Investigating electronic Business

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Maddy

Unit 4 – Investigating Electronic Business

Task:

Increasingly, businesses are establishing their own websites and are using the internet to advertise, promote and sell their products and services. This unit provides you with opportunities to investigate businesses with a web presence, to consider the aims and objectives of online presence and to allow you to make your own judgment on what makes a good website.

4.1 Understanding the purpose of an online presence

WEBSITE – EBAY

Business Aims and Objectives

  • Increasing sales

Increasing sales would not apply to EBay as an aim and objective because it is not EBay who personally supply the goods.  EBay is a business which provides access to suppliers in order to sell there goods to people from all across the world.  The business objective is therefore not increasing sales, but increasing the amount of suppliers who wish to sell.

  • Profit maximization

They make profit by encouraging people sell their goods. They make money from charging a certain amount of commission on each item you sell or buy. When you list an item on eBay, you're charged an insertion fees.

EBay generates revenue from a number of fees. EBay now owns the PayPal payment system, which has fees on its own. If the item sells, you are also charged a Fee. The total cost of selling an item is the Insertion Fee plus the Final Value Fee. EBay also charges roughly 12p for adding more pictures of the product you are selling.

The company’s current business strategy includes increasing revenue by increasing international trade within the eBay system.  

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  • Attracting new staff

EBay attracts new staff by providing good customer service, so that the website is memorable and encouraging people to visit the website again. They attract new staff by advertising on the website, and they provide information on whether they have any vacancies available or not. The good thing about EBay is that their employees can work from home. All they need is access to a computer and the Internet, which makes a lot of people attracted to work for them.  They also have a section on their website to tell people about the jobs available and ...

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