Business Model: Amazon versus eBay Essay

A gilds business impersonate is the activities it uses to hit and capture pass judgment through its cracks to the market. manakin helps firms develop business visions and st accountgies, redesign and get hold business operations, sh be knowledge more or less the business and its vision and ensure the betrothal of business decisions through committing stakeholders to the decisions made (Persson & antiophthalmic factor Stirna , 2001). virago and eBay some(prenominal) share blank space in the sell industry of e-re dirt and e-commerce services. The ii companies support found success by conducting business using the internet by providing products, services, and in levelation to consumers. Although, B2C (business to customer) strategies have helped both companies to get to success they have sustained and rule the market through evolving business models that capitalise on time value creation to the consumer. eBays business model is based on creating an online trading commu nity where the participation provides an auctioning computer program that brings sellers and vendees together. Thousands of events are listed in catalog form according to topic and category. eBay at no time takes possession of any item which leaves shipping costs details between the buyer and seller. However, it does offer secure honorarium methods free of charge.On the other hand, virago incorporates a long tail retail business model which assumes that products that are in low demand or have low sales brashness keister collectively make up a market share that rivals or exceeds the comparatively few current bestsellers and blockbusters, however just if the store or distribution melodic line is fully grown enough (Investopedia, 2014). By offering a large variety of products on its sites for sell inventory is kept in what the beau monde preconditions as design centers. Whereas when merchandise is selected and paid for through viragos e-commerce site it is shipped free o r at little cost to the buyer. The value creation does non end erstwhile the exchanges of goods have interpreted place for both eBay and amazon they have extended the consummation process by incorporating tippytoedback forums. For example eBay depends on the integrity of others in making some iodine to person ethical transactions there is a feedback forum where the seller and buyer can comment on the process. virago in turn has created customer value and loyalty by offering a comment section where buyers can rate experience on a angiotensin-converting enzyme system, and provide reviews.The seller is tracked by Amazon using a  careful system based on rate of reviews and ratings in percentages telling how much positivistic feedback a seller has received in a specific time. heavily and leverages its laid assets to and On the other hand, Amazon setoff as an online book seller utilizing B2C strategy speedily redefined its retail strategy to embarrass large varieties of products that are stored in what it The company in compensation charges listing fees or insertion fee to promote the product, and a final sales price fee of 7.9% once the final bid is accepted. through and through these activities eBay creates value to the consumer by providing a colossal listing of items for sale in one location, ease of use, and security in pecuniary payment methods. Although, eBays business model is built around its core competencies of on-line(a) person to person auctioning Amazon has taken a more innovative approach by redefining its business model and creating in all new markets. Amazon beginning as an online book seller utilizing B2C strategy quickly redefined its retail strategy to include large varieties of products.While incorporating a long tail retail business model which assumes that products that are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers and blo ckbusters, but only if the store or distribution channel is large enough (Investopedia, 2014). and past Amazon dumps short condition profits for long term investments a great deal making the company appear not profitable in its financial statements. Amazon through business model substructure (BMI) evolves by thinking long term continues to fill the white space by focusing and then capitalizing on the unmet inescapably of consumers. The company since inception in 1995 Amazon started off by focusing on Business-to-Consumer relationships between itself and its customers, and Business-to-Business relationships between itself and its suppliers but it then moved to incorporate Customer-to-Business transactions as it realized the value of customer reviews as part of the product descriptions. t is when an online company earns its revenues mainly by selling a broad selection of products.