Brokerage Strategy

By M. Suyanto,

Brokerage  Strategy (Transaction intermediary Strategy) is the strategy of using the Internet to process the purchase. This strategy includes the process of end-to end of search, comparison, selection and game online. eBay and Microsoft Expedia is a company that uses these strategies. eBay is an auction on the internet first
as a facility that lets users compare prices in the shop. Rent.com is a facility serving the rental apartments in the United States and crossed into another country. Clasified Online is designed for people who meet, exchange ideas, do business with each other at the local level.
To carry out this strategy on eBay using the ten steps include (1) to know important things critically, (2) establish strategic objectives, (3) understand the product life cycle on the internet, (4) understand the price curve to the velocity behavior of products, (5) using scarcity perception strategies, (6) applying a second chance strategy, (7) to optimize search results, (8) build brands, (9) explored the channel and (10) using a dashboard.
The first step, knowing the critical importance include the gross merchandise sales (GMS), Average sales price (ASP), Conversion Rate (CR) and Margin. Gross merchandise sales represent the sale of GMS in a specific time period or commonly known as the gross sales or revenues or income. eBay uses GMS to report to Wall Street and most sellers on eBay have adopted the same way consistently. If a seller sells 1000 items with an average price of $ 50 per month, so GMS seller is 1000 x $ 50 = $ 50,000 every month. Some sellers adjust the GMS by entering the bidder does not pay or non-paying bidders (NPBs) when winning the auction, known as items that can not be paid or unpaid items (UPI). eBay's unpaid produce items if winning bidder does not pay for the transaction and auction sellers do not earn income. Average sales price (ASP) is the average selling price is measured from the average sales price of the product at a specific time period. Average sales price (ASP) is calculated by dividing the GMS at a particular time. If the GMS seller is $ 50,000 in a month and 100 items were sold, then the ASP amount $ 50,000: 100 = $ 500. Conversion rate (CR) is a list of items for a period of time (1,5,7 or 10 days). At the end of the period, a percentage of this list will generate a list of buyers and not produce anything. The result percentage of buyers is called Conversion rate (CR). Or profit margins or profits are generated by a cash amount at a specific time period by considering the cost. By measuring and monitoring the trends in these four important things, we will be able to feel the impact of business travel and business strategic decision on whether to produce positive or negative impact.