CIS 3317, CH 9-11, Exam # 3
interstitials
full page ad between web pages
portal content
Search engines, chat groups, bulletin boards, and free Web site design and hosting
Content Convergence
There are 3 aspects: design, production, and distribution. Convergence in the design, production, and distribution of content.
Social network
involves a group of people, shared social interaction, common ties among members, and people who share an area for some period of time.
moto
is the most similar to the online retail sector. In the absence of physical stores, (blank) retailers distribute millions of physical catalogs (their largest expense) and operate large telephone call centers to accept orders. They have developed extraordinarily efficient order fulfillment centers that generally ship customer orders within 24 hours of receipt.
Economic vaibility
refers to the ability of firms to survive as profitable business firms during the specified period.
Geo-fencing mobile notification, in-store sales:
use of smart phone geo-location technology to target ads for nearby stores and restaurants.
Name your own price (price line)
users state what they are willing to pay; sellers unload unsold/excess capacity
White paper (a better way to stop shopping cart abandonment)
why you should focus on reducing cart abandonment Cart abandonment rates on the average e-commerce site range between 65% to 80%. • Most visitors will not return to buy after they've abandoned their cart (89% of new visitors and 71% of returning visitors will not visit your site again in the next 4 weeks)1 • Cart abandonment has been estimated to cost online retailers more than $18 billion a year. Money spent on reducing cart abandonment provides some of best bang for your buck in increasing website revenue. A small change in cart abandonment can mean big changes in revenue:Imagine you improve your cart completion rate by just 5%. For example, improving from the typical cart completion rate of 25% to 30%. You'd see a revenue improvement of a whopping 20%.3 That's a 5:1 impact on revenue from a modest improvement in the cart completion rate. why Customers abandon carts Top 5 reasons why 1."Shipping and handling costs were too high" CosT 2."I was not ready to purchase the products" Not ready to buy 3."I wanted to compare prices on other sites" CosT 4."Product price was higher than I was willing to pay" CosT 5."Just wanted to save products in my cart for later consideration" noT Ready To buy Key point: The major causes of abandonment are cost pain points and not feeling pressure to buy now. Target these for lower cart abandonment. Key point: Gender can make a difference in online shopper behavior. Build your cart abandonment reduction strategy keeping your target market in mind.6 These two studies show that a successful cart abandonment strategy has to focus on specific pain points of timing and price, and that flexibility in customizing for different shoppers is key. pArt 3 Cart abandonment reduction strategies: emails vs real-time abandonment offers Currently, the most popular way to reduce cart abandonment is sending follow-up emails, adopted by 37.4% of merchants. But there's a better solution gaining traction: real-time abandonment offers. These are windows that appear upon a buyer action, such as exiting a site. They're new, but they're surging in popularity. Merchant adoption of these pop-up window offers has grown 132% as reported in 2013. more importantly: according to our data, real-time abandonment pop-up windows lead to 4 times more sales than recovery emails the case for real-time abandonment offers ReCoveRy emails Email sent to target user after they leave the store, often just with cart information REAChES: Only people who have provided their email address, and the message may get caught in spam filter, or be ignored or forgotten PERFORMAnCE: success rate (ie an email that results in a sale) is about 6% (about 14% of emails sent are "clicked" and of those about 40% result in a sale)1 EASE OF USE: Difficult, need to set up entire email system PRICE: 10% of saved revenue or pay per/email (whether this works or not). Real-Time abandonmenT offeRs Presents a real-time offer to shoppers who add items into their cart but attempt to leave the site before making a purchase. REAChES: 100% of abandoning users immediately, can't be ignored or missed PERFORMAnCE: success rate (ie an offer that results in a sale) averages about 27% EASE OF USE: Easy, with simple set-up if using the right software PRICE: Can be as low as 5% of saved cart revenue. You only pay if this works. Why real-time abandonment offers work so well Real-time advantage of immediacy: Provides the incentive to the buyer immediately, while they are still on your site, increasing effectiveness. incentive offers work: Data show the overwhelming reason most carts are abandoned is an issue with price,12 such as cost, tax, or shipping. An incentive like a discount, free shipping, or a free gift, (or a combination of these based on the size of their cart) overcomes that cost-based resistance. pArt 4 the best real-time cart abandonment solution: the Cart CloserTM from Conversions on Demand More effective, easier-to-use, and more affordable than all alternatives We've been implementing and optimizing e-commerce sites for almost 17 years. We've tested