E-commerce: B-2-C Jenny Stoehr, Eduardo Yamuni, & Matthew Doughty

e-commerce: B-2-C

Jenny Stoehr, Eduardo Yamuni, & Matthew Doughty

Online Consolidation

…2000 crash led to widespread dot-com destruction, although the strongest survived and continue to grow.

People’s Time Spent Online

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• The largest e-commerce companies continue to growfasterthan the overall market. The biggest sites continue to get bigger, although the overall market is pretty robust as well.

• eBayup 64%

• Amazon up 15%

• Total e-commerce up 13%

Rate of Growth for 2001 4thQuarter2

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eBay Amazon Total

• Effects of a faltering economy–The tragic events on 9/11/2001 & the existing

faltering economy created anxiety amongst e-commerce business, although e-commerce seemed to get through these social and economic difficulties.

–Travel sites suffered, but signs of recovery

–Despite the worst economy in a decade, eBayincreased its GMS by 72% from 2000 to 2001.3

Economic Effects on e-commerce Business

E-commerce Spending Trends Online Ad Spending Down4

$2.18 B

$2.50 B

2000

2001

• Spending on e-Business Technology on the Decline– Cautious IT investment environment

– Prioritization year—companies looking at the fundamentals, with incremental purchases on technology that demonstrate an ability to deliver a rapid ROI.5

• Overall Spending on e-Business– Is focused in areas that drive revenue, including

sales and customer management initiatives.

E-commerce Spending Trends

Average Web Usage(Week end of March 31, 2002, U.S.)6

19Number of Unique Sites Visited

7Number of Sessions per Week

32:04Time Spent During Surfing Session

3:36:31Time Spent per Week

166,212,883Current Internet Universe Estimate

79,931,521Active Internet Universe

00:53Duration of a Page Viewed

Most Sticky Web Site

•Finance sites proved to be the most sticky on the Web as of January 2002.

–Approximately 51.6 million unique visitors or 44 percent of the active Web population visited a finance Web site.7

–Users spend approximately 21 minutes on a financial Web site. 8

Top Brands for Apparel/Beauty 9

0:14:141,429

0:08:111,667

0:10:301,686

0:10:001,701

0:10:002,606

Time Per Person (hh:mm:ss)

Unique Audience (000)

Brand/Channel

Feb 2002

Top Brands for Automotive 10

0:11:132,380

0:09:382,488

0:21:132,589

0:17:372,790

0:10:413,901Kelly

Blue Book



Brand or Channel

Feb 2002

Top Brands for Multi-Category Commerce 11

0:15:0330,337

0:02:575,686

0:03:489,341

2:05:4623,736

0:08:5925,701



Brand or Channel

Feb 2002

Overview• Demographics of the Market• Ethical Issues/Taxation• Models• Successful Companies

– eBay

– Lands’

– GAP

• Best Practices

Demographics

Of Internet and E-commerce Users

Global Internet Languages1

English43.0%

Japanese8.9%

Chinese8.8%

German6.8%

Spanish6.5%

Korean4.6%

Italian3.8%

French3.3%

Other14.3%

Total World Online Population: 529 million

US internet user statistics US internet users:

104.8 million US Women: 55.0

million US Men: 49.8 million2

50.4% female, 49.6% male in 20003

US Women52.5%

US Men47.5%

However. . . Average time spent online: roughly

11:20 for US men, 9:06 for US women (in Dec 2001)4

Men seem more interested in purchasing items online: 58% of men, only 42% of women.5

53% of all US online buyers are male6

Young Users Still mostly surfing or browsing. . .

54% of connected 12-24 year olds (in 16 countries) used the internet to gather information about products, but only half of them are actually buying online.

Biggest-volume categories: music (19%), clothing (16%), books (14%)

Popular e-commerce sites for the young included Amazon, eBay, Gap, JCrew, and FootLocker7

Recent Study: Holiday Shopping

By Pew Internet and American Life Project, January 1, 20028

64 million total e-shoppers in 2001, up from 53 million in 2000

26% of all US internet users made holiday purchases (29 million people).

Average spent per person: $392 (up from $330 last year).

Holiday Shopping

58% of online holiday gift-buyers were women.

Sharpest increase came from minorities and the young (18-29).

