) and
usage of their smartphones to track what they eat for
health measuring
Location-based advertising and location-based retail
suggestions thanks to their on-board GPS as well as
targeted advertising thanks to the kind of apps they
download and information shared
49 I

NAME OF PRESENTER

Online Auctions
Karen Ang & Aislynn Liao

50 I

NAME OF PRESENTER

Learning Objectives:
Origins and key characteristics of the 7 major
auction types.
Strategies for Web auction sites and auctionrelated businesses
Virtual communities and Web portals

51 I

NAME OF PRESENTER

Auction overview
In an auction, a seller offers an item or items
for sale but does not establish a price.
Bidders Potential buyers
Bids Price that bidders are willing to pay for an
item
Shill bidders People that make bids on behalf of
the seller.
Auctioneer Person who manage the whole
auction process.
52 I

NAME OF PRESENTER

Origins of Auctions
Earliest auctions is dated in 500 B.C.
Auctions became common activities in 17th
century.
The birth of two British auction houses was in
18th century, Sothebys and Christies, that
continued to be major auctions today.

53 I

NAME OF PRESENTER

7 Types of Auctions

54 I

NAME OF PRESENTER

Types of Auctions
1.) English Auction bidders publicly announce their
successive higher bids until no higher bid is forthcoming.
Open auction
- Bids are publicly announced

Minimum bid
- The price at which an auction begins

Reserve price
- Minimum acceptable price
Yankee Auctions English auction that offers multiple
units of an item for sale.
55 I

NAME OF PRESENTER

Types of Auctions
2.) Dutch Auctions
- Also called descending-price auctions
- An open auction in which bidding starts at a
high price and drops until a bidder accepts the
price.
- Often better for the seller
- Good for moving large numbers of commodity
items quickly.
56 I

NAME OF PRESENTER

Types of Auctions
3.) First-Price Sealed-Bid Auctions
- Bidders submit their bids independently and
are usually prohibited from sharing
information with each other.
- The highest bidder wins.
- For multiple items, successive lower bidders
are awarded the remaining items at the prices
they bid.
57 I

NAME OF PRESENTER

Types of Auctions
4.) Second-Price Sealed-Bid Auctions
- Commonly called Vickrey auctions
- The highest bidder is awarded the item at the
price bid by the second-highest bidder.

58 I

NAME OF PRESENTER

Types of Auctions
5.) Double Auctions (Open-Outcry)
- Offers are shouted by traders standing on the
trading pit.
6.) Double Auctions (Sealed-bid)
- Buyers & sellers submit combined price-quantity
bids to an auctioneer.
- Auctioneer matches sellers offers to the buyers
offers.
59 I

NAME OF PRESENTER

Types of Auctions
7. ) Reverse Auction (seller-bid)
- Multiple sellers submit price bids to an
auctioneer who represents single buyer.
- Bids are for given amount of a specific item
that the buyer wants to purchase.

60 I

NAME OF PRESENTER

Online Auctions & Related

Businesses

61 I

NAME OF PRESENTER

Online Auctions & Related Businesses

3 Main broad categories of auction websites:
a.) General consumer auctions
b.) Specialty consumer auctions
- Consumer reverse auctions and Group
purchasing
c.) Business to business auctions
- Business to business reverse auctions
*Largest number of transactions occurs on general
consumer auction sites
62 I

NAME OF PRESENTER

General Consumer Auctions

Most successful consumer auction website is
eBay.
Most common format used by eBay is a
computerized version of the English auction.
- Allows the seller to set a reserve price.
- Bidders are listed but bids are not disclosed
until after the auction.
- Allows sellers to specify that an auction be
made private.
63 I

NAME OF PRESENTER

Specialty Consumer Auctions

Are specialized Web auction sites that meet
the needs of special-interest markets.
Early Web auction sites started by featuring
technology items such as computers,
computer parts, photographic equipment, and
consumer electronics.