and learned what works, and know how to build the most effective, easiest-to-use, and most affordable solution to cart abandonment: real-time pop up windows through our app The Cart Closer. The Cart CloserTM window is triggered by "exit predictions" not "exit events" Rather than reacting to an "exit event" — like a shopper clicking to exit — we use exclusive, patented technology that observes your customers' mouse movements and intelligently presents an offer window at just the moment when they're likely to abandon. Before they've actually decided to leave. Using this "exit prediction" method has proven to not only increase orders,13 but also create a better user experience. With The Cart CloserTM there's no scary-looking alert box that looks like a malware attack. These special benefits are something that only The Cart CloserTM can currently offer. the Cart Closer in action: three examples example 1: a network of Cart CloserTM stores We compared the cart abandonment rate of 128 stores who activated The Cart CloserTM across 430,000 unique cart visitors. Our findings: • Average cart abandonment rate went down 8% • The Cart CloserTM prevented up to 28% of revenue loss example 2: greekgear Cyber monday Greekgear, a specialty apparel retailer and one of Internet Retailer's top 1,000 US merchants, found that The Cart CloserTM was more effective during last year's Cyber Monday than a much bigger site-wide discount. Greekgear generated nearly $10,000 in revenue on Cyber Monday 2013 with The Cart Closer.TM Many abandoning shoppers were won back by the 12% coupon from Cart Closer,TM despite it being less than a site-wide 20% discount, which they apparently missed or forgot. Discounts could not be combined, and The Cart CloserTM offered only one coupon per shopper. So the merchant closed more business than they would have closed, and saved 8% on any shopper who might have purchased anyway. example 3: a site sees a revenue increase of 10% when running just 1/3 of its traffic through the latest version of The Cart Closer.TM For a site test, we ran 1/3 of traffic through The Cart CloserTM (2.0). The test environment was a store with no previous exposure to The Cart CloserTM, and sufficient cart traffic to provide statistically meaningful results in a relatively short period of time. • The Cart CloserTM increased conversion rates confidently by 7% and revenue per visit by 10% • It brought in almost $7,000 more in a month Can your store afford not to use the Cart Closer? Easy to Implement. Easy to Analyze. Easy to Increase Revenue. The Cart CloserTM doesn't require any integration on your part, and all of its valuable tools are ready to use right out of the box. We'll install it for you for free if you are on a supported platform, and it's a 100% self-service solution. If you do find you need help, we'll provide the customer care you need to successfully use this incredibly powerful solution to your cart abandonment problem. If you are ready to tackle your cart abandonment problem, contact us at [email protected]. Better yet, take advantage of our free installation and 30-day free trial by signing up now!
Portal Characteristics
Online gateways (often the first page when opening a browser, such as yahoo, MSN, or google) that help people find the information they are looking for. Portals are moving toward becoming general community meeting places to enlarge and retain audience share and increase revenues
metered Subscription
Paid subscription service where some content is offered for free, similar to a freemium revenue model.
Downside of online auctions
unintended results: winners regret, consumer trust is a motivating factor, FRAUD, seller profit-arrival rate, length, and number of units at auction, Auction prices not lowest (buyer)
What are the revenue aids for online content?
-Free content drives users to paid content -Users increasingly paying for higher quality and unique content
Sources of revenue for portals
-General ad revenue Tenancy deals (fixed charge for # of impressions-"sole providers") Commission on sales Subscription fees Apps and games
Proxy Bidding
(allows the consumer to enter a maximum price, and the auction software automatically bids for the goods up to that maximum price in small increments)
Auction Sniping
(bidding at the last second to win, use to do this with eBay).
other names for the sharing Economy companies
Collaborative commerce peer to peer consumption mesh economy we-commerce
Factors in the Sharing economy
Collaborative commerce, trading platforms, sharing firms, and peer-to-peer commerce and not new. What is new about these firms is their use of mobile and internet technology to enable transactions on their platforms. Second the growth of these firms is supported by the use of online reputation systems based on peer review, to establish a trusted environment where sellers and consumers can feel confident transacting with one another. A third factor in the in the growth of the sharing economy is that successful firms lower the cost of services like urban transportation, lodging, office space, and personal errand services. Firms that can do this are highly disruptive of existing firms and business models. uber and Airbnb stand out not only as the most successful of sharing economy firms but also as the most disruptive and controversial.
