Furthermore, as one of the most popular business forms, e-business usually refers to “… Day-to-day business functions over the Internet and/or other electronic networks such as electronic data interchange (EDIE’ (Objectifications, n. P. ). In other words, e-business is an application that all business activities are supported by information or communication technology. This essay attempts to show that price advantage, safety of e-business and a new evaluate system were brought Impacts to E-business by TABOO. Definition TABOO is a Chinese online shopping website similar to eBay and Amazon was established by Alabama Company in 2003.
TATTOO appeared due to a huge number of users of Internet approximately 564 million In China (KGB Knowledge n. P. ). According to CNN(Impressionability, n. P. ) ;China Internet Network Information Center- report, “China’s online shopping user base reached 242 million in 2012, comprising 42. 9% of China’s total internet user base”. Given that is the benefit to small businesses and Individual enterprise’s, Alabama Company provided a platform that sellers could open online retail stores In order to cater to consumers In China. Sellers would offer new or used commodity through TABOO Marketplace whatever a fixed price or auction.
Of course, goods with their fixed price occupy a great majority of percentage. Furthermore purchasers are most likely to evaluate sellers’ creditability through their history sale and comment. According to consumption custom of Chinese, TABOO not only works hard to emulate eBay, but also develops a free business to consumer platform (KGB Knowledge n. P. ). It might why Chinese individuals are willing to use TATTOO rather than eBay besides an identifying secure trading platform and a particular secure payment service named “Alpha”.
According to Bergman (2010), wrasse’s gross merchandise volume (total value of all goods old) reached an estimated $60 billion” in 2009. Because of special advantages of TABOO, it boosted development of e-business and brought a lot effects for e- business. E-business Is administered price advantage by TABOO As economy developed In china, the publics level of consumption Is speedily increasing and they enthusiastically expect to keep pace with world’s fashion. However, the price of designer products, especially luxury goods, is prohibitive, due to high Import tariff.
Therefore overseas Chinese people Intelligently open a few stores to TABOO marketplace to provide a special service, called foreign purchase. That means abroad people use cheaper price to buy commodity from place of 1 OFF Consequently, not only could buyers save some additional fees, but sellers could also charge up to 10% service fee according to goods price. That is why most common consumers are willing to choose shopping online through TABOO platform. Furthermore, this situation creates an opportunity for development of e-business because of price advantage.
Another example as well as prove from home appliances, commodity prices from TABOO Mall is relatively cheaper than other traditional stores, such as the Mall of Seaworthy which a 42-inch Seaworthy television model number:LARRY) is the best product (Betty Ghana, 2013). The product’s price is 6199 Yuan in the TABOO Mall, while traditional mall offer 6,799 Yuan, a difference of 600. If consumers purchased in holiday, larger discounts and some gifts would be offered. In addition, the price advantage is not only provided to buyers besides sellers.
In fact, sellers are most likely to make use of this platform provided by TABOO for free, which BBC model compare to traditional markets that save a large amount of expenditure, such as rent of counter and salary of service staff. The treated is in the huge extent of encouraging enterprises and private retail to accede to e-business and bring a change of expending. Safety in e-business In the past, consumers had a suspicion for safety of capital and quality of commodities. TABOO is on the side of the consumer and put forward a few solutions.
First of all, buyers could check sellers’ real information, which included real name and copy of certificate of identification. Consumers have a rudimentary knowledge of the retail store they would purchase. Furthermore, a communicating tool is provided, named “Allowancing”. Buyers could make a discussion on the laity and price of commodities from this convenient platform with sellers. The intercommunication enhances acquaintance of goods from consumers and the confidence between both parties.
Last but not least, TABOO originate a particular secure payment platform named “Lippy’ which is the first use of “the third party security transaction mode”. It means that the buyer would pay to “Lippy’ account before “Lippy’ send messages to the seller with delivering goods. After buyers receive the goods, they confirm instructions to “Lippy’ to pay the sellers. It is a complete network transaction. Lippy’ furthest protect safety of consumers’ capital so that buyers could have sense of security and reduce worries (Yang,L. And Ill,X. , 2009).
So TABOO achieved a huge success by the platform and increasing individuals were high on online shopping. Moreover more websites used this model. Therefore e-business gains a chance to expand scale and enjoy the trust from consumers. A new evaluating system brought a new chance to e-business Traditional markets satisfy face to face sales which consumers could meet the seller and estimate commodities before purchasing, while on-line shopping have no opportunity to intercommunicate between buyers and sellers. How to identifying product quality become a serious issue for online customers.
Furthermore “these risks are significant obstacles to the development of electronic business” (Kiang Ye e. G. , 2009). Moreover, there are many choices that consumers may hardly select between different sellers and brands from TABOO marketplace. “With limited information on the value of these choices, customers often choose to follow other buyers” (Kiang,Y. E. G. 2012). Therefore, a new evaluating system is built and In other words, consumers directly check a seller of a certain product with the former ales information and evaluation of sellers and product in goods’ description pages.
Seller’s reputation system reflects overall reputation of their stores, such as efficiency, attitude of service, and trustworthiness. Furthermore it “has significant positive impact on the buyer’s willingness to purchase, and negative comments about the seller have negative a impact on sales volumes” (Kiang,Y. E. G. , 2009). Because of limitation of Seller’s reputation system that could not help consumers decide a certain commodity, another standard are put forward -historical sales records.
This moment is often aimed at a particular good for evaluating qualities and prices. Sellers’ reputation and historical sales records make up a relative complete evaluating system to reduce risk that purchase through electronic business platform and increase confidence in e-business. As speedy development of electronic business, a few problems also appear before publics eyes, fraud is one of the most serious problems. A small amount of sellers market imitative commodities for trying to gain illegal profit.
And opportunistic sellers may manipulate sellers’ reputation and historical sales records by creating many fictitious accounts for misleading nonusers. The behavior badly breaks balance of e-business and influence market order. E-business marketplace may lose more potential customers due to cause loss of other consumers. Conclusion Through analyzing many characteristics of TABOO, it is clear that Chinese e- business market is changed and boosted. Although many questions are brought for e-business by TABOO, this platform still has developments and growth in positive status.
According to research in marketing, the Alabama Company built a platform involved decreasing extra fees for creating price advantage, a few methods of peeping safety and ameliorate an evaluating system in order to reducing risk. In the last few years, share of traditional market proportion is already divided up by e- business market because of development of TABOO. E-business faces a huge chance of improvement when TABOO created a relative reasonable BBC system for ensuring rights and interests of consumers.
