2.3
Comparative study
In this section, we are going to describe some works which
have the same way like this work. Which are online auction for vision finance
company.
2.3.1 Online auction for vision finance
company
According to Mr. RUMONGI Charles, student of mount Kenya
university he decides to develop online auction for Vision Finance Company
which are also very popular because they offer lower transaction costs than
auctions and offer a bigger market for rare and collectable items that may not
be available in one region, but can be bought through online auctions and
shipped almost anywhere in the world. He chooses that topic to help vision
finance company by developing a system which will help the company to manage
easily your materials, in such way I found this topic in the same way with mine
because my work is OOIS for La GALETTE supermarket which will help La GALETTE
administrator to manage easily his product and help us their customers to use
online services.
2.3.1.1 Strengths
There are many advantages that online auctioning has over
"real life" auctions, which is one of the reasons why online auctioning is one
of the most popular forms of e-commerce to date. One of the reasons for its
success is that it enables sellers to promote their goods to an extremely large
and diverse range of customers. Instead of just marketing to consumers in the
area of an auction, the market has increased to become global. As a result,
more consumers may be interested in buying a particular good, therefore driving
up the price value. The large global market can also have the reverse effect on
price value, as because there are almost billions of items available in the
online auctioning website, it is common to find overlooked and therefore
underpriced items.
Another advantage of auctioning online as opposed to
auctioning is that it is easier to find information and records containing
details of the previous history of the seller. This way, if someone has a
tendency for selling a product, taking the money, then not sending the item to
the buyer, it will be posted on the online auctioning site and people will know
to be wary of that buyer. This has resulted in sellers being more cautious and
more than in the auctioning world (Dysart; 2004; p.68).
According to Julie Vallone, of Entrepreneur magazine, many
businesses also use online auctioning sites to test their new products. They do
this to gauge how popular a product seems to be and what price range they
should be using when they introduce it to the retail market (Vallone; 2000).
Another advantage of online auctioning is simply the novelty factor that it has
as it is still considered a new concept. Many people will be drawn to auction
sites such as EBay just because they have heard about it from some other medium
and are curious to see what it is. Many of these people may be drawn in and
soon become avid buyers and/or sellers.
2.3.1.2 Weaknesses
Despite the enormous popularity
and many advantages of auctioning online, the concept also comes with its fair
share of disadvantages. One of the most common disadvantages with auctioning
online is that many bidders seem to be so caught up with an auction and the
thrill of beating another person to the last bid that they are spending more
than they can afford, and possibly more than the retail price they would pay
for the same item.
Fraud is another large and seemingly unavoidable disadvantage
of online auctioning. Unlike auctions, it is much easier for sellers to bogus
items they do not possess and collect money from the bidders without ever
sending them their items. There have been many reported cases where people have
been charged with fraud after placing nonexistent items on online auctioning
websites, but for every one of these reported cases, there are many more that
go unreported. This situation also happens in reverse, where buyers bid for an
item, the seller sends them the item believing their money is in the mail, and
it is never received. It is much harder to trace a person in the virtual world
and as opposed to the real world. For more detailed information about the issue
of fraud within online shopping, please see Online Auctioning Sites -
Security and Fraudulency
Unfair negative feedback for sellers is also another
disadvantage of online auctioning. Some sellers will make extra effort to
please all their customers, however one unreasonable customer that is
impossible to please can affect their reputation forever by placing negative
feedback on the website. This is why becoming a regular seller on online
auctioning sites can be extremely time consuming, as sellers must go out of
their way to meet all their customers' demands and requests (such as emails
requesting more details of the product and shipping, postage and handling
costs) so that they can avoid being labeled as unreliable or dishonest by their
customers.
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