RUNNING HEAD: E-commerce Market Report
Danielle Perri, Jasmine Galloway, Erica Alicchio
October 7, 2015
E-commerce Market Report
East Carolina University
College of Human Health and Performance
Department of Interior Design and Merchandising
MRCH 3300: Technologies in Merchandising
RUNNING HEAD: E-commerce Market Report
East Carolina University
College of Human Health and Performance
Department of Interior Design and Merchandising
MRCH 3300: Technologies in Merchandising
Module One: E-commerce Market Report
Part One. Initial Market Analysis: Industry Facts
1. Market
As a group we decided to go with the Ecommerce (Retailing) Market, The main activities
that are for this industry would be retailing computers, TV’s and other electronics online,
retailing clothing and footwear online, retailing other merchandise online and operating internet
auction sites. We have decided to go with online shoe companies that would include JustFab and
Shoe Dazzle, they fall under the primary activities for the retailing industry. This industry would
fall under E-commerce and online auctions in the US that comprises establishments that sell
merchandise online, the internet is the main selling platform or either could be a retailer’s online
store or auction site. The industry excludes media and software that is streamed or downloaded
online. (IBIS World, 2015)
2. Market Size
The total size of the market would be the number of industry operators is expected to
outpace industry revenue growth over the five years to 2015, rising at an annualized rate of
18.4% to 176,505 companies.(IBIS World, 2015)
3. Market Trends
The companies that have the most market share amazon, Listed as one of the top 100
companies in Fortune magazine, Amazon.com has harnessed the online-selling platform to grow
into a multibillion-dollar company with over 154,000 employees.(IBIS World, 2015)

Amazon.com- 16.2%
RUNNING HEAD: E-commerce Market Report


Ebay- 1.7%
Newegg Inc.- 1.2%
Growth Trends
Growth has been increasing due to the amount of internet access, the costs of obtaining
an internet connection and a computer or mobile device have declined considerably over the past
decade, making it more affordable for consumers to connect to the internet. (IBIS World, 2015)
With more customer accessing the internet, will result with more customers having
access to retailer online, which means the growth of this industry will increase. (IBIS World,
2015)
Consumer Preference Trends
Ubiquitous- Meaning its present and found everywhere, In today’s society most consumers
want to be able to shop or check when they need online at anytime and almost everywhere,
which would include their phones, tablets, computers and etc. By having this preferences, will
make things easier on the customer and company. (Business Models for M-service , 2010)
Prestige of news source- rests on questions related to well known and recognized media
brands, editors, journalists and news source. This trend is a consumer preferences because
consumer want to make sure where they are buying product from is a relatable source and has
their media brands listed. This supplies better knowledge for the consumer and the
company. (Business Models for M-service , 2010)
Local anchorage and Advertising- relies on factors related to local news and local
advertisements. This trend is a consumer preferences because the consumer wants to be able to
know and tell if the information they are receiving is local and relates to what they would be
buying. (Business Models for M-service , 2010)
Product Development Trends
Value of Money- When it comes to products, they ask for more – better designs, higher
quality, more features – but are willing to pay less.While they may not always be looking for the
cheapest option, consumers are looking for the best value. In addition to building better and more
innovative products, the product development team must also tighten their belts and find ways to
build the best product at the lowest possible price. (Steve Riordan, 2014)
Product Design- consumers want and expect to play a bigger role in the design of the
products that they buy and use. Many companies now give their customers the opportunity to
customize their products to meet their own needs, allow customers to “vote” on the best design,
or provide feedback on what they would pay (Steve Riordan, 2014)
4. Market Growth Potential
RUNNING HEAD: E-commerce Market Report
Competition- Entering a new market is sometimes difficult when there is so much
competition in the market already. By having the right idea for a e-commerce sites and what to
bring to the table, it will be easier for new businesses to take over the competition
Customer-Focused- Having a loyal customers based is important in any business, by having
the right market and showing that you care about a customer's input and their needs will make
that certain business number 1
Organizations- By organizations i meant being organized within the company, its the
processes that are strategic and deliver a high level of value to customers and create products that
will appeal to customers
Technology - Technology would be a good thing to grow within the market, knowing how it
works and what new technology would be needed to keep the business going
Leadership- having a good company to enter the market, starts with good leadership to make
sure the company is running smoothly and know what direction they are heading in
5. Market Barriers
Competition- Refers to the strength of commercial rivalries, with so many e-commerce
website out there, certain website have to step up their competition to be one of the top ecommerce website. As an example JustFab.com is a well-known shoe online retailer that offer
VIP pass for members and you could buy a shoe for 39.99 and a second pair for around 10
dollars. JustFab offers so many discount to keep their customers wanting to buy every month.