32% shopped from work, up from 26% last year.

Household Income

15%

25%29%

39%

0%5%

10%15%20%25%30%35%40%

Perc

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<30K 30K-50K 50K-75K >75K

Household Income (in dollars)

The Percent of Internet users who say they bought gifts this season:

Holiday Shopping Satisfaction

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Satisfaction:Women

Satisfaction:Men

2000Satisfaction

General E-Shopping Concerns

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See giftsbefore

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ID & InfoSecurity

CheaperOffline?

Web sitestoo

confusing

Common complaints

Dissatisfaction w/ E-Shopping Approximately 33% of those who

bought gifts online last year did not repeat this year.

Reasons: “Better ways to shop” than online Merchandise sent was incorrect last year Merchandise did not arrive on time last year Worried about credit card security

Ethical Issues and Taxation

Privacy9

Major concerns (you’ve heard of them): spam, selling of personal information to other

companies, corporate or government surveillance

Clinton Administration policy advocated self-regulation: “businesses must develop and post prominent,

clearly written policies that inform consumers about the identity of the collector of their personal information, along with intended uses of that information.”

Questions Question for audience: “What

do you know about the user information policies of the websites you regularly visit?”

Privacy issues

Surveillance: web bugs and Carnivore Web bugs are “Software code embedded in

Internet banner ads, and invisible image file 1 pixel by 1 pixel that watches and records browsing activity on a user’s machine.”

Carnivore: FBI program that plugs into an ISP server and gathers data as a user logs into their ISP. Designed to combat cyber-terrorists, ACLU has strong concerns about potential abuse of its power.

Security Trends: Improving?

0%10%20%30%40%50%60%70%80%90%

100%

Don'tCollect

PersonalInformation

Choice toShare Info

Opt-outoption

provided

20002001

Two Taxation Issues

E-commerce Taxation can be divided into two concerns:

1. State Sales Tax Issues10

2. International Taxation11

State Sales Taxes10

Currently, there are no state sales taxes which apply to e-commerce, because of Congressional legislation: the [renewed] Internet Tax Freedom Act of 2001, which expires in 2003.

The legislation augments a 1992 Supreme Court ruling “banning states from collecting taxes on transactions unless the retailer has a physical presence there.”

State Sales Taxes

Opponents of the ban tried to introduce a new provision which would require e-tailers without a physical presence to collect “online sales tax.”

Measure failed 43-57 in the US Senate. Major opponents of tax ban: US states

that collect sales tax. Potential online 2001 tax revenue: $13.3

B

International E-Taxes11

Controversial Issues: Permanent Establishments (aka physical

presence): do stand-alone computer servers constitute a PE?

Customs duties: currently a moratorium on taxation of electronic transmissions by WTO

European Union value-added taxes (VATs) Consumption of services taxed at place of

supply. Imported Digital goods are treated as services,

and therefore not taxed, but exports are taxed! This hurts native (EU) exporters.

Taxation: Key Points

Currently little to no taxation of e-commerce.

Many possibilities now discussed by state or national governments

Organization for Economic Cooperation and Development (OECD) Created framework for taxation of e-

commerce Most discussions now in committee – who

knows how long until decisions reached?

Business Models What is a Business Model?

A business model is the method of doing business used by a company to sustain itself.

Any given firm may combine various models as part of it’s web business strategy.

Business models in the web evolve rapidly and new models can be expected in the future.

Business models have taken another meaning now that they can be defined within the context of patent law.

Business Models Brokerage Model They are

market makers; they bring buyers and sellers together and facilitate transactions. Market Exchange Virtual Mall Auction Broker Reverse Auction Search Agent

Business Models Auction Broker: A site that conducts auctions for

sellers, individuals or merchants. Ex: E-bay, AuctoinNet

Reverse Auction: Price is set by consumers own demand. “Name your own price”. Ex: Priceline, Respond.com

Market Exchange: Increasingly common in the B2B markets.

Virtual Mall: A site hosting many online merchants. Ex: Yahoo! Stores

Search Agent: Intelligent software used to search out the best price for a good or service.

