• What are the characteristics of high-volume products and

services?
• What is the difference between e commerce and e tailing?
• what are the challenge of e- tailer
• what are e-tailing advantages to sellers / buyers
• list the generation of e-tailing and the main characteristics
• Why manufacturer need retailer
 E-Tailing
Business Models
• *Business Model
o from the point of view of a retailer or a manufacturer that
sells to individual consumers. - next
• B2B: The seller has to buy materials, goods, and services
from others, usually businesses
• B2C - e-tailing
o business model: a description of how an organization
intends to generate revenue through its business
operations.
o B2C models - classifications.
E-Tailing as an Enterprise EC System
 E-Tailing
Business Models
• Classification of Business Models
o Ways to classify E-tailing business models By
• the nature(general/special purpose ) of the
business
• the scope (global/regional) of the sales region
covered
• revenue sources.
• the distribution channel used
 E-Tailing
Business Models
• Classification of Models by Distribution Channel
1. Traditional mail-order retailers that also sell online.
• J.C. Penny and Lands’ End also sell on the Internet.
2. Direct marketing by manufacturers.
• Dell, LEGO, and Godiva
• in addition to selling via retailers.
• by
o Mail-Order
o Manufacturers and Make to Order
3. Pure-play e-tailers - Virtual e-tailers
• Amazon.com (does not need physical stores)
• Advantage: low fixed costs
• Drawback: can be a lack of an efficient order fulfillment system
• Can be: general-purpose(larg)/ specialized
 E-Tailing
Business Models
• Drop-shipping
o a form of pure-play e-commerce
o a business sells products that they do not stock or ship.
o the company directs a third-party drop-shipper to pull the
item from their warehouse and ship it to the customer.
o the focus on front-end marketing only.
o Shopify
• shopify.com/guides/dropshipping.
 Step 1 Step 2
Find Advertise Int S
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products products et 3
Seller se
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Fin 4p
Customer
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Step 5 Buyer plac r
es order and
pays

Pla
c es Ste
ord p Manufacturer
er 6
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ay wholesalers S o bu
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Figure 3.2 How dropshipping works se
• The Participants in the Process
o The seller: individual who sells to individual customer (kind of P2P)(retailer)
o The buyer: individual people who buy small quantities for themselves.
o The supplier: manufacturer, wholesaler – (order fulfilment).
o The directory provider.
• Several companies help people to find suppliers and products.
• Fee - monthly or per search.
• may perform the order fulfillment as well
o A website builder.
• If the sellers do many transactions, good to build a website.
• They can use it for advertisements, payment collection from the buyers,
communication with the buyers and suppliers, transferring orders and
payments to the supplier, and conducting other store management activities.
o Shopify: The company has detailed guides for the various activities in the
process. For a website selection and management,
• The Benefits of Drop-Shipping
o Less capital is required (increase in cash flow).
• Easy to
o get started.
• You need very little resources and space.
• Low overhead.
• Flexible location.
• No need to
o fulfill the order.
o to keep inventory.
o scale the business (expand or contract).
• Enable expansion to new (global) markets.
• Increase lifetime value of customers.
• Having another sales channel.
o Good yearning potential.
o You pay suppliers only after you get paid.
• The Disadvantages of Drop-Shipping
o If anything goes wrong, it is your fault.
o You do not see what the supplier ships.
o People may do exactly what you do (competition!).
o Returns from customers can be complex.
o You lose control over quality and speed of shipments.
o You must provide good customer service that may be costly if you
have many customers.
o The difference between the prices you charge and what you pay to
the supplier can be too small
• Some Suggestions for Implementation
o You start with an understanding of the process
• shopify.com/guides/dropshipping/understanding-dropshipping/.
o You need to find products and suppliers
• shopify.com/guides/dropshipping/finding-suppliers/.
o You need to advertise and possibly sell on eBay, Amazon,
• shopify.com/guides/dropshipping/evaluating-saleschannels/.
o Find the right e-commerce platform
• ecommerce-platforms.com/ecommerce-selling-advice/setup-drop-
shippingecommerce-website/.
• https://blog.getbyrd.com/en/most-popular-ecommerce-platforms
 https://blog.getbyrd.com/en/most-popular-ecommerce-platforms

