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E-commerce business. technology. society.
Third Edition
Kenneth C. Laudon Carol Guercio Traver
Copyright © 2006 Pearson Education, Inc. Slide 10-1
Chapter 10
Retailing on the Web
Copyright © 2006 Pearson Education, Inc. Slide 10-2
Blue Nile Sparkles For Your Cleopatra Class Discussion
④Why is selling (or buying) diamonds over the Internet so difficult?
④How has BlueNile built its supply chain to keep costs low?
④How has BlueNile reduced consumer anxiety over online diamond purchases?
④What are some vulnerabilities facing BlueNile?
④Would you buy a $5,000 engagement ring at BlueNile?
Copyright © 2006 Pearson Education, Inc. Slide 10-3
Major Trends in Online Retail, 2006 See also Table 10.1, Page 575.
④ Online retail increasingly profitable
④ Buying online becomes normal, mainstream experience
④ Selection of goods online increases, including customized goods ④ Average annual amount of purchases increases
④ Specialty retail sites show most rapid growth
④ Increased emphasis on improved shopping experience ④ Increased use of interactive multimedia marketing
④ Retail intermediaries strengthen in many areas
④ Retailers increasingly efficient at integrating multiple channels
④ Customized goods, especially in apparel, become financially successful, and begin to spread to many sites beyond specialty retailers.
④ Online shopping becomes more multi-seasonal
④ Most online shopping occurs at work, evenings at home
Copyright © 2006 Pearson Education, Inc. Slide 10-4
The Retail Sector
④Most important theme in online retailing is effort to integrate online and offline operations
④U.S. retail market accounts for over $7.7 trillion of total GDP (2/3rds of all economic activity)
④Retail industry can be divided in segments, each of which offers opportunities for online retail
④Biggest opportunities for online retail sales: Those segments that sell small ticket items (specialty stores, general merchandisers, mail-order catalogs, groceries)
④Mail order/telephone order (MOTO) sector most similar to online retail sector
Copyright © 2006 Pearson Education, Inc. Slide 10-5
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