Online Shopping System

Online Shopping System

1.Introduction

This paper discusses an introduction to the concept of systems. A system is a routinely interacting or interdependent group of items framing a bound-together unit. It is likewise characterized as a collection of substances that is in or has a tendency to equilibrium. Meadows liked to think of systems as stocks. As per her book Thinking in Systems, a system is a set of interrelated items that create their particular example of conduct after some time.

The system may be pounded, constricted, activated, or driven by outside powers. The system is characterized by the reaction to these powers, and it is from time to time straightforward in the real world. In her book Limits to Growth (1972), it is expressed that systems, enormous or little, can exist in comparative ways. The book further states that understanding those ways is maybe our best hope for enduring improvements on numerous levels.

2.Background Information

EBay Inc. is one of the few online shopping companies that have been able to dominate the market for a long period. It is not only an American multinational corporation but also an e-commerce business organization that has been able to revolutionize the world of business within the last decade. The company has been providing sales services and goods to their consumers online. The company has its main office located in San Jose, California. The firm is behind online auction where people buy and sell goods online at will. Over the last few years, eBay has expanded to such an extent that people just buy lots immediately.

The online shopping system for analysis for this paper is eBay. EBay’s online shopping by a huge number of individuals has made them the biggest and best closeout spot on the Internet. EBay online shopping is enormous; although it has developed, it still just possesses an offer of around 5 percent of all retail deals income in the country. EBay online shopping auctions are attracting individuals due to lower costs, huge choice of products, and determination of the administration. It is less demanding than going to yard sales and live auctions. Likewise, it is universal: you can purchase in a bartering structure against others as well as in an altered estimated environment.

3.A Stock for Online Shopping

In this paper, money is the stock for online shopping. A stock is the establishment of any system, and for this reason, money is the stock for the online shopping system. Stocks are the components of the system that you can see, feel, check, or measure at any given time. A system stock is what seems to be a store, an amount, a gathering of material that has developed over the long haul. Stocks change over time through the activities of a flow. Flows are filling and depleting, births and deaths, buys and deals, stores and withdrawals, triumphs and failures.

4.Established Processes with Input-Outputs-Feedbacks

The major goals of this system include selling online, building the community, automating customer service, and generating new leads in the field of online shopping.

Inputs of the System

• Customers enter their client ID and password.
• Operators enter their client ID and password.
• Administrator enters his or her client ID and password.
• The user asks for the product portrayal.
• The user asks for the product search.
• The user orders a product.
• System appeals are transporting and changing location.

Outputs of the System

• The customer gets details of orders.
• The operator gets details of orders.
• Administrator gets details of orders.
• Users get asked for details of products.
• Users get orders.
• System processes requests.

Feedback of the System

EBay online shopping system has been discovered to be simple. One can search for particular items of their interest. One can simply browse through the classifications and check whether any items which they may be interested in are available. What happens when one finds an item? In the event that it is an auction type format, one then can make an offer for that item. Likewise, there is an alternative of setting a sum that is the most noteworthy. One shall open the page of the item, and afterward, the eBay online shopping system will make an offer for them up to that sum. From this feedback, it is vivid that eBay online shopping is secure, fun, and cost effective if approached correctly.

5.The System as Being Dynamic

The online shopping system has been found to be dynamic, in other words, it is not fixed but changing. This is evident in the following points:

1. A Growing Number of Mobile Customers: EBay has a solid installments system PayPal that is acknowledged and utilized by numerous online retailers and online customers as it is helpful and simple to employ. The developing number of mobile customers presents a tremendous change and development for PayPal as it is one of the few installment systems that meet the prerequisites for helpful shopping and payment transfers on the go.
2. Becoming a Retailer: EBay has access to the biggest online commercial center on the planet and is put all around to exploit that by turning into a retailer. The organization has IT and CRM systems set as of now and could undoubtedly control a piece of the overall industry of Amazon and other online retailers. This demonstrates that the system is not fixed.
3. Increased Administrations Portfolio through Acquisition: The organization has effectively obtained numerous organizations to amplify its administrations offering, and it should keep incorporating new administrations through mergers and acquisitions. This demonstrates that the system can change over years.
4. Opened More Online Stores in Different Nations: To maintain current development levels, eBay could open its online commercial centers in other vast and developing economies in Asia and Europe. This is one of its upcoming techniques, demonstrating that it is not settled but rather likely to experience changes over time.

