Online Marketplace

WHAT IS ONLINE MARKETPLACE? The online stipend merchandiseplace is experiencing an enlargement of innovative ideas, plans, and announcements, which one commentator has standardizedned to a goat rodeo, a chaotic situation in which plyful players with different agendas contend with one an otherwise for public acceptance, and above all, huge potential revenues. Others liken the dedicatement merchandiseplace to a battle among the four political plan titans orchard apple tree, Google, Facebook, and virago.Each of these titans wear their own versions of a afterlife leavement arranging that challenges the other players. And lets not for take off PayPal, the reigning power in alternate(a) online impartment, or the character reference brainpower companies who fulfill everywhere 70% of online allowances, or the telecommunication wireless carriers Verizon and AT&T who concord it all happen. All of these players are also competing for a share of the online fee stream. The y all want to suffice us spend money, for a lean.The continuing double-digit growth of e-commerce is certainly one factor driving market participants, except a more important factors is the emergence of the sprightly platform of smartphone and tablets that opens the door for red-hot firms to take down the online allowance marketplace based on newer technologies and control of the mobile platform itself. WHAT IS PayPal ? PayPal is a orbiculate e-commerce condescension allowing wagess and money transfers to be make through with(predicate) the internet. Online money transfers serve as electronic alternatives to paying with handed-down paper methods, such as checks and money orders.PayPal is an acquirer, performing remuneration processing for online vendors, auction sites, and other mercenary subr startiners, for which it charges a fee. It may also charge a fee for receiving money, proportional to the amount received. The fees depend on the currency routined, the payme nt option using upd, the country of the sender, the country of the recipient, the amount sent and the recipients poster type. In addition, eBay purchases do by deferred payment tease apart through PayPal may incur extra fees if the purchaseer and seller use different currencies HOW TO BUY The easiest way to remember your faith card number is not having to.Remembering 16 digits isnt aristocratical and typing them in to pay for slightlything isnt always secure. Now you dont requirement to do either. 1 Sign up for free, and add a banking concern answer for or a debit/credit card. 2 Speed through check-out procedure at millions of online funds. Just look for the PayPal scarceton. 3 Stay protected from verification to voice communication with our Buyer Protection. Figure 1. 1 show Ebay the example of website use PayPal. Figure 1. 2 show Hop-shop-go example for PayPal. PAYMENT METHODS Choose how you want to pay. Set up your payment methods quickly and easily. 1 Confirm y our email address.This helps protect you if someone tries to register a PayPal account victimization your email address 2 You flowerpot add multiple credit/debit cards and have the flexibility to set one as your default payment source 3 You have the option to withdraw any payments received to your bank account. Simply add a bank account to despatch it. Add a card You john add a credit or debit card to your PayPal account to make payments instantly. To add a card, 1. Log in and dawnProfile. 2. SelectAdd or Edit Card for payments. 3. ClickAdd cardorAdd another cardand view the prompts.Top-up my PayPal account You can use PayPal to make payments online card-free. Simply top-up your PayPal balance from your bank account. * 1. Log in and clickTop-up. 2. Select Top-up via RHB bank* account. Withdraw funds to a bank account When you receive payments, you can conserve the money in your PayPal account for future purchases or add a bank to withdraw it to your bank account. To withdraw y our funds, 1. Log in and clickWithdraw. 2. SelectWithdraw funds to your bank. 3. Enter the amount and issue forth the prompts. TYPES ONLINE PAYMENT Google handicap ) Wallet One wallet for online and in-store obtain * Buy online with your phone or estimator Make purchases at thousands of online shops by signing in to your Google Account. * Buy in-store with the mobile app Tap your phone to pay and redeem offers, employ NFC (near-field communication). NFC payments are currently altogether available in the United States. * Manage your account Sign in to wangle your payment information and view your transaction history. 2) Checkout sum up online gross sales victimisation Google Wallet New Google Checkout is now Google Wallet for buyers.Google Wallet is a fast, secure checkout process that helps increase sales by bringing you more clients and allowing them to buy from you quickly and easily with a single account, online or in-store. snitch worldwide. Attract buyers in everyw here 140 countries to purchase your goods and services online using their Google Wallet. Convert more sales. A fast, convenient checkout process helps Google drug users convert more than shoppers who have not used Google before. Protect yourself from fraud. The Payment Guarantee Policy protects 98% of orders on average when an order is guaranteed, you bilk paid even if it results in a chargebackAMAZON Figure 1. 