64 I

NAME OF PRESENTER

Consumer Reverse Auctions and Group

Purchasing Sites
Starts with the seller posting an item with a price.
As individual buyers enter bids on an item (these bids are
agreements to buy one unit of that item, but no price is specified),
the site can negotiate a better price with the items provider.
Posted price decreases as the number of bids increase.
HOW IT WORKS? The site builds up a number of buyers who will
force the seller to reduce its price.
Ideal products for group purchasing sites are:
1. Branded products with well-established reputations.
2. High value-to-size ratio products
3. Non-perishable

65 I

NAME OF PRESENTER

Business to Business Auctions

Used to handle a companys excess inventory
3 Models:
1. Large companies: they creates their own auction site to
sells excess inventory
2. Small companies: a third-party Web auction site serves as
a liquidation broker and auctions excess inventory listed
on the site by a number of smaller sellers
3. Consumer online auctions: a new business entity creates
a site at which buyers and sellers who have not historically
done business with each other can participate in auctions

66 I

NAME OF PRESENTER

Business to Business Reverse Auction

Asking suppliers to bid to reduce the cost of raw
materials.
Companies that use reverse auctions include Agilent,
BankOne, Bechtel, Boeing, Raytheon, and Sony.
(+) Useful for nonstrategic commodity items with
established quality standards.
(-) Can cause suppliers to compete on price alone,
which can lead suppliers to cut corners on quality or
miss scheduled delivery dates.
67 I

NAME OF PRESENTER

Auction-Related Services

68 I

NAME OF PRESENTER

Auction-Related Services
Auction escrow services:
- An independent party that holds a buyers
payment until the buyer receives the
purchased item and is satisfied that the item is
what the seller represented it to be.

69 I

NAME OF PRESENTER

Caution!
** Online escrow fraud is escalating, brought about by
various factors including:

online credit-card theft

the anonymity the Internet affords users
a lack of awareness about fraudulent escrow sites
Web hosting companies that allow fraudulent escrow
sites to be created with stolen credit cards, and to
remain on their service even after they have been
reported

(http://www.ecommercebytes.com/)

70 I

NAME OF PRESENTER

Auction-Related Services
Auction directory and information services:
- Offer guidance for new auction participants
and helpful hints and tips for more experienced
buyers and sellers along with directories of
online auction sites.

71 I

NAME OF PRESENTER

Auction-Related Services
Auction software:
For sellers, some companies offer software that automate tasks like:
-

image hosting
advertising
page design
bulk repeatable listing
feedback tracking and management
report tracking
email management

For buyers, a number of companies sell auction sniping software.

** Sniping software - observes auction progress until the last second or two of the
auction clock. Just as the auction is about to expire, the sniping software places a bid
high enough to win the auction.

72 I

NAME OF PRESENTER

Auction-Related Services
Auction consignment services:
Take an item and create an online auction for
that item, handle the transaction, and remit
the balance of the proceeds after deducting a
fee that ranges from 10 percent to 40 percent
of the selling price obtained. Items that do
not sell are returned or donated to charity.

73 I

NAME OF PRESENTER

Summary

Reuben Baladiang

74 I

NAME OF PRESENTER

Keypoints

Summary

Virtual communities are social aggregations that emerge from the Net when
enough people carry on those public discussions long enough, with sufficient
human feeling, to form webs of personal relationships in cyberspace.

Types:

Forums,
Online chat rooms
Specialized information communities
email groups
A bulletin board system (BBS) is a computer or an application dedicated to the sharing
or exchange of messages or other files on a network. Originally an electronic
version of the type of bulletin board found on the wall in many kitchens and work
places, the BBS was used to post simple messages between users.

75 I

NAME OF PRESENTER

Early Web Communities

The WELL( is an acronym for Whole Earth 'Lectronic Link)

76 I

NAME OF PRESENTER

Social networking sites

is a platform to build social networks or social
relations among people who share interests,
activities, backgrounds or real-life connections

77 I

NAME OF PRESENTER

Revenue Models for Social Networking

Sites
Advertising-supported Social Networking
Sites
Mixed-Revenue and Fee-for-Service Social
Networking Sites
Fee-based Social Networking
Microlending Sites
Internal Virtual Communities

78 I

NAME OF PRESENTER

Mobile Commerce?
The phrase mobile commerce was originally
coined in 1997 by Kevin Duffey at the launch
of the Global Mobile Commerce Forum, to
mean "the delivery of electronic commerce
capabilities directly into the consumer's hand,
anywhere, via wireless technology."