Demand-Pull Model
products are not built until an order is received.
Magazine aggregator
a web site or app that provides subscriptions and sales of many digital magazines.
online social network
an area online where people who share common ties can interact with one another.
mobile order, web site and physical store sales:
apps take users directly to to specially formatted web site for ordering, or to in-store bargains. Ultimate shopping machine.
Practice networks
offer members focused discussion groups, help, information, and knowledge relating to an area of shared practice.
affinity communities
offer members focused discussions and interaction with other people who share the same affinity.
General communities
offer members opportunities to interact with a general audience organized into general topics.
Interest based social networks
offers members focused discussion groups based on a shared interest in some specific topic.
sponsored communities
online communities created for the purpose of pursuing organizational (and often commercial) goals
Revenue and content characteristics
- general content = lowest revenue - focused market = next lowest - niche content = middle revenue - sole source = second highest - high net value = highest revenue
Whats new in online Retail 2014-2015
. Mobile commerce is exploding, increasing from around $58 billion on 2013 to an expected $84 billion in 2014. Local commerce, headlined by daily deal sites such as Groupon and LivingSocial, continues to be popular with consumers, increasing to an estimated $4.8 billion in 2014. Buying online has become a normal, mainstream, everyday experience. almost 90% of internet users in the united states are now online shoppers. Big data and powerful analytic programs begin to be used for predictive marketing by both large and small retailers.
website credability
1) look of website 2) information structure 3) information focus 4) company motive 5) information usefullness
pure clicks/first-mover
1) new firm, first mover, amazon, netflix 3) existing firm, fast follower, Barnes and Noble
types of auctions
1. English auction: single item up for sale to single seller; highest bidder wins 2. Dutch internet auction: public ascending price, multiple units; final price is lowest successful bid, which sets price for all higher bidders 3. Penny (bidding fee) auction: must purchase bids ahead of time; items owned by the site; time auction- last and highest bidder wins 4. Name your own price (price line): users state what they are willing to pay; sellers unload unsold/excess capacity
online publishing industry
1. Online newspapers 2. E-books 3. Online magazines
DMCA.com
A DMCA Badge is a seal of protection placed on your website that deters thieves from stealing your content. With a registered badge, you have access to the tools, resources and support to swiftly takedown any website that steals your content. Thieves don't like that! Top reasons to use DMCA DETER THIEVES Use our content protection tools to make stealing your content much more difficult SECURE IMAGES Protect your images from illegal use by having your brand and copyright info automatically watermarked onto your images. DUPLICATE SEARCH Locate unauthorized duplicates of your content using our content scanning tools SAVE MONEY & TIME Taking down stolen content is costly and time consuming. Our inexpensive and quick tools get you on the way right now. The Problem Everyday millions of website owners have their valuable content stolen. What's worse is that they often do nothing as they are confused and unaware that anything can be done. This is where we come in! Our entire business is designed to make this difficult scenario easy and effortless for our customers. Find out below exactly how we help. What we can remove for you? Anything that you created, that is being used without your permission, we can probably remove it. No matter where the site is hosted in the world - if someone is infringing upon your content, we can get it taken down fast, or your money back! 3 minutes is all it takes to complete our takedown form and get your case started. We will most likely have your content taken down before you can find a lawyer to to work on your case.
Link Visitor
A person who comes to a news site following a link from another site. Stay for a few seconds and are not very responsive to ads.
Advantages of Bricks-and-Clicks Merchants
Brand name national customer base, warehouses, large scale (giving them leverage with suppliers) trained staff Acquiring customers is less expensive because of their brand names,
shopping cart abandonment
Bronto, analytics go into an abandoned shopping cart, determine on customer, determine on time, determine on follow up e-mail
Bricks-and-clicks
Companies that have a network of physical stores as their primary retail channel, but also have online offerings. These are Omni-Channel firms such as: walmart, Macy's, sears, JCPENNY, staples, officeMax, Costco, Target, and other brand name merchants.
