Electronic

Retailing

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 Electronic Retailing

 Electronic retailing is the direct sale (B2C) through electronic

storefronts or in electronic malls, usually designed around an
electronic catalog format online.

 In electronic retailing, there are several selling channels:

 Solo electronic storefronts
 Electronic malls (or cybermalls)
 Shopping portals

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 B2C e-Commerce
Business-to-consumer EC can be done in two
major ways:

1. Companies sell direct to the customer.

 Such direct marketing has the advantage of
personalization and customization.
2. Companies use an intermediary.
 There are two types of online infomediaries:
1. Pure online e-tailers
2. “Links on other websites”
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 B2B Models
Sell-side model Buy-side model Exchanges

One company An organization Marketplaces in

sells to many (usually large) which many
electronically. buys from many buyers and
vendors. sellers meet.

(one-to-many) (many-to-one) (many-to-many)

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 B2B Model Types
Sell-side model Buy-side model Exchanges

Sell-side Reverse auctions Vertical Distributors

marketplace Vertical Exchanges
Buyer’s Internal
Marketplace Horizontal
Forward auctions Distributors

Group Purchasing Functional

Exchanges

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 M-Commerce
 M-commerce (mobile commerce) refers to the conduct of e-
commerce via wireless devices.

 Advantages of M-Commerce
 Mobility
 Reachability
 Ubiquity
 Convenience
 Location of products and services
• L-commerce

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 Fraud on the Internet
 Internet Stock Fraud
 Fraud in Electronic Auctions
 Other Financial Fraud
 e.g. Selling bogus investments
 Federal Trade Commission
 provides a list of 12 scams
most likely to arrive on the net
• e.g. Bulk mail solicitors,
Chain letters, Work-at-home
schemes
 Buyer Protection is critical to the
success of any commerce, and
especially EC, where buyers do not
see the sellers.
 Seller Protection safeguards
vendors against consumers who
refuse to pay or who pay with bad
checks.
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 EC-related Legal Issues

 Domain Name
 Problems arise when several companies compete over a domain
name.
 Taxes and Other Fees
 Federal, state, and local authorities are scrambling to figure out
how to get a piece of the revenue created electronically.
 Copyright
 Protecting software and other intangible creations is difficult over
the Web.

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 Ethical Issues
 Privacy and Web tracking.
 Privacy issues are related to both customers and employees.
 The human element.
 The implementation of EC may lead to personnel
dissatisfaction and loss of salespeople’s income
 Disintermediation.
 The use of EC may result in the elimination of a company’s
employees as well as brokers and agents.

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 Ethical and Legal Issues
Consumer
Fraud
Supplier
Ecological
Labor
Considerations
Practices
Ethical and Legal
Issues in
Use of Retailing Retail
Customer
Theft
Information
Slotting
Allowances
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