Virtual auction site
1 - Introduction
Warning: Before knowing this business, it is worth mentioning that the following topics are not part of a Business Plan but rather the profile of the environment in which the entrepreneur will envisage a business opportunity such as the one described below. The purpose of all of the following topics is to demystify and give an overview of how a business positions itself in the marketplace. Which variables most affect this type of business? How do these market variables behave? How to raise the necessary information to take the initiative to undertake
The virtual auctions, which attract more and more fans in search of a new product for a price well below the normal cost. To participate in these auctions, it is first necessary to register. Then the user buys his credits (each "hammer" costs, on average, $ 1 and equals a bid of, say, $ 0.01). From there, the surfer can already make his / her bid and hope to finish the product at the given time.
This time is measured by a countdown timer and can range from auction to auction. "A lot of people participating in the auction have been around for a while now, a simple sweep by Google and other related sites has found more than 50 different sites in a 1 cent auction mode. Brazil the great majority to launch this year 2009.
It must be made clear that the virtual auction is not the same thing as a traditional auction. It is a new auction concept that allows consumers to purchase products of the most varied, at very low prices, in some cases with up to 99% discount.
The Internet brought with it a veritable avalanche of new resources and means that, at the disposal of corporations. Something very similar is happening with e-commerce. Individual websites were first developed, then the so-called virtual malls and more recently the auctions.Identifying that individual e-commerce meets the needs of a particular corporation. A company, whether industrial, commercial or service, inserts in its Internet site its products with the respective technical-commercial characteristics (drawing, photo, dimensions, physical characteristics, prices, payment conditions, etc.).
This same site adds functions of issuing a purchase order, collection means, delivery form, promotions. The consumer can then purchase any of these products remotely and automatically.
Analyzing that in some decades the consumer received or requested catalogs that contained information about the products; if it interested you, it was possible to complete at the end an order form that would be sent by mail to the selling company.
Today what we have as a transformation beyond the speed of the buy-sell action is the logistics in favor of the commercial transaction. Considering that today sought the improvement of this same process in a constant way the so-called virtual malls and e-commerce sites perceived the speed and built new forms of buying and selling. One such news is the so-called virtual auctions.
Traditional auctions survive the door of the third millennium to preserve the interests of the selling parties. This type of auction allows the highest price for an offer, favoring sellers by locating the buyer who is willing to pay the highest price among a certain group of consumers.
What was identified by stakeholders (seller-buyer) was the need for an immediate return and low development costs of business transactions. This process had to be modified by contemporary entrepreneurs who adapted the secular auctions to the Internet.
So we have a new mode of auction known as a prepaid fully online auction. The characteristic of this Internet purchase model lies in the consumer of the auctions and buy the bids in order to spend them at the end of a particular product.
There are different types of prepaid auctions: • 1 cent auction: In this most popular auction mode the values of the products start from scratch and with each bid given the value of the product is increased by 1 cent. Hence the name of the modality • Reverse auction: In this mode of auction there is a pre-set value for the product, and for each bid, a certain value decrements the total value. Basically this auction is the reverse of the auction of the modality of 1 centavo • Smallest auction single bid: In this mode of auction users must inform a value for the product. Whoever reports the smallest and only value wins. It is the same mechanism of the contests that happen in the TV.2 - Market
What defines the relationship as consumption is the existence of a link between supplier and consumer, arising from the acquisition of a product or the provision of a service.
Supplier is the one who provides services or places products on the market, aiming for profit as the main goal. The consumer assumes the role that he or she purchases or uses the product or service. And the concept of the product is aimed at any good, material or immaterial, durable or non-durable, mobile or immobile, and service is activity, human action with determined purpose.
From the understanding of the concepts, it can be seen that virtual auction websites provide services to consumers, which are consistent with the products and services they want and that are placed on the market.
Thus the virtual auction is termed as a human action with the determined purpose of helping consumers to buy and suppliers, or even people who do not fit into that concept, to sell.
Although these virtual auction sites are often sought by private individuals who use the platform without aiming for profit, in this model of e-commerce products and services are sold.
It should be noted that these virtual auction sites receive commission proportional to the price of each product traded, which generates considerable profit. Recalling that the operator of the virtual auction site runs the risk just like any other commercial transaction and with the damages resulting from the imperfections of the negotiations.
