An Introduction to E-Commerce Companies and Stock Valuations Essay

eCommerce Companies and Stock Valuations1. IntroductionA hot topic in todays business culture is eCommerce. Experts argue about whether eCommerce will change business, whether or not it is a fad, and what viable strategies there are in a business world that is changing at the speed of idea generation. One thing that nobody argues about is the fact that eCommerce oriented companies have stock prices and market capitalizations that are enormous. Based on losses rather than earnings, some of these stock prices are inexplicable.This paper is a thought experiment that attempts to gather and disseminate data regarding these stock prices. Additionally, the paper will attempt to propose solutions and reasons for the current market trends relative to eCommerce companies.2. Discussion of the eCommerce business modelsWhen discussing eCommerce, it is good to have a frame of reference. As a result, it is interesting to review the common models associated with the field of study. Generally, there are two widely recognized business models regarding eCommerce. These models include the B2B (Business to Business) model and the B2C (Business to Consumer) model. The fundamental question regarding these models is is the specific model in question a revolutionary way of doing business, and hence a new business model or is the specific model in question a facilitation of a mature business model.Depending on which model you are discussing you may get different answers. The B2B model is much more common. B2B eCommerce is roughly five times more prevalent than B2C eCommerce . Following is a discussion of the models, and answers to the above question.2.1 B2B (Business to Business) To reiterate, it is important to decide whether or not B2B is a fundamentally new business model, or a facilitation of existing business models. It is easy to answer this question when one looks at history. The fundamentals of B2B eCommerce have actually been around for decades. B2B eCommerce is the new en vogue term for supply chain management in the...

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