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Chapter 3
Retailing in Electronic Commerce: Products and Services

Learning Objectives
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.
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Learning Objectives
6. Discuss online stock-trading services. 7. Discuss cyberbanking and online personal finance. 8. Describe on-demand delivery of groceries and similar products/services. 9. Describe the delivery of digital products and online entertainment. 10. Discuss various e-tail consumer aids, including comparison-shopping aids. 11. Describe disintermediation and other B2C strategic issues.
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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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Internet Marketing and Electronic Retailing

SIZE AND GROWTH OF THE B2C MARKET WHAT SELLS WELL ON THE INTERNET CHARACTERISTICS OF SUCCESSFUL E-TAILING

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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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E-Tailing Business Models

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E-Tailing Business Models

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 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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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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E-Tailing Business Models

Retailing in Online Malls
Referring directories Malls with shared services

OTHER B2C MODELS AND SPECIAL RETAILING

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Travel and Tourism Services Online

SERVICES PROVIDED SPECIAL SERVICES
Wireless services Direct marketing Alliances and consortia Travel-Oriented Social Networks
Travel recommendation

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Travel and Tourism Services Online

BENEFITS AND LIMITATIONS OF ONLINE TRAVEL SERVICES CORPORATE TRAVEL IMPACT OF EC ON THE TRAVEL INDUSTRY

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Employment Placement and the Job Market Online

THE INTERNET JOB MARKET
Job seekers Employers seeking employees Classified ads Job agencies Government agencies and institutions

A Consortium of Large Employers and College Career Advisors Global Online Portals
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Employment Placement and the Job Market Online

BENEFITS AND LIMITATIONS OF THE ELECTRONIC JOB MARKET
Advantages for Job Seekers Advantages for Employers

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Real Estate, Insurance, and Stock Trading Online

REAL ESTATE ONLINE INSURANCE ONLINE ONLINE STOCK TRADING
The Risk of Trading in an Online Stock Account

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Real Estate, Insurance, and Stock Trading Online

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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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Banking and Personal Finance Online

HOME BANKING CAPABILITIES VIRTUAL BANKS INTERNATIONAL AND MULTIPLE-CURRENCY BANKING

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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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Banking and Personal Finance Online

PERSONAL FINANCE ONLINE
Online Billing and Bill Paying Taxes

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On-Demand Delivery of Products and Delivery of Digital Items

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.
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On-Demand Delivery of Products and Delivery of Digital Items

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On-Demand Delivery of Products and Delivery of Digital Items

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Online Purchase-Decision Aids

shopping portals Gateways to e-storefronts and e-malls; may be comprehensive or niche oriented. shopping robots (shopping agents or shopbots) Tools that scout the Web on behalf of consumers who specify search criteria.
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Online Purchase-Decision Aids

SPY SERVICES
Wireless Shopping Comparisons

BUSINESS RATINGS SITES TRUST VERIFICATION SITES OTHER SHOPPING TOOLS

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Problems with E-Tailing and Lessons Learned

SUCCESSFUL CLICK-AND-MORTAR STRATEGIES
Speak with one voice Leverage the multichannels Empower the customer

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Issues in E-Tailing
disintermediation The removal of organizations 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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Issues in E-Tailing

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Issues in E-Tailing
cybermediation (electronic intermediation)
The use of software (intelligent) agents to facilitate intermediation.

channel conflict
Situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition.
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Issues in E-Tailing
DETERMINING THE RIGHT PRICE PRODUCT AND SERVICE CUSTOMIZATION AND PERSONALIZATION FRAUD AND OTHER ILLEGAL ACTIVITIES HOW TO MAKE CUSTOMERS HAPPY
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Managerial Issues
1. What should our strategic position be? 2. Are we financially viable? 3. How should we introduce wireless shopping? 4. Are there international legal issues regarding online recruiting? 5. Do we have ethics and privacy guidelines? 6. How will intermediaries act in cyberspace?

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Summary
1. The scope and characteristics of etailing. 2. E-tailing business models. 3. How online travel/tourism services operate. 4. The online job market and its benefits. 5. The electronic real estate market. 6. Online trading of stocks and bonds.
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Summary
7. Cyberbanking and personal finance. 8. On-demand delivery service. 9. Delivery of digital products. 10.Aiding consumer purchase decisions. 11. Disintermediation and other B2C strategic issues.

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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