Supply-push vs. Demand-Pull
Demand-pull has proved to be extremely difficult for traditional manufactures. Supply-Push model Step 1. Promotional campaigns Create the need to buy. Step 2. which pulls the customers in and grabs their attention which causes consumers to do research and seek which brand or product to get. step 3. Then the customer goes to the retailer, then the retailer purchases stock from the manufacturer due to demand. The easiest one is how things have been working for decades is the push model. The manufacturer makes tons of products then they encourage the retailer to stock the product. The retailers speculatively order's a bunch of them and then subsequently they gotta push their product on the customers through advertisements, in store promotions, incentives and more. And when the customer comes in, they're like overwhelmed with all these products. They may or may not have had any intention of buying in the first place. Demand-Pull model step 1. Retailer is pursuaded by manufacture to stock product. Step 2. In-store promotions and trained sales force are used to push the product. Step 3. Customer is likely to make purchase decision on that day. Looking to the left with the pull model, it works totally the opposite to where the manufacturer is advertising constantly and sometimes the retailer does this too. They're constantly advertising this product and the features.What they're trying to do is bait or incent the customers to be jonesing for it or want it. Think Apple, for example. Granted, it's not quite as rosey as it used to be a few years ago but when the new version of IPhones were coming out they hit it hard. There was press releases, there was limited supply, short supply, people were lining up and the demand was created from the manufacturer of the product. The retailer saw that demand and you know, the manufacturer was the one pulling the customers in. The retailer had to suddenly come up with stock that was limited stock but the customers you know basically doing the research making the decisions themselves then they go to the retailer and then the retailer may or may not have enough stock of that product on the shelf and they subsequently order it for the manufacturer vs. the opposite, the manufacturer pushes it to them and then they gotta do something with it.
DMCA
Digital Millennium Copyright Act 1998 -first major effort to adjust copyright laws to internet age, implements WIPO treaty that makes it illegal to make, distribute, or use devices that circumvent technology based protection of copyrighted materials
retail industry different firms
Durable goods general merchandise food and beverage specialty stores gasoline and fuel mail order/ telephone order (MOTO) online retail firms
T/F: Online mortgage industry has not transformed process of obtaining mortgage?
False
Four factors required to charge for content
Focused market Specialized content Sole source monopoly High perceived net value
types of social networks
General: online social gathering place to meet and socialize with friends, share content, schedules, and interests. Examples:facebook,tumblr,pinterest,and twitter Practice:Social network of professionals and practitioners, creators of artifacts such as computer code or music. Examples: just plain folks, linkedin, doximity interest: Community built around a common interest, such as games, sports, music, stock markets, politics, health, finance, foreign affairs, or life styles. Examples:E-democracy.org, perdictWallStreet affinity:Community of members who self-identify with a demographic, or geographic category, such as women, african americans, or arab americans. Example:BlackPlanet, Ivillage sponsored: Network created by commercial, government, and nonprofit organizations for a variety of purposes. Examples:Nike, IBM, Cisco, and Political candidates
Major impact of online real estate services?
INFLUENCING purchases offline. -online listing, loan calculators, research materials
paywall
In 1998 Slate an online magazine owned by microsoft, began charging its 140,000 readers a $19.95 annual subscription fee (a so-called Paywall) Paid Subscription service
Revenue and content Graph
It looks like hey, something's wrong with the chart. You forgot to graph it. There's no data points. In actuality, there is. So look at the Y-axis, revenue potential. Of course the lowest, the bottom left hand corner means zero. And the "mostesits", revenue that is what we want. You look at the X-axis going across. Look at the labels. This goes back to what we just shared on the previous slide. If it's of a general content, meaning it's gonna be provided in multiple websites, it's kinda hard to make money off of that in many cases it could be free elsewhere or other places too. So hence, not very much money
Why are Social Networks a personal danger
Lack of privacy. You never know who's watching. (Extreme example: a Mexican cartel killing and making a showcase of two people after said people posted about the cartel online) Identity theft, sensitive info, etc.
Service Sector
Largest and most rapidly expanding part of economies of advanced industrial nations. -Concerned with performing tasks in and around households, businesses, & institutions. -Employs 4 out of 5 US workers
online retail advantages
Lower supply chain costs by aggregating demand at a single site and increasing purchasing power. lower cost of distribution using websites rather than physical stores ability to reach and serve a much larger geographically distributed group of customers. ability to react quickly to customers tastes and demand . ability to change prices nearly instantly ability to rapidly change visual presentation of goods. avoidance of direct marketing costs of catalogs and physical mail increased opportunities for personalization, customization ability to greatly improve information and knowledge delivered to consumer. ability to lower consumers' overall market transaction costs.
ultra violent
Movie industry proof of DVD purchase program that allows playback of DVDs to any digital device.
