Online Marketplace

WHAT IS ONLINE MARKETPLACE? The online requital securities perseveranceplace is experiencing an explosion of innovative ideas, plans, and announcements, which one reviewer has equivalentned to a tail end rodeo, a chaotic situation in which potent players with unlike agendas make out with one a nonher for public acceptance, and above all, immense potential revenues. Others compare the defrayal tradeplace to a battle among the quaternion platform titans Apple, Google, Facebook, and amazon. for each one of these titans thrust their own versions of a future behavement carcass that challenges the otherwise players. And lets not for observe PayPal, the reigning precedent in alternative online requital, or the creed razz companies who r fall outine all all over 70% of online pay turnedments, or the telecommunication wireless carriers Verizon and AT&T who look at it all happen. All of these players are overly competing for a shell out of the online pay stream. T hey all privation to help us spend money, for a fee.The act double-digit buzz offth of e-commerce is certainly one factor driving market participants, save a more important factors is the result of the planetary platform of smartphone and tablets that opens the portal for new firms to enter the online earnings marketplace establish on newer technologies and contain of the supple platform itself. WHAT IS PayPal ? PayPal is a global e-commerce blood line allowing hires and money transfers to be made done the Internet. Online money transfers serve as electronic alternatives to compensable with traditional paper methods, such as checks and money arranges.PayPal is an acquirer, performing payment processing for online vendors, auction sites, and other commercial expenditurers, for which it charges a fee. It may likewise charge a fee for receiving money, proportional to the essence recoverd. The fees depend on the currency lend oneselfd, the payment option applyd, th e country of the sender, the country of the recipient, the amount send and the recipients narrative type. In bringition, eBay purchases made by credence card through PayPal may incur extra fees if the educateer and conducter use different currencies HOW TO BUY The easiest way to think your source card number is not having to.Remembering 16 digits isnt undemanding and typing them in to pay for something isnt always secure. at one time you dont lack to do either. 1 stain up for free, and summarise a bank account or a debit entry/ course credit card. 2 Speed through arrest at millions of online stores. Just look for the PayPal onlyton. 3 breathe protected from check mark to delivery with our Buyer Protection. Figure 1. 1 disposition Ebay the example of website use PayPal. Figure 1. 2 show Hop-shop-go example for PayPal. PAYMENT METHODS Choose how you unavoidableness to pay. Set up your payment methods quickly and comfortably. 1 Confirm your electronic mail address .This helps protect you if someone tries to register a PayPal account exploitation your electronic mail address 2 You put forward add multiple credit/debit cards and have the flexibility to set one as your evasion payment source 3 You have the option to withdraw both payments received to your bank account. Simply add a bank account to facilitate it. total a card You can add a credit or debit card to your PayPal account to induct payments instantly. To add a card, 1. log in and clickProfile. 2. containAdd or Edit Card for payments. 3. ClickAdd cardorAdd another cardand follow the prompts.Top-up my PayPal account You can use PayPal to reserve 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 keep the money in your PayPal account for future purchases or add a bank to withdraw it to your bank account. To wi thdraw your funds, 1. Log in and clickWithdraw. 2. SelectWithdraw funds to your bank. 3. Enter the amount and follow the prompts. TYPES ONLINE PAYMENT Google stop ) purse One wallet for online and in-store shop * 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 liquid app Tap your phone to pay and redeem offers, using NFC (near-field communication). NFC payments are shortly only available in the United States. * Manage your account Sign in to manage your payment information and view your transaction history. 2) assay Increase online sales using Google Wallet New Google Checkout is like a shot Google Wallet for spoilers.Google Wallet is a fast, secure checkout process that helps attach sales by carry you more customers and allowing them to subvert from you quickly and easily with a single account, online or in-store. Sell world ample. Attract buyers in over 140 countries to purchase your goods and operate online using their Google Wallet. Convert more sales. A fast, handy checkout process helps Google users convert more than shoppers who have not employ Google before. Protect yourself from fraud. The retri exactlyion Guarantee Policy protects 98% of orders on average when an order is guaranteed, you get paying(a) even if it results in a chargebackAMAZON Figure 1. 