Archive for May, 2011

Lightweight Models and Cost Effective Scalability – Paypal

The fast development nowadays of web services on the internet is incredible. Lots of people use the world wide web to buy, sell, market, show ….etc. In other words, Web 2.0 is dough.  This will lead us to the last pattern of Web 2.0 applications is lightweight models and cost-effective scalability. We need to understand this pattern by giving a short description to be comprehended. In brief “small is the new big”. This will happen when alliance between technology and business models.

Our web 2. application this week of using lightweight models and cost effective scalability is going to be PayPal. It was one of the first services exchange money online. It was popularized and later was acquired by eBay for $1.5 billion in October 2002. Currently, PayPal is one of the most widely recognized payment systems on the Internet. Moreover, it is used in online auctions and stores as a way to control and manage payments. Furthermore, the users of PayPal can send money to anyone with an email address or mobile number. PayPal has survived throughout the years by charging fees to its sellers and buyers in online auctions and those making donations via the service are not charged these fees. eBay expects PayPal revenues to double by 2011 to roughly $4-5 billion in sales. PayPal reported $2.4 billion of sales last year, or about 30% of eBay’s $8.5 billion of overall sales.. Finally, paypal has three types of accounts which are personal, premier and business and all of them free joining and the user of paypal can upgrade the account at any time with free charge.

Regarding the comparing, there is recently alternate service. For instance, Google’s Checkout has garnered some of the attention in this space for similar efforts with lower fees.

Reference list:

Google’s Checkout


Business Insider



Long Tail – Deal Direct

Lots of  business organisations have websites to show or sell their products. However, currently most of organisations shifting from traditional retails to electronic retails. This introduction will show the pattern long tail of web 2. applications. So, Let’s give a tiny definition of long tail. Long tail in brief relates to the world of consumer products. Nowadays, people prefer to do shopping through the internet because it is such a cheap channel and diversity of products the clients can pick out and compare easily.

Our web application this week is Deal Direct. It is an Australian electronic retail website leading discount online department store. Deal Direct has over 8000 products from across 23 categories such as electronics, toys, homeward, clothing ….etc. Moreover, it provide shipping service, full warranties on everything they sell and customer service team is available 24 hours a day, 7 days a week via email, LIVE chat or Toll free. Finally, the clients can pay by credit cards, paypal or BAPY. This web application Deal Direct makes the prices of products inexpensive. By long tail the Deal Direct can market its products to cover big slide of people. Furthermore, reducing the cost of products, because there is no shop rent, electricity bills, recruitment,…..etc.  The Deal Direct web application reduces the costs of shipping when the clients buy more products in one time this will lead to leverage customer self-service to cost effectively to reach the all web. All in all, there are lots of online shopping applications and there is a strong competition in terms of prices, brands, shipping, products…..etc.

Reference List:


Long Tail


Jon Mell