Table 2.4: Difference of Existed Online mall and Open Market
Existed online mall Open market
Role of customer Only buyer Buyer and seller
Method Selling Mediation
Decision Merchandising director Seller
Reflection of feedback Difficult to reflect Easy to reflect
2.2.3 Transaction Flow of C2C Online Open Market
(1) Seller posts goods.
(2) Buyer searches goods in open market websites, and then makes a trading order.
(3) Open market informs successful bid (or sales) to seller.
(4) Buyer makes a trading order and pays to the third-party.
(5) After taking the order and money, the third-party informs seller.
(6) Based on the order, seller sends the goods by appointed logistics firm.
(7) Buyer informs arrival of goods to online open market and makes a decision to receive the goods.
If buyer refuses to receive goods by any reasonable excuse, the third-party refunds, transaction fails. If the reason is just change of mind, logging fee is usually paid by buyer; however, the reason is faulty product, logging fee is usually paid by seller. If buyer confirms to accept goods, the third-party transfers money to seller, transaction success. The third patty and seller usually calculate the sales and following charge between the third-party and seller once a month.
3. Present Situation of Electronic Commerce in Korea and China Overview of Electronic Commerce in Korea
3.1.1 Internet in Korea
The history of the Internet dates back to late 1960’s. In 1969, the Department of Defense’s Advanced Research Project Agency (DARPA) as the ARPANet (Abbate 1999) first launched the Internet in U.S.
In Korea, Internet began from building SDN network between Seoul National University and KIET (Korean Institute of Electronic Technology)...
... middle of paper ...
...ll. In 2007, the transaction of open market was 6,740 billion KRW (6,018 million USD) that went up fourfold comparing to year 2004 when the transaction was 1,480billion KRW (1,321 million USD). The newcomer 11st Street, the subsidiary of telecommunication dominator SK group, made the market larger in 2008. The graph 4.1 shows transaction volume of open market form year 2004 to 2009.
Graph 3.2: Transaction Volume of Open Market in Korea
(Source: Invest Relations from each company)
Open market players start to change the business model to break down barriers of distribution channel. The business field is not limited to Internet, start to joint with mobile, TV home shopping, super store, department store. They also develop private brand to let the brands concrete.
The increase of registered users also help open market would pass the existed online shopping mall.
Large players can offer competitive prices if they buy in bulk. Smaller players can differentiate themselves by offering niche products and superior customer delight at a premium price.
In 2000, China had yet to develop any e-commerce applications, and had only 2.1 million total internet users. Payment systems and physical delivery mechanisms to facilitate the development of e-commerce transactions were well-developed in other markets, but were simply lacking in China.
New online retail brand e.g. Amazon, Lastminute.com - Essentially these companies could not have been conceived without the creation of the Internet. New companies sprang up as the Internet began to be adopted. Entrepreneurs were investing heavily in all sorts of start-ups. Some were successes, most were not. [pic]
A number of consumers strongly advocate the use of online shopping system brings convenient to purchase products. Fabiola (2006) notes that, “the Internet is open 24 hours a day, 365 days a year”. As customers could surf the Internet every moment and everywhere, they could shop in the time which is the most suitable for them. Therefore, the development of online shopping system helps people who need to work until very late at night and when a large amount of shops are closed already. Besides, consumers are likely to buy products that are unsold in Hong Kong. Diamond and Pintel (2008) illustrate that due to buyers can surf some overseas stores website, they may gain those products’ information and buy them. Moreover, air transportation and transshipment are supporting logistics: products can be transport to Hong Kong from far away easily. Thus, Internet solve the limitations on shopping time and place, consumers might purchase more convenient.
My paper will discuss the role of Japan, one of the four major e-commerce players (Japan, China, Hong Kong, and Singapore). Each country or region has unique strengths to aid them in the e-commerce race. For example, Japan has one of largest economies in the world, which means that it has the money and resources to create reliable infrastructures for the development of e-commerce. China is also likely to become the e-commerce epicenter of Asia with its rapidly growing economy, fast building infrastructure and immense human population. Hong Kong, a capitalist territory of China, is currently one of the strongest international finance and trading centers in the world. With its well-developed economic and technical infrastructure, it also has the potential to become the next e-commerce leader. Lastly, Singapore has one of the highest percentages of computer literacy among workers and some of the best telecommunication networks in the world. E-commerce and Internet development has become an integral component of the government's strategy to turn Singapore into the e-commerce hub of Asia. I have examined Japan’s historical trends, socio-political developments, current IP, and copyright regulations in e-commerce, and how these various factors will affect the development of Japan’s Internet markets.
This is the business strategy the draws people to the physical store. Online-to-offline commerce, or O2O, identifies customers in the online space through various strategies and then try to direct them to the shops. This activity is to bring the potential customers from online channels to physical stores. This is done through email marketing and internet advertising and many more things are done in order to entice the potential customers. This is a pure combination of online marketing as well as offline marketing. O2O is termed when the deal is done online and the transaction is done offline. The best part of this model is that instant gratification is acquired unlike e-commerce model. The model is best suited for the perishable goods that can be instantly
The Internet, which is an important part of the information technology, can be dated to July 1961, when Leonard Kleinrock at MIT published the first paper on packet switching theory, and the first book on the subject in 1964. In late 1966 Roberts went to DARPA to develop the computer network concept and quickly put together his plan for the "ARPANET", publishing it in 1967. Then the APRANET grow to the Internet (Opfer). Now Internet are most used in communication, research, education, and financial transactions.