It is important to mention that several merchants negotiate through the virtual auction sites, and it is difficult to guarantee security in this marketing, since not all products are of legal origin or are in perfect state of conservation. In order to protect the buyer, virtual auction sites usually assign good and bad ratings to sellers as they market their products. In order to differentiate themselves in the market, some sites are already starting to give other options to the users of the auction. As an example give the user the option to buy the product using as a discount the value of the bids made. "If the user does not auction that item, he can use the value of the bids in full as a discount when buying the product in the store that is our partner," says Fernando Wolff. What is intended is to attract a target audience that usually sells on the internet, using a differential that will lead consumers to have the option to participate in the auction, to auction the product for a much lower price and, if they can not, they can buy product at normal value. This differential has been winning the e-commerce market through virtual auctions.
Opportunities:
Facilities for virtual negotiations.Economy of time.Practice in the sale of products.
The auction system provides more agility in selling products and higher profit than traditional methods. Another great opportunity is linked to the possibility that the virtual environment offer of goods and the making of bids until you reach the best available supply. Revenue from the business is obtained through registration fees + commission in the case of companies (B2B) or sales commission in the case of individuals (C2C). They have variations in the commercialization like the Reverse Auction, where the sellers are that make the bids, and the lowest price offered takes the request. Examples: superbid and mercadolivre
Threats:
Security issues. Privacy issues. Increased competition and competition. Possible difficulty with return.
Value Added Security certificates to protect users.
E-commerce companies feel the need every day to ensure the security and integrity of their customers' data. Giving more credibility to business on the web is part of customer loyalty.
Stamps such as the Blinded Site audit the security of sites and virtual stores, collective purchases and virtual auctions through vulnerability analysis on a permanent basis, which results in more security for web shoppers. As an example: The auction site online PagBarato.com, has the Site Seal, and acquired the certification of the American company Thawte. According to the general director of the site, Marcello Marques de Moura, who seeks security and credibility to offer and close deals on the web can not abdicate a security seal. "We work with the security seals of Blindado Site and Thawte, because we want our customer to feel the safest and most unconcerned when providing personal data and credit card numbers."
Another opportunity is related to the consumer profile. Analyzing this profile is critical. Today we have Internet users from 25 to 34 years old who are the ones that use e-commerce companies, representing 38.3%, followed by the group from 35 to 49 years old. Men are still the majority in this type of site, with 58.8% and women representing 46.2%.Seeking to focus your business on the desired consumer profile assists the development of your business, consequently adds value to your brand representing increased productivity and profitability.
3 - Location
The location ends up not becoming a determinant factor for the success of the business for a collective purchase company that focuses on the accomplishment of services necessarily carried out by the internet, because it is a virtual mechanism and does not have face-to-face service.
Regardless of whether it is a home office or a business room, it is important for a company to be found in the internet environment by working on positioning your site on search engines such as Google. This yes is considered a success factor. It must also have a clear site that shows trust to the client, as this will be the face of the company, where the services will be offered. If you want to rent an office, commercial room, you should worry about issues such as:
The price of rent;
Does the property meet the operational needs related to the location, capacity to install the business, possibility of expansion, availability of water services, electricity, sewage, telephone and mainly internet?
The point is easy to access, does it have parking for vehicles?
Is the site subject to flooding or near hazardous areas?
Is the property legalized and regularized with municipal public agencies?
Is the plan of the property approved by the Prefecture?
Was there any later work, increasing, modifying, or diminishing the primitive area?
Do the activities to be carried out in the area comply with the Zoning Law or the Municipal Master Plan?
Are the IPTU payments related to the property up to date?
4 - Legal and Specific Requirements
Next Chapter: 5 - Structure>
Regarding the legal aspects of this business model, the procedures are identical for registering and legalizing a company that is not virtual. The entrepreneur will register as follows: Register at the Board of Trade; Register with the Secretary of Finance; To register in the City Hall of the Municipality; Provide the Social Connectivity register with the Federal Savings Bank; Provide membership to the Employers' Union.It is necessary to look for the local PROCON to comply with the requirements of the Consumer Protection Code (Law No. 8.078 of 11.09.1990). Due to the issues and deadlocks generated in the e-commerce mode, they are analyzed and judged based on the Consumer Defense Code. Today we still have the absence of specific laws for electronic commerce and all aspects of the area are related to the Commercial Code, which does not present an update to the models of commerce practiced by the Internet. Not only Brazil, but all world economies lack solutions for this new wave generated by e-commerce. The tax and tax issues also follow the legislation applicable to traditional commerce.
