Introduction
- This presentation offers an overview of 3 companies in the online shopping industry:
- Walmart – B2C model;
- Mirakl – B2B model;
- eBay – C2C model.
Online shopping industry is growing strongly with no sign of decline. Today online shopping accounts for about 10% of all retail sales (“Online Shopping Trends 2019”). E-commerce industries have different business models that include business-to-clients (B2B), business-to-business (B2C), clients-to-business (C2B), and clients-to-clients (C2C). This presentation offers an overview of three companies that have different business models with detailed comparative analysis and recommendations.
Walmart
- A US-based international retail corporation:
- Hypermarkets;
- Discount departments stores;
- Grocery stores;
- Online shopping.
- Employs more than 2.2 million people (Walmart).
- Uses B2C ebusiness model.
Walmart is the world’ largest company by revenue and the number of employees. It has about 4,800 Walmart stores and 600 Sam’s Club membership-only warehouse clubs (“Walmart Inc.”). Around 275 million customers visit Walmart’s online shop every week (“Walmart Inc.”). The company aims at providing the largest selection of products at the lowest possible price worldwide.
Mirakl
- Mirakl Inc. is an online marketplace for businesses based in the US:
- Connects suppliers with corporate buyers;
- Offers marketplace expertise;
- Provides significant customers/suppliers insights.
- Employs less than 100 full-time workers (“Mirakl Inc.”).
- Uses B2B ebusiness model.
Mirakl provides the technology and partner ecosystem for the e-commerce marketplace (Mirakl). Its revenues are $1.4 million and it operates in the US (“Mirakl Inc.”). Even though the company is not a major player in the market segment, Mirakl is an excellent example of a B2B trade facilitator.
eBay
- eBay Inc. is a multinational corporation based in the USA:
- Online auctions;
- Buy It Now sales;
- Online event ticket trading;
- Classified advertising.
- Employs more than 30,000 people.
- Uses a C2C ebusiness model.
eBay is a well-known online platform most famous for its auctions. The company originally started working in the US and is now aggressively expanding to international markets (“Ebay Inc.”). Its market value is $32,159.3 million with global revenues of $10,746 million (“Ebay Inc.”). Originally the company utilized the C2C ebusiness model; however, currently, it also uses the B2C approach.
Features and Benefits Comparison
- Mirakl:
- Offers information about goods, prices, and customers;
- Provides expertise;
- Arranges dispute resolution services.
- Walmart:
- Offers information about goods and their prices;
- Provides delivery services;
- Grants warranties on the products.
- eBay:
- Offers information about goods, prices, and customers;
- Delivers dispute resolution services;
- Provides certain guarantees.
- All the companies provide services appropriate to market needs.
- Every website has its distinctive and unique benefits:
- eBay is easy to use and provides an opportunity to choose from the largest selection of unique products;
- Mirakl provides all the necessary insights about clients and suppliers;
- Walmart grants warranties on their products with free returns allowing its customers to feel secure while buying.
While all the three companies offer online services, Walmart has an apparent benefit of letting its customers come to their stores and talk to real people. Such an opportunity is crucial for those who are afraid to buy online. It also allows faster returns of goods for clients with a 100% guarantee of money back o replacement if the product does not suit the customer. However, even though the company has its benefits, it cannot compete with eBay on selection and prices, since eBay has listings from around the world. At the same time, neither Walmart nor eBay offer the services provided by Mirakl.
The distinctive features and benefits offered by those three websites demonstrate that they are not completely interchangeable. If a company needs to find a supplier, it will most likely utilize Mirakl. People who need to buy unique or used products will most likely use eBay due to its business model. Finally, Walmart is more likely to attract customer to satisfy their everyday needs, such as casual clothing, basic utensils, and groceries.
Business Forms and Revenue Models
- Business forms:
- All the three companies are corporations.
- Revenue models:
- eBay and Mirakl charge their sellers an advertisement fee.
- Walmart charges its buyers through retail margin.
All the companies use the corporation business form due to its distinctive benefits. Corporations are associated with the limited liability of its owners, tax advantages, and unlimited life. The revenue models are appropriate to the companies’ business models.
Recommendations
- I would prefer using eBay for selling and buying products:
- It is user-friendly;
- Allows buying at a lower price;
- Grants the ability to buy products from around the globe;
- Incorporates most of the benefits of Mirakl and Walmart.
- Mirakl is appropriate for business owners looking for suppliers:
- May benefit from including foreign suppliers;
- Can attract customer by improving the interface.
- Walmart is convenient for buying products with a high probability of defects:
- The online store may be moved to a separate website to facilitate navigation.
The selection of eBay is associated with my personal needs. Since my major purchases are usually used products of good quality to ensure the best cost to value ratio, I prefer eBay due to its business model and benefits discussed previously in this presentation. However, I would prefer buying from Walmart for everyday essentials if the website was more user-friendly. At the same time, if I needed to find a supplier for my company, I would utilize Mirakl. In conclusion, every website is useful for different purposes, and customers’ choice depends on their immediate needs and possibilities.
Works Cited
eBay. Ebay Inc. Web.
“Ebay Inc.” Hoovers Database, 2019. Web.
Mirakl. Mirakl Inc. Web.
“Mirakl Incorporated.” Hoovers Database, 2019. Web.
“Online Shopping Trends 2019.” NationMaster. Web.
Walmart. Walmart Inc. Web.
“Walmart Inc.” Hoovers Database, 2019. Web.