79 I

NAME OF PRESENTER

Auctions
In an auction, a seller offers an
item or items for sale but does
not establish a price.
Bidders Potential buyers
Bids Price that bidders are
willing to pay for an item
Shill bidders People that make
bids on behalf of the seller.
Auctioneer Person who manage
the whole auction process.
80 I

NAME OF PRESENTER

Types of Auctions
1.) English Auction bidders publicly announce
their successive higher bids until no higher bid is
forthcoming.
2.) Dutch Auctions
3.) First-Price Sealed-Bid Auctions
4.) Second-Price Sealed-Bid Auctions
5.) Double Auctions (Open-Outcry)
6.) Double Auctions (Sealed-bid)
7. ) Reverse Auction (seller-bid)
81 I

NAME OF PRESENTER

B2B Auctions (3 models)

1. Large companies: they creates their own
auction site to sells excess inventory
2. Small companies: a third-party Web auction site
serves as a liquidation broker and auctions
excess inventory listed on the site by a number
of smaller sellers
3. Consumer online auctions: a new business
entity creates a site at which buyers and sellers
who have not historically done business with
each other can participate in auctions
82 I

NAME OF PRESENTER

Case:
Old Metamora Case
Gracie Vizcarra

83 I

NAME OF PRESENTER

Required:
1. Search for information about Amazon Marketplace and eBay
Stores on the Web and in your library that will help you make a
recommendation to Betty regarding which alternative would
provide the best avenue for her online business expansion.
Support your recommendation with relevant facts, including
specific costs of operating each type of store and specific
benefits that Betty could gain by using one or the other.
Summarize your recommendation and supporting facts in a
report to Betty of 400 words

84 I

NAME OF PRESENTER

Required:
2. Outline a strategy that Betty could implement using a social
networking site such as Facebook that might direct traffic to
her Web site, to her auctions on eBay, and to her products for
sale on Amazon.com. For each element in the strategy, provide
an explanation of how it would help achieve Bettys goals.
Summarize the social networking promotion strategy in a
report to Betty of about 500 words.

85 I

NAME OF PRESENTER

Answer #1

86 I

NAME OF PRESENTER

Amazon

87 I

NAME OF PRESENTER

Amazon
Amazon.com and other sellers offer millions of unique new, refurbished,
and used items in categories such as books; movies; music & games; digital
downloads; electronics & computers; home & garden; toys; kids & baby;
grocery; apparel; shoes & jewelry; health & beauty; sports & outdoor; and
tools, auto & industrial.

Sellers
In 2000, Amazon.com began to offer its best-of-breed e-commerce platform
to other retailers and to individual sellers.
Today, hundreds of thousands of world-class retail brands and individual
sellers increase their sales and reach new customers by leveraging the
power of the Amazon.com e-commerce platform.

88 I

NAME OF PRESENTER

Amazon
Sellers
Partners work with Amazon Services to power their e-commerce offerings
from end-to-end, including technology services, merchandising, customer
service, and order fulfillment.
Other branded merchants leverage Amazon.com as an incremental sales
channel for their new merchandise. Over 2 million third-party sellers
participate in Amazon where they offer new, used, and collectible selections
at fixed prices to Amazon customers around the world.

89 I

NAME OF PRESENTER

Amazon
Amazon.com offers two types of online sales system:
1. Individual Plan (Sell Your Stuff)
Sales system is intended for sellers who just want to sell the goods in
small quantities or will have less than 40 sales transactions per
month. By using this system, the seller does not have to pay a
monthly fee and only have to pay a transaction fee of $ 0.99 per
product sold and selling fees (referral and closing fees).
2. Professional Plan (Sell Professionally)
Sales system is intended for sellers who just want to sell the goods in
large quantities or would have more than 40 sales transactions per
month. By using this system, the seller needs to pay a monthly fee of
$ 39.99 and selling fees (referral and closing fees) for goods sold.
Sellers do not have to pay a transaction fee.
Procedure to sell goods via Amazon Marketplace:
and DVDs, Amazon offers gift wrapping and writing a message to the
customer..

90 I

NAME OF PRESENTER

Amazon
Procedure to sell goods via Amazon Marketplace:
1. Register and create an account at amazon.com.
2. List your items for sale
For Individual Plan, sellers have to search the types of goods that will be
sold from the list of products in the Amazon catalog (by product category,
product name, ISBN number, etc.). After finding the exact same product
with products to sell, click the "Sell yours here". After that select the
condition of the goods to be sold and write comments about the condition
of the goods. Then enter the desired sales price, number of items to be
sold, and the method of delivery. For the Professional Plan, the seller can
sell a new product that does not exist in the Amazon list and add the
product to the Amazon catalog. Sellers also get tools to manage and analyze
their products in Amazon's sales.