Supply-push model
Products are made prior to orders received based on estimated demand and then stored in warehouses awaiting sale.
gift card loyalty program points can be used in any channel:
Recipient of gift card, loyalty program points can use it to purchase in-store, online, or via catalog, if offered by merchant.
walled garden
Refers to a kind of DRM that uses proprietary file formats, operating systems, and hardware to control the use of content after initial sale. Streaming services: apple and amazon both use it
Digital rights management (DRM)
Refers to the combination of technical(both hardware and software) and legal means for protecting digital content from unlimited reproduction without permission. DRM hardware and software encrypts content so that it cannot be used without form of authorization typically based on payment. The objective is to control the uses of content after is has been sold or rented to consumers. DRM can prevent users from purchasing and making copies for widespread distribution over the internet without compensating the content owners. 24+% of global Internet traffic is stolen material US: "Sampling" - Like = $$BUY$$
The sharing economy
Refers to the explosion of online firms that provide a platform for users to share assets and resources like bikes, cars, rooms with beds, entire homes, jet planes, and even high fashioned clothes. unlike traditional sharing where there is no fee charged in the transaction, in todays so-called sharing economy, firms collect a fee from both sellers and buyers for using the platform. Examples: Airbnb- property owners rent out lodging Uber- Car owners rent their car Lyft- Car owners rent their car CitiBike- New York city bike sharing service Rent in the Runway- high fashion dresses and accessories. Task Rabbit- Errand service platform rents labor RelayRides- Peer-to-peer car rental service Guidehop- Guide service connects travelers to local guides. PeerSpace- business space owners rent creative space for short periods. As far as the logos I put over here, just all thought provokers. I mean you look at Airbnb and what it's done to the sharing economy of connecting condo and homeowners with interval temporary occupancy by making your dwelling available to others. Unfortunately, pretty much every one of these with the exception open table has created friction in the industry.
iVOD (internet video on demand)
Streaming video to consumers for a subscription fee.
DCMA
The Defense Contract Management Agency is the agency of the United States federal government responsible for performing contract administration services for the Department of Defense and other authorized federal agencies
Catalog Merchant
The Third e-tailing business model. (old MOTO) the old mail order telephone order; Lands' End, L.L. Bean, Lilian Vernon, CDW Corp, PC Connection, and Cabelas are established companies that have a national offline catalog operation, but who have also developed online capabilities. among others all fall into this space.
Technological Convergence
The development of hybrid devices that can combine the functionality of two or more existing media platforms, such as books, newspapers, television, movies, radio, and games, into a single device. Examples:ipad, iphone, and android ("smart phones") that combine print, music, pictures, and video all in a single device.
virtual merchants
The first E-tailing business model. single -channel web firms that generate almost all of their revenue from online sales. they face extraordinary strategic challenges. they must build a business and brand name from scratch, quickly, in an entirely new channel and confront many virtual merchant competitors (especially in smaller niche areas). Because these firms typically do not have any physical stores, they do not have to bear the costs associated with developing and maintaining physical stores, but they face large costs in building and maintaining an e-commerce presence, building an order fulfillment infrastructure, and developing a brand name. Customer acquisition costs are high, and the learning curve is steep. Examples: Amazon, Ebay, Newegg, Netflix, overstock, ratuken(Buy.com), gilt group, zulily, wayfair, Rue LA LA, Blue Nile, Bluefly, Hayneedle, Net-a-porter, shoebuy.
earning trust within a social community
The goal is to have some kind of trustworthiness so that your comments are honest, upfront, sincere, compelling, so that when you do subsequent comments, people respect or value your opinion as that trusted source, quote on quote.
omni-channel
The second E-tailing business model. Sometimes referred to as Multi-channel. retailers that sell products through a variety of channels and integrate their physical stores with their website and mobile platform.They exist both online and in stores. uses bricks-and-click stores. multi-channel Omni-channel with that integration so you can try to leverage the shopping experience with a combination of online and offline and you're leveraging the physical store by still giving people a reason to come to the store to pick up their order and perhaps as I said a second ago, and buy some more. Examples This is the classic case of brick and clicks stores like :Walmart, J.C. Penny, Sears, Target, Staples, Victoria Secret, Best Buy.