3 show amazon website Amazon operate works with businesses of all sizes to provide products and solutions backed by the power of Amazon. For example, your business can transcend millions of Amazon shoppers by selling on the Amazon market and then leverage Amazons fulfillment services to manage shipping and provide trusted customer service. Or, if your business already has a website, you can advertise your products to Amazon. com shoppers to apparent motion qualified traffic to your website, and then improve conversion by making it easy for them to buy on your site wit h their Amazon account through Amazon Payments.If you need a website, or would like to cost increase your current website, Amazon Webstore makes it easy to build a branded eCommerce website. Whether youd like to Sell on Amazon. com or make your own website more successful, Amazon Services has solutions to help you build your business successfully online. Increase your business capabilities. Get on board with Amazon. If taking your business to the adjacent level includes selling online, or improving your internet-based business, lounge aroundting to know Amazon Services could make all the difference in your success.Imagine having Amazon, with its best technologies, as an ally in meeting your business goals. Think how much simpler things could be if you could leverage the power of Amazon tools and services for your business. Reach Customers Amazon Services offers two solutions that give you access to tens of millions of Amazon customers. You can sell your products directly on Amaz on, or reach Amazon customers through our site display advertisements. Sell on the Amazon Marketplace By joiningAmazon Marketplace, you give customers a familiar, trustworthy shopping recognise even as you avoid the time and costs of developing a standalone website.Use the Amazon Marketplace solution to help make your business what you dream it could be. Advertise on Amazon Get your products in front of millions of Amazon customers withAmazon Product Adsor display ads fromAmazon Media Group. With Product Ads, you move placement in targeted locations across our detail pages, see and browse options, the buy box, and tower ads. With display ads, your marketing messages can reach just the right audience in the numbers and channels where you want to be seen. Build a website with Webstore Build your eCommerce site on Amazon Webstore and put the security and scalability of Amazons cloud behind your site.Robust site conception and inventory management tools, plus easy integration with t he other Amazon Services products, make Amazon Webstore the right eCommerce platform for businesses of all sizes. List your products on the Amazon Marketplace When you list and sell your products on Amazon, you can quickly take advantage of the same robust and reliable Amazon site infrastructure, including the umpteen seller features and positionality we have worked hard to build. No matter how many products you list, youre eligible to use Amazons world-class seller technologies. CASE STUDY QUESTIONS ) What is the respect proposition that PayPal offers consumers ? How about(predicate) merchants ? Do any of the competing proposals match the benefits of PayPal ? ANSWER a. PayPal offers consumers How to buy The easiest way to remember your credit card number is not having to. Remembering 16 digits isnt easy and typing them in to pay for something isnt always secure. Now you dont need to do either. * Sign up for free, and add a bank account or a debit/credit card. * Speed through ch eckout at millions of online stores. Just look for the PayPal button. * Stay protected from checkout to delivery with our Buyer Protection.Buying is free Its free to use PayPal for online purchases in Malaysia. Its the PayPal sellers who are charged a small fee for each transaction. Your eligible purchases are protected Your eligible purchases are protected wherever you shop and pay with PayPal at no cost to you. Just in case your item didnt arrive or is significantly different from how it was described, we can help you get a full refund. More ways to pay online You can store your bank details and credit/debit cards more safely with PayPal and choose your pet way to pay the next time you shop.And you can even do it on your mobile. Accepted world(a) Shop anytime, anywhere from millions of online stores that accept PayPal. b. PayPal offers merchants Solutions for business We have a wide range of solutions for your business. Sell globally and get paid quickly. Looking to sell occas ionally on eBay or through your blog? PayPal helps you get paid faster. Fees at 3. 4% + RM2. 00 MYR With our simple and transparent pricing, youll never be surprised by privy fees when you receive commercial domestic payments for goods and services at 3. 4% + RM2. 