With new companies entering this type of market, it's important to research other companies to
see where they can improve on for their website.(IBIS World, 2015)
Technology Change- refers to the rate at which technological innovation occurs,
technology is a big part of the world today and keeping up with the technology change will help
certain websites and companies be better. As an example, most companies do have apps for
people to get on their phone for easy access to their website and products. By having an app, it
RUNNING HEAD: E-commerce Market Report
allows the company connect with the technology change and keep up with how the customers are
handling the new technology. Another example would be manufacturing technology, certain
companies might keep up with the manufacturing aspects of technology to keep certain products
updated and better for the future. For new companies entering this market, it's a must for the new
companies to keep up with the new technology going on so they can meet their market
needs.(IBIS World, 2015)
Capital Intensity- Measures the amount of capital investment required and refers to how
how much money a company wants to invest. Capital Intensity is an important aspect for any
market entering the e-commerce market because they have to decide how much their assets
would be appropriate to invest on a website. For the e-commerce market in general, the barriers
to entry is medium, meaning it would be a little difficult to enter the market with a low
investment because the market is a well-known area for customers to shop. It’s important to keep
in mind what market the new company entering wants market and what they are looking for.
(IBIS World, 2015)
Regulation and Policy- describes the scale of regulatory oversight, which is another
important aspect to know when entering the e-commerce market. There are certain regulation
and policy to follow and meet the needs of the policy. As an example for regulation would be
Protecting Your Customers Privacy Online, Online privacy is a big issue as many ecommerce
sites collect and retain personal information about customers. As the ecommerce site owner it is
your responsibility to ensure this personally identifiable information is protected, and that when
you collect such data you comply with federal and state privacy laws. E-commerce site owner’s
website should provide the private policy for their customers to look at so they feel safe about
using your website. Other regulations to think about when entering the market would be online
advertising and financial data. (Beal, 2010)
6. Market Changes
Change in technology - Advancements in technology and maintaining such are key to
customer service. Consumers are aware of the amount of information they share with brands and
expect it to be used to their advantage when making online purchases, so customization is key
when designing mobile apps and websites. Another expectation is speed, with site speed being
the second greatest concern for online shoppers. Increasing page load time only by one second
increases conversions 20 percent. Above, when prioritizing technology all consumers want realtime data visibility into users, inventory, pricing, product and payment for a seamless customer
experience. Proving such will differentiate a brand from its competitors (Overstreet, 2015).
Change in the industry - One of the biggest changes in industry that affected all market
players was the invention of the smartphone. With smartphones ability to instantly access
information consumers are able to make online purchases easily. Providing consumers with
secure transactions opened a new market for E-commerce websites. E-commerce websites, such
as justfab.com, utilize this market by providing mobile friendly websites and mobile apps.
