Business

Any business, of buying and selling goods, that is transacted electronically, over the computer networks or internet is call e-commerce or e-business (Jean-Pierre Kuilboer, 2002).  E-business that takes place between companies and consumers is termed business-to-consumer (B2C). Retailers who use e-commerce to conduct their business are called Internet Retailers.

An Internet Retailer needs many resources apart from a storefront to succeed. It requires strong assets for storing quality products and managing the distribution quickly and effectively. The webpage should be designed in a way which catches the customers interest with good search and feedback facilities. Internet retailers need to be financially strong in order to produce good quality products and manage a wide spread distribution channel which includes supply chain, shipping, RMA, customer support etc.

An Internet Retailer requires fewer physical resources, more financial resources and less human resources than a traditional retailer. Internet retailer advertises on the website so it does not require physical advertising media such as a bill board and banners, etc. However, the cost of building and maintaining a website is very high as its done by high-tech IT professionals so more financial resources are needed. Human resources are fewer for internet retailers as they employ only the workers at the shop and technicians who work on the website. Many of the businesses replace personnel with software programs that help them manage shipping and inventory systems effectively.They employ very few workers and depend heavily on shopping cart and check out systems.

After the dot-com bubble burst, many companies were put out of business but some managed to survive and grow into giant e-commerce businesses. Yahoo was one of the survivors in the aftermath of this catastrophe. The reasons are evident in the strategies Yahoo implemented after the crisis. It joined hands with telecommunications companies and Internet providers to introduce broadband services. It strengthened its search portals by taking over other leading search engines to compete with other leading internet retailers. After 2 years experience it developed its own technology in the form of the famous Yahoo Search engine. It also initiated social networking and blogging service which includes Yahoo Messenger, Mail and free text messages for mobile phone users in four countries Philippines, Canada, U.S. and India.

Careful management of expenses and strong marketing strategies has helped Yahoo to remain one of the most successful companies in the world.