CS155b: E-Business.

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Income Models for B2C. Offer merchandise and administrations and take a cut (simply like B
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CS155b: E-Commerce Lecture 18: April 17, 2001 B2C E-Commerce (Continued) (Acknowledgment: Helen Chiang)

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Revenue Models for B2C Sell merchandise and administrations and take a cut (simply like B&M retailers). ( e.g., Amazon, E*Trade, Dell) Advertising Ads just (unique Yahoo) Ads in blend with different sources Transaction expenses Sell computerized content through membership. ( e.g., WSJ on the web, Economist Intelligence Wire)

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Revenue Models for Online Ads "Number of Impressions" (what number times does the client cause the sponsor\'s substance to be shown?) "Navigate" (what number times does the client click on the promotion to go to the promoter\'s website?) "Pay-per-deal" (what number times does the client navigate and after that purchase something?)

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Status as of fourth Quarter 2000 3% of all advertisements; radio twice as large 55% of online promotions are by dab coms 79 organizations place 1/2 of every online promotion Most advertisements keep running on 1 webpage for <3 weeks Portals and Search Engines have more promotion impressions than whatever other sort of website (44%). 63% of promotion impressions have a "marking center"

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Top Online Advertisers

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WWW Growing Faster Than Ad Supply Immediate issue: Too numerous pages, excessively couple of sponsors Current Price: $1 per a great many impressions Price ~3 Years Ago: $10 to $50 per a huge number of impressions

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Inherent Difficulty with Online Ads Downward Spiral Banner advertisements barely noticeable Average navigate has tumbled to under 1 in 200 Leads to formation of more repulsive advertisements, e.g., "pop-ups" Entertaining? Getting the "right" promotions requires time, exertion, and cash. Web market not sufficiently extensive to legitimize it. 5 of the world\'s main 10 promoters each spent under $1 million on online advertisements a year ago.

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Top 25 National Advertisers

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Inherent Difficulty (proceeded with) Accountability: Advertisers can tell instantly whether their promotions "work." High Expectations: "Very much focused on" advertisements cost up to 100 times as much as non specific advertisements. Be that as it may, how correctly would one be able to target? Talk Point : Will internet promoting survive the website crash and the farfetched desires? Will it balance out as only one all the more "marking medium"?

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Amazon.com Full Name: Amazon.com, Inc. Workers: 9,000 Stock Price: $14.67 (at close April 12, 2001) 52 Wk Range: $8.10 to $68.44 2000 Sales $2,762 M 1-Year Sales Growth: 68.4% Internet\'s biggest retailer. Best known for books, CDs, DVDs, and Videos.

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Brand Strength Source: U.S. Bancorp Piper Jaffray (July 24, 2000)

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Main Lines of Business Retail Broad item run, from reading material to family devices Shopping Mall Individuals and organizations pay Amazon.com to offer their items on its site. "Regulating" different sites Has put resources into some of them Broad scope of offerings, from professionally prescribed medications to wedding arranging 2000 Sales 71% books, CDs, DVDs, Videos 78% US

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Amazon.com History Founded: 1994 Website dispatched: July, 1995 1997 IPO: 3 million shares, $54.0 million Moves to "concrete the Amazon.com brand." Becomes the sole book retailer on America Online\'s open site and on Netscape\'s business channel.

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History (proceeded) 1998: Expansion Launched online CD and video stores. Started offering toys and hardware. Purchased online book retailers in the UK and Germany. Purchased Internet Movie Database. Extended online administrations, purchasing Junglee (examination shopping) and PlanetAll (address book, date-book , updates). Pulled in so much consideration that its business sector capitalization met the consolidated estimations of beneficial blocks and-mortar rivals Barnes & Noble and Borders Group, despite the fact that their joined deals were far more prominent than Amazon\'s.

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History (proceeded) 1999: More Expansion Raised $1.25 billion in a bond advertising. Going through spree with arrangements to purchase all or part of a few spot coms Some have since been sold (HomeGrocer.com), and others have left business or bankrupt - Pets.com, living.com It additionally purchased the inventory organizations of Back to Basics and Tool Crib of the North. Started directing online sell-offs and banded together with Sotheby\'s. Included dissemination offices, incorporating one each in England and Germany.

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History (proceeded) 2000: Yet More Expansion Placed a connection to drugstore.com on its landing page; drugstore.com paid more than $100 million for that entrance. 10-year manage toysrus.com to set up a co-marked toy and computer game store. Included remote dialect locales for France and Japan.

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2001: End of the Beginning Investors request benefits Amazon declares arrangements to rebuild and cutback of 15% of its workforce. Takes a $150 million charge. Declares an arrangement with Borders to give stock, satisfaction, substance, and client administration for borders.com

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Amazon.com, Inc. - Stock Quotes source: Red Herring

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Amazon.com, Inc. Financials

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Check if website

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Financials and Employees Source: Hoovers

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