IOffer.com E-Commerce

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IOffer.com E-Commerce

Introduction

It is hard to ignore the benefits that technology, especially in the information and telecommunications sector, has brought to the economy. The World Wide Web has especially been beneficial to both small and large business enterprises. It has enabled them to expand to international markets without relocating their businesses or investing in physical locations. E-commerce refers to trading through electronic networks, which is enabled by the internet. It involves all the transactions that take place via the internet, regardless of the mode of payment used by the customer. (Anderson 190). This type of commerce follows the main rules that are practiced in other businesses. They employ different marketing strategies to ensure that they remain profitable and they satisfy the needs of their clients. Many people have sent the opportunities created by e-commerce and they have capitalized on this. Over the last couple of years, online communities such as Amazon, eBay, eBid and iOffer have entered into the market and they have changed the way people conduct their business. These online communities, or shopping sites, have changed the way business form their strategies. The different shopping sites have resulted to using different methods to attract customers due to the intense competition in this sector.

Online Shopping Market

Competitions/Competitors

The online shopping market has grown tremendously over the past few years, especially in developed countries. Online stores can choose to specialize in one particular product such as movies, or it can have a wide variety of products. Most online stores combine two or more products. . Online shopping has enabled different companies to reach a wider clientele and reduce their operational expenses. There are several advantages of online shopping. Online stores are open every hour of the day and this is convenient for the customers. It saves on the time and expenses that one would have spent visiting a conventional store. Customers get more information from the online store’s website. They are able to view more products in less time and they are able to compare the prices of different products. On the downside, customers have to be aware of fraud cases, especially when paying. Customers may have to wait for a while if they encounter any problem with the merchandise purchased.  There are many online stores in America, and they have revolutionized the way people shop.  Some of these stores include eBay, eBid and iOffer.

iOffer vs. eBay vs. eBid

iOffer was launched in 2002. It connects people in one hundred and ninety countries. The online store enables the buyers and sellers to interact with each other as they negotiate prices. Sellers post their items on the site, and they invite the buyers to make an offer without a start up price, although they can choose to post the item at the suggested price. Only people who have attained the age of majority are allowed to trade on the site. . iOffer deals with a wide variety of items ranging from electronics to clothing and home products. The site prohibits the sale of illegal items such as counterfeits and hazardous materials. It also prohibits the sale of tobacco, alcohol, stocks and securities, cable TVs and satellites, credit cards, lottery tickets, plants and seeds, fireworks and firearms among other items visitors on the site can choose to use credit cards, debit cards, checks, money orders and through their mobile phones, using services such as PayPal, Amazon payments and Google checkout (iOffer).

EBay was founded in 1995 and it prides itself in being the largest online marketplace. It is an auction site and buyers and sellers can bid on almost everything. Some of the prohibited products include drugs, alcohol and tobacco, animal and wildlife products, art and artifacts, charity and fundraising listings, contracts, used clothing and cosmetics, currency, embargoed goods, gift cards, government documents, surveillance equipment and slot machines among other products and services.  It mostly uses the Paypal mode of payment, although sellers can choose to offer other payment services such as ProPay, Moneybookers and payment. It does not accept cash sent through mail, western union and money gram payments, mail checks and money orders and wire transfers, except in special categories (eBay).

eBid was founded in 1998in the UK as an auction site, where buyers can choose a wide variety of items. The online store encourages its customers to use PPPay, although other forms of payment such as PayPal, personal checks, postal orders and Google Checkout are also accepted. eBid prohibits sellers from selling eBooks, replica bank notes, goods that have been imported illegally, knives, swords and machetes, dirty, soiled and unwashed clothes, literature and software that promote violence or hatred or encourage illegal activity, recopied music, movies, television programs, software and real estate. Customers on eBid can choose between three account types, which include Buyer, Seller and Seller Plus (eBid). The store recorded a slow growth in the first years of its inception, but this has since changed. It offered lower prices and free services and this attracted many people to the site. It has recorded steady growth and it is considered as the best alternative to eBay (Price)

