t's been over ten years rather than having to pay for
since Amazon opened up shop display space, and employees to
in the US, and just around man the register. Customers do
ten years since its UK affiliate all the data entry needed to make
opened. We'll use Amazon as our an order, and your software can
benchmark for the first truly be configured to hold that order
successful model of retailing information for repeat
over the internet, and how it's customers.
impacted retailing in general,
As anyone who's run a retail
and in the UK in particular. business is aware, the cost per
Online retailing (the so called square meter of retail ready
"new economy") offers several space is nearly triple the cost
advantages over traditional per square meter of warehouse
"brick and mortar" stores - but space; even after the initial up
also has some interesting side front expenditures of creating an
effects and drawbacks (many of online shop, the reduced
which are being addressed by operating costs should (in
technology). While Amazon wasn't theory) make for a more efficient
the first - in the UK, it was a business.
men's magazine offering pinups as
To pull in business, most
the first historical case of online retailers employ
"Internet commerce". Amazon was discounting; Amazon is one
the first to have a significant example of this, with many
impact on retailing as we know hardback books priced at 10% to
it.
15% over wholesale, which
The major advantages of an translates into a cover discount
online shop are in reduced of 30% or more. Other shops, such
overhead; you have a web page as overstock, take remaindered
that displays your products in a lots of products and do much the
shopping cart software solution, same thing.
What this has done to brick try on products before buying
and mortar businesses has been them: Clothing and similar
illustrative of market dynamics merchandise is one such, as are
at work: Low prices dominate over shoes. Automobiles are another
everything else, and consumes place where customers have proven
vote with their credit cards. to be wary of shopping online.
Entire market segments are Likewise, grocery shopping, in
rapidly shifting to online spite of several attempts to make
shopping models, most noticeably an "online grocery store" has
in items that are "commodity" resisted all attempts to go into
products, like books.
a realistic online market; look
Another retail segment that's back a decade, and you'll see a
been eliminated by online stores lot of attempts to "New
is music and entertainment Economise" lots of traditional
retailing; Apple's iTunes store market segments, and while we
is now the number two music remember the ones that worked
retailer in the world; it and (insurance, books, music), most
Sony are the only two music people barely recollect the
retailers gaining market share. failures.
The old record shop on High
While online shopping has
Street may become a thing of the re-shaped retailing, the
past in short order. Similar transformation has not yet
pressures exist with books; completed.
although the iPod for books has
not yet materialized (Amazon's
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About the Author:
Vincent Norman is a freelance writer living in the UK. He regularly contributes articles for The Online Shopping Centre, who offers the best range of shopping online.
Article Tags: market, online, retailing