Business Models Advertising Model Provides content and

services mixed with advertising messages (banner ads). Generalized Portal: driven by generic or diversified

content or service. Ex: Excite, Yahoo!, AOL. Personalized Portal: portal with customization of the

interface and content. Vortal: portal with less volume and well defined

user base. Design to attract advertisers willing to pay premium to reach a particular audience

Bargain Discounter: Sells goods typically at low or below cost and seeks to make profit thorough advertising.

Business Models Infomediary Model based on collecting

and selling data about customers and consumer habits to other businesses.

Merchant Model E-tailers Virtual Merchant: Pure e-tailers. Ex: Amazon Catalog Merchant: The migration of mail

order to a web-based order business. Ex: Levenger

Click and Mortar: traditional Brick and Mortar establishment with web store front. Ex: The Gap, Borders.

Business Models Other models include:

Manufacturer Model Affiliate Model Community Model Subscription Model Utility Model

• Founded in 1995 by Pierre Omidyar.1

• Meg Whitman-current CEO

• Largest online seller of autos, collectibles, computers, photo equipment and supplies, and sporting goods.2

• Currently, ~$26 million in goods sold per day.3

In 2001 had 6 million.6

Started with 60,000 items on site.

Now-2,400 employees. 4,5

Four years ago-170 employees.

Now a enormous virtual community making profits.

Started as a small not-for-profittrading community.

PresentPast

X

Traffic

• 42.4 M current users.7

• > 50,000 unique users daily.

• “It’s all incomes, all races, and slightly more men than women, but now that’s shifting toward more women,” eBay spokesman.8

• Trades on a local, national, and international basis.

The World’s Online Marketplace• There are 60 local markets in the U.S.

• International Market

– Operations in 18 countries.

– International brings in $112 million a year.9

– World wide growth of 7%of sales in 2000 to 14% in 2001 and 18% of total revenue in the fourth quarter.10

– Looking for new markets to attack-overseas and B-2-B sales.

– In 1999, eBay only reached 6% of Germany’s Internet users, and now ¼ German web users visits the site. eBayGermany became profitable in 2001.11

– eBay recently pulled out of Japan because of Japan’s intense competitive market.12

0100200300400500600700800

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Years

Financial Time Line13

Revenues (millions)

Net Income (millions)

Profit/Revenue• eBay is one of the few Internet players that has

survived and that makes money.

– In an threatened economy, was successful-nearly doubled its profits in 2001 to $90 million.14

– The 2001 revenues expected to reach $1 billion in annual revenues before end of 2002.15

Revenues come from…

• Company takes commission- between 1-5% on every trade.

• The rest of its revenues come from listing fees and other charges.– Listing Feature

• Pay extra to have your item featured in high-visibility areas of the site.

• Company’s second price increase in 13 months. • Analyst Derek Brown of W.R. Hambrecht says that eBay raised

its price “not because they had too, because they can.”16

– Also a new fee for “Buy It Now” feature.

Specialty Sites• eBay Motors

– The country’s largest car dealer—$1 B in sales of cars/car parts in 2001.17

– Offers buyer assurance program, financing, inspections, escrow, auto insurance, vehicle shipping, title and registration.

• eBay Stores– Customized independent shopping destinations created by sellers

or businesses.

• eBay Premier– Showcases fine art, antiques, fine wines and rare collectibles—

from leading auction houses/dealers around the world.

• eBay Live Auctions– Real-time online bidding on items being sold at leading auction

houses.

Listings/ Categories

• More than 126 million auction listings and 18,000 item categories, twice as many as last year.18

7 Major Categories• Collectibles/Antiques

– Largest number of items in a category in 2001.19

– eBay’s efficient market caused overall market average selling prices of collectibles & antiques categories to decline 30 percent in 2001.

• Technology-Computers/Electronics– Two fastest growing areas of commerce on eBay, up 57% from

2000.20

• Autos-Auto parts/Autos – Category did not exist two years ago and annual auto growth is

200%. 21,22

• Books/ Movies/ Music• Tickets-Concert Tickets/etc• Airline Tickets

– This area is growing rapidly.• New Business-Travel/ Real Estate/Pharmaceuticals/Government

New Business Sub-Categories• Real Estate

– Recently eBay holds sales events that showcase new homes by teaming up with BuilderHomesite.

