e-Commerce

This publication has been discontinued on November 23, 2011.

Introduction

Abstract

Overview

The e-Commerce market is enjoying double-digit growth, sustained by the ever-growing number of Internet users, their increased familiarity with online shopping and by attractive offers.

This report provides an in-depth examination of e-tailers' business models, of the challenges and innovations in the e-Commerce sector, along with an analysis of opportunities for operators.

Key questions

• How are the leading e-commerce players positioned: pure players, traditional retailers and mail order companies?
• e-tailers: detailed cost structure. What are the expected profitability levels for the different business models?
• Online/offline: What differences in profit levels?
• Is the e-commerce model scalable or more akin to classic retail?
• What innovations to respond to new challenges: affiliation, rich media, flash sales, 3D, click-to-call, virtual agents, widget, social networking, blogs, IM...?
• What opportunities for operators: direct sales, monetising their audience, B2B2C?

⇒Key market data and forecasts for Europe and the United States up

Case Studies

• Amazon
• Barnes & Noble
• Bill Me Later
• eBay
• Kinset
• Meetic
• La Redoute
• ReceiveAndPay
• Tailgate Technologies
• Vente Privee

Table of Contents

1. Introduction

• 1.1. Definition of e-Commerce
• B2C
• Intermediation platforms: B2B2C, C2C

• 1.2. Consumption
• Increasingly widespread
• Increasingly frequent.....
• Internet user categories
• Motives for online shopping

2. e-Commerce Value Chain

• 2.1. The market
• A thriving market
  • Steadily rising sales
  • Still only a fraction of retail sales
  • Value of the average shopping cart rising
• The most commonly purchased products/services
• Typology of e-Commerce sites
  • Most popular e-Commerce sites
  • Traditional retail players
  • Pure players
  • Veteran mail order companies
• Market growth factors

• 2.2. e-tailer cost structure
• Revenue structure
• Operating account structure
  • Costs: logistics, IT, marketing, advertising, payment
• Operating revenue
  • Varied models: affiliate commissions, auctions, order processing, subscription, ad revenue, financial gains
• Profitable models..... despite the current crisis
  • Profitable businesses, with investment capacities
  • Impact of the crisis: results down

• 2.3. Comparative profitability of the offline/online model
• Gross margins and operating results
  • Travel agency sector
  • Retail chain sector
  • Distribution of cultural goods
• What differences in the business models?
• Better profitability in the long term?
  • Gross margin and net profits
  • Operating account
  • What long-term profit levels?
  • Is the e-commerce model scalable?

3. Challenges and Innovations

• 3.1. Steering qualified traffic to the site
• Affiliation performance marketing
• Advertising: a direct sales channel
• Traffic: flash sales

• 3.2. Making the sale
• Shopping suggestions: personalising the offer
• Enhancing the shopping experience: rich media, 3D
• Accompanying the purchasing process
  • The customer service challenge
  • Virtual agents
• Reliable and diverse payment solutions
  • Online payment: a matter of trust
  • Development of online credit

• 3.3. Building customer loyalty
• Shipping
  • Areas for improvement
  • The e-tailer/shipper relationship
• Web 2.0 building loyalty
  • Widgets and RSS feeds, communities

4. Opportunities for Operators

• 4.1. Direct positioning
• Extension and offshoot of offline operations
• An audience-centric strategy
• TV networks: ABC, ITV, NBC, M6, ProSiebenSat.1, TF1
• Operators: AT&T, Free, Orange, T-Mobile, Three UK, Verizon, Vodafone
• Internet companies: AOL, Cyworld, Facebook, Flickr, Google, MSN, MySpace, Yahoo!

• 4.2. Monetising the audience
• Evolution of the ad-funded model
• Large audience on operators' sites
• e-Commerce strategy integrated into the portal

• 4.3. B2B2C technological solutions
• Online payment
• Click-to-call
• CDN
  • For each service analysed:
    • Advantages for e-tailers
    • Market: sales, key players
    • Opportunities for operators
    • Quantified forecasts up to 2012

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