1) Argued
benefits of online shopping
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Convenience, broader selection, global choice,
better information, time saving, lower prices, rapid response time to needs,
customization, personalized products and services, quality of service,
new products and services, global choice, benefits from spiraling competition
among internet retailers.
Convenience
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Shopping on the Internet can save time. A consumer does not have to
travel to a store site or adjust his schedule around the store’s hours.
No longer does a consumer have to wait on hold for a customer service representative
to answer the phone
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Without leaving home or an office, consumers can access thousands of
Web sites to become informed about breaking news and events, research products,
and purchase everything from groceries to books to insurance policies
Broader selection
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Opportunity to find speciality items not readily available in ordinary
retail outlets
Global choice
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Shopping is no longer limited to the stores within a reasonable driving
or walking distance or to the catalogues they receive in the mail. Online,
customers can shop at stores in other states or in other countries
Better information
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Access to a fuller range of information about product availability
and pricing
Time saving
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Busy consumers can save time and find shopping more convenient as merchants
serve their needs individually
Lower prices
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Some Internet retailers offer discounts from traditional channels (online
booksellers, buying and selling stocks through the Internet, users can
access most online news and information free of charge. This element is
of greatest power and appeal in influencing the habits of consumers and
has the capacity to attract the future population of non internet oriented
market
Rapid response time to needs
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eCommerce allows traditional supply chains to be shortened (direct
shipping from the manufacturers) or even completely eradicated them (digital
goods such as software, music, info). This translates in customer
benefits by being able to purchase product in much less time.
Customization
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Some Web businesses, particularly media, music, computers businesses
already customize the product to an audience of one. The result is customized
products comparable to those offered by specialized suppliers but at competitive
mass market prices
Personalized products and
services
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As suppliers are closer to their customer they are able to gather detailed
information on the individual needs of the customer and can then tailor
products and services catering for these individual needs
Quality of service
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eCommerce has created a global market with all suppliers competing
for business. It brings suppliers closer to the customer. The customer
benefits to the extent that the quality of the service offered is improved.
New products and
services
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eCommerce also provides the opportunity for new products and services,
i.e., support services
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Access to new stores that do not exist in traditional formats and that
deliver digital products and services for example
Global choice
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There are no geographical or national boundaries in electronic commerce!
It is only limited by the coverage of computer networks. Customers can
select from all potential suppliers regardless of their whereabouts.
Benefits from spiraling
competition among internet retailers
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If retailing continues to grow on the Internet, competition and the
favorable economics of the Internet are likely to translate into lower
prices for the average consumer
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Consumers will be offered either online or offline "value added service"
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Internet retailers are starting to swallow shipping fees to capture
customers
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More and more incentives for customer to stay loyal
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e-merchants are rewarding growth over profitability
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Emergence of new models to target diverse group of consumers with free
offers: Free personal computers http://www.free-pc.com,
Free Internet access http://www.netzero.com
Free e-mail http://www.hotmail.com
Consumers are even paid to surf the web http://www.alladvantage.com.
But those who "apply" by answering a detailed questionnaire have to accept
constant bombardment by advertisers based on the personal profile created
from the questionnaire!
Ebates.com
is creating a business model built on the foundation of the Web's successful
affiliate marketing programs but Ebates.com will pass the commissions it
receives from retailers back to its users. The company plans to make money
by selling advertising space to companies seeking to reach the Ebates.com
audience
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