Differences

EBay is the oldest online store among the three stores. Its list of prohibited items is more detailed and comprehensive. iOffer mode of operation is different from the others since it is not an online store. The buyers and sellers negotiate on the prices until they agree on a specific price. eBid and iOffer offer cheaper services to sellers than eBay. eBid and iOffer have more payment options than eBay. Some of the methods that are allowed in iOffer, such as money orders are not accepted in eBay. EBay prohibits the selling of art and artifacts, but these items are allowed on the other sites. eBid has an exclusive list on prohibited items, including some that are not found on the other online stores.

Current Conditions

iOffer has grown immensely since it first started its operations. Traffic to the site has increased and this has resulted to increased sales. New members are registering to the site daily and there are more items on the site. This can be attributed to the open negotiations by the buyers and sellers and the low rates and free services offered at the site. The main drawback on iOffer is the constant complaints about security issues. Some customers have complained about fraudsters who do not deliver the goods promised. This is indeed a serious complain, and it is enhanced by the fact that the company does not do anything to trace the fraudsters. iOffer can improve on its services, especially where security is concerned. It can adopt the payment system that is used in eBay. EBay recommends the use of PayPal although it accepts other methods. This enables it to trace the sellers and hence there are fewer cases of fraud.

Comparative Analysis

iOffer relating to e-commerce and other businesses

iOffer, eBay and eBid illustrate how ecommerce has grown since they were first established. The fact that the three companies are able to compete with each other and they still record growth is proof that ecommerce is a growing market. Many people are attracted to the stores because of the convenience. The stores on the other hand use different measures to maintain their existing customers and attract new customers. While eBay is keen on security issues, the others use low prices to ensure that they attract more customers. This is healthy competition. As more countries develop the use of the internet, ecommerce industry will continue to grow.

What type of business is iOffer?

iOffer provides an avenue where buyers and sellers interact with each other, as they negotiate the prices of different products. Most business conducted on iOffer is business to consumer. iOffer specializes on the flea market model, where the customer selects the item that he wants to purchase, and then buys the item at the stated selling price or makes an alternative offer. The seller and the buyer interact through this process, where they both make offers until they reach an agreement (Bidgoli 132). Business to consumer commerce enables the parties to conduct their transactions easily and quickly. In the case of iOffer, the customers are able to negotiate prices and they get a better deal. Consumer to consumer type of transactions occurs when a third party enables the consumers to transact business online. The third party, which in this case is iOffer, then charges a fee as commission. iOffer is a consumer-to-consumer kind of business because it enables consumers to make transactions. It has a website where people buy, sell and trade. Consumer to consumer type of business connects the buyer directly to the seller and eliminates other costs. It does not limit the number of people who can transact businesses since everyone is free to list the items he has. It is also convenient since people can choose to make transactions at their own discretion.

Is iOffer using all its revenue to gain profits? If not, what is missing?

Some of the methods that iOffer is currently using to gain profits include charging sellers for additional services. iOffer charges sellers when they add features such as posting their items on the home page, highlighting their products by writing them in bold, which makes them more recognizable, and charging for late payments. Despite their efforts, they are currently not utilizing all their means to ensure that they maximize their profits. iOffer does not guarantee safety to its customers. The company can choose to invest more on safety measures and take the cost to the consumer. For instance, it could collaborate with the financial service providers to ensure that they can track the people who receive the money, yet they do not deliver the goods that the customers have already purchased. They could in turn charge the customers more for this service. Another method that iOffer can use to ensure that it maximizes its profits is to introduce more chargeable options to the buyers and sellers. For instance, it can decide to create space for those who sell in bulk. Some sellers have many products to sell but they cannot afford to create and maintain their own websites. iOffer can offer such sellers specialized space, which contain their products. The sellers can then modify the space according to their preferences. iOffer can then charge the sellers for maintaining their space and offering them advertising space.

