The Store Front & Auction Site
Models
CpSc 236-01, Spring 2001
E-Commerce/Business Beginnings

1968
–
Electronic Data Interface (EDI)

Business-2-Business Only

Benefits:
–

Business could be conducted 24 hours
a day, seven days a week.
Problems:
–
No guarantee that data sent by company A could
be used by company B
(No standard for data transfer/retrieval)
E-Commerce/Business Beginnings

1984
–
ASC X12

Business-to-Business

Benefits:
–
Standardized Data Transfer/Retrieval
– Allowed mass transactions to be completed
more easily & efficiently

Problems:
–
Technology superceded hardware capacity
A Technological Breakthrough

1992
–
The Mosaic Browser

Created by Mark Andreessen

Benefits:
–
Freely distributed to the public at no cost.
– Allowed “Point & Click” Access to the web
More Advancements

1994
–
Netscape Navigator



Expanded version of Mosaic
Businesses could now use the internet &
World-Wide Web to reach consumers/clients
Netscape introduces “E-business”
The Store Front Model
Commerce on the Internet &
World-Wide Web
Amazon.com

Founded 1995:
–

Online Bookseller
Today (2001):
–
–
–
Serves 29 million customers
Customers in 160 countries
Most popular online store ever
Amazon.com


Products:
Sells:
Books
Electronics
Music
VHS/DVD Video
Home Accessories
Toys/Games
Amazon.com

Reasons for Success
–
–
–
–
Customer Satisfaction
Reliable Delivery
Advertising
Provides customers for other businesses

UPS, Fed-Ex, etc…
Amazon.com

Purchasing:
–
Must be a member


Name, Address, Phone
Verifiable (traceable) E-mail Address
–
Not a web email account (xxxx@hotmail.com,
xxxx@yahoo.com, etc….)
– Security

Valid Credit Card
–
Verifies age (18+)
– Security
Amazon.com

Purchasing:
–
Search a product catalog database

Keyword or Category/Subcategory
Amazon.com

Cookies:
–
Personalizes Service

–
Controversial

–
Remembers User name, start page, etc…
Allows communication between client/server
offering a security breech
Recommends products based on
previous purchases
Amazon.com

Shipping:
–
Offers various ways to ship purchases to
consumer
Auction Site Model
Individual Sellers/
Individual Buyers
ebaY.com

Founded 1995:
–

Simple Online Auction Site
Today (2001):
–
–
–
–
–
Still an auction site 
18.9 million registers users, (buyers & sellers)
#1 auction site in the world
Over $5 billion annual revenue
Has almost anything anyone could want
ebaY.com

Reasons for Success:
–
–
–
–
The first site of its kind
Advertising
Standards for verifying buyers/sellers
No Liability

“e-contract”
ebaY.com

Purchasing:
–
Must be registered user


–
Must be winning bidder (typically, but not always)

–
Name, address, phone, valid email (same as amazon.com)
Valid credit card number
Some auctions may be bought out at a static price
Shipping is handled by buyer/seller (pre-arranged)
ebaY.com

Billing/Payment Methods
–
Billpoint

3rd party billing agent
–

Billpoint will notify seller of confirmation of successful
transaction.
–

Collects electronic checks or credit payments from buyer
Seller can now ship product to buyer
Seller is paid by Billpoint within 3 days via direct deposit
Wrap Up

Store Fronts:
–
Online Store/ Shopping mall



Amazon.com
Buy.com
Auction Sites:
–
Online Auction


ebaY.com
Yahoo Auction