Along with online auctions, there are many other methods in which companies are able to perform business today that, when performed together, can help streamline many processes that used to be done separately. Some of these methods include mobile communication technology, intelligent software agents, virtual communites, and social networking Web sites.
Mobile Communication Technology
People can communicate on the go in many different ways, such as through the use of laptops with Wi-Fi, PDAs, and cell phones (including smart phones that are a combination of PDAs and cell phones.) One of the biggest innovations in mobile technology is WAP, or Wireless Application Protocol, which allows for users to view Web sites on smaller cell phone screens. However, there are phones that are now being made with larger screens, which allow for users to view Web pages formatted in HTML as if they were on the computer. Another featue that is being integrated into mobile phones is GPS, which allows for mobile phone users to get directions straight from their phone.
One day all of our mobile devices such as cell phones and laptops with wireless Internet connection capabilities, will be interconnected with online marketplaces to allow for people to switch between the two with ease. This has not occured yet but there are advances being made to bring this scenario closer to reality. One of the more popular ways this is slowly being incorporated is how companies such as Wherify Wireless sells cell phones that are made more for users that would benefit from being tracked, such as children, employees of companies, and the elderly. Those that need to track the user of the phone can call the tracking center and find information such as the location of the phone. This allows for a sense of mind for those that may otherwise be cautious in giving a person a phone.
Intelligent software agents are programs that a business may use to supply customers with a list of items that are on sale that meet the specifications of the buyer. There are also programs being created that track the ratings of those buyers and sellers on the Web. This allows for those online to decide who to deal with based on their reputation on the Web.
Virtual communities are gatherings of people or businesses that share a common interest. There are many forms of virtual communities, such as chat rooms, Usnet newsgroups, and social networking sites. One other form of virtual community is one that we are all familiar with (and at times extremely frustrated with): Blackboard. This is an example of a virtual learning community that often has discussion boards, chat rooms, and drawing boards that allow students to come together and learn together in a virtual space. Another virtual community is a Web portal. One of the most well known Web portals is the Yahoo! page. They offer a multitude of services, such as a search engine, e-mail, games, etc.
Early Web Communities & Consolidation
Some of the first Web communities are still around today, though in different forms. One of the first virtual communities was called Beverly Hills Internet, which came to be known as GeoCities, which was bought by Yahoo! in 1998. However, this site has since closed down and been replaced by Yahoo!'s own Web hosting service. Another well-known site is Tripod, which allows users to create Web pages, participate in chat rooms, and view news, weather and health information. Like the purchase of GeoCities, Lycos purchased Tripod in 1998.
These purchases are just a few that have occured during the cosolidation of virtual communities that have not been able to perform alone.
Social Networking & Social Networking Revenue Models
Social networking sites have become some of the most popular Web sites visited today due to the ease and customizaton offered on some. Some sites, such as Facebook, are easier to use, while others, such as Myspace offer almost unlimited customization to the users. There are so many other sites out there that are not even widely known, and each one is made to serve a particular purpose or target a particular demographic. There are also different types of social networking sites, such as Web logs aka blogs, social networks for shoppers, and idea-based social networks.
Web logs, more commonly referred to as blogs, are a method of communication that allow the user to share what is on their mind and then viewers of the blog can leave comments. Some blogs can be focused on politics, which was prevalent in the past elections, while some stores are now creating and running their own blogs to interact with their customer base. In some ways, blogs are like a digital journal, but the big difference is that, unless otherwise hidden, they are available for the whole world to see. On some sites, people are now taking blogs to the next level by creating video blogs, or "vlogs." These allow for the user to feel more in touch with the person making the vlog by actually seeing and hearing the person, instead of just reading the words.
The popularity of social networking is now being harnessed to make a profit. There are many sites that use this approach, such as craigslist, which allows users to post ads for free (except help-wanted ads) and is available to almost all big cities in the U.S. and many international locations. Another site, Etsy, takes a similar approach but mainly focuses on the sale of handmade items.
Idea-based social networks are those that connect users that share common ideas, and allow for those users to communicate based on them. One of the most known sites of this nature is del.icio.us, which gathers links to other sites that are all one word - that is, the users choose a word that summarizes a particular site and allow for users who search that word to find similarly tagged sites.
One of the most asked questions about social networking sites is "How do you make money to keep going if users can get accounts for free?" The answer: through one of the following revenue models, which include
- Advertising-supported,
- Mixed revenue and Fee-for-Service,
- Fee-Based, and
- Microlending.
Social networking sites that use an advertising-supported revenue model do so buy selling space on the site in exchange for a profit. With many sites requesting users to submit demographic information, this process is made even more productive by focusing the ads on pages where the particular user is tended to click on the ad to see what it is all about.
On sites that use a mixed revenue model, the user may be able to perform a large number of actions by signing up for an account, but then opt to pay for advanced services. One such site that operates this way is Yahoo! mail. A user can get a free e-mail account, but if they decide later on they want more features, such as the ability to access their email from a program such as Microsoft Outlook, they pay a certain amount (yearly, monthly, etc). Some sites also use advertising to generate revenue, but when the ad space is not selling, it is good to have another method of generating revenue.
Some sites may also offer a service for a fee, such as Google Answers. However, other sites such as Yahoo! Answers and Askville have almost pushed Google Answers out of commission since they do not charge a fee as Google does, allowing for users to receive answers to questions at no cost. To some, the flip side of that is that some of the questions and answers provided for free are not nearly as thorough and accurate as those provided for a fee.
One of the most interesting methods of generating revenue for social networking sites is microlending, or lending small amounts of money to people who are attempting to start a new business. One of the key elements of this is the social network among borrowers who support each other as well as pressure them to make sure they repay the loan.
Internal virtual communities are also becoming more prominent in the business world since they allow for employees of a company to stay connected whether on the premises or on the go. This also allows for those employees who may be separated by geographic boundaries to stay connected and communicate. Many of these sites are housed on the company's intranet. All of these innovations are part of the second wave of e-commerce with part of the first wave included.