6.Factors that Create Change

The following factors lead to creation of changes in the online shopping system:

1. Online Security. PayPal stores online customers’ personal data, for example, financial balance points of interest, which are the focus for online robberies. The more online clients PayPal has, the more appealing it gets as a focus for identity robberies, thus requiring security changes in the system.
2. Regional Minimal-Cost Online Retailers. Regional minimal-cost online retailers could outrival eBay by means of quicker and less expensive delivery, more confined product offering, and better information about the home market.
3. Increasing Rival from Amazon. Amazon’s online vicinity has altogether expanded, and now Amazon’s commercial center is simply behind eBay’s.
4. Exchange Rates. EBay gets a part of its pay from outside operations. The benefits sent back to the US must be exchanged into dollars and may be influenced by the exchange rates, particularly when dollar is measured against different monetary standards. These factors trigger the online shopping system to adjust some of its operations and change others to its growth and success.

7.Factors that Stay the Same

There are factors in the online shopping system that stay the same despite the changes that happen. They include:

1. High Expenses: EBay’s expenses for the merchants have risen essentially throughout the years. The firm gets charges for the listed products, sold merchandise, some enhancement expenses, and PayPal exchange charges. The vendors frequently make zero benefit on their low-value products sold on eBay because of its high charges.
2. No Further Development Technique: EBay has not uncovered any arrangements on how the business is going to maintain its development. Company’s top administration group is uncertain whether eBay should turn into a retailer or present new products and administrations, and how to do that: developing its products or procuring new business. Consequently, there is a high vulnerability of eBay’s future and business heading.

8.Impact of This System on Human Life

In regular life, individuals will need to purchase heaps of goods or products from a shop. It might be food items, electronic devices, household appliances, and so on. These days, it is truly difficult to find time to go out and get them by ourselves because of the occupied way of life or bunch of work. In order to settle this, e-commerce sites have been created. Utilizing these sites, people can purchase merchandise or products online just by going to the site and requesting the item online by making installments online.

The older system of purchasing products has a few disadvantages. The primary one is that it requires much time to go to the specific shop to purchase the merchandise. Since everybody drives an occupied life these days, time means a great deal to everybody. Additionally, there are costs required to get from house to shop. Moreover, the shop from where we might want to purchase something may not be open 24/7/365. Therefore, we need to adjust our time to the businessperson’s or vendor’s schedule. In order to overcome these, there is eBay, i.e. one place where one can get the required goods or products online. The system assists in building a site to purchase, offer products, or merchandise online, utilizing web association.

9.Advantages of the Online Shopping System

• Allows to choose products faster at one place.
• Saves time for a trip to the vendor’s place.
• Trusted goods and tension-free conveyance administrations. Products purchased online will be conveyed to the purchaser’s location free of charge (the provision may be changed by the vendor).
• Alerts and constant reporting through emails (to both vendor and purchaser).
• Reports produced can be put aside for future references.
• Inventory reports for the vendor on a daily, monthly, and yearly basis.

This paper regards many aspects of eBay as the online shopping system under analysis. It has been identified that a system can be defined as the group of routinely interacting or interdependent items framing a bound-together whole. For this reason, the paper analyzes eBay as a system. It shows how it is buffeted, constricted, triggered, or driven by outside forces to its success. A system must consist of interconnections, elements, and a purpose.

The paper has discovered that eBay is a shopping system with inputs and outputs which act as its elements. It also shows the interconnections all the way from going online to finding a product that an individual wants, from ordering it online to the point of getting it physically. Finally, it displays the purpose of the online shopping system through the advantages of eBay. Having considered the elements of the interconnections and the purpose during the analysis, eBay shopping system has been concluded to fucntion as a system.

10.An Analysis of eBay

a)Goals and Objectives

EBay has been in the front line to note that the firm has been buying and selling electronics, cars and machinery, design clothing, and fashion apparel. In addition to those, eBay trades collectibles, sporting goods, electronics, and footwear. The firm has set several goals and strategic development plans, where it has stated these goals. The primary goal of eBay is to increase the turnover and profits made during the fiscal year. The firm expects the total revenue to be between $21.5 and $23.5 billion by the end of this year.

