1. E-Commerce Course 3 B2C

2. 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

3. 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

5. E-tailing

6. Yesterday………..

8. And today

9. Forrester Mai 2000 Media Software Total convenience (millions) Total US revenue (millions) Books 21% $44,784 $6,670 $1,752 $1,801 $1,020 $350 $760 $15,445 $2,096 $73,926 $9,807 $2,465 $2,629 $1,666 $933 $1,266 $25,070 $3,047 $110,748 $13,019 $2,983 $3,618 $2,463 $1,986 $1,812 $37,194 $3,955 $155,833 $16,513 $3,431 $4,726 $3,484 $3,289 $2,384 $52,664 $4,872 $207,270 $20,529 $3,814 $6,076 $4,837 $4,462 $2,944 $71,061 $5,802 $269,158 $25,817 $4,200 $8,007 $6,717 $5,626 $3,560 $93,001 $6,893 % of total retail 2005200020012002200320042005 “Total” may not equal actual sum of categories due to rounding

10. Jewelry Accessories 13% 8% 13% 18% $44,784 $2,626 $392 $828 $5,040 $1,406 $2,756 $367 $1,370 $547 $73,926 $4,148 $631 $1,524 $8,915 $1,994 $5,194 $642 $2,217 $862 $110,748 $5,916 $939 $2,567 $14,461 $2,410 $8,988 $1,035 $3,316 $1,123 $155,833 $8,227 $1,350 $4,117 $22,251 $2,760 $14,569 $1,559 $4,776 $1,348 $207,270 $11,172 $1,877 $6,181 $31,955 $3,114 $21,577 $2,161 $6,617 $1,600 $269,158 $14,874 $2,549 $8,733 $43,124 $3,591 $29,434 $2,792 $8,921 $1,979 % of total retail 2005200020012002200320042005 “Total” may not equal actual sum of categories due to rounding Forrester Mai 2000

11. 2005 “Total” may not equal actual sum of categories due to rounding Forrester Mai 2000

12. 200320042005 “Total” may not equal actual sum of categories due to rounding Forrester Mai 2000

13. Health and beauty aids Pet supplies 8% 11% 7% 3% $3,107 $1,131 $1,352 $624 $2,859 $6,635 $2,455 $2,656 $1,523 $3,692 $12,041 $5,063 $4,460 $2,519 $4,590 $20,010 $10,441 $6,572 $2,996 $5,700 $31,169 $18,049 $8,672 $4,448 $6,929 $48,362 $31,392 $10,840 $6,130 $8,246 20% “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

14. Basic definitions Gross margin= Sales - cost of goods sold Inventory turnover = Sales at cost/ average inventory Net Margin= Gross margin- operating costs

16. Amazon.com (en millions de $)

17. Profitabilité des détaillants de type e- commerce (source: Boston Consulting Group)

20. Amazon.com Vs Barnes and Nobles

26. B&N gross margin= 38% B&N average inventory 1,110 $ Millions Amazon.com average inventory=200 $ millions