5 - Structure
Next Chapter: 6 - Staff>
The structure for deploying a virtual auction company is considered small. There is only the need for a commercial room with a space for the reception and the stay of customers while awaiting service. In many cases, depending on the legislation in force with regard to location, one can establish the business in some dependency of the entrepreneur's residence
The size of the space required to carry out the services provided by the company is approximately 30 m², divided between reception space composed of armchairs to wait for the attendance and the place of activity composed of a table for meeting of the members and workstations , which may or may not be divided by bays and workstations. For this segment of action it is necessary for the company to have a good connection to the internet, with all computers and equipment in a network. Given that the virtual auction, which is nothing more than a self-manageable site, requires a large part of the structure purely logical, we have to focus on a set of services and software that the company must have to manage the site, from broadband communication channels.
Broadband is provided by the vast majority of telephone companies. There are several types of services of this type with many different technical characteristics, however, special attention must be given to the issue of data transfer speed, as it will directly influence the response speed. This should not be less than 300 Kbps. You still need to have an access provider to be really connected to the internet. Most telephony companies also offer this service, but you can opt for any other company in the market if the conditions are more satisfactory.
With access to the internet available a registered domain is required, for example, www.yourcompany.com. Since most web hosting companies save the client from this work by registering the domain, that part will not be dealt with. For more information visit the site http://registro.br. You will then need to hire a hosting service. There are companies that have servers exclusively for hosting their collective purchase site files, making them available for internet access 24 hours a day, seven (07) days a week. Most of these companies also provide services such as: register your domain, make available email accounts for each domain, statistics of access to your site, and others. The entrepreneur should be aware of these "additional" services, in order to establish a good cost-benefit ratio, which is an important part, since there are numerous companies in the industry with a great price variation. Give examples of suppliers of this service. Examples of companies that provide these services: www.clicregistro.com/Dominiowww.webnames.com.br/ Register + Domain www.redehost.com.br
The crucial point in assembling the logical structure is the site itself, in other words, the virtual auction site. One may choose to hire an outsourced team to develop the site or have its own team, however, this cost will be somewhat high.
6 - Staff
The team related to electronic commerce called Virtual Auction must follow the guidelines of the Federal Court. With regard to the Federal Court, it is important to have the Supervisor of the Auction Sector, the Director of the Secretariat and the Judge of the Court of Tax Enforcement, who accompany (in person or in person) the public auction itself.
The employees that operate the electronic auction system (online auction) are those of the official auctioneer's team. They received specific guidance from the Federal Justice on all the procedures to be adopted.
In addition to following this regulation companies in this segment need professionals who form the following teams:Commercial team, which should act in the contact with the partner companies. (2 people) Software development and administration team, which will be in charge of developing and / or managing computer solutions. (1 person) Marketing team, who will act in the planning and actions in relation to the presentation of the site, the offers, as well as market studies and the best solutions to reach your target audience, whether consumers or partner companies. (1 person)
7 - Equipment
The professionalization of teams and the innovation in equipment and are differential for this business model. The equipment required for this type of business are:
Complete microcomputers of last generation, as it will work with graphics, web pages and communication contents. Color and black and white laser and inkjet printers.Scanners and digital photography and filming equipment.Telephone and logic network.Computers with video card.Internet broadband.Tables, chairs, cabinets, according to the sizing of installations; Shelves, shelves; Office supplies;
From the registration of interested parties to the final issue of the auction, the hardware comprises five computers and a laser printer.
There are three generic ways to implement an e-commerce site with all sorts of variations. They are: Business computing Virtual hosting services Simplified electronic commerceSo in descending order of flexibility and increasing simplicity. Business computing means you buy hardware and software and hire a team of developers to create your ecommerce website on the web. As an example to Amazon, Dell with large players that participate in e-commerce on a business level. Consider that you can have business computing solutions if: You have a very intense traffic, millions of visitors per month; You have a large database that contains your product catalog (especially if the catalog changes constantly); You have a complicated sales cycle that requires many custom forms, price lists, etc .; You already have other business processes in place and you want your e-commerce offering to be delivered to them.
Virtual hosting services give the entrepreneur some flexibility in enterprise computing, but that depends on the provider.
Simplified ecommerce is what small businesses and entrepreneurs are using to get into ecommerce. In this option, your reseller provides a simplified system for setting up your store. In general, the system involves a set of forms to fill out online. The reseller software then generates all the store's web pages for you. Two good examples of this type of offer are Yahoo Stores (Verisign) and Verio Stores (in English). The entrepreneur pays per month for these services.
8 - Raw Material and Goods
Retail inventory management is the search for the constant balance between supply and demand. This balance must be systematically measured by, inter alia, the following three important performance indicators:
Inventory Turnover: Turning inventories is an indicator of the number of times capital invested in inventories is recovered through sales. It is usually measured on an annual basis and has the characteristic of representing what has happened in the past.
