WC:>: ZDNet on e-commerce

[Barry Lee Brisco]

Interesting article on e-commerce potential at

http://www.zdnet.com/icom/e-business/1998/11/e-tailing/index.html

Here's the opening page:


November 07, 1998
E-tailing 2000
Eric Fleming - Inter@ctive Investor


It's no secret why online retailing is so hot. According to market research firm Jupiter Communications, online retail sales will hit $37.5 billion in 2002. But only certain categories will work.

Commodity products are the key. Jupiter identifies these categories as the most popular for online retailing: Travel, PC hardware/electronics, software, grocery, books, ticketing, specialty gifts and music.

Although it's still early in the game, it has become clear what business models will not work. Peapod Inc. shot itself in the foot with its plan to deliver groceries from the supermarkets themselves. That misstep left Peapod playing catch up. Now NetGrocer, which only sells dried goods (e.g., pasta, rice and canned goods) directly from its warehouse, keeps its costs down by selling and shipping directly to the customer.

Mistakes like Peapod's are not forgiven quickly, especially when it's hard to hang on to customers. One major challenge to online commerce is keeping customers coming back once they've bought something. "Switching costs -- the cost to a customer to go to a competitor -- is extremely low," said analyst Nicole Vanderbilt at Jupiter Communications Inc. Online, there is no such thing as a good location.




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Barry Lee Brisco <mailto:[EMAIL PROTECTED]>
Web Design & Development - Online Marketing <http://www.ToTheWeb.com>
Web portfolio at <http://www.ToTheWeb.com/portfolio.html>