THE BEST E-COMMERCE PLATFORMS

Main features to look for when selecting an e-commerce platform????

https://www.wpbeginner.com/wp-tutorials/woocommerce-
tutorial-ultimate-guide/

https://www.youtube.com/user/shopify
 E-Tailing
Business Models
• Classification of Models by Distribution Channel
4. Click-and-mortar ("brick-and-click") retailers
• most commonly used model
• open webstores to supplement their regular business activities
(e.g., walmart.com and homedepot.com).
• selling both online and offline
o Some pureplay e-tailers are creating physical storefronts.
o Apple and Dell
o The idea:
• a multichannel (Omnichannel) business model.
• offers several options for the customer to shop
• customers to select preferred channel
 E-Tailing
Business Models
• Classification of Models by Distribution Channel
5. Internet (online) malls.
• many stores on one website.
• sellers and buyers have a chance to interact directly and better
understand each other.
6. Flash sales
• a discount or promotion offered by an ecommerce store for a
short period of time for limited quantity,
• via an intermediary or directly to the consumers..
• List the B2C distribution channel models.
• Describe the direct marketing model used by
manufacturers.
• Describe virtual e-tailing.
• Describe the click-and-mortar approach. Compare it to a
pure e-tailing model.
• Describe flash sales (daily deals).
• Describe the drop-shipping process.
• List the major advantages and disadvantages of drop-
shipping .
Online Services
 Online Services
• Online services
o provided by many travel vendors.
• expedia.com, travelocity.com, tripadvisor.com, and
priceline.com.
o All major airlines sell their tickets online.
o vacation packages: blue-hawaii.com
o train schedules and reservations : amtrak.com
o car rental agencies: autoeurope.com
o hotels : marriott.com
o :::::
o :::::
o :::::
 Online Travel and Tourism
(Hospitality) Services
• Characteristics of Online Travel
o generate income from
• commissions, advertising fees, lead generation
payments, subscription fees, site membership fees,
etc.
o revenue loss due to fraud as their biggest concern.
o Consumers themselves can fall prey to online travel
fraud.
o competition is intense and has low margins.
o loyalty programs are becoming a necessity.
• Characteristics of Online Travel
o Three important trends will drive further changes in the
online travel industry.
• online travel agents may try to differentiate themselves
by providing superior customer service.
• they provide easy search capabilities (e.g., for best
prices).
• online travel companies are likely to use social media
tools to provide content to travelers and would-be
travelers.
 Online Travel and Tourism
(Hospitality) Services
• Services Provided
o Conventional/traditional Vs Online
o Online/conventional travel agencies
• providing general information to reserving and purchasing travel
accommodations and event tickets.
o Online agencies
• travel tips and reviews provided by other travelers, fare tracking
(free e-mail alerts on low fares), expert opinions, detailed driving
maps, and directions
• see airbnb.com
o a website that connects travelers and lists accommodations
around the world, chat rooms, and bulletin boards.
 Online Travel and Tourism
(Hospitality) Services
• Using Mobile Devices
o Special Online Travel Services
o The use of mobile device is increasing rapidly
o hundreds of apps related to
• comparing prices, making reservations, looking at travel reviews,
and finding the best travel deals available
• tomsguide.com/us/pictures-story/491-best-travel-apps.html
o Growth:
• 25% of travel bookings are completed with a mobile app,
• expected to rise in the future
• digitaltrends.com/mobile/best-travel-apps
 Online Travel and Tourism
(Hospitality) Services
• Social Travel Networks
o Special Online Travel Services
o to plan trips and share experiences (both good and bad)
• Facebook, YouTube, Twitter, Gogobot, Flickr, Foursquare, and
TripAdvisor
o all major airlines have pages on Facebook that provide
information and news about their airline and offer their
customers a community to meet other travelers and
