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Article

Title: OLD DOGS, NEW CLICKS

Author: Banham, Russ Article Type: Product Analysis
Source: CFO, v21 n9 p20(7) Publication Date: Jun 2005
  ISSN: 8756-7113
  Illustrations: Charts
URL of Publication: http://www.cfonet.com

E-commerce has changed significantly, eliminating many old problems and producing new opportunities. Amazon.com and eBay brought the term 'e-tail' into the language in the mid-1990s, and in 2004 e-commerce accounted for over $69 billion of all retail sales. That figure represents more than a 23% increase from the previous year, and some analysts expect that to grow by as much as $200 billion in 2010. E-commerce has moved from a separate entity to an important element in a multichannel sales and marketing strategy. Dot-coms were once built chiefly because competitors had them; now, they are designed for specific purposes. The entrepreneurs from a decade ago are being replaced by traditional retailers who see the Internet as a tool to improve relations with the customers they already have and to identify purchasing preferences. Retailers do not need to consult CFOs to realize the Internet is a low-cost channel, with transactions costing a fraction of their offline price. Many of the most successful online sellers are intelligent buyers, closely examining their outsourcing choices when it comes to setting up online platforms. One such leader is GSI Commerce, Amazon.com's chief competitor in providing single-source e-commerce outsourcing options. GSI stores goods, accepts customer orders, packs and ships orders, including such frills as gift wrapping, accompanying cards, and monogramming soft goods. Outsourcing might seem to conflict with tightly integrating sales channels, but is can be accomplished by carefully screening the outsourcing provider.

Special Features: Charts

Products:
E-Commerce Internet Shopping

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