Welcome to eMarketing Success
Business Models Article
For a permanent link to this article, or to bookmark it for further reading, click here.
Online Auction Business Model
from:We all have at sometime or other visited a famous online auction site called e-bay. The site very successfully uses an Online Auction business model. In an Online Auction business model the respondents bid for the product through on the internet. The entire bidding process is regulated by software that is called the auctioning software. It controls all the business processes involved in the auctioning.
There are two kinds of auctioning models. One is called the Dutch auction model while the other is English Auction model. In English business model, the bidders start bidding for a product or service with the lowest price, later on the bid goes up as more bidders join in. The methodology of a Dutch auction is a bit different, in this edition of the online auction, many identical items are auctioned at the same time, with all the bidders bidding simultaneously, the highest bid is the winning bid and the entire winning bidders end up paying the highest price. The products are sold at the highest price. These days all online auctions utilize English auction methods.
The strengths of this business model are presented as follows:
No problem of time constraints. All bids can be placed 24 hours a day, seven days a week. It gives the purchasers enough time for searching for information, deciding and then bidding. An increase in the number of potential bidders is noticed due to this convenience.
No geographical restriction. Bidders and sellers can auction or bid on items from anywhere across the globe through internet access. This increases the reach of the provider and also reduces the cost of auctions. The management and transportation cost is also reduced as there is no need to ship the items to any central location.
Good response due to extra advantage of social interaction. It increases lot of interest as well as enthusiasm in the bidders while they wait for the results and hope to win the bid.
Large numbers of bidders. A large number of bidders are attracted due to the very low price.
Large numbers of sellers. The clubbed advantage of larger numbers of bidders and low operational cost there are larger numbers of sellers auctioning on the site.
Network economies. Cascading effects of increased buyers due to increased sellers and vice-versa make this model highly economically efficient.
Online auctioning business has attracted a lot of people into this domain ranging from laid off workers to old people and ladies so this model is successful in providing employment to people who cannot find mainstream employment.
Business Models News
International Monetary Systems Announces Business Plan Expansion - MarketWatch (press release)
International Monetary Systems Announces Business Plan Expansion MarketWatch (press release) One year later, IMS is now ready to expand the scope of this business model. In conjunction with fully implementing this internal sales plan, ... |
Ebert & Friends Tweak New Online Business Model - Poynter.org
 Poynter.org | Ebert & Friends Tweak New Online Business Model Poynter.org Roger Ebert and a few hundred thousand of his closest friends and readers are hammering out a new business model for media online. ... |
Lexus, a Toyota Brand, Avoids Taint From Recalls - New York Times
 Globe and Mail | Lexus, a Toyota Brand, Avoids Taint From Recalls New York Times “We are very distinctly different brands and we have different business models. The way they do business is deliberately very different. ... Why Toyota will be all right: brand insulation |
Postal service chief: Our business model as outdated as the newspaper industry's - The Hill (blog)
 Christian Science Monitor | Postal service chief: Our business model as outdated as the newspaper industry's The Hill (blog) The head of the US Postal Service said Thursday that his organization's business model is as outdated as the ... Post Office Looks To Overhaul Business Model |
Free news on Net fails as business model for traditional news outlets: nsiders - The Canadian Press
Free news on Net fails as business model for traditional news outlets: nsiders The Canadian Press MONTREAL — Media industry insiders are acknowledging that offering free news on the Internet has failed as a business model for traditional journalism ... |
TEXT-S&P: Canada banking model displays resilience - Reuters
TEXT-S&P: Canada banking model displays resilience Reuters March 11 - The Canadian banking business model has, in our view, shown itself to be resilient in the face of the global credit dislocation and recessionary ... |
Coca-Cola's mixed message draws critics - Atlanta Journal Constitution
Coca-Cola's mixed message draws critics Atlanta Journal Constitution He repeated Coca-Cola's commitment to the business model in New York in December. JP Morgan analyst John Faucher said such comments made it tough to predict ... |