RUNNING HEAD: E-commerce Market Report
RUNNING HEAD: E-commerce Market Report
Part Two. Competitive Analysis of One Company
Name of Company: Justfab.com
FACTOR
Strength of
Justfab.com
Weakness
Justfab.com
In Comparison
to
Shoebuy.com
In
Comparison
to
Zappos.com
Importance
to Customer
Products
-Trendy shoes,
boots, handbags,
jewelry, and
clothing
-Does not have
products for
male consumer
s
-Does not have
products for
kids
-Has women’s
shoes and
clothing
-Has men’s shoes
and clothing
-Has kid’s shoes
and clothing
-Bags
-Accessories
-Has
women’s
shoes, men’s
shoes, kid’s
shoes,
specialty
shoes
-Women’s
clothing,
men’s
clothing,
kid’s
clothing,
specialty
clothing
-Bags and
handbags
-Accessories
-Products are
very important
to the
customer
because the
store needs to
have what the
customer is
looking for or
has an idea
what they are
looking for
Price
-Two pairs of
shoes for $39.99
(buy one get one
free) with VIP
membership
-Nothing over
$50
-If you do not
have the VIP
membership
than you cannot
get the two
pairs of shoes
for $39.99 (buy
one get one
free)
-If the
consumer wants
a more
expensive item
such as a
designer then
they can not
find it on
JustFab.com
-Women’s shoes
range from $20 $800
-ShoeFan
rewards,1 point
per $1 spent, $10
reward per 200
points earned,
start with 100
points when you
sign up, 200
points = refer a
friend, 10 points =
post a product
review, 20 points
= link your social
media account to
Shoebuy’s, best
-Women’s
shoes range
from $3,000 $16
-Zappos
rewards visa,
Earn rewards
while
pampering
yourself with
clothing,
bags,
accessories,
and of course,
shoes, Earn 3
points for
every dollar
spent at
-Price is very
important to
the customer
because the
store needs to
have the right
price range for
the customer
in order for
them to be
interested and
keep shopping
-For example
if a low
income
customer is
shopping at a
high priced
RUNNING HEAD: E-commerce Market Report
value, inside
scoop
-no sales tax
-coupons
Quality
Selection
-Designers at
JustFab.com
design their own
products
-Spend $20 on
production -Sell
it to the
consumer on
JustFab.com for
$39.99 and free
shipping
-Designers at
- Offers high end
JustFab.com
shoes at better
only spend $20 quality
on production
-Overall quality
is low
compared to
department
store
merchandise
-Over 1,000 shoe
styles
-Too wide of a
shoe selection
-50,000 shoe
styles
Zappos.com,
Earn 1 point
for every
dollar spent
on purchases
elsewhere,
including
restaurants,
gas stations,
movie
theatres, and
anywhere
Visa credit
cards are
accepted,
Rewards are
automatic,
As soon as
you reach
2,500 points,
a $25
Zappos.com
gift certificate
will be
emailed to
you by
Zappos, No
annual fee
store they are
going to walk
out because
they cannot
afford
anything
-zappos
sustainable
design
-Quality is
very important
to the
customer
because they
need to know
if a product is
going to last
them a long
time or not
-over 30,000
women’s
shoes
-Selection is
very important
to the
RUNNING HEAD: E-commerce Market Report
that consumers
do not know
where to start
first
Service
Reliability
- Compared to
brand
competitors,
JustFab ranked
at the top
for customer
service
satisfaction
-Over 300
member service
agents ready to
assist consumers
-2.5 million
phone calls,
emails, and live
chats answered
-24/7 customer
service
-customer
service is
friendly,
attentive, and all
around amazing
-over 35 million
customers
worldwide
-create a profile
for the stylist
-new
merchandise is
handpicked for
each and
-Consumers
cannot go into a
physical store if
they have an
issue with a
product because
there is no
physical store
and they cannot
talk to a
customer
service
employee face
to face
-If a package
gets lost in the
mail that a
consumer
bought
- If
JustFab.com
sent the
consumer the
-Over 1,200
brands
-world’s largest
variety of styles
and sizes
-more than 1
million products
-hard to find fits
customer
because if they
are looking for
multiple
products from
different
categories then
they need to
know if the
store carries a
wide selection
of products
-Contact
Shoebuy.com
through email,
phone,
international
phone line, and
offers different