It will record an improvement of more than $7 billion from the total revenue of the 2012 financial year, which mounted to $14.1 billion. If the expectation gets realized, then E-bay will be able to get a market segment of $10.5 to $11.5 billion. It will represent a three-year compound annual growth rate that is worth 14%. The increment in the total revenue will place eBay in a better position to compete with Amazon, which is its largest competitor in the online marketing systems.

Another goal that eBay is focusing on is to improve consumer satisfaction rate by at least 4%. In order to achieve it, the firm is working on ensuring that mobile transactions are easier and simpler. The world is changing in that people have adopted tablets and smartphones, and eBay has turned its focus to employing the two to increase the consumer satisfaction. EBay has also set the objective of increasing the number of online visitors to their homepage while reducing those who leave the page. EBay has been experiencing a tough problem of intrusive phone calls, and it is now focusing on ways through which they will be reduced by at least 10%.

b)Stability and Instability Resilience

In the last few decades, eBay has been able to control its products on the market despite various challenges that it has been experiencing. Having undergone a period of instability, it has finally become stable again. The prices on eBay have been stable since its establishment; however, there were times when they were low, and that was the period when eBay was unstable. Despite the time of instability, eBay was able to undergo the process of resilience with ease after all the economic disruption.

c)Cybernetics

It is undisputable that the current world of business is dynamic, and it continues changing from one situation to another. The market force is acting as a driver for the quick development of scientific innovations. An empirical analysis of eBay shows how it has been adopting science in its daily activities to improve service provision to the consumers. EBay has an international team of workers who combine various skills and manufacturing knowledge to enhance the services provided to the consumers. Technologically, eBay is built on e-box software that makes it agile in its development. Neil Mansila, an eBay app developer, says that it is the short form for e-commerce in a box.

d)Communication

EBay has been communicating with its consumers and customers through various social media and the official website, which is www.ebay.com. The business has transformed social media, especially Facebook, Twitter, Instagram, and LinkedIn, into a forum where the goods and services provider is able to exchange issues and views with the consumers. Through the forum, they advertise themselves, thus making them more popular and attracting large number of people to shop with the,. Online marketing is the future marketing, and that is why eBay has decided to take over the Internet.

e)Evolution

EBay has been enhancing since the day it was launched. It has evolved from a small online auctioneer to a large modern online business serving people. The business was founded in 1996, and it has been changing continuously in terms of improvement in quality and quantity of goods and services provided. A landmark in its evolution process was laid in 2008 when Donahoe took over the firm. The business has gone beyond auctioning and is now developing a partnership with mega-retailers such as Home Depot.

f)Algorithm

EBay has a well-defined set of instructions and orders that are used in business transactions for the task completion. The algorithm process on eBay is an automatic process where a buyer or a seller just needs to follow simple instructions that are outlined on the website. EBay has a team that manages the technical and other data that are loaded onto the site by new followers every day. The primary use of algorithmic business is to increase service efficiency and speed.

g)Interdependence

EBay is a firm that has depended on others for better service provision and improved customer care. Over the last few years, eBay has been relying on PayPal in terms of efficient financial transactions. EBay aspired to change this idea and become independent with its ways of sending and receiving money from consumers. This plan did not work, and as things stand now, eBay and PayPal will still be interdependent for the next half of a decade.

h)Regulation

EBay has implemented the law to regulate its business since its founding. Despite it being an online auction business, there are some goods that are prohibited by the management board. Facilitating work with its customers, eBay goes in line with the Consumer Contract Regulations Act of 2013 that requires all businesses to be compliant with a given number of obligations of giving explicit instructions about its operation. The firm has prohibited some goods such as adult items, drugs, and charity among others.

11.Conclusion

EBay has established itself as a global online market, making it one of the best online businesses despite the stiff competition from Amazon. Inc. The business structure of the company is not as complex as one may think. The enterprise utilizes a simplified linear business structure. Moreover, the business is holistic in nature, and it cannot be entirely independent.