Chapter 3
Retailing in Electronic Commerce:
Products and Services
Learning Objectives
1. Describe electronic retailing (e-tailing) and its
characteristics.
2. Classify the primary e-tailing business models.
3. Describe how online travel and tourism services
operate and how they influence the industry.
4. Discuss the online employment market, including its
participants and benefits.
5. Describe online real estate services.
6. Discuss online stock-trading services.
Learning Objectives
7. Discuss cyberbanking and online personal finance.
8. Describe on-demand delivery of groceries and
similar perishable products and services related to
them.
9. Describe the delivery of digital products such as
online entertainment.
10. Discuss various online consumer aids, including
price comparison sites.
11. Describe the impact of e-tailing on retail
competition.
12. Describe disintermediation and other B2C strategic
issues.
Internet Marketing and
B2C Electronic Retailing
• Overview of Electronic Retailing
o *Electronic retailing (e-tailing)
o *E-tailers
• Size and Growth of the B2C Market
• What Sells Well on the Internet?
o Developments in B2C E-Commerce
• Characteristics and Advantages of Successful ETailing
o Advantages of E-Tailing
E-Tailing
Business Models
• *Business Model
• Classification of Models by Distribution Channel
1.
2.
3.
4.
5.
6.
Traditional mail-order retailers that also sell online
Direct marketing by manufacturers
Pure-play e-tailers
Click-and-mortar ("brick-and-click") retailers
Internet (online) malls
Flash sales
E-Tailing as an Enterprise EC System
E-Tailing
Business Models
o
o
o
o
*Direct Marketing by Mail-Order Companies
Direct Sales by Manufacturers and Make-to-Order
*Virtual (Pure-Play) E-Tailers
Click-and-Mortar Retailers and Multichanneling
• *Click-and-mortar retailer
• *Brick-and-mortar retailer
o Retailing in Online Malls
• Referring Directories
• Malls with Shared Services
E-Tailing
Business Models
• Other B2C Models and Special Retailing
• B2C Social Shopping
o Flash Deals (Deals of the Day)
o Online Group Buying
o Personalized Event Shopping
• *Event Shopping
o
o
o
o
*Private Shopping Clubs
Group Gifting Online
*Location-Based E-Commerce (l-commerce)
Shopping in Virtual Worlds
• Virtual Visual Shopping
Online Travel and Tourism
(Hospitality) Services
• Characteristics of Online Travel
o Services Provided
• Special Online Travel Services
o Using Mobile Devices
o Social Travel Networks
• Benefits, Limitations, and Competition in Online
Travel Services
• Competition in Online Travel
• Corporate Travel
Employment and the
Online Job Market
• The Internet Job Market
o Online Job Markets on Social Networks
o Global Online Portals for Job Placement
o Virtual Job Fairs
• Benefits and Limitations of the Electronic Job Market
The Referral Power of Social
Networks in Job Matching
Online Real Estate, Insurance,
and Stock Trading
• Real Estate Online
o Zillow, Craigslist, and Other Web 2.0 Real Estate Services
• Insurance Online
• Online Stock Trading and Investments
o Online Investments
o The Risk of Online Stock Trading and Other E-Finance
Activities
Online Electronic Stock Trading
Online Banking and
Personal Finance
•
•
•
•
*Electronic (online) banking (e-banking)
E-Banking
Online Banking Capabilities
Pure Virtual Banks
o P2P Lending
• International and Multiple-Currency Banking
Online Banking and
Personal Finance
• Online Financial Transaction Implementation Issues
o
o
o
o
Securing Financial Transactions
Imaging Systems
Fees for Online Versus Fees for Offline Services
Risks
• Online Billing and Bill Paying
o Taxes
o Mobile Banking
On-Demand Delivery of Products,
Digital Items, Entertainment, and Gaming
• On-Demand Delivery of Products
o
o
o
o
*E-grocer
*On-demand delivery service
The Case of E-Grocers
Speed of Delivery
• Online Delivery of Digital Products, Entertainment,
and Media
o
o
o
o
Online Entertainment
iTunes
Online Ticketing
Internet TV and Internet Radio
• *Internet TV
• *Internet radio
• Pandora Radio
On-Demand Delivery of Products,
Digital Items, Entertainment, and Gaming
• *Social Television (TV)
o
o
o
o
Characteristics of Social TV
Technology and Services of Social TV
Adult Entertainment
Internet Gaming
Other B2C Services: From Dating
Services to Wedding Planning
• Online Dating Services
• Planning a Wedding
o What About After the Wedding?
