E-commerce 2014 E-commerce 2014 business, technology society business technology. society. Kenneth C Laudon: I Carol Guercio Traver tenth edition ⑩0 Kenneth C laudon Carol Guercio Traver Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall
E-commerce 2014 Kenneth C. Laudon Carol Guercio Traver business. technology. society. tenth edition Copyright © 2014 Pearson Education, Inc. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
置印验固盒画增铺息还金副恩配 Chapter 9 Online Retail and services Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 9 Online Retail and Services Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
Class discussion Blue Nile Sparkles for Your Cleopatra a Why is selling or buying diamonds over the Internet difficult? a How has blue nile built its supply chain to keep costs low? How has blue Nile reduced consumer anxiety over online diamond purchases? What are some vulnerabilities facing blue nile? a Would you buy a $5, 000 engagement ring at blue Nile? Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-3
Class Discussion Blue Nile Sparkles for Your Cleopatra ◼ Why is selling (or buying) diamonds over the Internet difficult? ◼ How has Blue Nile built its supply chain to keep costs low? ◼ How has Blue Nile reduced consumer anxiety over online diamond purchases? ◼ What are some vulnerabilities facing Blue Nile? ◼ Would you buy a $5,000 engagement ring at Blue Nile? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-3
What s New in Online retail 2013-2014 Mobile commerce nearly doubles Rapid growth in social commerce Online retail still the fastest growing retail channel a Buying online a normal, mainstream experience Selection of goods increases includes luxury goods a Informational shopping for big-ticket items expands Specialty retail sites show rapid growth a Integration of multiple retailing channels Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-4
What’s New in Online Retail, 2013–2014 ◼ Mobile commerce nearly doubles ◼ Rapid growth in social commerce ◼ Online retail still the fastest growing retail channel ◼ Buying online a normal, mainstream experience ◼ Selection of goods increases, includes luxury goods ◼ Informational shopping for big-ticket items expands ◼ Specialty retail sites show rapid growth ◼ Integration of multiple retailing channels Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-4
The Online retail sector Most important theme in online retailing is effort to integrate online and offline operations $16 trillion U.S. economy ■Us, retail market $11.4 trillion 671% of total gross domestic product ( GDP Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide g-5
The Online Retail Sector ◼ Most important theme in online retailing is effort to integrate online and offline operations ◼ $16 trillion U.S. economy ◼ U.S. retail market ❖ $11.4 trillion ❖ 71% of total gross domestic product (GDP) Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-5
The retail Industry 7 segments clothing durable goods, etc. For each, uses of Internet may differ Information VS direct purchasing General merchandisers vs specialty retaillers Mail order/telephone order( MOTO sector most similar to online retail sector Sophisticated order entry, delivery, inventory control systems Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-6
The Retail Industry ◼ 7 segments (clothing, durable goods, etc.) ❖For each, uses of Internet may differ ◼ Information vs. direct purchasing ◼ General merchandisers vs. specialty retailers ◼ Mail order/telephone order (MOTO) sector most similar to online retail sector ❖Sophisticated order entry, delivery, inventory control systems Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-6
Composition of the U.S. Retail Industry MOTO Online Retail 3% 6% Consumer durables Gasoline and Fuel 31% 13% Food and Beverage 14% General Merchandise 18% Specialty St 15% Figure 9.1, Page 566 SOURCE: Based on data from u.S. census Bureau 2012 Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-7
Composition of the U.S. Retail Industry Figure 9.1, Page 566 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-7 SOURCE: Based on data from U.S. Census Bureau, 2012
E-commerce Retail: The vision Reduced search and transaction costs customers able to find lowest prices lowered market entry costs lower operating costs higher efficiency Traditional physical store merchants forced out of business Some industries would be disintermediated Few of these assumptions were correct -structure of retail marketplace has not been revolutionized a Internet has created new venues for multi-channel firms and supported a few pure-play merchants Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide g-8
E-commerce Retail: The Vision ❖ Reduced search and transaction costs; customers able to find lowest prices ❖ Lowered market entry costs, lower operating costs, higher efficiency ❖ Traditional physical store merchants forced out of business ❖ Some industries would be disintermediated ◼ Few of these assumptions were correct—structure of retail marketplace has not been revolutionized ◼ Internet has created new venues for multi-channel firms and supported a few pure-play merchants Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-8
The Online Retail Sector Today Smallest segment of retail industry 5-6%) Growing at faster rate than offline segments Revenues have resumed growth Around 73%of Internet users bought online in2013 Primary beneficiaries established offline retailers with online presence〔eg, Staples First mover dot-com companies(e.g, Amazon) Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide g-9
The Online Retail Sector Today ◼ Smallest segment of retail industry (5–6%) ◼ Growing at faster rate than offline segments ◼ Revenues have resumed growth ◼ Around 73% of Internet users bought online in 2013 ◼ Primary beneficiaries: ❖Established offline retailers with online presence (e.g., Staples) ❖First mover dot-com companies (e.g., Amazon) Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-9
The growth of online retail in the United states 500 434 385 339 297 300 259 200 100 20102011201220132014201520162017 Year Figure 9. 2, p. 569 SOURCES: Based on data from emarketer inc Copyright C 2014 Pearson Education, Inc. Publishing as Prentice Hall Slideg-10
The Growth of Online Retail in the United States Figure 9.2, p. 569 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 9-10 SOURCES: Based on data from eMarketer, Inc
