E-Commerce with Digital Marketing

M3SI Supplementary Material

Read the following questions with answers to serve as your guide to your self-paced study.

1. What are the limitations of e-tailing? Where is e-tailing going?

Possible answer: In Korea, Internet retailing has become the second most important distribution channel,
exceeding the national sales volume of all department stores. In many countries, B2C is the fastest growing
form of retailing. The question is what will be the limits of e-tailing? The market concentration has already
begun, setting a high bar for new e-tailers. However, small businesses can easily start their online channel as
part of a stable e-mall service platform when they find a niche opportunity. Because many easy sources of
funding have dried up and revenue models are being scrutinized, vendor consolidation will continue until
greater stability within the e-tailing sector occurs. Ultimately, there will likely be a smaller number of larger
sellers with comprehensive general sites and many smaller, specialized niche sites.

2. How will intermediaries act in cyberspace?

Possible answer: The role of online intermediaries has become more and more important. In the banking, stock
trading, job market, travel industry, and book sales sectors, the Internet has become an essential service
channel. These intermediary services create new business opportunities for sellers and intermediaries.

3. What are the major potential limitations of the growth of B2C EC?

Possible answer: First, the limitations depend on market demands for online products. The saturation effect
may be strong. Second, the cost and availability of Internet access may influence growth. Third, cultural
differences and habits may deter or slowdown e-shopping. Fourth, the ease of B2C shopping is important, and
fifth, the availability of payments and order fulfilment infrastructure are critical success factors.

4. How to deal with “big data”?

Possible answer: A large amount of data is collected in B2C and is growing rapidly. It is necessary to extract
valuable information and knowledge from this data. The technologies that are used belong mostly to the
category of business intelligence (BI); they range from data and Web mining to several other analytical tools.

SY2020-2021