Gmarket is an e-commerce website based in South Korea. The company was founded in 2000 as a subsidiary of Interpark , and was acquired by eBay in 2009, who subsequently sold it to Shinsegae at 3.4 trillion Korean Won.
41-719: The predecessor of Gmarket was founded in 1999 by Young Bae Ku. At the time, it was part of the online auction company Interpark . In 2000, it spun off as its own website, known as Goodsdaq. In 2003, the website was renamed Gmarket and adopted a customer to customer e-commerce business model. In 2006, Gmarket became the first South Korean online company to be listed on the NASDAQ . That same year, it launched its global website with product listings in English. In 2009, eBay acquired Gmarket for approximately 1.2 billion USD after buying Gmarket shares from Interpark and Yahoo . Following
82-465: A complaint is resolved and the victim can be compensated. Auction fraud makes up a large percentage of complaints received by the FBI ’s Internet Crime Complaint Center (around 63% in 2005 and 45% in 2006). Shill bidding is the most prominent type of online auction fraud where sellers themselves submit bids to increase the price of an item they have put up for sale, without intending to win. Shill bidding
123-401: A considerable amount of money without receiving anything in return. The auction owner makes money in two ways: the purchasing of bids, and the actual amount made from the final cost of the item. The increasing popularity of using online auctions has led to an increase in fraudulent activity. This is usually performed on an auction website by creating a very attractive auction lot, such as
164-409: A fee based on the selling price of each item and a fee based on the starting price, and from advertising . In 2005 it was announced that Gmarket would increase fees it charges to Gmarket Store sellers, which caused considerable enough controversy. The president of Gmarket then emailed all Gmarket users with news that other fees would be decreased. Gmarket does not handle the goods, nor does it transact
205-563: A fine of up to £5,000 in the United Kingdom . Shield bidding is a technique whereby a buyer uses another account (called a "shield") to discourage other competitors from bidding by artificially increasing the price and then at the last moment withdrawing their bid to allow the actual buyer to win the auction with a lower price. Most online auction sites do not allow withdrawal of bids except in specified circumstances, making this technique impossible to carry out except on sites where such
246-403: A low starting bid level. Once a buyer wins a lot and pays for it, the fraudulent seller will either not proceed with the delivery, or send a less valuable version of the purchased item (replicated, used, refurbished, etc.). Protection to prevent such acts has become available, for example PayPal's buyer protection policy . As PayPal handles the transaction, it has the ability to hold funds until
287-506: A middleman between buyers and sellers and increasing the cost to the fraudster of committing a violation. The current mainstream online platforms act more as "intermediaries" and collect deposits from sellers who sell large-value products. With this approach the money is transferred to the seller's account after the ownership of the item is confirmed and transferred, ensuring the security of the transaction. Business to business Business-to-business ( B2B or, in some countries, BtoB )
328-479: A result, smaller businesses with less capital often struggle to stay afloat. In B2B, brand reputations greatly depend on the personal relationship between businesses. On the other hand, in B2C, the business's reputation is often fueled by publicity through the media. In many cases, the overall volume of B2B (business-to-business) transactions is much higher than the volume of B2C transactions. The primary reason for this
369-428: A rule is not implemented. It is difficult to spot a dirty technique being used by an anonymous or pseudonymous person in online auctions, but it is certainly doable. It can be revealed by examining a seller’s auction history and looking for an account which has bid on every or almost every auction of that seller. If there is someone who meets those characteristics, it is most likely a shill using that account to increase
410-531: A variety of types , with different bidding and selling rules. eCommerce sales for businesses have been steadily increasing for years, and with the migration of virtually all transactions to digital due to the COVID-19 pandemic , worldwide sales through ecommerce channels such as websites and online marketplaces increased overall in 2020 and beyond. There are two primary markets for online auctions: business to business (B2B) and business to consumer (B2C). B2C
451-507: Is a situation where one business makes a commercial transaction with another. This typically occurs when: Business-to-Business companies represent a significant part of the United States economy . This is especially true in firms with 500 employees and above, of which there were 19,464 in 2015, where it is estimated that as many as 72% are businesses that primarily serve other businesses. One possible argument of economics to explain
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#1732782841503492-519: Is also one of the most difficult types of fraud to detect, since it is usually conducted by the seller in collusion with one or more bidders in the auction. In 2011, a bidder on eBay became the first individual to be convicted of shill bidding on an auction. By taking part in the process, an individual is sometimes breaking the law, depending on the relevant jurisdiction, for example breaking the European Union fair trading rules which carries out
533-421: Is clearer, it has spot sourcing contract management that offers a flat retail rate for each item sold. Time is also different as B2B has a slower process than B2C which is concluded in shorter periods (that could be minutes or days). Business-to-business generally requires an upfront investment whereas business-to-consumers do not need a business to spend money on infrastructure. The last difference mentioned here
574-415: Is encouraged to examine the sellers' feedback profile before bidding to rate their trustworthiness. Sellers with high ratings generally have more bids and garner higher bids. However, it is possible for sellers to make their feedback private and just leave the numbered rating (number of positive, negative, and neutral feedback with a positive feedback percentage), which means that bidders and sellers cannot see
