Wednesday, March 17, 2010

Understanding Online Business Models

EBay and Amazon are two successful businesses that sell online because they are the ones who understood what people what. In the free article, he wanted to invent something that people could throw away, or what people wanted. People want easy. I use online retailers all the time, including eBay and Netflix. Netflix learned that people will keep searching for what they like until they find it. I use Netflix so I can watch documentaries, just like the article The Long Trail said.

I also use iTunes because it’s easy to pay a dollar and get the song I want from my computer. Online retailers have the good and bad just like anyone business. I think though they have more good. They are open 24/7 and anyone with internet access and a credit card or pay pal account can get something shipped to their house. On the downside, if you do not have one of those things then you are forced to pay cash, which you can only do in person. I think eBay will always be a successful business; I’m one of the customers too.

The whole point of even having the online shopping, like the movie said, is to create a marketplace where everyone could come together and when everyone comes together, it doesn’t take long to get a huge number. I think these big companies that just started over a weekend will stay in business because of stock holders, and their already loyal customers.

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