Question One
I searched for a car, automobiles and motorcycles by category, from Germany Gold Supplier. After analyzing all the available options I landed on a Mercedes Benz ML 500 used car from Danimex GmbH, a verified Supplier. I was able to compare the car with other cars from other sellers.
The process provides an instant access to various products from various companies enabling comparison for best terms of sale. It is also easy to compare the prices and choose a potential value depending on your affordability. The website also provides a mechanism of contacting the seller for negotiations.
Question Two
Online sites like Alibaba provide a wide range of products online.
They provide instant information to the available products including their prices.
They also enable comparison and a buyer is able to demonstrate rationality therefore buying a product that will maximizes his utility subject to the price he is able to offer.
Costs
Online sites do not provide physical inspection of a product before purchasing. It limits one rely on the information provided by the seller.
In case of unverified suppliers, one is not assured of delivery of the bought product as there may arise fake suppliers intending to exploit buyers.
New online operators like SpinCent should be aware of the risks involved in online marketing and therefore ensure that majority of their suppliers are verified. It should also recruit companies with a good reputation. This will reduce instances of fraud to their customers and therefore gain credibility hence attracting more users of the site.
Question Three
The first two sites; www.alibaba.com and www.trade-india.com provide users with an opportunity to trade online. The third website, www.europages.com, provides a database of various companies and suppliers. It provides vital information to business people regarding marketing services. It does not provide a platform for trade to take place between buyers and sellers.
The first two sites offer advanced search where a buyer is able to specify the search of the product required. The third site only provides a list companies from which you can select and get information about their operations and products.
All the three websites provide for opening of a user account for registering users. This enables the users to be verified as well as assess and get updates on more specific information about companies.
Question Four
Trade between countries and companies may finally take place online. With increasing worldwide use of the internet, innovations and inventions are likely to take place and tackle the issue of fraud which is a big threat. It is a threat because there is no physical attachment involved during trading online. Mechanisms on the on fraud and transparency are likely to be developed ensuring safety of the buyer’s money.
Online site trade is also to reduce costs of travelling from one country to another to identify and sign contacts with companies across borders. If there is transparency and reduced fraud companies will embrace the websites to reduce transaction costs.
Question Five
With such measures implemented by online sites, there will be less worry about fraud. This is because the companies are well scrutinized before their exposure to the buyer. It will therefore cause minimal fraud or no fraud at all.
Works Cited
Liu, Shiying, and Martha Avery. Alibaba: The Inside Story Behind Jack Ma and the Creation of the World's Biggest Online Marketplace. New York: Collins Business, 2009. Print.
Watson, John. Buying & Selling Online. New York: Dorling Kindersley Pub, 2010. Print.
