Exercise 1: Answer

1. Visit http://yahoo.com and http://zope.org as examples of online communities.
    a. What is meant by an online community and how is it important for e-commerce?

"An online community is: Where a group of people with similar goals or interests connect and exchange information using web tools." (Owyang)

This brings a community of like-minded people together. So an on-line community is good in enabling communication. From a commerce perspective it opens up the avenues available to the consumer, providing much greater choice and options. It also provides greater scope to the retailer by reducing the physical presence requirements that a traditional shop-front store entails.
However with the good comes the bad as expressed by (Malik)

References
Owyang, J. (December 28th, 2007). Retrieved 21 May 2009, from http://www.web-strategist.com/blog/2007/12/28/defining-the-term-community/ Malik, O. ( Tuesday, October 18, 2005 ). Web 2.0, Community & the Commerce Conundrum. Retrieved 21 May 2009, from http://gigaom.com/2005/10/18/web-20-the-community-the-commerce-conundrum/ b. Visit the three auctions sites at http://ebay.com, http://ebay.co.uk and http://ebay.com.au:
         i.   Is there a common thread and a local community sense in action?

The 3 sites http://ebay.com/, http://ebay.co.uk/ and http://ebay.com.au/ are very similar.

They are localized and user aware. I was asked by both the US and the UK site if I would rather visit the Australia site. From a personal view that is very good as it starts you feeling welcome straight away.

The home page for eBay Australia(Tuesday 19 May 9:30pm) has the following:

        ii.  What electronic payment systems are used? Are they globally acceptable?

AU	UK	US
PayPal	PayPal	PayPal
Credit Card	Credit or Debit Cards	Credit or Debit Cards
Personal or Bank Cheques	Pay on collection	Moneybookers
Money Orders	Escrow	Paymate
Bank Deposits or Bank Deposit Express	Other payment methods	ProPay
COD		Pay on collection
		Escrow
		Other Payment methods

Some of these payment methods are globally acceptable, but not all.

         iii. What are the benefits to of an online auction sale to a buyer, a seller and E-bay owners?

(Wright) sums up the answer to this question perfectly:

eBay provides the legal framework, contractual templates and basis of commercial trading for C2C, B2C and B2B clients.

References
Wright, C. (26 April 2009). Visiting EBay. Retrieved 21 May 2009, from http://itc565developersblog.blogspot.com/2009/04/visiting-ebay.htm

     c. Find three others examples of an online business using an online community approach.

• http://www.graysonline.com.au/ is an online auction house
• http://www.jetstar.com/au/en/index.aspx provides a one stop shop for holiday and travel planning
• http://www.dealsdirect.com.au is very similar to Amazon(see below)

2. Visit the famous online store front at http://www.amazon.com
    a. Why has it been a successful site? How does the purchase of a book work?

Amazon allows a consumer to browse for items of interest. If an item piques the interest of the consumer, Amazon will suggest alternatives and additional items that relate to the consumers choice. This suggesting is based upon previous choices by the consumer and others who have made similar choices.

The steps to purchase a book are as follows:

• Search for book/item
• Select book/item
• Choose other books/items
• Proceed to checkout
• Enter payment and shipping options
• Discount coupons can be entered at this stage
• Payment is validated and books/items are dispatched
• Await delivery of goods

    b. Is there any secure transactions not involving money?

Amozon allows multiple methods of paying for items as discussed above. It also allows for payment in the form of gift certificates, reward certificates, free offers if you purchase certain quantities and rebates on goods. It could be argued that these are all a form of monetary transaction, but to the consumer who is making the sale these can be seen as extra incentive. Maybe they are the straw that causes the consumer to make the purchase.

   c. What is the range of items that you can buy?
        i. List the steps involved and comment.

I think a better question could well be "What can't you buy?".

The list of purchasable items at Amazon seems to be growing every day.

This image is just the top level menu showing the departments within which a purchase can be made.

Here are the steps you need to follow to place an order.(Amazon.com)

1. Find the Items You Want
2. Add the Items to Your Shopping Cart
3. Proceed to Checkout
4. Sign In/Create a New Account
5. Enter a Shipping Address
6. Choose a Shipping Method
7. Provide Payment Information and a Password
8. Review and Submit Your Order
9. Check Your Order Status

I have purchased many books on Amazon, all of them computer related, predominantly with a Microsoft development mentality bias. I have found the process to be painless, cheaper than buying locally and worry free.

References
Amazon.com. Placing Your First Order. 21 May 2009, from http://www.amazon.com/gp/help/customer/display.html/ref=hp_navbox_lnor_new?nodeId=524700