Ecommerce lecture 3. Selling on the web
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1 Ecommerce lecture 3 Selling on the web
2 Case: Progressive h:ps:// First to sell car insuranace online for those with poor insurance record. high premiums, low sales force profitable Response to CompeDDon: first 24/7 + website Launched website, shows competors quotes impression of honesty & openness integrated their web presence into overall branding
3 Revenue Models
4 Web Catalog model Web version of mail order catalog, makes use of strength of brand of seller Replaces paper catalog, or supplements it Is an addidonal sales outlet, without extra shops Shoppers may find online and purchase in store Egs: JC Penny, LL Bean, Hickory Farms
5 Notes Discount retailers MulDple markedng channels Add personal touch Issues especially fabrics: Colour of fabrics depends on lighdng condidons. Need to offer generous return policy (eg Zappos fast delivery, free returns)
6 Fee for Content Revenue model SubscripDon for content Legal, academic, business, technical content Electrnoic books Music Video
7 AdverDsing Revenue model element Ad supported Impressions? Unique visitors, click throughs? Most successful are targeted Strategies: General interst vs specific interest vs collecdon of specific interests Egs of succes: how stuff works, Huffington posts, web portals
8 AdverDsing Revenue II Ad supported newspapers Ad supported online classified ad sites craigslist, CareerBuilder.com Monster.com Ad subscripdon mixed revenue model Pay fee, but get some ads NYT, WSJ, ESPN Comsumer reports: purely subscripdon.
9 Fee for TransacDon Revenue Model Fee on No. of transacdons Ogen disintermediates human agent Stock brokerage firms Fixed fee set by law, differendate by advice given à discount brokers web be:er than discount broker Insurance brokers Quote policy, accept applicadons online InsWeb, insurance.com (offer to those with traffic offence or bad history)
10 Fee for TransacDon II Event Dckets Sell to customers anywhere, not only box office Seconday Dcket market Performers sell directly Online Banking & financial services Account balances, statements à bill payments, account transfers, loan applicadons etc Also bill presenter servcies (view & pay bills) Account aggregadon services (Yoldee.com) Concern = sagey & security
11 Fee for TransacDon III Travel & tour Agencies TradiDonally fee for transacdon Online site can book larger volumes (rooms, airline Dckets) Also run ads: egs: Exedia, Travelocity Specialized agencies charge commissions eg wave hunters.
12 Fee for TransacDon IV Automobile Sales Laws prevent direct sale (protects against disintermediadon) Provide info Find local dealer/buyer in area for spec given Run ads, Mixed fee for transacdon Autobytel, edmunds.com
13 Fee for TransacDon V Real estate & mortgage loans Bring buyer & seller together Provide info on loans, Accept applicadons online SDll resistant to change
14 Fee for Service Revenue Models Fee based on value of service Online games Professional Services Law, medical
15 Free for many, Fee for a few Low cost of digital repoducdon Offer free product Charge for enhanced/specialized version
16 Revenue models in transidon SubscripDon to Ad supported Miscrosog s Slate online mag: AdverDsing to Ad- SubscripDon Salon.com AdverDsing to SubscripDon Northern light (h:ps:// northern- light/ )(search engine+ journal ardcles MuliDple Changes to revenue Enclyclopedia Britanica NYT
17 Revenue Strategy Issues Channel Conflict & CannibalizaDon Levis, Eddie Bauer Allowing returns + ResoluDon Strategic Allicance Levis, Yoldee, Amazon & target,,amazon & others Luxury Goods Don t offer full range Overstock strategies Easier to update web than print
18 Create effecdve presence online Web presence goals =? Consistent brand image Not for profits: Info disseminadon Make donadons one click away
19 Website usability Make interacdve Meet needs of visitors Technology issues (browser type, bandwidth) Make site accessible (export file formats, flash, streaming/image size) Trust & loyalty Order handling, help selecdng a product, ager sales support Respond to quesdons quickly, Ogen lack of integradon with call center Usability TesDng
20 Website usability..ii Customer centric design Design around how customer will navigate Avoid specialize terms Cater for older devices Colour combinadons For mobile: Provide content for user on the move OpDon to switch to full site Clear navigadon, concise text
21 Connect with Customers Mass Media: one to many Web: many to many Personal Contact : one to one Web is flexible ( potendal customers can interact with others)
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