E-commerce and E-retailing Distribution Channels

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3 Questions

What is the main purpose of pure-play e-tailers?

To sell directly to consumers without intermediaries

What factors influence online purchase decisions?

The type of e-retailing distribution channel used

What is a key factor of success for e-tailers?

Visionary leadership

Study Notes

  • E-commerce has been growing rapidly in recent years, and is expected to continue doing so.
  • E-commerce can be divided into three main categories: direct marketing by mail-order retailers that go online, direct marketing by manufacturers, and pure-play e-tailers.
  • Direct marketing by mail-order retailers that go online uses a new marketing system (online), in addition to their existing method (catalogs, etc.). No intermediaries.
  • Direct marketing by manufacturers takes place without intermediaries between manufacturers and buyers.
  • Pure-play e-tailers sell directly to consumers over the Internet without maintaining a physical sales channel.
  • Click-and-mortar retailers, Internet (online) malls, and virtual (pure-play) e-tailers are examples of e-retailing distribution channels.
  • Social networks and distribution channels such as online delivery are also examples of e-retailing distribution channels.
  • Online purchase decisions are influenced by a number of factors, including the type of e-retailing distribution channel used, the product being purchased, and the consumer's preferences.
  • Successful e-tailers think strategically and plan for long-term success, focusing on sound business practices such as financial analysis and visionary leadership. They also have a stable and scalable technology infrastructure in place to support the online and physical aspects of their business operations. High-volume products and services often have a well-known brand and are provided by reliable vendors. Items that are frequently purchased (such as prescription drugs) tend to have standardized specifications, and well-known packaged items that cannot be opened in a traditional store (such as chocolates) are popular.

Explore the concepts of e-commerce and e-retailing distribution channels in this quiz. Learn about the different categories of e-commerce, distribution channels, and factors influencing online purchase decisions.

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