615-445: Is forecast to have over a 1% annual growth rate, achieving a nearly 22% share of total global retail sales by 2024. B2B ecommerce gross merchandise value showed a similarly steady rate through 2019, as to mirror its retail B2C counterpart. The largest consumer-to-consumer online auction site is eBay , which researchers suggest is popular because it is a convenient, efficient, and effective method for buying and selling goods. Despite
656-466: Is identified, the platform can freeze the account of the relevant seller. But this can only passively punish accounts of people who have committed fraudulent behavior. Based on the characteristics of the internet, these people only need to register new accounts. One of the most effective measures is the use of secure payment systems. These platforms force sellers to get payment through trusted payment gateways, thus providing additional security by acting as
697-797: Is that in B2B, lagging in the digital transformation, has to deal with back-office connectivity and invoicing a number of different partners and suppliers, while B2C results in more seamless transactions as options, such as cyber-cash, allows the business to accept a wider variety of payment options. B2B typically only allows payment via credit card or invoice, making the purchasing process longer and more expensive than with B2C. B2B, as there are normally bigger amounts involved over longer periods of time, usually have higher costs than B2C, which consists of quick, daily transactions. Businesses typically want to buy on net terms, meaning that B2B merchants have to wait weeks, if not months to get paid for their goods or services. As
738-409: Is that in a typical supply chain there will be many B2B transactions involving subcomponents or raw materials , and only one B2C transaction, specifically the sale of the finished product to the end customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windows, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to
779-744: Is the retailer supplying goods to the consumer. In B2B there are business people on both sides, whereas in B2C there is normally one business person and one consumer. In the first case, the decision is pursued by need (because the other business needs it), and in the second case, they are expectations rather than needs. B2B has many sellers and different stores, whereas B2C, is usually just one supplier. B2B concentrates on raw data for another company, but B2C focuses on producing something for consumers. A B2B transaction entails direct-sourcing contract management, which involves negotiating terms that establish prices and various other factors such as volume-based pricing, carrier and logistics preferences, etc. B2C transaction
820-433: Is the transaction pattern for the intermediate trading market. It concentrates similar transactions of various industries into one place, as it provides a trading opportunity for the purchaser and supplier, typically involving companies that do not own the products and do not sell the products. It is merely a platform to bring sellers and purchasers together online. The better platforms help buyers easily find information about
861-767: Is thought to be a safer option than fencing stolen items due to the anonymity and worldwide market online auctions provide. Governments have identified and taken steps to ensure the safety of online auctions and protect the interests of their citizens, typically by setting up relevant departments to deal with it. In the United States, the Federal Trade Commission (FTC) takes responsibility for protecting consumers from unfair, fraudulent, and deceptive business practices. The FTC provides several resources for guidance on internet auction fraud and actively investigates fraud involving online auctions. According to
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#1732782841503902-600: Is to comfort people, share their experiences for education and provide reliable intermediary services for certain traders. Some victims have also resorted to controversial methods of retaliation. Their actions include publicly revealing the personal information of identified scammers or disrupting transactions by blindly bidding up prices and then refusing to pay. These methods may inadvertently cause harm to ordinary sellers who are mistakenly identified as fraudsters. Online auction platforms have made significant efforts to prevent fraud and protect their users. Once fraudulent behavior
943-512: The 6th Division of the Seoul Central District Prosecutor's Office concluded that the case was not suspicious. An official at the prosecution said, "The number of sellers who actually stopped trading with '11street' was so small that the effect of restricting competition was not reached, and it was acknowledged that the eBay Market side performed its usual management and supervision duties to prevent unfair trade, so it
984-641: The Internet Crime Report, online auction fraud ranks among the top complaints received by the Internet Crime Complaint Center (IC3). The Australian Competition & Consumer Commission (ACCC) provides information and advice on online auction fraud through its Scamwatch website. The ACCC actively monitors fraud in the online auction market and takes steps to combat it. Fraud victims have volunteered to set up online communities The original intention of these communities
1025-528: The acquisition, Gmarket was delisted from the NASDAQ. After the acquisition, G-Market received an on-site investigation by the Fair Trade Commission for allegations of unfair trade due to 11street 's report of abuse of market dominant status, and was charged with a corrective order and fine from the Fair Trade Commission as well as being charged with prosecution. However, the following year,
1066-535: The benefits of online auctions, the anonymity of the internet, the large market, and the ease of access makes online auction fraud easier than in traditional auctions. The Federal Trade Commission (FTC) categorizes online auction fraud reports with online shopping categories. Online auctions originated on web forums as early as 1979 on CompuServe and The Source, as well as through email and bulletin board systems . Auctioneers and sellers would post notices describing items for sale, minimum bids, and closing times. As
1107-409: The buyer-seller payments, except through its subsidiary shopping mall credit. Instead, much like newspaper want-ads, sellers rely on the buyers' good faith to make payment, and buyers rely on the sellers' good faith to actually deliver the goods intact. To encourage fidelity, Gmarket maintains, rates, and publicly displays the post-transaction feedback from all users, whether they buy or sell. The buyer