00 MYR. Keeping every seller saferOur industry-leading anti-fraud applied science and a team of specialists help to keep you more secure. We provide all sellers with a convenient process for responding to buyer disputes. c. PayPal Competitor Google Checkout is quite similar to PayPal, but it has grown to only 7% of the alternative payment market. Google Checkout a) Wallet * One wallet for online and in-store shopping * Buy online with your phone or data processor Make purchases at thousands of online shops by signing in to your Google Account. * Buy in-store with the mobile app Tap your phone to pay and redeem offers, using NFC (near-field communication).NFC payments are currently only available in the United States. * Manage your account Sign in to manage your payment information and view your transaction history. b) Checkout * Increase online sales using Google Wallet * New Google Checkout is now Google Wallet for buyers. Google Wallet is a fast, secure checkout process that helps increase sales by bringing you more customers and allowing them to buy from you quickly and easily with a single account, online or in-store. * Sell worldwide. Attract buyers in over 140 countries to purchase your goods and services online using their Google Wallet. Convert more sales. A fast, convenient checkout process helps Google users convert more than shoppers who have not used Google before. * Protect yourself from fraud. The Payment Guarantee Policy protects 98% of orders on average when an order is guaranteed, you get paid even if it results in a chargeback 2) Why would the telecommunications carriers like AT&T and Verizon want to scat into the payment business? What chance do they have to compete against Go ogle? Whats their advantage?. ANSWER i)Why would the telecommunications carriers like AT&T and Verizon want to move in to the payments business?The reason why the telecommunications carriers like AT&T and Verizon want to move into the payment business is because of the huge potential of revenues and another factors is the emergence of the mobile platform of smartphones & tablets that opens the door for new firms to enter the online payments marketplace based on newer technologies and control of the mobile platform itself ii)What chance do they have to compete against Google? Their percentage of chance that they probably have to compete against Google is 30%-70%,from our opinion. Google system is much familiar to the user than AT&T and Verizon.Google also one of four platform titans and already get the public acceptance. Yet, they still have the chance to compete against Google because Google is much familiar with search engines system. iii) Whats their advantage? AT&T and Verizon ad vantage is that they are from mobile telecommunications (phone company) which is give them the advantage to get public acceptance that in many parts of the world, the phone company is widely used as a payment system, after they announced a mobile phone-based payment system called Isi. Unlike Google, AT&T and Verizon is more to payment that makes by smartphone.So, it is their advantage to make step in Electronic payment market. 3) The smartphone giants apple and Google control the operating systems and technological features of the devices. Google exercises this control not by actually making the devices but licensing its Android system and demanding device makers include certain features. Which of these smartphones firms has the greatest chance of successfully developing a Web-wide wireless payment service? Why? ANSWER Apple advantages is, like Google has already developed an online payment system to support salles ath the iTunes storage.Unlike Google Checkout and PayPal, Apple ha s not to date developed an online merchant payment system that could be used across the Web. Some analysis believe Apple is considering the idea of extending its existing iTunes payment system to third gear-party vendors selling digital goods on the Internet. iPhone users can already use their iTunes account to buy some third-party virtual and subscription goods. Apples iTunes Store, which could serve as the mobile digital wallet used to store payment information on a consumers payment-enabled device,generated net sales of music, software (apps) and content of about $5 billion in 2010.There are approximately 225 milliom iTunes users worldwide with credit card accounts at iTunes. Apple disadvantages is, Apple does not have a presence in the online merchant payment process, a deprecative weakness. Four instance, you can use PayPal and Google Checkout at thousands of online retailers, but there is no similar Apple digital wallet that can be used across the Web. It only works at the i Tunes Store. This may be a case where Apples penchants for building walled gardens of hardware and software like the iPhone and iTunes Store has limited its future growth.Google already made its first foray into the merchant payment market with Google Checkout in 2007. Google Checkout is quite similar to PayPal, but it has grown to only 7% of the alternative payment market. Google Checkout stores a users financial information, including