langauges
-wish list
-fitting charts
-measurement
tables
-fitting
information
--Call 24
hours a day,
365 days a
year
-Service is
very important
to the
customer
because if
there is a
problem with
the product
they need to
reach out to
someone who
can help them
-Free exchanges
-Free returns
-free shipping
-100% price
match guarantee
-100% safe
purchase
guarantee
-Safe
shopping
guarantee
-fast, free
shipping on
every order,
no minimums
-365 days to
return item
-Reliability is
very important
to the
customer
because they
need to know
if they can
trust you with
their money if
RUNNING HEAD: E-commerce Market Report
every customer,
each month by
the stylist
-free shipping
and returns
-perfect fit
guarantee
-$5.95 charge for
exchanges
-100% size
match guarantee
-video of the
product
wrong product
because the
consumer
cannot
physically see
or touch the
item that they
bought
-free shipping
label
-secure
shopping
guarantee
they purchase
something
from you
Stability
-founded in
2010
-over 35 million
members to the
VIP membership
-founded in 2000
-Customers
-over 18 million
cannot
orders shipped
physically see
other customers
shopping
-Customers
cannot
physically see
the employees
working
-founded in
1999
-joined the
amazon.com
family
-has 10
separate
companies
under
zappos.com
-Stability is
very import to
the customer
because they
need to know
if your still in
business after
they purchase
something
from you
online and
whether or not
it is going to
be shipped
Expertise
-style panel of
13 women who
make all of the
designs for
JustFab.com
-designed in Los
Angeles, CA
-If one of the
stylist on the
style panel
decides to quit
or gets fired
then it really
takes a toll on
the company
(verses a
company with
500 employees
and losses one
person)
-If the
consumer likes
designs based
-zappos
vision: One
day, 30% of
all retail
transactions
in the US will
be online,
People will
buy from the
company with
the best
service and
the best
selection,
Zappos.com
-Expertise is
very important
to the
customer
because they
need to see
that the
company
knows what
they are doing
when they are
selecting
products to
sell on their
website
-Offers brands
such as: UGG,
Converse, The
North Face,
Timberland,
Sperry, Patagonia
and many more
-Shoebuy.com
buys their
products from
these brands and
sells them through
their website
RUNNING HEAD: E-commerce Market Report
out of another
city other than
Los Angeles,
CA (such as
New York, NY)
will be that
online store.
-zappos
family core
values:
Deliver
WOW
Through
Service,
Embrace and
Drive
Change,
Create Fun
and A Little
Weirdness,
Be
Adventurous,
Creative, and
OpenMinded,
Pursue
Growth and
Learning,
Build Open
and Honest
Relationships
With
Communicati
on, Build a
Positive Team
and Family
Spirit, Do
More With
Less, Be
Passionate
and
Determined,
Be Humble
-zappos
family
-zappos
family library
-zappos
family culture
blog
RUNNING HEAD: E-commerce Market Report
Company
Reputation
- "When I
opened the box
and saw the
quality, not only
of the shoes but
of the shoe box
and packaging, I
was amazed. I
even received a
shoe bag to keep
my shoes in. I
will definitely be
telling all my
friends about
this."
- Deb F., Grand
Rapids, MI
-If one
customer gets a
bad experience
with
JustFab.com
then they are
going to tell all
of their family
and friends
about it
-There is no
possible way to
fix a bad
reputation for
an online store
because the
consumer
cannot
-"JustFab is
physically see
fantastic! They
employees
have better
giving good
customer service customer
and higher
service unless a
quality shoes and friend or family
purses. AND
member tells
they listen to our them about how
feedback! Love
they got good
it!"
customer
- Christy C.,
service, then
Jerome, ID
the consumer
might give
JustFab.com a
try again
-“Shout-out to
JOHN--who
helped me out
today with a small
issue on the Vans
that my 15 year
old just bought,
and won't part
with. Thank you
for helping me
even though I
didn't have my
order number
handy.....we are
really enjoying all
the shoes we've
bought lately and
wanted to say
THANK YOU (!)
for some great
customer service
today!!”