91 I

NAME OF PRESENTER

Recommendation using Amazon

Procedure to sell goods via Amazon Marketplace:
3. Get orders
If the goods are sold, Amazon will send a notification via e-mail and going to
post the sales data into account.
4. Ship items to your buyers
Data on delivery as the buyer's name, address of the buyer, etc. can also be
found in the account. Print packing slips and address labels. Then buy
stamps to send the goods to the buyer within 2 days from the date of
booking. Send confirmation to the Amazon that the goods have been
shipped.

92 I

NAME OF PRESENTER

Recommendation using Amazon

Procedure to sell goods via Amazon Marketplace:
5. Get paid
Amazon will process the payment from the buyer and credit it to us
Marketplace Payments account, net of transaction fee of $ 0.99 (only for
Individual Plan), 6-15% referral fee from the sale price, and closing fees.
Funds in our account Marketplace Payments will be distributed
automatically every 14 days into our bank account. We can also request the
funds for distribution, up to once every 24 hours.
For security reasons, the seller for the first time using the services of
Amazon Marketplace deadlines are 14 days before the funds in the
Marketplace Payments account will be channeled into our bank account.

93 I

NAME OF PRESENTER

Recommendation using Amazon

Procedure to sell goods via Amazon Marketplace:
5. Get paid continuation
For sellers who use Individual Plan, if the goods are not sold within 60 days,
then listing the goods will be closed and the seller does not have to pay
anything. Confirmation that tells about the closure listings and instructions
will be sent via e-mail
Amazon has a fraud protection system to prevent fraud.

94 I

NAME OF PRESENTER

e-bay

95 I

NAME OF PRESENTER

e-bay
eBay is the world's online marketplace; a place for buyers and sellers to come
together and trade almost anything!
Here's how eBay works:
A seller lists an item on eBay, almost anything from antiques to cars, books
to sporting goods. The seller chooses to accept only bids for the item (an
auction-style listing) or to offer the Buy It Now option, which allows buyers
to purchase the item right away at a fixed price.
In an online auction, the bidding opens at a price the seller specifies and
remains on eBay for a certain number of days. Buyers then place bids on the
item. When the listing ends, the buyer with the highest bid wins.
In a Buy It Now listing, the first buyer willing to pay the seller's price gets
the item.

96 I

NAME OF PRESENTER

e-bay
eBay offers three subscription packages online sales:
1. Basic Store:
Monthly fee: $ 15.95 / month. Subscription package suitable for sellers who
are new and do not have a large capital, so they need online sales platform
that is easy to use at an affordable price. This package is suitable for sellers
who want to sell goods in the amount of more than 50 items per month.
2. Premium Store:
Monthly fee: $ 49.95 / month. More comprehensive subscription package for
small to medium-level sellers who want to develop their online business
quickly. This package is suitable for sellers who want to sell goods in the
amount of more than 250 items per month.

97 I

NAME OF PRESENTER

e-bay
eBay offers three subscription packages online sales:
3. Anchor Store:
Monthly fee: $ 299.95 / month. The most complete subscription package for
sellers who want to get the maximum benefit from the online services offered
by eBay. This package is suitable for sellers who want to sell goods in the
amount of more than 500 items per month.

98 I

NAME OF PRESENTER

e-bay
Procedure for selling goods through eBay Stores:
1. The seller must have an eBay seller's account and credit card information.
2. The seller must have a PayPal Premier account.
3. To open a Premium or Anchor Store, sellers must have a performance
appraisal sellers above standard.
If the seller has met the requirements to open an eBay Store, steps must be
performed:
1. Sign in to My eBay.
2. Click the "Subscriptions" under the Account tab.
3. Click the "Subscribe" next eBay Stores.
Select the desired subscription package.

