TABLE 2.5 E-COMMERCE ENABLERS
INFRASTRUCTURE
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PLAYERS
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Hardware: Web Servers
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HP • Dell • Lenovo
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Software: Web Server Software
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Microsoft • IBM/Red Hat • Oracle
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Cloud Providers
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Amazon Web Services • Microsoft Azure • IBM Cloud • Google Cloud Platform
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Hosting Services
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Liquid Web • WebIntellects • 1&1 Ionos • HostGator • Hostway
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Domain Name Registration
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GoDaddy • Network Solutions • Dotster
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Content Delivery Networks
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Akamai • Limelight Networks • Amazon CloudFront
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Site Design
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Weebly • Wix • Squarespace • Jimdo
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Small/Medium Enterprise E-commerce
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Shopify • BigCommerce • YoKart
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Platforms
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Enterprise E-commerce Platforms
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Magento (Adobe) • IBM • Oracle • Salesforce • SAP • Intershop
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M-commerce Hardware Platforms
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Apple • Samsung • LG
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M-commerce Software Platforms
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Mobify • PredictSpring • Usablenet • GPShopper (Synchrony Financial)
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Streaming, Rich Media, Online Video
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Adobe • Apple • Webcollage
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Security and Encryption
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VeriSign • Check Point • GeoTrust • Entrust Datacard • Thawte
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Payment Systems
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PayPal • Authorize.net • Square • Cybersource
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Web Performance Management
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Neustar • SmartBear • Dynatrace • Solarwinds
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Comparison Engine Feeds/Marketplace
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ChannelAdvisor • CommerceHub • Tinuiti
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Management
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Customer Relationship Management
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Oracle • SAP • Salesforce • Microsoft Dynamics 365
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Order Management
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Blue Yonder • Jagged Peak • Monsoon
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Fulfillment
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Blue Yonder • Jagged Peak • CommerceHub
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Social Marketing
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Buffer • HootSuite • SocialFlow
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Search Engine Marketing
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iProspect • ChannelAdvisor • Merkle
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E-mail Marketing
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Constant Contact • Cheetah Digital • Bronto Software • MailChimp
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Affiliate Marketing
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CJ Affiliate • Rakuten LinkShare
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Customer Reviews and Forums
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Bazaarvoice • PowerReviews • BizRate
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Live Chat/Click-to-Call
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LivePerson • Bold360 • Oracle
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Web Analytics
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Google Analytics • Adobe Analytics • IBM Digital Analytics • Webtrends
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MAJOR BUSINESS-TO-CONSUMER (B2C)
BUSINESS MODELS
Business-to-consumer (B2C) e-commerce, in which online businesses seek to reach individual consumers, is the most well-known and familiar type of e-commerce. Table 2.6 illustrates the major business models utilized in the B2C arena.
E-TAILER
Online retail stores, often called e-tailers, come in all sizes, from giant Amazon to tiny local stores. E-tailers are similar to the typical bricks-and-mortar storefront, except that customers only have to connect to the Internet or use their smartphone to place an order. Some e-tailers, which are referred to as “bricks-and-clicks,” are subsidiaries or divisions of existing physical stores and carry the same products. Walmart, Tesco, H&M, and Zara are examples of companies with complementary online stores. Others, however, operate only in the virtual world, without any ties to physical locations. Amazon, Wayfair, and Farfetch are examples of this type of e-tailer. Several other variations of e-tailers—such as online versions of direct mail catalogs, online malls, and manufacturer-direct online sales—also exist.
The market opportunity for e-tailers is very large, and even more so in the wake of the Covid-19 pandemic. Every Internet and smartphone user is a potential customer. Customers who feel time-starved are even better prospects, because they want shopping solutions that will eliminate the need to drive to the mall or store (Bellman, Lohse, and Johnson, 1999). The e-tail revenue model is product-based, with customers paying for the purchase of a particular item.
This sector, however, is extremely competitive. Because barriers to entry (the total cost of entering a new marketplace) into the e-tail market are low, tens of thousands of small e-tail shops have sprung up. Becoming profitable and surviving is very difficult, however, for e-tailers with no prior brand name or experience. The e-tailer’s challenge is differentiating its business from existing competitors.
Companies that try to reach every online consumer are likely to deplete their resources quickly. Those that develop a niche strategy, clearly identifying their target market and its needs, are best prepared to make a profit. Keeping expenses low, selection broad, and inventory controlled is key to success in e-tailing, with inventory being the most difficult to gauge. Online retail is covered in more depth in Chapter 9.
COMMUNITY PROVIDER
Although community providers are not a new phenomenon, the Internet has made such sites for like-minded individuals to meet and converse much easier, without the limitations of geography and time to hinder participation. Community providers create an online environment where people with similar interests can transact (buy and sell goods); share interests, photos, videos; communicate with like-minded people; receive interest-related information; and even play out fantasies by adopting online personalities called avatars. Facebook, LinkedIn, Twitter, and Pinterest, and hundreds of other smaller, niche social networks all offer users community-building tools and services.
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