Note: The higher the frequency of deliveries from suppliers, logically in smaller batches, the higher the inventory turnover ratio, also called the inventory turnover index. Inventory Coverage: The inventory coverage ratio is the indication of the length of time the stock at a given time manages to cover future sales, without supply. Customer service level: the customer service level indicator for the retail environment, ie, the business segment where the customer wants to receive the merchandise, or service, immediately after the choice; demonstrates the number of sales opportunities that may have been lost because the merchandise is not in stock or the service can not be performed promptly.
Therefore, the stock of products should be minimal, aiming to generate the least impact on the allocation of working capital. The minimum stock must be calculated taking into account the number of days between the purchase order and the delivery of the products at the company's headquartersThe virtual auction market is broader than the virtual store market. While virtual stores reach only the consumer audience, the virtual auction market reaches out to consumers and sellers alike. To create an auction site specializing in electronics, artwork, used products, clothing, sound and automotive accessories, etc. The entrepreneur will need domain, hosting, project logo and a complete auction system.
The goods related to the virtual auction business are varied. All kinds of products can be sold over the internet. Virtual businesses are versatile and allow adjustments and adaptations with great speed as the technology advances. It is necessary for the entrepreneur to visualize what is behind a virtual company, its specific objectives and purposes, and that branch variations require adjustments and changes to the social contract, according to the law.
9 - Organization of the Productive Process
The organization of the process that identifies the functionality of e-commerce - virtual auction challenges classic concepts and trade patterns. In this process variability of procedures occurs that can establish a set of steps ranging from the offer of products to the reception by the client:
First, the entrepreneur to organize the exhibition of the products of the virtual auction on an internet site. The access of potential customers motivated by electronic advertising. The choice of products and purchase decision including various means of payment. After purchasing products, electronic notification of sales is made. It is necessary to think about an efficient, fast and secure delivery logistics. And finally, it is necessary to follow the levels of customer satisfaction. All these processes are indispensable, however, many attempts to electronic commerce fail because of logistic deficiencies. The customer makes the purchase, makes the payment and waits for the merchandise for long periods. This occurs for several reasons, but one of the most common is dependence on products from suppliers or distributors, who are not committed to the customer, or are ineffective in delivering. In this way e-commerce requires the joint action of service providers in the area of information technology - software, access systems, search systems and others. Also, the need for suppliers of outsourced products and / or distributors, conveyors, authorized service. It is important to consider that all types of businesses need successful partnerships, however, virtual businesses need partnerships that are built on trust, mutual commitment and customer respect.
10 - Automation
Next Chapter: 11 - Distribution Channels>In relation to the business, automating is equivalent to computerizing all internal operations of the company and integrating them with suppliers, banks, credit protection services, debit and credit card operators, tax authorities, among others. There is in the market a good offer of systems for management of companies of the most varied sizes and types. These software make it possible to control the scheduling of clients, registration and history of services provided to each one, direct mail services for clients and potential clients, management of employee services, control of commission, control of accounts payable and receivable, suppliers , payroll, cash flow, cashier closing, etc.
Therefore, the automation to be required will depend directly on the size of the enterprise to be assembled, and the use of more complex and sophisticated automation systems is only justified for larger companies.
11 - Distribution Channels
Next Chapter: 12 - Investment>
The products are marketed through the virtual commerce itself, on the internet, ie the distribution channel is the site itself. The global logistics strategy should be established according to the characteristics of the products sold.
If the entrepreneur produces the products, he will have to add to the existing processes the delivery system to his customers. If the entrepreneur only markets third-party products, it is necessary to establish a joint strategy with its suppliers, aiming at reducing costs and delivery time, streamlining transportation and simplifying distribution procedures.
12 - Investment
Investment comprises all the capital employed to start and enable the business until the moment of its self-support. It can be characterized as:
Fixed investment - includes the capital employed in the purchase of real estate, equipment, furniture, decoration, utensils, installations, renovations, etc .; Pre-operational investments - are all expenses or expenses incurred with projects, market research, company registration, professional fees and others.
Infrastructure for Virtual Environment - Total value: R $ 11.600,00Structure of website - Total value: R $ 10,500,00Request: R $ 1,100.00 Computer / Notebook - Total value: R $ 10.500,00 Multifunction printer - Total value: R $ 550,00Station workstation (table and chair) - Total value: R $ 3,000.00 Office furniture and utensils - Total value: R $ 2,500.00TOTAL GENERAL - R $ 39,750.00
The above values are for reference only.
13 - Working Capital
Next Chapter: 14 - Costs>
Working capital is the amount of financial resources that the company needs to maintain to ensure fluidity of cash cycles. Working capital operates with an amount immobilized in the cash (including bank) of the company to support the cash oscillations.