• Buying Cars Online
• Selling-Build-to-Order Cars Online
• Other Online Services
o
o
o
o
o
Online pharmacies are all over the Internet.
Stamps online.
Online flower delivery.
Online food ordering.
Virtual farmer’s marketplaces are becoming popular in
many countries.
Online
Purchasing-Decision Aids
• *Shopping Portals
• Helping Communities
• Price and Quality Comparison by Shopbot Software
Agents
o *Shopping robots (shopping agents, shopbots)
o Google Enterprise Search and Enterprise Search Appliance
o “Spy” Services
Online
Purchasing-Decision Aids
• Ratings, Reviews, and Recommendation Sites
o
o
o
o
o
o
o
o
Customer ratings and reviews.
Customer testimonials.
Expert ratings and reviews.
Sponsored reviews.
Conversational marketing.
Video product review.
Bloggers post reviews.
Recommendations from Other Shoppers and Friends and
Family
• *Referral economy
• Comparison Shopping Websites
• Trust Verification Sites
o Concerns about Reviews, Ratings, and Recommendations
Online
Purchasing-Decision Aids
• Comparison Shopping Websites
• Trust Verification Sites
o Concerns about Reviews, Ratings, and Recommendations
• Other Shopping Assisting Tools
o
o
o
o
Must-Have Shopping Tools
Barcode Readers for Price Comparisons
Digital Coupons
Self Service
• Virtual Visual Shopping
• Mobile Apps
o Wireless Shopping Comparisons
The New Face of Retail Competition:
Retailers versus E-Tailers
• The Online versus Offline Competition: An Overview
o
o
o
o
o
o
o
o
Customers’ search cost.
Delivery time.
Distribution costs.
Tax differences.
Price.
Information available to buyers.
Other influencing factors.
Global Competition
The New Face of Retail Competition:
Retailers versus E-Tailers
• Retailers vs. E-Tailers
o Examples of Click-and-Brick Retailers
•
•
•
•
Gap Inc.
Best Buy.
SM Chain of Malls in the Philippines
HHGregg
o Niche Markets
o Other Strategies
• What Can Traditional Retailers Do?
o Can Small Businesses Survive?
o Going Global
o Conclusion
Issues in E-Tailing and
Lessons Learned
• *Disintermediation and *Reintermediation
o Resistance to Change
o *Channel Conflict
• Possibility of a Price Conflict and Determining the
Right Price by Sellers
• Product and Service Customization and
Personalization
• Fraud and Other Illegal Activities
• Lessons Learned from Failures and Lack of Success
of E-Tailers
Disintermediation and Reintermediation
in the B2C Supply Chain
Managerial Issues
1. What are the limitations of e-tailing? Where is etailing going?
2. How should we introduce wireless shopping?
3. Do we have ethics and privacy guidelines?
4. How will intermediaries act in cyberspace?
5. Should we try to capitalize on social networks?
6. How should we manage multichannel marketing to
avoid channel and/or price conflicts?
7. What are the major potential limitations of the
growth of B2C EC?
8. How to deal with “big data?”
Summary
1. The scope and characteristics of etailing.
2. Classify e-tailing business models.
3. How online travel/tourism services
operate.
4. The online employment market and its
benefits.
5. The electronic real estate marketplace.
6. Online trading of stocks and bonds.
Summary
7. Cyberbanking and online personal
finance.
8. On-demand delivery service.
9. Delivery of digital products.
10.Aiding consumer purchase decisions.
11.The new face of retail competition.
12.Disintermediation and other B2C
strategic issues.