-Rachel R.
“Just worked with
John B. on
checking the
status of an order.
He very nicely
helped me to find
when my order
would arrive. In
fact he is so good
as I was finishing
the call knowing
the truck would
deliver the items
yet today, the little
brown truck was
pulling in my
yard. Talk about
great customer
service.”
-Sharon H.
-“Rarely do I
take the time
good or bad
to leave a
comment, not
this time.
Worked CS
for 40+ years,
very difficult
job. I just
wanted to say
thank you!
You're
company has
undoubtedly
the best
customer
service I have
ever done
business with.
No other
company
comes close!
Kudos to
ALL
involved.”
-Pamela
“I just
finished
printing my
return label
and I wanted
to express my
deep
appreciation
for always
such a
wonderful
online
shopping
experience
with Zappos,
ordering and
-Company
reputation is
very important
to the
customer
because they
need to here
good word of
mouth through
family and
friends who
have shopped
and purchased
items on the
company’s
website
RUNNING HEAD: E-commerce Market Report
receiving so
fast, and so
user friendly
for returns!
Have a
wonderful
day.”
-Michelle
-Online - sells to
United States,
Germany,
Canada, United
Kingdom,
France, and
Spain
- JustFab
Headquarters:
800 Apollo
Street
El Segundo, CA
90245
-No physical
store to try on
merchandise
-Headquarters Boston, MA
- Online - sells
nationally and
internationally
-Location is
-Headquarters important to
– Las Vegas, the customer
NV
because they
need to know
that the
company is
based out of
the US and
that they can
talk to
someone who
speaks English
when they
have an issue
with a product
Appearance
-Celebrity
endorsements
-Facebook,
Twitter,
Instagram,
Pinterest,
Youtube, blog
-If the website
is down
because of a
malfunction
then consumers
cannot see the
merchandise
-Facebook,
Twitter,
Instagram,
Pinterest, blog
-facebook,
twitter,
instagram,
zappos
newsletter,
blog, pinterest
-Appearance is
very important
to the
customer
because the
company
needs to look
attractive to
the customer’s
eye in order to
get their
attention
Sales Method
-Online
-Business to
consumer
-cutting out the
middleman and
department store
markup
-No physical
store to try on
merchandise
-online
-online
-Sales method
is very
important to
the customer
because they
need to know
where they can
Location
RUNNING HEAD: E-commerce Market Report
-designers at
JustFab pay for
production and
then sell it to the
consumer with
their markup
price
purchase your
products when
they see and
they are
interested in
them
Credit Policies
-Accepts all
major credit
cards, Visa,
Mastercard,
American
Express
-No personal
checks or money
orders
-Cannot pay
with cash
-Accepts credit
cards
-paypal
-paypal credit
-visa checkout
-payment by
phone
-gift certificates
-Accepts
Visa,
MasterCard,
Discover, and
American
Express
-Credit
policies are
very important
to the
customer
because they
need to know
if they can pay
with a credit
card, money
order, personal
check, cash,
gift card etc
Advertising
-JustFab.com has
advertisements
on E, Instyle,
People,
Cosmopolitain,
Essance, Star,
and MTV
-If a consumer
does not watch
TV or read
magazines or
use computers
then they will
not know about
JustFab.com
-email customers
-coupons
-sneak peaks
-facebook,
twitter,
instagram,
pinterest,
blog, zappos
newsletter
-Advertising is
very important
to the
customer
because if the
company does
not advertise
then the
customer will
have no way to
find out about
your company
or to purchase
products from
your company
-JustFab has a
very strong and
well known
image
-If JustFab.com
is known for
bad customer
service through
family and
friends then the
--Zappos.com
has a culture
and family
oriented
image
-Image is very
important to
the customer
because they
need to know
how your
Image
-Shoebuy.com has
a very strong
image since they
sell good quality
brands
RUNNING HEAD: E-commerce Market Report
consumer will
see the
company as a
negative
imagine
JustFab.com
(JustFab.com, 2015)
Shoebuy.com
(Shoebuy.com, 2015)
Zappos.com
(Zappos.com, 2015)
company
performs
overall in the
business world
RUNNING HEAD: E-commerce Market Report
Part Three. Combining Elements
1. Value Proposition of JustFab.com
A value proposition is marketing statement that summarizes why a consumer should buy
a product and/ or use a service. JustFab co-CEO Mr. Goldenberg states their value proposition is
“to make every effort to reward the support of our loyal customers and to attract new audiences
by having the best selection of shoes, accessories and apparel at the best price.” In 2021, JustFab
was the first to launch its own online community that creates a space for all members to upload
photos and get style advice from other members as well as from JustFab style panel experts.
