Written Assignment

Unit 1: Introduction to E-Commerce

University of the People

BUS-2202-01 E-Commerce
 BUSINESS NET TYPES

Introduction:

According to the book , business web has 5 types which are Business Web Aggregator ,

Business web Alliance , Business Web Agora , Business Web Integrator and Business Web

Distributer (Kutz, M.(2016). In this week's assignment , I chose two business net types and I

will include examples of each type . Afterwards I'll compare and contrast each example on

differences and similarities between them . Moreover, I'll talk about each category in terms of

the organizational benefits that e-commerce enables: profitability, increased market share,

improved service, and quicker product delivery.

TWO NET TYPE BUSINESSES:

The first one that I will explain is BWA Business Web Agora Business Web Agora, also

referred to as b-web, is an online marketplace where buyers and sellers can communicate and

negotiate over the products and prices being provided. Agora is a name that dates back to

antiquity. Later, this term developed to mean a place where members of the public gather to

carry out business(Classification of Business Webs According to Tapscott, 2021)

Agora is a very dynamic price discovery method that supports commerce and open business

meetings.There is no set price for a particular product in the business web agora, but we can

see that they are negotiated. This form of corporate network encourages the interchange of

tangible, digital, and intangible goods and services. A great example of this is "auction,"

where there is no set price (Classification of Business Webs According to Tapscott, 2021)
AUCTION:

Auction Agora is a business online site that uses music to facilitate the purchase or sale of

goods and services. Typically, the item or good goes to the highest bidder.

Business Web Aggregator:

This form of digital supermarket selects goods and services from suppliers, after

which it finds the proper market segments, pricing, and manages transaction collection

(Kutz, 2016)

Similar manufacturers are under the supervision of a business in this industry.

Aggregators will purchase goods and services and determine the price at their

discretion. We might mention that they have the power to manage sales and

contributions of items. Amazon is a fantastic example of such a business web

aggregator (Kutz, 2016)

AMAZON:

Like we all already know, Amazon is a technological corporation that focuses on a

variety of industries, including cloud computing, artificial intelligence, and e-

commerce. The organization has prospered and become well-known thanks to

technological advancement. After all, Amazon is regarded as an excellent example of

a business-focused web aggregator and a decent location to purchase and distribute

items.
Commonalities and differences between Auction and Amazon:

Commonalities:

1. Platform for Buying and Selling: Although they use distinct techniques,

Amazon and auctions both offer a platform for buyers and sellers to engage in

transactions.

2. Wide Selection of Products: Users can find a wide selection of items for

purchase on both Amazon and Auctions thanks to their wide selection of

products.

3. Both Auctions and Amazon have a strong online presence that allows users to

access their services from any location with an internet connection.

4. User Reviews and Ratings: Both Amazon and Auctions allow people to

comment and rate goods and vendors, assisting future customers in making

wise choices.

5. Buyer Protection: In order to assure customer happiness, both Auctions and

Amazon offer some level of buyer protection, including channels for dispute

resolution, refunds, and returns.

Differences:

1. Pricing Model: Unlike Amazon, which uses a fixed price model where sellers

determine their prices, auctions often entail a bidding process where customers

compete for an item.

2. Time Limit: Unlike Amazon, which doesn't place any time limits on purchases,

auctions have a certain period of time during which bids are accepted.

3. Second-hand market: While Amazon largely concentrates on new things, it

does sell certain used items through its marketplace. Auctions, on the other

hand, frequently specialize in facilitating the sale of used or rare objects.

4. Seller Control: On Amazon, sellers have more control over pricing and can set

their own prices, whereas in auctions, sellers have less control over the ultimate

price because it is determined by bidding competition.

5. When an auction concludes and the highest bidder wins the item, the

transaction is complete. On Amazon, however, the transaction is normally

finished as soon as the item is purchased and mailed to the customer.

Organizational gains in Amazon:

Profitability

Amazon undoubtedly earns more money every day than any other online

retailer (Lotz, 2018)

Increased market share

Market share growth for Amazon has contributed to its success. And as the

years pass, you can see that market share rates are rising (Lotz, 2018)

Improving service

As we can see, Amazon upgrades its online store and e-commerce app to better

serve customers. In this approach, it assists them in bettering their services and

enhances the environment for purchasing and selling goods(Lotz, 2018)

Faster delivery of product

The item will be moved in the direction of the buyer based on where they are

located. But while it depends on Amazon to provide an accurate timing for

when you will receive your bought item, they can probably offer you a general

idea of when you'll receive it (Lotz, 2018)

Organizational gains in Auction:

Profitability

If any other firm exists, revenues will likely outpace costs. On each item sold,

commissions and fees will provide money. Because the condition of the items is

reflected in the bid price.

Increased market share

Buyers state the greatest price they are willing to pay, and sellers state the lowest price

they would take during this procedure. When the buyer and seller agree on a price,

trading will begin.

Improving service

It is essential for the seller to always carry out their agreement after payment is made

if you want to improve a service in an accent, whether it be done online or in person.

This will provide customers a clear picture of the services you offer and increase their

likelihood of using them.

Faster delivery of product

Well, once you complete your transaction with the vendor by meeting the necessary

payment obligations, you will receive your delivery.

References:

1. Classification of Business Webs According to Tapscott. (2011, January 24). Lo

Que Te Mueres Por Saber.

https://cesiach.wordpress.com/2011/01/24/classification-of-business-webs-

according-to-tapscott/

2. Kutz, M. (2016). Introduction to Electronic Commerce: Combining

Business andInformation Technology. Bookboon.com. Retrieved

fromhttps://my.uopeople.edu/pluginfile.php/1092472/mod_page/content/41/

introduction-to-e-commerce%20-%20business%20and%20strategy.pdf

3. Lotz, A. (n.d.). ‘Big Tech’ isn’t one big monopoly – it’s 5 companies all in

different businesses. The Conversation. https://theconversation.com/big-tech-

isnt-one-big-monopoly-its-5-companies-all-in-different-businesses-92791