the 3 revenue models for digital content delivery
There are 3 revenue models on the internet for delivering content. The Two pay models are subscriptions( usually "all you can eat") and la carte(pay for what you use) The third model uses advertising revenue to provide free content., usually with a freemium(higher Price) option. Then there is a free option, which is terrible quality content. Free content can drive users to paid content. Users increasingly paying for high-quality, unique content
Dis-advantantages of Bricks-and clicks merchants
They face high costs of physical building, and face high costs for large sales staff. They face challenges in coordinating prices across channels and handling returns of web purchases at their retail outlets. They also face challenges with leveraging their strengths and assets to the web, building a credible website, hiring new skilled staff, and building rapid-response order entry and fulfillment systems.
online retail challenges
consumer concerns about the security of transactions. consumer concerns about the privacy of personal information given to websites. delays in delivery of goods when compared to store shopping. inconvenience associated with return of damaged or exchange goods overcoming lack of consumer trust in online brand names added expenses for online photography, video, and animated presentations. online marketing costs for search, e-mail, and displays. added complexity to product and customer service greater customer information can translate into price competition and lower profits.
manufactures use online web site promotions to drive customers to their distributors' retail stores.:
consumers product manufacturers such as Colgate-palmolive and procter & gamble use their web channels to design new products and promote existing product retail sales.
web order, in-store returns, and adjustments:
defective or rejected products ordered on the web can be returned to any store location.
auction risks
delayed consumption costs, monitoring costs (time, emails...)- possible solutions include: fixed pricing, watch lists and proxy bidding equipment costs (not really) trust risks: possible solution- rating systems fulfillment costs & fraud: non-payment, false bids and bid rigging
EST (electronic Sell-through)
downloading movies to consumers for home or cloud service.
portal $ money makers
e-commerce portals? - most frequently visited sites on web -original portals were search engines (as search sites, attracted huge audience -today provide: navigation of the web, commerce, content -compete on reach and unique visitors -Enterprise portals (intranet site)- help employees find important organizational content (benefits, organization chart, resources...)
Financial analysis
helps us to understand how in fact the firm is preforming. There are two parts to financial analysis: 1.the statment of operations 2.the balance sheet
online retailing
is perhaps the most high-profile e-commerce sector. over the past decade this sector has experienced both explosive growth and spectacular failures. many of the early pure-play online-only firms that pioneered the retail marketplace failed. Entrepreneurs and their investors seriously misjudged the factors needed to succeed in this market place. but the survivors of this early period emerged much stronger, and along with traditional offline general and specialty merchants, as well as new start-ups, the e-tail space is growing very rapidly and is increasing its reach and size.
electronic retailing
is the sale of goods and services through the internet. Electronic retailing, or e-tailing, can include business-to-business (B2B) and business-to-consumer (B2C) sales of products and services, through subscriptions to website content, or through advertising.
moto reasons for improvement
it grew as a direct result of improvements in the national toll-free call system, the implementation of digital switching in telephone systems, falling long distance telecommunications prices, and of course the expansion of the credit card industry and associated technologies, without which neither (blank) nor e-commerce would be possible on a large national scale. (blank) was the last "technological" retailing revolution that preceded e-commerce. Because of their experience in fulfilling small orders rapidly, the transition to e-commerce was not difficult for these firms.
Auction benefits
liquidity, price discovery, price transparency, market efficiency, lower transaction costs, consumer aggregation, network effects
Social e-commerce
marketing and purchasing on social network sites like Facebook, twitter, pinterest, tumblr, and others.
Industry convergence
merger of media enterprises into synergistic combinations that create and cross-market content on different platforms.
Turning social networks into business revenue
monetize audiences through advertising -LinkedIn: recruiter fees, premium services -business use of social networks: -marketing and branding tool (facebook pages and "fans" -reach younger audience (vs. websites and email) -listening tool/station: monitoring online reputation -extension of business CRM systems
Penny (bidding fee) auction
must purchase bids ahead of time; items owned by the site; time auction- last and highest bidder wins
Channel Conflict
occurs when retailers of products must compete on price and currency of inventory directly against the manufactures who does not face the cost of maintaining inventory, physical stores, or sales staff.