Additionally, JustFab is extending its support services so that all members have access to fashion
consultants 24/7. With features such as expanded purchasing options, VIP perks, and a user
community JustFab provides consumers the comfort of shopping at its most convenient.
2. Competitive Advantage of JustFab.com
A competitive advantage is an advantage that a firm has over its competitors, allowing it
to generate greater sales or margins and/or retain more customers than its competition. Ecommerce sites such as JustFab have the advantage of technology over its competitors. “Using
data from customer activity on its website, JustFab can score customers on their likelihood to
make purchases within the next month based on how frequently they visit the site, the number of
items they have on their wish list, household income and other attributes”, says JustFab co-CEO
Mr. Goldenberg (Chao, 2015). That helps inform the company of how many items it needs to
stock in each size, and can even help JustFab keep hot items in stock. Another advantage is
having their inventory composed of products by their own designers.
3. Market Strategy of JustFab.com
JustFab uses both online and multichannel marketing strategies to capture its target
market. The company effectively uses its website and social media to enhance its online
strategy. The JustFab company website is linked to social media networks such as Facebook,
twitter, etc.
The company uses an online strategy via email to send out newsletters and promotion
information, and to inform subscribers of their marketing communication campaigns.
Multichannel marketing is used by JustFab as a means of providing alternative methods
for to customers to purchase products. JustFab is was known as just an online fashion company
until it incorporated the multichannel marketing strategy by opening a retail store. The goal was
to provide customers with the opportunity to try on products before buying them.
4. Market Opportunities of JustFab.com
RUNNING HEAD: E-commerce Market Report
JustFab should put more advertising efforts towards its newly introduced men’s clothing
line FL2. This line features comfortable athletic wear for men, as a counterpart to its other
women’s athletic line fabletics, which is more well-known and more often advertised.
The company should consider expanding its target market by offering more retail store
locations in more southern cities, even possible opening stores in malls and shopping centers.
JustFab could offer new consumers a free VIP membership trial so that they can make
discounted purchases and receive suggested products without paying the fee the first couple
months of usage.
RUNNING HEAD: E-commerce Market Report
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Steve Riordan, S. P. (2014, August 5). 7 Consumer Trends that Drive Complexity in Product
Development . Retrieved from Viewpoints on Innovation : http://viewpoints.kalypso.com/
Online Shoes, Clothing, Free Shipping and Returns| Zappos.com. (n.d.). Retrieved October 2,
2015, from http://www.zappos.com/
Women's Shoes, Boots, Handbags & Clothing Online | JustFab. (n.d.). Retrieved October 2,
2015, from http://www.justfab.com/
Shoebuy.com - FREE Shipping & Exchanges. (n.d.). Retrieved October 2, 2015, from
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