Working capital is regulated by the deadlines practiced by the company, they are: average terms received from suppliers (PMF); average stocking terms (PME) and average terms granted to customers (PMCC).
The longer the term granted to customers and the longer the storage period, the greater their need for working capital. Therefore, keeping minimum stocks regulated and knowing the limit of time to be granted to the customer can greatly improve the need for cash immobilization.
If the average term received from suppliers of raw materials, labor, rent, taxes and others is higher than the average storage times added to the average term granted to the client for payment of the products, the working capital requirement will be positive, that is, the maintenance of available cash to support the cash oscillations is necessary. In this case an increase in sales also implies an increase in working capital. To do so, the company's earnings must be at least partially reserved to complement this cash requirement.
If the opposite occurs, that is, the deadlines received from suppliers are higher than the average storage time and the deadlines granted to customers for payment, the working capital requirement is negative. In this case, one should look at how much cash available in cash is needed to honor future payment commitments (suppliers, taxes). Therefore, withdrawals and excessive depreciation may cause the company to have problems with its future payments.
A cash flow, with predicted future cash balances should be implemented in the company for the competent management of the need for working capital. Only in this way can sales and deadlines be accurately managed. It is estimated, reserve around 45% of the amount invested in the installation of the enterprise to ensure the balance of the business. For a structure like the one presented here, with an investment of the order of R $ 39,750, it will require a working capital of R $ 18,000.00.
14 - Costs
They are all expenses incurred in production and that will be incorporated later in the price of the services rendered.
Care in the management and reduction of all costs involved in the purchase, production and sale of services that make up the business indicates that the entrepreneur can succeed or fail, considering that as a fundamental point the reduction of waste, the purchase for the best price and control of all internal expenditures. The lower the costs, the greater the chance of winning on the end result of the deal. Avoid high turnover (entry and exit) of employees, as this situation costs the company.
The costs for running a virtual auction company should be estimated by considering the following:
Wages, commissions and charges - Monthly value: R $ 11,400.00 - Annual amount: R $ 136,800.00 Contributions and fees - Monthly value: R $ 300,00 - Annual value: R $ 3.600,00 Rent, condominium fee, security - Monthly value: R $ 1,000.00 - Annual value: R $ 12.000,00 Water, electricity, telephone and internet access - Monthly value: R $ 200.00 - Annual value: R $ 2.400.00 Cleaning, hygiene, maintenance - Monthly value : R $ 250.00 - Annual value: R $ 3.000,00 Accounting advice - Monthly value: R $ 400,00 - Annual value: R $ 4.800,00 Advertising and publicity of the company - Monthly value: R $ 450.00 - Annual value : R $ 5,400.00 Acquisition of raw material and inputs - Monthly value: R $ 500.00 - Annual value: R $ 6,000.00
TOTAL MONTHLY: R $ 14,500.00 TOTAL ANNUAL: R $ 174,000.00Note: Reference values for a company with the dimensions shown here.
15 - Disclosure
Next Chapter: 16 - Tax and Tax Information>
The best means of disclosure is the internet itself. When you are looking for a product to buy you usually look for sites like Google. If the person does not find the first links then search with another keyword. It is clear that your company website must be on the first page of results and preferably at the top of Google's page.
There are two possibilities for your site to appear on Google: in the organic area and in the area of sponsored links.
Organic search is the largest area of Google's result pages, it's not paid for and your link will naturally appear based on the relevance of your site to that keyword keyword you're looking for.
The sponsored link is an area on the right side of the results page identified at the top of the page. For you to appear in this area you need to sign up for Google Adwords and make a value offer for keywords that are related to the content of your site. In a kind of auction that takes into account the value offered by the keyword and the relevance of your site is that it defines the position in which your ad will appear. The most important thing is that you only pay for the link that is clicked by the user, if the ad appears, but the user does not click you pay nothing. You can determine how much you want to spend each day. Another advantage is that you can advertise even without having an advertising agency since you can do it all yourself.
Another way to advertise your virtual auction site is Viral marketing has nothing to do with computer viruses, although this term started along with the internet it is brother of the old word of mouth. Just like the flu virus that circulates through contact between people, viral marketing is the spread of an idea or brand among people via internet tools. Social networks, email and especially twitter and facebook have accelerated contact and indication of products to other potential customers over the internet. Today it is very easy to leave your opinion on the internet. Viral marketing has a great advantage for the company, because it is a third party talking about the company, and this brings more credibility to what is disclosed
Sabtu, 31 Maret 2018
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