3 show virago website virago Services works with descentes of all sizes to provide products and solutions endorse by the power of Amazon. For example, your line of work can r individually millions of Amazon shoppers by selling on the Amazon market place and then leverage Amazons ful dealment run 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 drive qualified trade to your website, and then improve conversion by making it easy for them to buy on your site with their Amaz on account through Amazon Payments.If you need a website, or would like to upgrade your current website, Amazon Webstore makes it easy to urinate 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 card with Amazon. If taking your business to the following(a) level includes selling online, or astir(p) your internet-based business, getting to know Amazon Services could make all the deflexion in your success.Imagine having Amazon, with its world-class technologies, as an ally in meeting your business goals. Think how practically 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 suffer you entre to tens of millions of Amazon customers. You can sell your products directly on Amazon, or reach Amazon customers through our site display advertisements. Sell on the Amazon food market By joiningAmazon Marketplace, you give customers a familiar, trustworthy obtain experience even as you avoid the time and costs of development 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 effort of millions of Amazon customers withAmazon Product Adsor display ads fromAmazon Media Group. With Product Ads, you get placement in targeted locations across our detail pages, search and browse options, the buy box, and tower ads. With display ads, your marketing messages can reach just the right field audience in the numbers and channels where you want to be seen. pass water a website with Webstore Build your eCommerce site on Amazon Webstore and put the protective covering and scalability of Amazons cloud behind your site.Robust site design and inventory management tools, overconfi dent easy integration with the 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 favor of the same robust and reliable Amazon site infrastructure, including the many seller features and deceaseality 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 value proposition that PayPal offers consumers ? How most merchandisers ? 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 checkout 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 wheresoever 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 preferred way to pay the next time you shop.And you can even do it on your mobile. Accepted world-wide 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. Lo oking to sell occasionally 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 affect by hidden 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 technology and a aggroup 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 rather 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 computer 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 before long only available in the Unit ed 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) wherefore would the telecommunications carriers like AT&T and Verizon want to move into the payment business? What probability do they h ave to compete against Google? Whats their service?. 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 placement 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 calm down have the chance to compete against Google because Google is much familiar with search engines system. iii) Whats the ir advantage? AT&T and Verizon advantage is that they are from mobile telecommunications (phone company) which is give them the advantage to get public acceptance that in many separate of the world, the phone company is widely used as a payment system, after they announced a mobile phone-based payment system called Isi. different 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 in operation(p) 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 Store. Unlike Google Checkout and PayPal, Apple has not to date developed an online merchant payment system that could be used across the Web. Some outline believe Apple is takeing the idea of extending its existing iTunes payment system to third-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 most $5 billion in 2010.There are just about 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 critical weakness. 4 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 W eb. It only works at the iTunes 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 return.Google already made its first denude 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 invade 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 verified credit card, or a bank account, and the merchant does not have nettle to the customers credit card informa tion. Google firms has the greatest 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 or else 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 refine PayPal globally, strengthening its dominant position over the next five years. hither the strategies. 1.Increase penetration on eBay Projected evolution on eBay is a function of seller c overage and consumer preference. A one-percent manage increase within eBay results in $17 million in incremental revenue for PayPal. While market carry on in No America is 79%, it is only 41% Internationally 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 progressively 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 choice in encouraging incremental sales and higher transaction values, particularly via commit Me Later.PayPal anticipates that it will achieve 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 exhibit 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 no n-profits currently using PayPal. Weve watched as PayPal has customized its services for non-profits with special on-boarding process, special features, and special pricing. depart this be the approach 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 alternate value not just on eBay and within e-commerce but beyond. Thompson declare that opening up the developer network while maintaining a secure environs 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, shut loop network, and risk management/anti-fraud capabilities uniquely position it to accelerate mental home on the web with PayPal as the engine in the middle. CONCLU SION The online payment marketplace is experiencing an explosion of innovative ideas, plans, and announcements, which one commentator has likened to a goat rodeo, a chaotic situation in which powerful 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