99 I

NAME OF PRESENTER

e-bay
Procedure for selling goods through eBay Stores:
Select the desired subscription package continuation...
Click on "Manage My Store" and began to design the online store
All items listed on eBay will automatically appear in the eBay store sellers. If
the seller wants to enter a new item to the list, the seller must click the "Sell"
which can be found at the top of any eBay page. The seller then must select
the appropriate product category with the items to be sold.
For payment, the seller must provide electronic payment options or Internet
merchant credit card. This will speed up the payment process and ensure
security in the transaction. When buyers click the Pay Now button, payment
transactions will be processed immediately. The seller will receive an email
telling you about the payment and the seller can then process the delivery of
goods to the buyer.
100 I

NAME OF PRESENTER

e-bay
Methods of payment that sellers can provide to the buyer are:
1. PayPal, ProPay, Moneybookers, Paymate, Merchant credit card and
Payment upon pickup
2. The seller must pay an insertion fee to enter goods to the list ($ 0.20 for
Basic, $ 0.05 for premium, and $ 0.03 for Anchor). If the goods are sold,
the seller must also pay a final value fee (% of the sale price). The cost to
sell an item is the total of both these fees.
3. Sellers who have opened an eBay Store will have their own personalized
web address, so that the seller can easily and directly drive buyers to their
eBay Store.

101 I

NAME OF PRESENTER

e-bay
Methods of payment that sellers can provide to the buyer are:
4. Sellers can also use e-mail marketing services provided by eBay. E-mail
marketing is an advertising method where the seller can send e-mail
promotions to customers who have registered on the seller's mailing list.
Sellers can send one e-mail per week for each customer in the mailing list.
Users can utilize eBay Stores Markdown Manager features for free. This
feature allows sellers to give discounts or promotions, such as free shipping,
to their customers.

102 I

NAME OF PRESENTER

Recommendation
Betty wants to expand its online business in the sale of glass figurines. As a
consultant of Betty, I recommend Betty to use the sales system from
Amazon Marketplace Professional Plan.
Amazon Marketplace provides a free demo for 30 days so that the
prospective seller may try to sell goods via Amazon Marketplace without
risk and get an idea on the level of success of online sales for their products.
By using the Professional Plan of the Amazon, Betty only need to pay a
monthly subscription fee of $ 39.99, which is lower than the Premium
subscription package Store ($ 49.95 / month) and Anchor Store ($ 299.95 /
month) from eBay. Referral fee from Amazon is also lower than the final
value fees from eBay

103 I

NAME OF PRESENTER

Recommendation

With the Professional Plan, Betty also can include as many items into the list
without having to pay an insertion fee. On the other hand, when using eBay
Store Betty, Betty had to pay an insertion fee per item that is included in the
list, so that Betty would feel reluctant to enter stuff too much because it will
increase the cost given. By using the Professional Plan of the Amazon, more
items may be included in the list and the possibility of the sale may occur
will also increase.
One of the services provided by Amazon, namely wrapping and writing
messages is also an additional point to support the use of Amazon's Betty.
Glass figurines are objects that are frequently used as gifts or prizes.
Because the service is very useful and will be an added value for consumers
who want to buy glass figurines.
Each listing items are placed in the Amazon Marketplace can also be
accessed via the product search engine on Amazon.com. With this, people
who want to buy glass figurines will be easily directed to the products sold
by Betty.

104 I

NAME OF PRESENTER

Recommendation
Fraud protection system which is owned by Amazon is also very useful to
prevent fraud, especially for the sale of Glass Figurines are rare and
expensive.
By having an account for the Professional Plan from Amazon, Betty can also
use WebStore by Amazon, where Betty can make e-commerce websites
using Amazon technology
After comparing the costs and benefits of Amazon and eBay, we can see
that sell via Amazon will cost lower than the selling via eBay. Benefits
offered by Amazon also more relevant to the business undertaken by Glass
Figurines Betty. This is very important in order to support the development
of online business Betty.

105 I

NAME OF PRESENTER

Answer #2

106 I

NAME OF PRESENTER

Strategies that can be implemented by

using social networking sites to store
Betty:
Before implementing into social networking sites, should know beforehand,
networking sites such as what is appropriate and warranted seen by many
people. And of course social networking wrote the best-selling and much
visited by people - people around the world today is Facebook or Twitter.
Strategies that can be used is by doing a web link ads or enter the store
Betty to the social networking site. But not only have to enter the site, but
also must be considered in terms of the information submitted should be
updated and also the position or view his website link is packed in a better
and attractive. Now there can be ascertained the site visitors will feel
stunned or interested in the web link and try to click or visit the web store
Betty. And of course wrote such a strategy is quite effective given the
promotion via social networking sites is a lot of people around the world
access and technology developed at this time adds to the ease of access in
mobile. Promote merchandise through social networking sites be more
effective, it can save the cost and increase the volume of sales of the store
Betty.
107 I

NAME OF PRESENTER

Thank you from Team Strawberry

108 108 I

NAME OF PRESENTER