Electronic commerce, or e-commerce has developed exponentially in the last few years and has left some in the cold. The majority of people think e-commerce is just about buying and selling things over the Internet like through auctioning sites such as E-Bay and U-Bid. However, E-commerce is a broad term describing the electronic exchange of business data between two or more organizations' computers. Some examples might be the electronic job applications, on-line services like America online, and on-line billing that automatically pays specified bills each month so you don’t have to mail a check. E-commerce also includes buying and selling any item over the Internet, electronic banking so you can transfer funds between accounts or stocks, smart cards, and all other methods of conducting business over digital networks. “The primary technological goal of e-commerce is to integrate businesses, government agencies, and contractors into a single community with the ability to communicate with one another across any computer platform.”(Edwards, 1998)
The Internet was first introduced in 1969 when a program called ARPA or Advanced Research Projects Agency. ARPA had provided a way to communicate, through a network, with the country in case of a military attack had destroyed traditional communication. It also connected four United States universities and was used for research, education and government organizations. In 1972, Ray Tomlinson introduced E-mail. In 1973, Transmission Control Protocol/ Internet Protocol (TCP/IP) became the standard for computers to communicate over the Internet. In 1982 the word Internet is used for the first time. The domain name system (DNS) is introduced in 1984, which identified network addresses with .com, .org, and .edu. From that point on everything began to rapidly change. Things like America Online was developed, viruses start...
But where did this all came from? Just when did we start using the internet the way we use it today? Clearly, these sorts of questions can be answered in simple, concise way. The internet was born in 1969 as a segment of research project of Department of Defense. Back then, the internet was known as ARPANET, a forerunner of the internet. Since the birth of the internet up to 1980's, Internet was used mostly by Universities and experts who knew their way around its complex systems and workings.
Looking at the e-commerce activity we need to first look at the kind of products that are available which is clothing, computer hardware, software, clothing electronics to books and gift can be sold online. With E businesses establishing business models which is based on selling of goods and services and revolves around them. The industry has definitely grown with potential in terms of not only generating revenue but also reducing the costs in running a online retail business. With the main recipients of e-commerce who are the Marketing, retail outlets, insurance, government, travel industries, training, online publishing vendors.
The Information revolution is changing our daily lives. With the rapid development of computer and internet, online commerce become quite common and plays an important role in the modern world. The online business has booming development in these few years. US online retail sales raised an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may due to the growing number of consumers who shop online. In the case of Asia, survey reported 77.6% of Internet users have online shopping experiences in 2003 (as cited in To, Liao & Lin, 2007). Online shopping is very different from traditional shopping. Consumers cannot touch and check the product before purchasing it, which means they are at higher risk of fraud than traditional shopping. Consumers also have other concerns such as credit cards security of online shopping. Then questions should be raised: what is the advantage of online shopping? Why people shop online? In following paragraphs, the advantage of online shopping for the consumer and consumer’s motivation to shop online will be reviewed and discussed.
The internet is a total of medium¢s which are connected between them with channels of communication. The internet is actually an internet after it connects smaller networks of many countries. The internet rouses the computer and the world of the communications like nothing else before. The invention of the computer, of the telephone, of the telegraph etc, place the stage of this unprecedented completion of faculties. The internet becomes right away a world capability radio broadcast, a mechanism for the distribution of information and a means for the cooperation and the interaction between the individuals and their computers, being indifferent to the geographic place. In 1958 the American ministry of defence created a department called "Advanced Research Projects Agency" – ARPA. Its goal was to create new technologies. In 1968 they created the ARPAnet, a network of computers. For 20 years the internet was a network with precise and enormous in volume computers.
Term Paper: The History of the Internet The Internet began like most things in our society, that is to say that the government started it. The Internet started out as an experimental military network in the 1960s. Doug Engelbart prototypes an "Online System" (NLS) which does hypertext browsing, editing, email, and so on. The Internet is a worldwide broadcasting resource used for distributing information and a source for interaction between people on their computers. In 1973, the U.S. Defense Advanced Research Projects Agency (DARPA) initiated a research program to investigate techniques and technologies for interlinking packet networks of various kinds.
The Internet has undergone a remarkable transformation since its early days. The original Internet was a low-speed, text-based network used to connect a few government sites to the research and defense contracting community. The Department of Defense began a project known as ARPAnet (Advanced Research Project Agency Network) back in the late 1960's, starting the first internet. It was designed by the network architects to interconnect government computers with defense contractors (Banta 2). The design of the network was such that no one computer system was dependent upon the functioning of any of the other computer systems. If any one computer network node was destroyed, such as in a nuclear attack, the rest of the network would continue to operate (Banta 2).