E-Commerce

1. Introduction of buy.com
Introduction
Founder Scott Blum sold his stake to SoftBank in 1999 for $195 million just before the company
first filed to go public.[5] Stock values plummeted in the year following Buy.com's initial public
offering and in 2001 Blum reacquired Buy.com and took it private for 17 cents per share.[6]
In 2002, Buy.com decided to go beyond selling solely electronics, movies and music and began
adding more soft goods to their catalog. It was this same time that Blum extended a welcome to
Amazon.com customers. Appearing in the Wall Street Journal, Blum’s address promised
Amazon customers that Buy.com would prove itself to be the better buying option. This
statement came shortly after Buy.com announced a 10% below Amazon.com cost on all books
sold on the site and a free shipping site-wide offer[7].
Later that year Buy.com launched its first issue of BuyMagazine[8]. Buy.com later converted the
magazine into an all-digital publication. When Buy.com updated its website in 2006, it
announced a marketplace that allows consumers to purchase from various sellers with only one
account necessary to process their purchase[9]. At launch, Buy.com had 100 marketplace
sellers[9]; the company now works with thousands of sellers that collectively offer 11.5 million
products[10][11]. The company has become the second company in eBay history to receive over 1
million positive customer reviews[10], and holds a satisfaction rating of 99.6%[12].
In July 2010, Buy.com was acquired by Rakuten, Inc., Japan’s biggest e-commerce company.
The acquisition was valued at approximately $250 million (USD).[13] Shortly following the
acquisition, on July 22, 2010 Buy.com announced its new 45-day return policy replacing the
industry-standard 30-day return policy.[14]
Buy.com reported its best Black Friday performance in company history in November 2010,
with more than 45 percent year-over-year sales growth on the Buy.com site (as of 5 p.m. PST on
Friday, Nov. 26). A major driver of the company's overall growth included sales through
Buy.com's marketplace, which grew by more than 100 percent compared to Black Friday of last
year.[15] Again, in November 2010 Buy.com reported its best sales day in company history on
Cyber Monday, outpacing its record-breaking Cyber Monday performance in 2009. As of 5 p.m.
PST on Monday, Nov. 29, the company experienced 48 percent higher year-over-year sales
growth on the Buy.com site.[16]
Catagories : Included all categories
Buy TV
Books Movies TV & Music
Clothing & Shoes

2. Features of buy.com
Searching facility
To find for different products buy.com provide you to searching facility, through this facility we can
easily search the different products on the spot. And through this facility you can easily access of the
product.
Help facility
Another feature of buy.com is to provide the help facility. If you can face problem for getting any
product they provide you to help for this problem.
Free shipping
Another facility provided by the buy.com to our customer is free shipping facility. Means if you can
buy any product through buy.com then they provide you the free home delivery.
Face book joining facility
Another facility is that you can also join the buy.com on face book.
Renting or Buying:
Advantages and Disadvantages
If you are considering buying a house, one of the first decisions you need to make is whether buying a
house instead of renting one is the right direction for you. Since owning a home is the "American Dream",
many people simply assume that it's always to their advantage to buy a home, and for most, it is. Take a
moment to review the following table to see how your situation fits in. Items in the green boxes are
advantages and in the red boxes are disadvantages.
Renting Buying
Advantages Disadvantages
More fixed costs for the
Variable costs
term of the lease
Not gaining equity,
Equity may go up, down, or stay stagnant
but not losing it either
When the lease is up, If you want to move, home generally must
you can just move be sold
There is generally less work in maintaining Work needs to be done by you--or paid
a home or apartment for by you
Generally a larger initial investment--the
Smaller amount of "up-front" cash
downpayment
Disadvantages Advantages

3. Over time, the mortgage balance
No matter what happens with the value of
decreases and equity builds, even if the
the home, you will never gain equity
value of the home does not increase
Limited--or no--ability to personalize The ability to remodel and redecorate the
your living quarters home to match your needs and desires
There can be tax advantages attached to
No tax advantage to renting. Your landlord home ownership. Consult competent
gets any and all tax breaks that are available legal and/or accounting advice for details
for your situation
Disadvantages of buy.com
The traditional buy-hold-sell inventory business strategy offers advantages and disadvantages.
While the advantages include leveraging economies of scale, protection against shortages and
benefiting from price increases, the disadvantages for a small business are mostly cost-related
and may outweigh any positives.
Capital Cost
Buying inventory carries a number of cost implications. If you purchase a quantity of product, it
ties up your cash and may limit your ability to fund other activities. The loss of opportunity
presented by this situation is called the capital cost. Another cost implication is the forcing of the
budget, which occurs when a company buys inventory based on what it has budgeted to spend,
without taking account of changes in the business landscape that might affect sales.
Holding Cost
The costs involved in the storage and management of inventory can be substantial. Depending on
the type of product and the quantity of inventory, you may need to pay unnecessary costs for
premises or holding space. Holding costs include the cost of labor and operations to manage the
stock, and the cost of losses resulting from spoilage, pilferage and obsolescence.
Cash Conversion Cycle
Yet another cost-related disadvantage is the loss of interest on your money. The cash conversion
period is the time between paying for the inventory and receiving the money from its sale.
Assuming that your company has sufficient liquidity to buy the inventory for cash or on the basis
of payment on invoice, converting your liquid assets into inventory that you hold for a period
will result in a loss of bank interest on the money. If you use credit to buy the inventory, your

4. sales price needs to incorporate the cost of interest on the funds. If the use of your cash resources
results in the need for bank financing, you must also take account of the cost of the financing.
Stock Management
Inventory in stock needs to be managed. One of the common mistakes companies make is to give
responsibility for this task to under- or unqualified personnel, in an effort to save money. This
leads to several problems including a delay in the detection of quality, as this may only surface
on dispatch of the goods or receipt by the customer, at which point too much time may have
elapsed to return the goods to the manufacturer.
Risks
Another disadvantage of the buy-hold-sell inventory model is the level of risk involved in
holding purchased inventory before selling it, which includes the risk of theft and spoilage as
well as the risk of pricing changes such as special discounts or promotions by competitors that
may leave you holding surplus stock. The risk of the product becoming obsolete applies if you
have purchased more inventory than you can sell within a reasonable period, which depends on
your type of product and the resources of your business.