Despite the fact that iOffer is doing a good job in the industry it is not acting according to its full potential to gain maximum profits (Nissanoff 42). The company is well aware of the fact that fraud has become quite common in the industry and customers can easily be sold counterfeit goods. The protection that is mainly provided to customers like in eBay and eBid is not offered by iOffer. The customers can easily fall victim to any of the schemes and this would hurt the business. Some of the potential customers are highly reluctant to engage in some of the trade negotiations as their security is not guaranteed (Holden 34). If the site can be able to look into this factor, then they can be able to attract more consumers and gain their trust as well.

Marketing Strategy

The three online stores use different marketing strategies. eBid and iOffer concentrate on lowering their price rates. iOffer offers free services to the sellers and this attracts more sellers to its site. EBay on the other hand, has invested a lot of money on developing its security features. Customers are assured that their transactions are secure. iOffer is more recent than the other stores. It was aware of the competition in the auction stores. Its choice of using negotiating is a unique concept in the industry and this has ensured that it attracts a wider market. Currently, it has been able to keep off competition since it is the only one which enables the buyers and sellers to operate in such an environment. The decision to feature such a wide variety of items is another strategy used by the stores. Customers can choose to shop at one store instead of moving from store to store.

Conclusion Vision and Recommendations

iOffer has transformed the way online sites conduct their transactions. It has connected the buyer and the seller and has created a suitable environment for them to make transactions. Buyers do not have to bid for products. The system of negotiation is more appealing to buyers, and it offers them more satisfaction. Buyers do not feel cheated when they buy a product, since they negotiate with the sellers and the prices go lower. The company has introduced a new concept, and it is relatively new since it was launched a few years after eBay and eBId. The company continues to face challenges, especially in safety and security.

I see iOffer being a global leader in online transactions in the future. I see it having a presence in all countries around the world, where people can access the internet. The company should listen to the complaints of the customers. It should improve on its security and ensure that the customers get what they have purchased. The company should ensure that it has a more secure way of ensuring transactions go well for the buyers and the sellers. Offering the buyers protection from fraud and other related schemes could place the company at a comfortable position in the economic market.

It could use the payment system of eBay, which ensures that customers who pay through Paypal receive their purchases. The company is cheaper than its competitors are, and it should look for ways of maximizing profits. The company should introduce chargeable features to the sellers, other than the ones that are currently on offer. The company should seek to expand its market by investing in more countries, where retail business is doing well. This will maximize the potential of the company and increase their popularity as well as their customer base.

Advantages of ecommerce

• Enables customers to shop at their convenience
• Enables customers to find the items they need more quickly
• Does not limit anyone from conducting business transactions
• Provides a way for the business to reach more people
• Enables businesses to reduce their operational costs
• It is not necessary for businesses to set up physical locations
• Enables the customers to compare prices of different products more easily

Strengths of iOffer

• Offers cheaper rates and services than its competitors
• Creates a suitable environment for the buyers and sellers to interact
• Enables the buyers to negotiate process with the seller, and hence get better deals
• Enables the customers to list their products more easily
• Is easy to use
• Only charges fees when a transaction is conducted

Areas of improvement

• The company needs to improve on its safety and ensure that it protects its customers from fraudsters and counterfeit goods
• The company should collaborate with financial service providers to ensure that the sellers who do not deliver on the goods promised can be traced
• The company should expand to other global markets

Works Cited

Anderson, Ben. Information and Communication Technologies in Society: E-Living in a Digital Europe. United Kingdom: Taylor & Francis, 2007. Print

Bidgoli, Hossein. The Internet Encyclopedia. Hoboken, NJ: John Wiley and Sons, 2004. Print

eBay. About eBay. 2011. Web. 15 October 2011

eBid. Help: Selling. 2011. Web. 15 October 2011

iOrffer. Simple, Social, Shopping. 2011. Web. 15 October 2011

Price, Ken. EBay Alternatives: eBid Online Auction Site. Feb 12 2009. Web. 15 October 2011.