share experiences
• facebook.com/AmericanAirlines
• Travel channels:
o Account (channel) on social network
o Agencies: cater to travellers, word-of-mouth advertising can significantly
increase booking
o Traveller: to share details of the trips and review the accommodations,
o travel providers, recreational activities.
o Example:
• wikitravel.org : which features a travel channel that uses a wiki allowing any
Internet reader to create, update, edit, and illustrate any article on the website
(“the travel guide you write”).
• For a comprehensive resource on travel
o tripadvisor. com.
• exclusively for travellers are
o Trip Wolf, Trip Hub, TripAdvisor, VirtualTourist, BootsnAll, and Lonely
Planet.
 Online Travel and Tourism
(Hospitality) Services
• Benefits, Limitations, and Competition in Online
Travel Services
o The benefits of online travel services
• To Travellers: The amount of free information is
voluminous and is accessible at any time from any
place. Shoppers can find the lowest prices
• To Travel providers: eliminating commissions,
selling otherwise empty spaces and processing fees
are reduced.
 Online Travel and Tourism
(Hospitality) Services
• Benefits, Limitations, and Competition in Online
Travel Services
o The limitations of online travel services
• Fraud
• complex trips are difficult to arrange and
may not be available on some sites because
they require complicated arrangements.
Therefore, the need for travel agents as
intermediaries remains.
 Online Travel and Tourism
(Hospitality) Services
• Competition in Online Travel
o is intense (fail , aggregate)
o players
• well-known
o Expedia (expedia.com), Priceline (priceline.com), and
Hotels.com (hotels.com), kayak
• Many service providers have their own sites,
• advertise travel sites
• tourist guides sell services or direct users to them.
o travel aggregator websites:
• these services search a large number of sites to find the best
price - kayak
 Online Travel and Tourism
(Hospitality) Services
• Corporate Travel
o Companies can enable employees to
• plan and book their own trips to save time and money.
• help simplify reservations but also to control costs.
o Expenses are a significant concern for many
companies, and online corporate reservation
systems can reduce time spent on bookings, as well
as enforcing travel rules and cost ceilings
 Online Travel and Tourism
(Hospitality) Services
• Corporate Travel
• Online optimization tools:
o American Express amexglobalbusinesstravel.com
o Travelocity - travelocity.com
o Orbitz - orbitzforbusiness.com SW tools for corporate
planning and booking
o TripAdvisor - tripadvisor.com/Owners
• for Business
• provides information to the tourism and hospitality
industries.
• offers a way for businesses to compete for bookings and
generate new business by bringing visitors directly to
their online booking pages.
https://www.statista.com/forecasts/997095/travel-product-online-bookings-in-the-us

Travel product online bookings in the U.S. in 2022

https://www.statista.com/statistics/1193134/airbnb-revenue-worldwide/

Revenue of Airbnb worldwide from 2017 to 2021(in billion U.S. dollars)

https://www.businessofapps.com/data/travel-app-market/
Top travel apps
Opening up second homes and spare rooms to tourists
Airbnb has changed the travel industry, and Airbnb has been
at the front of this new type of short-term lodging.
The largest online travel agency by booking volume and
Booking revenue, responsible for 25 percent of all hotel bookings
worldwide
The other major online travel agency, which alongside
Expedia
Expedia operates the Orbitz, trivago, and Vrbo brands
A newer flight and hotel booking app, Hopper was the
Hopper
most downloaded OTA in the US in 2021
Expedia’s Airbnb competitor, which was originally
Vrbo launched 13 before Airbnb as a website to book a Ski
condo in Colorado
Another of Expedia’s subsidiaries, Hotels.com a large
Hotels.com
directory of hotels, deals, and holiday lets
• What travel services are available online that are not
available offline?
• List the benefits of online travel services to travelers and to
service providers.
• Describe corporate online travel services