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Definitions
• E-commerce: digitally enabled commercial transactions– Using the Web & Internet to transact business – More of a marketing function– Not to be confused with internal transactions• Management information systems function• What the book defines as E-business
The Reinvention of E-Commerce
• 1995-2000 , Innovation– Digitize business on the web– Weak business models– Liquidity bubble
• 2001-2008, Consolidation– Honed business models, 25% growth per year– Success of social networking services
Where is E-Commerce Today
• Trends in 2008-2009– New business models based off social
technologies• Web 2.0
– Growth in search engine marketing & advertising– Retail ecommerce grows in double digit rates• Online population slows but average purchase expands• Fastest growth in teen, tween and older shoppers
Ecommerce today (cont.)
• Revolution in telecommunications, print media, real estate, hotels, bill payments
• Entrepreneurs flood the net, riding on infrastructures of Amazon, eBay and Google
• Large companies continue to improve multi-channel, bricks & clicks models
• Growth in B2B supply chain use of the web
Lands End
• Opened in 1963 as the Lands’ End Yacht Stores– Averaged 15 mail orders per day
• Bought by Sears in 2002 for $1.9 billion
• 2005, Fifteenth largest mail order firm
• Annual sales of over $1.3 billion
• Target quality-conscious, middle-age consumers with traditional casual apparel
Lands End
• Direct marketing
• Multi-channel merchant– Catalogs, stores, and website
– 269 million catalogs mailed in 2001– 16 outlet and inlet stores in three countries– Website online in 1995, initially offering 100
products
• Today, every product in catalog sold online
Lands End
• 15 million web site visitors (1999)– $61 million in revenue– Considered world’s largest apparel website
• Known for customer service– First firm with 24/7 order taking & 800 number– Lands End Live (talk with personal shopper)
Lands End
• Website has full set of features:
– Lands End My Personal Shopper (live chat)– Online style advice – Swim suit fitting– Three-dimensional model– Build an oxford shirt
Lands End
• Online orders filled through catalog warehouse– Size of 16 football fields– Sort 10,000 pieces per hour– Ship 150,000 orders per day
• Using a multi-channel model resulting in seamless customer experience
Different from Traditional Formats
• Ubiquity (anywhere/anytime)
• Global Reach (no boundaries)
• Universal Standards (common standards)
• Richness (video/audio/text)
Different from Traditional Formats
• Interactivity (technology interacts with user)• Information Density (reduces information
cost/raises quality)• Customization (personal messages on mass
level)• Social Technology (content generation/social
networks)
Online Dating Industry
• $516 million in revenues (2005)• Over 850 online dating services– 59% of daters find it “difficult” to meet someone
new– Most likely place to meet people: • Work (22%), Internet (18%), Bars (18%), Clubs (11%)
• Downsides: stigma & anonymity (married)
Key Players
• Match.com• Yahoo! Personals• eHarmony• Lavalife• Traditional dating firms– It’s Just Lunch
• Social networking communities
Match.com
• Conceived in 1993• Owned by Interactive Corporation– Ticketmaster
• World’s largest online dating firm– 900,000 paying subscribers– 12 million profiles posted– January (2004), 29.6 million unique visitors
Match.com
• Partnered with several firms– America Online & Microsoft’s MSN
• Subscriptions as low as $12.99 per month
• New services include:– video, off line speed dating, friend list, travel site,
MatchLive off line events