1. Retailing in Electronic Commerce: Products and Services Kingdom of Saudi Arabia Ministry of Higher Education Al-Imam Muhammad bin Saud Islamic University College of Computer and Information Sciences Information Systems Department

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1.Describe electronic retailing (e-tailing) and its characteristics. 2.Define and describe the primary e-tailing business models. 3.Describe how online travel and tourism services operate and their impact on the industry. 4.Discuss the online employment market, including its participants, benefits, and limitations. 5.Describe online real estate services. 6.Discuss online stock-trading services. 3-1

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7.Discuss cyberbanking and online personal finance. 8.Describe on-demand delivery of groceries and similar products/services. 3-2

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall OVERVIEW OF ELECTRONIC RETAILING – electronic retailing (e-tailing) Retailing conducted online, over the Internet – e-tailers Retailers who sell over the Internet SIZE AND GROWTH OF THE B2C MARKET CHARACTERISTICS AND ADVANTAGES OF SUCCESSFUL E-TAILING 3-3

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Travel Computer hardware and software Consumer electronics Office supplies Sport and fitness goods Books and music Toys and hobbies Health and beauty Entertainment Apparel and clothing Jewelry Cars Services Food and drugs Pet supplies Others WHAT SELLS WELL ON THE INTERNET 4

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall CLASSIFICATION BY DISTRIBUTION CHANNEL 1.Direct marketing by mail-order retailers that go online 2.Direct marketing by manufacturers 3.Pure-play e-tailers 4.Click-and-mortar retailers 5.Internet (online) malls 3-5

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3-6

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Direct Marketing by Mail-Order Companies – direct marketing Broadly, marketing that takes place without intermediaries between manufacturers and buyers; in the context of this book, marketing done online between any seller and buyer Direct Sales by Manufacturers 3-7

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Pure-Play E-Tailers – virtual (pure-play) e-tailers Firms that sell directly to consumers over the Internet without maintaining a physical sales channel 3-8

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall click-and-mortar retailers Brick-and-mortar retailers that offer a transactional Web site from which to conduct business brick-and-mortar retailers Retailers who do business in the non-Internet, physical world in traditional brick-and-mortar stores multichannel business model A business model where a company sells in multiple marketing channels simultaneously (e.g., both physical and online stores) 3-9

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall OTHER B2C MODELS AND SPECIAL RETAILING – Transaction brokers – Information portals – Community portal and social networks – Content creators or disseminators – Viral marketing – Market makers – Make (build)-to-order – B2B2C – Service providers B2C IN SOCIAL NETWORKS 3-10

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Online travel bookings and associated travel services are one of the most successful e-commerce implementations SPECIAL SERVICES ONLINE – Wireless services – Direct marketing – Alliances and consortia 3-11

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall BENEFITS AND LIMITATIONS OF ONLINE TRAVEL SERVICES – Benefits The amount of free information is tremendous Information is accessible at any time from any place Substantial discounts – Limitations Many people do not use the Internet The amount of time and the difficulty of using virtual travel agencies can be significant Complex trips or those that require stopovers might not be available online 3-12

14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall IMPACT OF EC ON THE TRAVEL INDUSTRY – Direct impacts because customers increasingly using the Internet to make bookings – Indirect impacts because airlines and hotel chains encouraging customers to book direct or through online wholesalers, bypassing travel agents – Investing in content (information, travel advice, and the like) is a requirement for success in this competitive market 3-13

15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall CORPORATE TRAVEL – Many large corporations receive additional services from large travel agencies – To reduce corporate travel costs, companies can make arrangements that enable employees to plan and book their own trips 3-14

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17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall THE INTERNET JOB MARKET – The following parties use the Internet job market: Job seekers Employers seeking employees Job agencies Government agencies and institutions – A Consortium of Large Employers and College Career Advisors – Online Job Markets on Social Networking – Global Online Portals 3-16

18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3-17

19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall BENEFITS AND LIMITATIONS OF THE ELECTRONIC JOB MARKET Probably the biggest limitation of the online job market is the fact that some people do not use and do not have access to the Internet, although this problem has declined substantially 3-18

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21. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall REAL ESTATE ONLINE – Zillow, Craigslist, and Other Web 2.0 Real Estate Services INSURANCE ONLINE – Companies use Internet to offer standard insurance policies, such as auto, home, etc. often at a substantial discount to individuals ONLINE STOCK TRADING – The Risk of Trading in an Online Stock Account 3-20

22. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 3-21

23. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall electronic (online) banking or e-banking Various banking activities conducted from home or the road using an Internet connection; also known as cyberbanking, virtual banking, online banking, and home banking 3-22

24. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall HOME BANKING CAPABILITIES – Informational, administrative, transactional, portal, and others VIRTUAL BANKS – Have no physical location; only conduct online transactions INTERNATIONAL AND MULTIPLE-CURRENCY BANKING – Support global transactions 3-23

25. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ONLINE FINANCIAL TRANSACTION IMPLEMENTATION ISSUES – Securing Financial Transactions – Access to Banks’ Intranets by Outsiders – Imaging Systems – Fees Online Versus Fees for Offline Services – Risks 3-24

26. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ON-DEMAND DELIVERY OF PRODUCTS – e-grocer A grocer that takes orders online and provides deliveries on a daily or other regular schedule or within a very short period of time – on-demand delivery service Express delivery made fairly quickly after an online order is received – The Case of E-Grocers 3-25

27. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ONLINE DELIVERY OF DIGITAL PRODUCTS, ENTERTAINMENT, AND MEDIA 26

28. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall shopping portals Gateways to e-storefronts and e-malls; may be comprehensive or niche oriented 3-27