Cyber Marketing: How to Use the Internet to Market Your Goods and Services, Second Edition

Chapter 9: E-commerce selling online

Many websites were first set up to provide corporate information and to promote products. Sales were expected to take place in shops, on the telephone, by mail order. The growth in e-commerce indicates that this has changed. The web is seen, more and more, as primarily a direct selling medium, and online selling has grown dramatically. A KPMG study of European companies using the Internet for selling in 1999 showed that the channel accounted for 2 per cent of their total sales. This was forecast to grow to 12 per cent in three years. By 2005, Internet sales were forecast to be 16 per cent of total sales of all companies in Europe an extraordinary shift in the location of the sales transaction. It is vital, therefore, to consider whether your products and services can be sold over the net, and to understand how to set up an e-commerce facility. This chapter will explain why e-commerce has spread so quickly, and show how you can establish a sales outlet online.

Why sell online?

You may think you know why firms sell online. They can make profitable sales to a wider public than ever before, at relatively low cost. They can achieve competitive advantage over bricks and mortar retail outlets. It sounds obvious. But for the customer-focused marketer, this answer is not good enough. What really matters is why people buy. Firms sell because people buy. So, why do people buy? There has been a great deal of recent research...

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