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Abdur Shoaib
Abdur Shoaib

Buy.com was founded in 1997 and originally focused on selling electronics, movies, and music online. In the early 2000s, it expanded its product catalog and launched a magazine. By 2006, Buy.com operated an online marketplace with over 100 sellers. In 2010, Buy.com was acquired by Rakuten for $250 million. Some key features of Buy.com included search capabilities, customer support, free shipping, and a Facebook page. While owning inventory provides advantages like economies of scale, it also carries disadvantages for small businesses like high capital and holding costs, cash flow issues, inventory management difficulties, and risk of loss from theft, spoilage or obsolescence.

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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, Blums 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., Japans 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
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
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
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.

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Usama 2

  • 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, Blums 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., Japans 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.