Retail E-commerce: omni-channel integration methods
online order, in-store pickup: probably one of the first types of integration. online order, store directory, and inventory: when items are out of stock online, customer is directed to physical store network inventory and store location. in-store kiosk web order, home delivery: when retail store is out of stock, customer orders in store and receives at home. presumes customer is web familiar. in-store retail clerk web order, home delivery: similar to above, but the retail clerk searches web inventory if local store is out of stock as a normal part of the in-store checkout process. web order, in-store returns, and adjustments: defective or rejected products ordered on the web can be returned to any store location. online web catalog: online web catalog supplements offline physical catalog and often the online catalog has substantially more product on display. manufactures use online web site promotions to drive customers to their distributors' retail stores.: consumers product manufacturers such as Colgate-palmolive and procter & gamble use their web channels to design new products and promote existing product retail sales. gift card loyalty program points can be used in any channel: Recipient of gift card, loyalty program points can use it to purchase in-store, online, or via catalog, if offered by merchant. mobile order, web site and physical store sales: apps take users directly to to specially formatted web site for ordering, or to in-store bargains. Geo-fencing mobile notification, in-store sales: use of smart phone geo-location technology to target ads for nearby stores and restaurants.
online web catalog:
online web catalog supplements offline physical catalog and often the online catalog has substantially more product on display.
online order, in-store pickup:
probably one of the first types of integration.
Dutch internet auction
public ascending price, multiple units; final price is lowest successful bid, which sets price for all higher bidders
Cannibalization
refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.
in-store retail clerk web order, home delivery:
similar to in-store kiosk web order, home delivery, but the retail clerk searches web inventory if local store is out of stock as a normal part of the in-store checkout process.
English auction
single item up for sale to single seller; highest bidder wins
the balance sheet
tells us how many assets the firm has to support its current and future operations.
the statement of operations
tells us how many money (or loss) the firm is achieving based on current sales and costs.
Manufacture direct
the last e-tailing business model. are either single or multi-channel manufactures that sell directly online to consumers without the intervention of retailers. Dell, apple, sony, all of these are able to sell stuff to you directly. But then again they may be in conflict with the retailers and there may be exclusive agreement which is why so many retailers you know, they may carry a product but it's specifically made for that retailer and you'll never find it in any other store. And if it's a washer or dryer for example, maybe the chime is different. Maybe the knobs are different but there some some subtle difference so that you cannot do price check because the UPC, the brand, make, and model are not exactly the same. So they're trying to protect things, even Levi's. Then you have you know, the outlet mall stores vs. department set up in Kohl's, Macy's, among others too.
amazon
the seattle-based pure online merchant is one of the most well known names on the web. as stated in its annual report filed with the U.S. securities and exchange commission, Amazons objective is to be Earths most customer-centric company.
E tail business models
there are four main types of online retail business models: 1.virtual merchants: Amazon and Ebay. 2.omni-channle merchandise(sometimes referred to as bricks and clicks or clicks and bricks) 3.catalog merchants or (old MOTO), 4.manufacture-direct firms. In addition there are small mom and pop retailers that use: ebay, amazon, and yahoo stores slaes platforms, as well as affiliate merchants whose primary revenue derives from sending traffic to their "mother" sites. Each of these different types of online retailers faces a different strategic environment, as well as different industry and firm economics.
challenges for virtual merchants
they must build a business and brand name from scratch, quickly, in an entirely new channel and confront many virtual merchant competitors (especially in smaller niche areas). Because these firms typically do not have any physical stores, they do not have to bear the costs associated with developing and maintaining physical stores, but they face large costs in building and maintaining an e-commerce presence, building an order fulfillment infrastructure, and developing a brand name. Customer acquisition costs are high, and the learning curve is steep.
New group of virtual merchants
they recently emerged, they use a subscription revenue mode. Examples: Birchbox (Personalized beauty samples delivered monthly) Stitch Fix (Clothing selected by a personal stylist) Barkbox(pet supplies) Naturebox (healthy snacks) Bulu box (supplements and vitamins)
moto
was the fastest growing retail segment throughout the 1970's and 1980's.
online order, store directory, and inventory:
when items are out of stock online, customer is directed to physical store network inventory and store location.
in-store kiosk web order, home delivery:
when retail store is out of stock, customer orders in store and receives at home. presumes customer is web familiar.
Digital leakage
where paid for and downloaded content is redistributed via e-mail or posted for few viewing on a Web site.
digital leakage
where paid for and downloaded content is redistributed via e-mail or posted for few viewing on a Web site.
