According to Heyes (2005), in recent years online shopping is becoming more popular. Two popular online shopping sites are Amazon and eBay. Therefore, in this report, I want to explore which site is more competitive and how each one will do in the future, in relation to the industry in which they compete. The industry of online shopping has a unique service. Online shopping is the process through which consumers directly buy goods or services from a seller in real-time, without an intermediary service, over the internet. Internet business began in1991. It was not until 1994 that online shopping was being utilized, such as online banking. “During the same year, 1994, Netscape introduced SSL (Secure Sockets Layer) encryption of data transferred online, which has become essential for secure online shopping. Also in 1994 the German company Intershop introduced its first online shopping system. In 1995 Amazon launched its online shopping site, and in 1996 eBay appeared” (Wikipedia, 2011, page.1). Company Backgrounds
Jeff Bezos established Cadabra.com in 1994, and then in 1995, Bezos changed the name of the company to Amazon.com. The company marketing started in 1997; the company began with an online bookstore. In 1998, Amazon gradually expanded their products and domain. In 1999 Amazon cooperated with Sotheby's companies to start an online auction. Amazon also cooperates with Toys’R’us.com to establish a co-branded toy and video game store. At the same time, Amazon added a French and Japanese language site. However, because of restructuring plans, Amazon decided to decrease 15% staff. In 1998, AOL became a marketing partnership. Amazon purchased some assets from Egghead.com. In addition, in 2001, Amazon also made a deal with Borders in order to provide service, inventory, and fulfillment for Borders.com. Subsequently, Amazon launched its clothing sales which included hundreds of retailers such as Nordstrom, the Gap, and Land’s End in 2002....
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