Spring 2011
e-Commerce Implementation
R
ETAILING
IN
E
LECTRONIC
C
OMMERCE
: P
RODUCTS
AND
S
ERVICES
Notable e-Commerce-related Statistics
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Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
4
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
6
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
8
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
10
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
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Notable e-Commerce-related Statistics
From: http://www.internetretailer.com/trends/sales/
Notable e-Commerce-related Statistics
What product categories well on the Internet?
Apparel and accessories
Books, CDs, DVDs
Cars
Computers and electronics
Flowers and gifts
Food and drug
Health and beauty
Housewares/home furnishings
Jewelry
Office supplies
Sporting goods
Toys and hobbies
Travel
Ideal
online products
Recognized, quality
brand name
Backed by
guarantee
provided by reliable,
well-known company
(reduces consumer risk)
Easy to
display
, describe, depict online
Relatively
inexpensive
Commonly or
frequently purchased
Standardized
commodity type products (standard specifications,
usage)
Products
not needing close examination
even in traditional
store
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Transitioning to online sales
4 common backgrounds to e-Commerce companies
Pure-play online retailers
Click-and-mortar retailers
Mail order retailers that move online
Experience with marketing directly to consumers
Experience in logistics of order fulfillment
Manufacturers that begin selling online
Able to forge direct contact with customers
Established online industries
Nature of some industries made them particularly suitable to
embrace e-Commerce.
Travel
Real Estate
Banking and investing
Online Travel Industry
Online travel: probably the most successful e-commerce
industry implementation
Major players: Expedia, Travelocity, Priceline, Orbitz
Typical services:
Providing general travel information
Promoting fare comparisons
Reserving and purchasing tickets, accommodations,
entertainment, etc.
Providing travel tips and expertise
Publishing electronic travel magazines or newsletters
Growing:
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Online Travel Companies
How do they make money?
Direct revenue—commissions from sales
Revenue from advertising
Consultancy fees from other industry participants
Subscription or membership fees (typically for corporate
travel offices, etc.)
How to be unique?
Interface differences and tools
Industry experts with opinions, information
Bulletin boards and forums to promote user involvement
Frequent-traveler deals or packages
Online Travel Industry
Benefits for consumers
Access to timely free information from anywhere
Substantial discounts
More direct understanding of options. More control.
Benefits for industry players
Airlines, hotels, cruise lines—higher participation. Selling
otherwise-empty spaces
Direct selling reduces commission and processing needed
Limitations
May be difficult for inexperienced Internet users
Complex trips require specialized knowledge
Online Real Estate Industry
WWW has made it much easier to find, buy, and sell a home.
View properties online
, saving time for buyer and broker
Search by specific criteria and
preview exterior and interior
design
Sell/buy home without employing a broker
Online real estate financing
Shop for best loan
rates online
Apply for and receive approval for financing online
Real-estate lending portals: LendingTree, eLoan, etc
Online Banking and Investing
Banking
Virtual banks
Investing
Boom in 1990s with “day trading”
Process buy and sell stock transactions from a home PC.
Online Discount Brokers—provide information and
transactional support for private investors, but no personal
expert advice.
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Online grocery sales?
Biggest problem: delivery logistics.
Grocery industry operates on a thin margin, cutting costs
difficult.
Primary advantage: convenience.
Amazon began to sell non-perishable groceries online summer
of 2006.
Track record of many failures (Webvan lost over $1 billion)
makes potential investors wary.
Why not go online?
Top reasons retailers give for not going online:
Product is not appropriate for Web sales
Lack of significant opportunity
High cost
Technological immaturity
Online sales conflict with core business
Keys to success
Don’t ignore
profitability
—what is the revenue and profit plan?
Manage
new risk
exposure—what risks will this venture expose
us to?
Watch the cost of
branding
—how can we build our name
without breaking our budget?
Do not start with insufficient
funds
—do we have enough funds
to see our plans to completion?
The
Web site
must be effective—is our Web presence functional
and usable for guests? Secure?
Keep it
interesting
—what is our plan for building loyalty and
repeat customer visits?
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Copyrights
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Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Oracle is a registered trademark of Oracle Corporation.
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JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
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Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company.
Other products mentioned in this presentation are trademarks of their respective owners.
