3 Retailing in E-Commerce

E-COMMERCE & GOVERNMENT
Retailing In E-commerce
DDT0013
INTRODUCTION TO IT E-TAILING
SUB TOPIC
ELECTRONIC RETAILING (E-TAILING)

Retailing conducted online, over the Internet
E-TAILERS
Retailers who sell over the Internet
LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

E-TAILING JOB MARKET
OUTCOMES SERVICE ONLINE ONLINE ONLINE
DDT0013
INTRODUCTION TO IT E-TAILING
SUB TOPIC
Operate between A retailer – Sales

manufacturers and intermediary
Retailers use for customers
efficient distribution.
Reach large number of
customers.
Catalog free a retailer

from the need for
physical store
B2C; B2B

DDT0013
INTRODUCTION TO IT WHAT SELLS WELL ON THE INTERNET?
SUB TOPIC
Expedia and Travelocity are major players

in this category. Online travel agents offer
a range of services including travel
booking, hotel reservations, car rentals
and vacation packages.

DDT0013
SUB TOPIC
Dell and Gateway are the major online

vendors of computer hardware and
software. Computer hardware and
software is the largest category of
products sold online

DDT0013
SUB TOPIC
Consumer electronics include digital

cameras, printers, scanners and wireless
devices. Consumers electronics is the
second largest category of products sold
online.

DDT0013
SUB TOPIC
Sporting goods sell very well on the

Internet. However, it is difficult to
measure the exact amount of sales
because only a few e-tailers sell
sporting goods exclusively online.

DDT0013
SUB TOPIC
Amazon.com and Barnesandnoble.com

are the major sellers of books. However,
hundreds of other e-tailers sell books on
the Internet, especially specialized books.

DDT0013
SUB TOPIC
In 2007, online sales of toys dropped

again due to toy recalls, specifically
those toys made in China.
(Biz Report 2007)

DDT0013
SUB TOPIC
A large variety of health and beauty

products – from vitamins to cosmetics and
fragrances – are sold online by most large
retailers and by specialty stores.

DDT0013
SUB TOPIC
This is another area where dozens of

products, ranging from tickets to
events (e.g., ticketmaster.com) to paid
fantasy games, are embraces by
millions of shoppers worldwide.

DDT0013
SUB TOPIC
With the possibility of buying

customized shirts, pants and even
shoes, the online sale of apparel also
is growing. Guaranteed returns
policies and improving features on
fitting clothing without first trying it
on have increased customers’ comfort
zone for buying apparel online.

DDT0013
SUB TOPIC
Online sales of jewellery are booming.

With claims of prices about 40 percent
less than would be paid in traditional
stores, the trend toward online
jewellery sales is likely to continue.

DDT0013
SUB TOPIC
The sale of cars over the Internet is just

beginning (people still like to “kick the
tires”), but could be one of the top
sellers on the Internet in the near
future. Customers like the built-to-order
capabilities, but even selling used cars
online has advantages and is increasing
rapidly. Support services such as
financing, warranties and insurance also
are selling well online.

DDT0013
SUB TOPIC
Sales in services industries, especially

travel, stock trading, electronic
banking, real estate and insurance are
increasing – more than doubling every
year in some cases.

DDT0013
INTRODUCTION TO IT ACTIVITY 1
SUB TOPIC
Computer
Consumer
Travel hardware & Your task:
electronics
software
Find 2 examples
Books and of EC website
Sport & Toys &
music (cd & according to each
fitness goods hobbies
dvd) categories.
Health &
Entertainment Jewellery
beauties
Cars Services

DDT0013
INTRODUCTION TO IT ACTIVITY 2
SUB TOPIC
Your task:
Compare and discuss the benefit and limitation of be online and/or

offline according to each area:-
• Travel and tourism online

• Employment placement and online job market
• Real estate
• Banking

DDT0013
INTRODUCTION TO IT RETAILING VS E-TAILING
SUB TOPIC
Factor Retailers E-Tailers

Physical expansion (when Expansion of retailing Expansion of EC platform to
revenue increase as the platform to include more include increased server
number of visitors grows) locations and space capacity and distribution
facilities
Physical expansion (when May not need physical May still need physical
revenue does not increase as expansion. expansion to provide
the number of visitors sustainable services.
grows) Expand marketing effort to
turn “window shoppers” into Expand marketing to turn
effective shoppers. “pane shoppers” into
effective shoppers.
Technology Sales automation Front-end technologies
technologies such as POS
systems Benefits from browsing

