Introduction


With the rapid growth of globalisation of the communication industry and networking, the usage of the internet is a widespread phenomenon. With the boom of people using the internet to communicate with one another, E commerce (electronic commerce) Becomes part and parcel of our lives. E Commerce is online commerce versus real world commerce. It includes retail shopping, internet banking, stocks and bonds trading, auctions, real estate transactions, air ticket booking, movie tickets booking etc. Since there is an endless exchange of important personal data across the world, owners of the E Commerce websites must be vigilant against hackers. Although early E commerce was stunted by security fears, imported technology has made millions of people world wide feel safer to purchase goods over the internet.

Since there is danger in E commerce, Credit card companies helped to remove fears by guaranteeing that cardholders would not be held responsible for fraudulent charges as a result of online shopping. With all the safety measures, E Commerce has become the booming industry it is today.

History of Xcelwatches



Boasting a website which is 100% secure, low international shipping rates and up to 70% off retail prices, Xcelwatches, formed in 1997 is an internet based watch reseller which dedicates themselves to the mission of providing the best customer service and support. Today Xcelwatches showcases a massive catalogue of watches, with Casio in particular in the forefront.

Analysis of the Xcelwatches Business Model

Utilizing the business model of a B2C (Business to consumer) model, Xcelwatches has a virtual storefront to compliment its Brick and Mortar storefront. This environment allows users to browse through their catalogue, compare prices and specs as well as keeping informed of the amount of stock left. In order to maintain an edge over the many B2C watch companies in the market, Xcelwatches remain competitively advantaged in 2 key areas.

Low Retail Prices

Xcelwatches takes pains to ensure that the prices of their watches are always significantly below retail prices. To be able to do this, Xcelwatches would have to purchase their watches in bulk. In addition, Market awareness is also vital to be able to ensure that prices are always advantageous and attractive to their customers.

Shipping

One of the key features of Xcelwatches is the fact that they have free shipping in US. This is a significant advantage over most E Commerce websites whose pitfall usually lies in their exorbitant shipping charges. The international shipping charges can go as low as US$14.95.

Mode of payment

After selection of the desired items and adding it to their carts, customers can view their selection(s) before deciding if they would want to continues shopping or proceed to check out. Once the desired watch is selected, new customers can then register with Xcelwatches. Either that or they can choose to check out without even creating an account. The customer can then select their mode of payment which include VISA, MasterCard, American Express, Discover or even PayPal before entering their shipment details to select the customer's shipping mode. Their watches will be delivered to them in a matter of days, hassle free.

Key Characteristics



Customers remain very well informed about the availability of all the different types of watches with the use of its current stock taking system. Moreover, the website is well organized, showcasing the various watches in a clear and organized ,manner such that the customer will be able to get the watches they desire without much hassle, anytime, anywhere. Also the price sensitive customers will be glad to be able to compare the prices of the various watches to the normal retail prices on the site itself. Upon deciding on the purchase of watches, customers are further equipped with the detailed specifications of the watches, which are essential in their decision making.

Features of Xcelwatches

Variety of customer accounts



Customers can check out depending on their shopping habits and preferences. They are given 3 choices. Firstly, as for new customers, they can choose to create a new account for payment methods. Secondly, returning customers can choose to reuse the accounts which are previously created. Lastly, for one off customers, The can choose the last option and enter their billing information and shipping address once.

Advantages

• A variety of systems to choose from to satisfy the different type of customers.
• The SSL (Secure Sockets Layer) is used to ensure that credit card information and other personal information are kept confidential.
• Variety of customers' accounts conviently allows one off customers with the intention of getting a watch without the hassle of creating an account.
• Customers who are worried that their details and personal information maybe leaked out can use the final option with ease as the data would not be stored on the site's servers.

Disadvantages

• For those who have created new accounts or those with existing accounts, the storage of personal data on the site may cause more harm than good as hackers might be able to get hold of the information.

Shopping Cart



Customers will be also entitled to the use of the shopping cart where they will be able to simply add their desired items into the cart and continue shopping.

Advantages

• Convenient for customers who are intending to buy more than 1 item.

Easy to use interface



Utilizing a simple to understand and use interface, Xcelwatches displays its huges catalogue of watches for the public's eyes.

Advantages

• Customers will be able to find what they are looking for easily.
• Detailed specifications of the watches will be shown upon clicking on the desired watches to aid customers' understanding of the item they are purchasing.
  

Strengths

• The Products are categorized into various brands and types for users to be able to search for what they are looking for directly and with much ease.
• One of the key features of Xcelwatches is that they provide free shipping in US. This is a significant advantage over most e-commerce websites whose pitfalls usually lie in their exorbitant shipping charges.
• Customers are able to compare the retail prices and the selling prices of all the watches right away without having to go through the means of a Brick and Mortar environment. This is especially helpful for the price sensitive customers.
• Transaction cost are generally much lower when purchasing from Xcelwatches
• Customers are exposed to a wide range of watches and hence, bulk purchases are possible.
• Customers are also well informed on the current stock of watches which are indicated with the selling prices.
• The technical specifications of every product provides specific details which allow customers to compare with the functions of other watches.
• Customers who have had transactions with Xcelwatches have generally given good and satisfactory feedbacks with regards to the excellent conditions of the product, reasonable prices offered and reliable services which is shown by the average rating of 4.71 out of 5 given to Xcelwatches.
• Users are not obliged to register with Xcelwatches. This si especially appealing to those who intend to make one-off transactions.
• The stocks are constantly updated.
• Customers can choose from a wide range of modes of payments which include VISA, Mastercard, American Express Discover and even Paypal.

Weaknesses

• For those who have created new accounts or those with existing accounts, the storage of personnel data on this site may cause more harm than good as hackers might be able to access the information stored.
• Currently Xcelwatches is not shipping to Italy Middle East and Asia.
• Shipping does not cover Asia and so Singaporean customers will have to rely on Vpost.

Conclusion

Xcelwatches have succeeded in the vast reduction of information asymmetry as well as transaction costs. It has increased the richness in terms of the depth and detail of information the business can supply. Moreover, customers are generally very satisfied with the quality of service and goods provided.

Xcelwatches has also managed to overcome the problems faced by most E commerce companies selling big ticket items such as Designer clothes, watches and other items. Problems such as the conditions and availability of goods are overcame by the tireless work of Xcelwatches. It has given utmost importance in ensuring that goods are received in the shortest time possible and that goods are in their best, if not perfect condition.

Currently Xcelwatches is not shipping to Italy, The Middle East and Asia. Hence, the potential of Xcelwatches, given its extensive range of products offered to customers at such a discounted rate, would be maximized if further publicity is made throughout the world, especially Asia. Furthermore, in order to attract more Asian customers, it should extend free or much lower shipping cost to Asian countries as part of their business strategy.

Having highlighted the strengths and weaknesses of Xcelwatches website, it can be seen that the strengths have significantly outweigh the weaknesses. It is a user-friendly web page where e-commerce can be carried out anytime, anywhere.