E-Commerce entities

1. E-Commerce entities

2. E-Tailers • E-tailers are businesses that source products from suppliers and sell them purely on line, such as Amazon and ebuyer. • Some of these organisations wouldn’t have existed without e-commerce. • There is a minimal need for warehousing if orders are shipped directly from the supplier to the customer, with the website providing an intermediary service.

3. This is one of several reasons why overheads can be lower. However as prices must be relentlessly competitive, profit margins can be low as well. • Therefore these businesses must operate at maximum cost-effectiveness. • E-tailers do not need shop space, therefore reducing cost of lighting, heating other utilities and staff resulting in lower salary costs and overheads.

4. Second hand products • A relatively recent development in online selling has been the inclusion of second hand products. • Amazon provide both new and used books, games and other goods. • eBay specialises in customers using the website to sell their own items.

5. Manufacturers • Dell manufacture their own goods and sell them purely online. It is not possible to purchase a Dell computer from a traditional shop such as pc world. • However they do have physical offices in Bracknell, Berkshire, employing over 1500 staff and run a huge call centre.

6. Manufacturers like Dell can afford to sell their products at lower prices and have more dramatic special offers because they do not need to pay for retail premises or lots of sales staff to sell products. • They can also provide a much more personalised product, because the systems can be made on demand. • (How does Dells website work, how do you order your customised pc?)

7. Existing retailers • Businesses that exist already in the traditional marketplace with branches all over the country have now converted to selling online as well. • Bricks and clicks approach can allow companies to enjoy the best of both worlds. • However moving from bricks to bricks and clicks can often only be done by larger more stable businesses as it can be too risky a strategy for many smaller businesses.

8. Consumer led e-commerce entities • One interesting development of the Internet is the emergence of consumer – led sites such as eBay, where the public can buy and sell their own items through an auctioning system.

9. Informative e-commerce entities • Many sites provide a wealth of information. The National Rail Enquiries site offers information to train travellers but also allows them to purchase train tickets. • BBC and daily newspapers have websites that are a rich source of information on current affairs as well as providing learning opportunities and the option to buy products.

10. Daily Telegraph • The Daily Telegraph ran a series of articles on novel writing and provided a message board for interested people to post their comments and their answers to writing exercises set in the weekly articles. • The business aim of this project was to use the internet to increase sales of the newspaper.