DDT0013
SUB TOPIC

Cont...
Back-end technologies
“Information” technologies
Customers relations More stable due to no Less stable due to
anonymous contacts anonymous contact
More tolerable of disputes More intolerant of disputes

due to visibility due to invisibility
“Physical “relationship “Logical” relationships

Cognitive shopping overhead Lower cognitive shopping Higher cognitive shopping
overhead due to easy-to- overhead due to hard-to-
establish mutual trust establish mutual trust

DDT0013
SUB TOPIC

Cont...
Back-end technologies
“Information” technologies
Customers relations More stable due to no Less stable due to
anonymous contacts anonymous contact
More tolerable of disputes More intolerant of disputes

due to visibility due to invisibility
“Physical “relationship “Logical” relationships

Cognitive shopping overhead Lower cognitive shopping Higher cognitive shopping
overhead due to easy-to- overhead due to hard-to-
establish mutual trust establish mutual trust

DDT0013
SUB TOPIC

Competition Local competition Global competition
Fewer competitors More competitors

Customers base Local area customers Wide are customers
No anonymity Anonymity
Fewer resources needed to More resources needed to

increase customers loyalty increase customers loyalty
Customers remain loyal for Customers shift loyalty

future purchases
Supply chain cost High, interruption Lower

DDT0013
SUB TOPIC

Customization and Expensive and slow Fast, efficient
personalization
Price changing and price Expensive to do, done not so Inexpensive, anytime
discrimination often
Adaptability to market Slow Rapid
trends

DDT0013
INTRODUCTION TO IT TRAVEL & TOURISM SERVICE ONLINE
SUB TOPIC
Purchasing
tickets
Reserving
Providing
general
information

DDT0013
SUB TOPIC
Accommodations Entertainment Travel Tips
Detail Driving
Fare Tracking Expert Opinions Maps and
direction
Online Travel
Chat Room Bulletin Board
Auctions

DDT0013
LASTMINUTE.COM

DDT0013
PRICELINE.COM

DDT0013
STAYFINDER.COM

DDT0013
GREATRENTALS

DDT0013
FLIGHT.COM
Offer
cheap
tickets

DDT0013
SPECIAL SERVICE
Several airlines, Delta Sell e-ticket over

& Qantas allow internet. Print the
customers with cell boarding pass. Or
phones with Internet using kiosk at the
access to check their Direct airport
Wireless
flight status, update Marketing
frequent flyer miles Services
and book flights.
Alliance and
consortia
Creating alliances to increase sales or reduce purchasing costs. ~

Aggregate only fares purchased over the Internet
(skyscanner.com)

DDT0013
BENEFITS LIMITATIONS
The amount of free information is Many people do not use Internet.
tremendous
Accessible at anytime and any place Amount of time and difficulty of using virtual
travel agencies can be significant ~ complex
trip and inexperienced Internet surfers.
Substantial discounts can be found, who Complex trips or those require stopovers
have time and patience to search for it. might not be available online ~ require
specialized knowledge and arrangements,
which may better done by a knowledgeable
human travel agents.
Also benefit: Airlines, hotels, cruise lines.
Human Travel Agents as intermediaries
Direct selling saves the provider’s need to remains?
commission and its processing.

DDT0013 EMPLOYMENT PLACEMENT AND THE JOB MARKET
INTRODUCTION TO IT
ONLINE
Job Seekers
Employers seeking
employees
Job Agencies
Government
Agencies and
Institutions
LEARNING TRAVEL & TOURISM JOB MARKET REAL ESTATE INSURANCE

E-TAILING
OUTCOMES SERVICE ONLINE ONLINE ONLINE ONLINE
INTRODUCTION TO IT
ONLINE
Characteristic Traditional Job Market Online Job Market

Cost Expensive, especially in Can be very inexpensive
prime space
Life cycle Short Long
Place Usually local and limited if Global
global
Context updating Can be complex, expensive Fast, simple, inexpensive
Space for details Limited Large
Ease of search by applicant Difficult, especially for out- Easy
of-town applicants
Matching of supply and Difficult Easy
demand
Reliability Material can be lost in mail High

E-TAILING
INTRODUCTION TO IT
ONLINE
Characteristic Traditional Job Market Online Job Market

Communication speed Can be slow Fast
between employees and
employers
Ability of employees to Limited Easy, fast
compare jobs

E-TAILING
INTRODUCTION TO IT
ONLINE
Benefits Limitations
Some people do not have access to the Internet.
~ Companies might use both traditional advertising approaches and

For the Job seekers the Internet.
and for the Security and privacy
employers
~Resume and other online communications are usually not encrypted.
Data protection cannot be guaranteed.