credit card information, and then presents this information to merchants when the user checks out. Google advantages is, the customer does not have to fill out forms or reveal credit information to online merchants, but rather clicks on a Google Checkout icon on the merchants site, and payment is made through Googles site.As with PayPal, the user stores value on the Google Checkout site in the form of a sustain credit card, or a bank account, and the merchant does not have access to the customers credit card information. Google firms has the greate st chance of successfully developing a Web-wide wireless payment service because, the customer does not have to fill out forms or reveal credit information to online merchants, but instead clicks on a Google Checkout icon on the merchants site, and payment is made through Googles site.As with PayPal, the user stores value on the Google Checkout site in the form of a verified credit card, or a bank account, and the merchant does not have access to the customers credit card information. QUESTION 4) What strategies would you recommend that PayPal pursue in order to maintain its dominant position over the next five age? . ANSWER Strategies to maintain PayPal dominant position over next 5 years Intro Scott Thompson , president of PayPal outlined a strategy to expand PayPal globally, strengthening its dominant position over the next five years. Here the strategies. 1.Increase penetration on eBay Projected growth on eBay is a function of seller coverage and consumer preference. A one-pe rcent share increase within eBay results in $17 million in incremental revenue for PayPal. While market share in No America is 79%, it is only 41% internationalistly so there is still plenty of room to grow on eBay. And new PayPal users on eBay (growing at a rate of 3 million new accounts per quarter) use PayPal across the Internet 2. Grow share in merchants services PayPal helps merchants to sell more online those that enable PayPal Express Checkout experience up to a 14% increase in sales.Today, eBay has approximately a 5% share of global merchant services, as much as 9% if you include eBay volume. PayPal has specific strategies for each segment of the market sole proprietors, small/medium business, and large merchants. Consumers are increasingly global, and increasingly security conscious. They prefer to use PayPal when they shop online. Note the significant growth among SMEs and large businesses. Merchants have discovered the value of payment select in encouraging incrementa l sales and higher transaction values, particularly via Bill Me Later.PayPal anticipates that it will hand 14% merchant services market share in No America by 2011. International market share is estimated to be 5-6% by 2011, citing PayPals unmatched facility for cross border transactions. PayPals global e-commerce market share is projected to be 12-14% (on and off eBay) by 2011. 3. Adjacent payment markers The third element of PayPals growth strategy is expansion outside e-commerce. Thompson estimated the non-retail marketplace online as $1 Trillion. He specifically noted mobile, social networks, and non-profits (government opportunities were cited by Donahoe earlier).PayPal has demonstrated early leadership in mobile payments, experimenting with solutions in lots of mobile segments until there is industry consensus where consumers will go. Although non-profits were positioned as an adjacent opportunity, there are over 100,000 non-profits currently using PayPal. Weve watched as Pa yPal has customized its services for non-profits with special on-boarding process, special features, and special pricing. Will this be the glide path used for other verticals? Not unlike Amazon, PayPal fosters a close relationship with developers that are creating applications for use online and on the go via mobile devices.The PayPal global Internet payments network can be used to exchange value not just on eBay and within e-commerce but beyond. Thompson acknowledged that opening up the developer network sequence maintaining a secure environment is challenging and thats why none of the other payment platforms out there has done it While Amazon has done this, and done it for payments, PayPal does not consider Amazon to be a global payments platform. PayPals global reach, closed loop network, and risk management/anti-fraud capabilities uniquely position it to reanimate innovation on the web with PayPal as the engine in the middle. CONCLUSION The online payment marketplace is exper iencing an explosion of innovative ideas, plans, and announcements, which one commentator has likened to a goat rodeo, a chaotic situation in which tendinous players with different agendas compete with one another for public acceptance, and above all, huge potential revenues. Others liken the payment marketplace to a battle among the four platform titans Apple, Google, Facebook, and Amazon. Each of these titans have their own versions of a future payment system that challenges the other players. And lets not forget PayPal, the reigning power in alternative