Online Retailing

Back to Digital Marketing class index. Now updates at Alex's site: Digital Marketing: Online Retail

Slides

add: evolution of online retailing: Wikipedia: Online shopping
Dumb retail to Smart retail: Walmart, Target, Best Buy — Mobile Matters More To Big US Retailers Than To Amazon
add: technology within the store, AND increased price competition

A Brief History Of Online Shopping

Amazon Vs Alibaba: Game On

Walmart: Less amazing than Amazon

Disintermediation

Industries

• Print Media
• Retail
  • Music: cost and convenience (Psy for example)
    As Music Downloads Decline, Expect More Anti-Spotify Anxiety
  • Books
  • Travel
  • Banking
  • Autos?

Disruptors

• Amazon (1995)
• eBay (1995)
• Craigslist (1995)
• Netflix (1997)
• Napster (1999)
• iTunes (2000)
• Orbitz (2001)
• YouTube (2005)
• Walmart
• Apple
• Webvan (late 1990s)

• Shift from PC to mobile
  • Location data (iBeacon)
  • Increased ubiquity

Shorter Channels

• Direct to consumer
  • Sales Tax advantage
  • Same day delivery

• Consumer to consumer

• Channel conflict
  • Omnichannel

• Cannibalization

• Showrooming (Best Buy). Response:
  • Mobile app (The Next Wave in Shopper Marketing: Micro-Location in the Retail Space)
  • Elephanti Raises $4.5M To Help Shoppers Find Products In Nearby Stores
  • QR Codes
  • Leverage footprint (some web retailers are)

• The last mile
  • Drones: Amazon Air Project
  • Google Shopping Express
  • UPS and Fedex, Christmas 2013
  • Tesco

Smarter Channels, increased automation, cheaper, increased connectivity

• Big Data
• Robots: Amazon's Kiva Systems (founder from Webvan)
• RFID
• EDI
• Extranets (Virtual Private Network)
• B2B Exchanges, Verticals
• Cloud Computing
  • storage in the cloud changes costs
  • storage in the cloud allows multiple devices to access the same data
  • Major players: (The 10 Most Important Companies In Cloud Computing)
    • Amazon
    • Microsoft Azure
    • Google
    • Rackspace (OpenStack)
    • Salesforce.com
• Offshoring (Apple, Walmart, Fashion Industry)
• Outsourcing (India: software development, customer service)
• Fedex
• UPS
• Potential impact of 3D printing: It’s the end of Walmart and mass-market retail—as you know itWalmart could own the retail 3D-printing business by 2020