1148-472: The comments other users have left. Gmarket also has a significant affiliate program, and affiliates can place live Gmarket Shopping product images and links on their web sites. Formerly owned companies: Online auction An online auction (also electronic auction , e-auction , virtual auction , or eAuction ) is an auction held over the internet and accessed by internet connected devices. Similar to in-person auctions, online auctions come in
1189-447: The enterprise's online store. Through the website, the company can promote its products vigorously, more efficiently and more comprehensively which enriches transactions as it helps their customers understand their products well. Or, the website can be created for business, where the seller advertises their products to promote and expand transactions. A good example of a vertical B2B model is manufacturers vs wholesalers. Horizontal B2B
1230-415: The levels of Business-to-Business activity is that it allows for business segmentation. B2B is often contrasted with business-to-consumer (B2C) trade. B2B involves specific challenges at different stages. At their formation, organizations should be careful to rely on an appropriate combination of contractual and relational mechanisms. Specific combinations of contracts and relational norms may influence
1271-509: The most common third-party online auction format and are known for their simplicity. The format is popular due to its ease-of-use in an online environment (since computers are capable of tracking and awarding an auction to the highest bidder from many bids). Reverse auctions are used primarily to place multiple sales offers before potential customers. Multiple sellers compete to obtain a buyer's business, and prices typically decrease over time as new offers are made by sellers. They do not follow
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1312-514: The nature and dynamics of the negotiations between firms. Vertical B2B is generally oriented to manufacturing or business. It can be divided into two directions: upstream and downstream. Producers or commercial retailers can have a supply relationship with upstream suppliers, including manufacturers, and form a sales relationship. As an example, Dell works with upstream suppliers of integrated circuit microchips and computer printed circuit boards (PCBs) . A vertical B2B website can be similar to
1353-523: The popularity of online auctions grew, websites dedicated to the practice began to appear in 1995 when two auction sites were founded. The first online auction site was Onsale.com, founded by Jerry Kaplan in May 1995. Onsale's business model had the company act as the seller. In September 1995, eBay was founded by French-Iranian computer scientist Pierre Omidyar using a different approach to online auctions by facilitating person-to-person transactions. This
1394-462: The post of Small Business Commissioner under the Enterprise Act 2016 to "enable small businesses to resolve disputes" and "consider complaints by small business suppliers about payment issues with larger businesses that they supply." The principal difference between B2B and B2C is that the first one refers to commerce transactions between manufacturer and retailer, and the second one it
1435-695: The price. A shield can be spotted similarly to a shill. By doing a search of a person's won auctions, it can be found out whether or not there is another account participating in the same auctions without ever winning anything. If there is, it is possible that the person is using a shield to help them become successful in auctions. Online auction websites can be used by thieves or fences to sell stolen goods to unsuspecting buyers. According to police statistics, there were over 8000 crimes involving stolen goods, fraud, or deception reported on eBay in 2009. It has become common practice for organized criminals to steal in-demand items, often in bulk, then sell them online. It
1476-463: The relationship have comparable negotiating power, and even when they do not, each party typically involves professional staff and legal counsel in the negotiation of terms, whereas B2C is shaped to a far greater degree by economic implications of information asymmetry . However, within a B2B context, large companies may have many commercial, resource and information advantages over smaller businesses. The United Kingdom government, for example, created
1517-411: The sellers and the relevant information about the products via the website. A good example of a horizontal B2B model is bankers vs corporate lawyers. A 2022 Amazon report highlighted a "rapid transformation of B2B e-procurement in recent years", with 91% of the B2B buyers surveyed in their study stating that they preferred online purchasing. In B2B commerce, it is often the case that the parties to
1558-479: The typical auction format in that the buyer can see all the offers and may choose which they would prefer. Reverse auctions are used predominantly in a business context for procurement . A bidding fee auction (also known as a penny auction) requires customers to pay for bids, which they can increment an auction price one unit of currency at a time. The most notable bidding fee auction was Swoopo . Critics compare this type of auction to gambling, as users can spend
1599-419: The use of automated bids. Along with these benefits, online auctions have greatly increased the variety of goods and services that can be bought and sold in an auction format. English auctions are also known as open outcry or raise prices. In live settings, English auctions are announced by either an auctioneer or by the bidders, and winners pay what they finally bid to receive the object. English auctions are
1640-413: Was a popular choice with consumers, leading eBay to become the largest e-commerce site in the early 2000s. A core benefit of an online auction is the removal of the physical limitations of a traditional auction that require attendees to be geographically located together, which greatly reduces audience reach. Online auctions offer advantages to users that traditional auction formats do not offer such as
1681-451: Was disposed of without charge." Collectibles , appliances , computers , furniture , equipment, vehicles , and other miscellaneous items can be listed, bought and sold on the website. Gmarket is also an easy place for unscrupulous sellers to market counterfeit and credit merchandise, which can be difficult for novice buyers to distinguish without careful study of the auction description. Gmarket generates revenue from sellers, who pay