0. 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
Chapter 3
Retailing in Electronic Commerce: Products and Services

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Learning Objectives
Describe electronic retailing (e-tailing) and its characteristics.
Define and describe the primary e-tailing business models.
Describe how online travel and tourism services operate and their impact on the industry.
Discuss the online employment market, including its participants, benefits, and limitations.
Describe online real estate services.
Discuss online stock-trading services.
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Learning Objectives
Discuss cyberbanking and online personal finance.
Describe on-demand delivery of groceries and similar products/services.
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3. Internet Marketing and Electronic Retailing
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
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4. Internet Marketing and Electronic Retailing
WHAT SELLS WELL ON THE INTERNET
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
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5. E-Tailing Business Models
CLASSIFICATION BY DISTRIBUTION CHANNEL
Direct marketing by mail-order retailers that go online
Direct marketing by manufacturers
Pure-play e-tailers
Click-and-mortar retailers
Internet (online) malls
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7. E-Tailing Business Models
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
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8. E-Tailing Business Models
Pure-Play E-Tailers
virtual (pure-play) e-tailers
Firms that sell directly to consumers over the Internet without maintaining a physical sales channel
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9. E-Tailing Business Models
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)
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10. E-Tailing Business Models
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
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11. Travel and Tourism (Hospitality) Services Online
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
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12. Travel and Tourism (Hospitality) Services Online
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
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13. Travel and Tourism (Hospitality) Services Online
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
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14. Travel and Tourism (Hospitality) Services Online
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
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16. Employment Placement and the Job Market Online
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
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18. Employment Placement and the Job Market Online
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
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20. Real Estate, Insurance, and Stock Trading Online
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
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22. Banking and Personal Finance Online
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
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23. Banking and Personal Finance Online
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
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24. Banking and Personal Finance Online
ONLINE FINANCIAL TRANSACTION IMPLEMENTATION ISSUES
Securing Financial Transactions
Access to Banks’ Intranets by Outsiders
Imaging Systems
Fees Online Versus Fees for Offline Services
Risks
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On-Demand Delivery of Products, Digital Items, Entertainment, and Gaming
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
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On-Demand Delivery of Products, Digital Items, Entertainment, and Gaming
ONLINE DELIVERY OF DIGITAL PRODUCTS, ENTERTAINMENT, AND MEDIA
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27. Online Purchase-Decision Aids
shopping portals
Gateways to e-storefronts and e-malls; may be comprehensive or niche oriented
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