E-Commerce Course 3

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E-CommerceCourse 3

• B2C

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Three basic assumptions

• For a consumer, any decison is always based on
  information.
• Information can be internal or external
• In marketing what we do is to manage information

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Decision making processes are influenced by two
major variables

• Involvement
• Which is correlated with risk
• Financial risk
• Fonctional risk
• Social risk
• Psychological risk
• Physical risk
• Experience expertise

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E-tailing
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Yesterday..
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And today
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Forrester Mai 2000
of total
retail
2005
2000
2001
2002
2003
2004
2005
Total US revenue (millions)
73,926
110,748
155,833
207,270
269,158
44,784
Total convenience (millions)
15,445
25,070
37,194
52,664
71,061
93,001
Media
20,529
6,670
9,807
13,019
16,513
25,817
3,814
Software
1,752
2,465
2,983
3,431
4,200
6,076
1,801
2,629
3,618
4,726
8,007
4,837
1,020
1,666
2,463
3,484
6,717
5,802
Books
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2,096
3,047
3,955
4,872
6,893
4,462
350
933
1,986
3,289
5,626
2,944
760
1,266
1,812
2,384
3,560
Total may not equal actual sum of categories
due to rounding
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of total
retail
2005
2000
2001
2002
2003
2004
2005
73,926
110,748
155,833
207,270
269,158
44,784
2,626
4,148
5,916
8,227
11,172
14,874
392
631
939
1,350
1,877
2,549
828
1,524
2,567
4,117
6,181
8,733
1,406
1,994
2,410
2,760
3,114
3,591
31,955
5,040
8,915
14,461
22,251
43,124
1,600
Accessories
18
547
862
1,123
1,348
1,979
21,577
13
5,194
8,988
2,756
14,569
29,434
Jewelry
13
1,370
2,217
3,316
4,776
6,617
8,921
2,161
8
367
642
1,035
1,559
2,792
Total may not equal actual sum of categories
due to rounding
Forrester Mai 2000
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2005
Total may not equal actual sum of categories
due to rounding
Forrester Mai 2000
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2003
2004
2005
Total may not equal actual sum of categories
due to rounding
Forrester Mai 2000
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3,107
6,635
12,041
20,010
31,169
48,362
Pet supplies
624
1,523
2,519
2,996
4,448
6,130
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Health and beauty aids
11
1,352
2,656
4,460
6,572
8,672
10,840
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1,131
2,455
5,063
10,441
18,049
31,392
3
2,859
3,692
4,590
5,700
6,929
8,246
Total may not equal actual sum of categories
due to rounding
Total includes all goods sold to consumers in
product categories not listed above
Forrester Mai 2000
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Basic definitions

• Gross margin Sales - cost of goods sold
• Inventory turnover Sales at cost/ average
  inventory
• Net Margin Gross margin- operating costs

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Amazon.com(en millions de )
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Profitabilité des détaillants de type
e-commerce(source Boston Consulting Group)
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Amazon.com VsBarnes and Nobles
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• BN gross margin 38
• BN average inventory 1,110 Millions
• Amazon.com average inventory200 millions