1. Retailing in Electronic Commerce: Products and Services
Lecture 2
Retailing in Electronic Commerce:
Products and Services

2. 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
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3. Internet Marketing and Electronic Retailing
Size and Growth of the B2C Market
Reported amounts of online sales deviate substantially based on how the numbers are derived
Annual online 2014 sales were estimated to be over £300 billion
The average online shopper spent over £700 per year
Forrester Research estimates that e-tailing will reach £400 billion by end 2015
30-35% of Christmas presents purchased in the UK were bought online in 2014.
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4. Internet Marketing and Electronic Retailing
What Sells Well on the Internet?
Computer hardware and software
Consumer electronics
Office supplies
Sporting goods
Books, music and DVDs
Toys
Health and beauty
Apparel and clothing
Jewelry
Cars
Services
Others
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5. Internet Marketing and Electronic Retailing
Characteristics of Successful E-Tailing
High brand recognition
A guarantee provided by highly reliable or well-known vendors
Digitised format
Relatively inexpensive items
Frequently purchased items
Commodities with standard specifications
Well-known packaged items that cannot be opened even in a traditional store
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6. E-Retailing Business Models
Classification by Distribution Channel
Mail-order retailers that go online
Freemans.com, QVC.com
Direct marketing from manufacturers
Dell.com
Pure-play e-tailers
Amazon.com
Click-and-mortar retailers
Tesco, M&S, John Lewis
Internet (online) malls
Websquare.com, pointshop.com
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7. E-Retailing Business Models
direct marketing
Broadly, marketing that takes place without intermediaries between manufacturers and buyers; marketing done online between any seller and buyer
A good example here is Dell Computers.
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8. E-Retailing Business Models
Direct Sales by Manufacturers
Sellers can understand their markets better because of the direct connection to consumers
Consumers gain greater information about the products through their direct connection to the manufacturers
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9. E-Retailing Business Models
virtual (pure-play) e-tailers
Firms that sell directly to consumers over the Internet without maintaining a physical sales channel
Amazon.com
click-and-mortar retailers
Brick-and-mortar retailers that offer a transactional Web site from which to conduct business
Tesco, Marks & Spencer, John Lewis….
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10. Travel and Tourism Services Online
Online travel is probably the most successful
e-commerce implementation
ebookers.com, travelsupermarket.com,
Services provided include:
General information
Reserving and purchasing tickets, accommodations, and entertainment
Travel tips
Electronic travel magazines
Fare comparisons
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11. Travel and Tourism Services Online
Benefits of Online Travel Services
Benefits to consumers
Large amount of free information available 24/7
Substantial discounts can be found
Benefits to providers
Airlines, hotels, and cruise lines are selling otherwise-empty spaces
Direct selling saves the provider’s commission and its processing
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12. Travel and Tourism Services Online
Corporate Travel
To reduce corporate travel costs, companies can make arrangements that enable employees to plan and book their own trips using online optimisation tools provided by travel companies, such as those offered by Rosenbluth International
Travel authorisation software that checks availability of funds and compliance with corporate guidelines is usually provided by travel companies
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13. Employment Placement and the Job Market Online
The Internet Job Market
Job seekers
Employers seeking employees
Job agencies
E-Lancing
E-Franchising
Government agencies and institutions
The Internet is a global online portal for job seekers eg….irishjobs.ie
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14. Employment Placement and the Job Market Online
Limitations of the Electronic Job Market
Many people do not use the Internet. This limitation is even more serious with non-technology-oriented jobs
Security and privacy: resumes and other online communications are usually not encrypted, so one’s job-seeking activities may not be secure
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15. Estate Agents, Insurance, and Stock Trading Online
Estate Agency Applications
Advice to consumers on buying or selling a home
Commercial real estate listings
Listings of residential real estate in multiple databases
A good example in the UK would be rightmove.co.uk
Resulted in famous add campaign in the US…
Buy your house with a mouse…!!!
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16. Estate Agents, Insurance, and Stock Trading Online
Estate Agency Applications
Maps are available
Information on current mortgage rates
Mortgage brokers can pass loan applications over the Internet and receive bids from lenders who want to issue mortgages
Online lenders can tentatively approve loans online
Automated closing of real estate transactions
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17. Estate Agents, Insurance, and Stock Trading Online
Insurance Online
An increasing number of companies use the Internet to offer standard insurance policies (car, home, life, or health) at a substantial discount
Third-party brokers offer free comparisons of available policies
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18. Banking and Personal Finance Online
electronic banking (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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19. Banking and Personal Finance Online
Virtual Banks
Virtual banks have no physical location, but only conduct online transactions Egg.com
International and Multiple-Currency Banking
Hong Kong and Shanghai Banking Corporation (hsbc.com.hk)
Tradecard and MasterCard for global transactions (see tradecard.com)
Bank of America and most other major banks
Fxall.com is a multidealer foreign exchange service
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20. Banking and Personal Finance Online
Online Billing and Bill Paying
Automatic transfer of mortgage payments
Automatic transfer of funds to pay monthly utility bills
Paying bills from online banking accounts
Using an intermediary for bill consolidation
Person-to-person direct payment
Pay bills at bank kiosks
Taxes
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21. Online Delivery of Digital Products, Entertainment, and Media
Certain goods, (software, music, or news stories) may be distributed in a physical form or they may be digitised and delivered over the Internet
For sellers, the costs associated with the manufacture, storage, and distribution of physical products can be enormous
Inventory management also becomes a critical cost issue, and so does delivery and distribution
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22. Online Delivery of Digital Products, Entertainment, and Media
Interactive Entertainment
Web browsing
Internet gaming
Fantasy sport games
Single and multiplayer games
Adult entertainment
Card games (e-poker)
Participatory Web sites
Reading (e-books/magazines)
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23. Online Delivery of Digital Products, Entertainment, and Media
Non-interactive Entertainment
Event ticketing
Restaurants
Information retrieval
Retrieval of audio and video entertainment (i-tunes)
Live events
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24. Online Purchase-Decision Aids
shopping robots (shopping agents or shopbots)
Tools that scout the Web on behalf of consumers who specify search criteria
Wireless Shopping Comparisons—Enable shoppers to compare prices any time from anywhere, including from any physical store
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25. Issues in E-Tailing disintermediation
The removal of organisations or business process layers responsible for certain intermediary steps in a given supply chain
reintermediation
The process whereby intermediaries (either new ones or those that had been disintermediated) take on new intermediary roles
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26. Disintermediation and Reintermediation in the B2C Supply Chain
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