E-TAILING
INTRODUCTION TO IT
ONLINE
Advantages for Job seekers Advantages for Employers

Can find information on a large number of Can learn how to use their voice effectively
jobs worldwide in an interview
Can communicate quickly with potential Can access newsgroups that are dedicated
employers to finding jobs
Can market themselves directly to potential Can advertise to a large number of job
employers seekers
Can write and post resume for large-volume Can reduce application-processing costs by
distribution using electronic application forms
Can search for jobs quickly from any location Increased chance of finding highly skilled
employees
Can obtain several support services at no Can describe positions in great detail
cost
Can access their market value Can conduct interviews online

E-TAILING
INTRODUCTION TO IT
ONLINE
Advantages for Job seekers Advantages for Employers

Can arrange for testing online
Can view salary surveys for recruiting
strategies.
LEARNING TRAVEL & TOURISM JOB MARKET REAL ESTATE, INSURANCE

E-TAILING
OUTCOMES SERVICE ONLINE ONLINE INSURANCE ONLINE
DDT0013
INTRODUCTION TO IT REAL ESTATE, INSURANCE AND STOCK TRADING
The increase in Internet real 80 percent of real estate Local brokers have tried to
estate advertising is buyers begin their searches restrict access to such
understandably influencing for properties on the databases to members of a
buying behaviour Internet. professional association.
Pattern is more complex than

the simple disintermediation
Home buyers today tend to
of agents, but their
use both real estate agents
percentage start to decline as
and the Internet.
more buyers find sales on the
Internet
LEARNING TRAVEL & TOURISM JOB MARKET REAL ESTATE,

E-TAILING BANKING ONLINE
OUTCOMES SERVICE ONLINE ONLINE INSURANCE
DDT0013

DDT0013

DDT0013
Several large insurance

Many people do not and risk-management
trust the faceless companies offer
insurance agents, others comprehensive
are eager to take insurance contract
advantage of the reduce online
premiums

DDT0013

DDT0013

DDT0013
Chance for error is small

No busy telephone lines because there is no oral No noisy environment
communication
Investors can find a

Can be placed from considerable amount of
No biased broker to push
anywhere, at any time, free research information
a sale
day or night. about specific companies
or mutual funds.
Online statements, tax-

related calculations,
intensive research on
industries.

DDT0013
INTRODUCTION TO IT BANKING AND PERSONAL FINANCE ONLINE
Various banking activities

conducted from home or
the road using an
Internet connection; also
known as cyber banking,
virtual banking, online
banking and home
banking

DDT0013
Application Type Information / Services Provided

Informational General bank information and history
Financial education information
Employment information
Interest rate quotes
Financial calculators
Current bank and local news
Administrative Account information access
Opening of new account online
Application for services
Moving all banking online
Personal finance software applications

DDT0013

Transactional Account transfer capabilities
Transfer funds houses at different financial institutions
Bill-pay services
Corporate services
Online insurance services
Online brokerage services
Real-time funds transfer
Online trust services
Portal Links to financial information
Links to community information
Links to local business

DDT0013

Links to nonlocal businesses
Others Wireless capabilities
Search function


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E-COMMERCE & GOVERNMENT

ELECTRONIC RETAILING (E-TAILING)

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Operate between A retailer – Sales

Catalog free a retailer

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Expedia and Travelocity are major players

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Dell and Gateway are the major online

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Consumer electronics include digital

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Sporting goods sell very well on the

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Amazon.com and Barnesandnoble.com

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

In 2007, online sales of toys dropped

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

A large variety of health and beauty

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

This is another area where dozens of

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

With the possibility of buying

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Online sales of jewellery are booming.

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

The sale of cars over the Internet is just

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Sales in services industries, especially

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Compare and discuss the benefit and limitation of be online and/or

• Travel and tourism online

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Factor Retailers E-Tailers

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Factor Retailers E-Tailers

More tolerable of disputes More intolerant of disputes

“Physical “relationship “Logical” relationships

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Factor Retailers E-Tailers

More tolerable of disputes More intolerant of disputes

“Physical “relationship “Logical” relationships

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Factor Retailers E-Tailers

Fewer competitors More competitors

Fewer resources needed to More resources needed to

Customers remain loyal for Customers shift loyalty

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Factor Retailers E-Tailers

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Accommodations Entertainment Travel Tips

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

Several airlines, Delta Sell e-ticket over

Creating alliances to increase sales or reduce purchasing costs. ~

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE

LEARNING TRAVEL & TOURISM REAL ESTATE INSURANCE