– Partners expect to post 3,000 homes during this initial year.23

• Government

– 17 State governments up from zero in 1998 are using eBay to liquidate foreclosed assets.

ProductsCEO explains eBay’s quest is “to build the world's largest online trading

platform where practically anyone can trade practically anything.”

• Interesting Facts

– Sells a corvette every three hours,

– a motorcycle is sold every 18 minutes,

– a laptop every 30 seconds,

– and a book every 4 seconds.

– A diamond ring is on sale every six minutes.24

– Surprisingly eBay has tremendous sales in wicker baskets.

– A high demand exists for glass eyeballs.

– Liberace’s seventh limosine sold for ~ $17,000.

What cannot be sold on site?• Illegal Items

– Illegal items have never been authorized to be sold on eBay.

– As of 1999, eBay can refuse service to anyone at anytime.

– Reported cases of fraud account for precisely .03 percent of all transactions on the site.25

– Under the eBay Fraud Protection Program, most items on eBay are covered for up to $200.

• Alcohol, Tobacco & Firearms– It is very difficult to comply with all the federal and

state regulations.– Also, eBay feels that it is important for people to know

who is buying and selling firearms.

Features• Fixed-priced Strategy

– Individuals sell their goods at set prices- no bidding.

– ~16% of sales are fixed price items.26

– Fixed-price components challenges Amazon’s business.

• In 2000, eBay acquired Half.com, a fixed-price online store for discounted commodity goods, which is being integrated into the regular eBay site.

– Attracts different buyers other than auction buyers, such as Amazon’s.

– “Half.com is bringing the Amazon buyer into person-to-person trading,” Jeff Jordan-head of eBay’s U.S. operations.27

Features• “Buy it now” Feature

– Optional button—lets bidders end an auction by agreeing to a preset price, without having to wait for the end of an auction.

– 45% of all listings use it. 28

– Attracts more mainstream buyers.

– Accounted for 19% of sales in fourth quarter, 2001.29

– Helps close auctions nearly a day faster on average than a year ago.30

• Checkout Feature– Optional feature—automatically exchanges information between

buyer and seller after an auction.

• Billpoint– Online payment service—facilitates credit card payment between

buyers and sellers.

Network Effect

• Network Effect – Increases the volume of trade on site— more visiting buyers

attract more sellers, who in-turn draw even more buyers, and as the site becomes a larger source of supply with more competitive prices, revenues increase.

– Network effects are extremely valuable form of social capital.

Social Capital• eBay attracts “social capital,” which is a measure of trust and

credibility.– A place where people transact with people, not with large

impersonal corporations, establishing social capital.

– Feedback system

• Scores and colored stars appear next to buyers and sellers Ids, showing number of customers who have given reviews.

• High numbers mean good ratings, negative numbers indicate complaints about a user.

– High feedback rating also usually means a seller gets more bids and better prices for his/her wares.

• This self monitoring system is fostered by ebay’s strong community spirit, which gives sellers a powerful incentive to provide good service.

Customer Relations• Customer Relations

– Listen to customers and observe trends on site. eBay conducts focus groups, called Voices.

– E-mail, message boards, and the natural watchfulness of its community forges customer bonds and polices user behavior.

– Keep its website as simple so users can find what they are looking for quickly.

• Low communication and transaction costs of the Internet– Bring buyers/sellers together, without coming between them or

siding with either side.– “Our vision of eBay consists of a marketplace where your next

door neighbor can compete side by side with large corporations,”Whitman says.31

vs. the Traditional Corporation

• Characteristics Unique to eBay– No real cost of goods, inventory, warehouses, or sales force.

– Customers bring new products and marketing techniques.

– Customer acquisition is largely by word of mouth.

– Market Agility

• “No single company could react as quickly as our millions of users do,” CEO Whitman.32

Competitors

• Top four players—Microsoft, AOL, Yahoo, & Amazon.• Amazon/Yahoo tried to copy eBay and failed.• eBay’s advantages over Amazon

• Network Effect became large so quickly.• Customer Support Infrastructure• Feed-back Safety Feature• Different Customer Base

• eBay’s competitive advantage over all competitors– eBay’s name recognition– eBay responds quickly to competitive threats and customer

feedback.– High customer satisfaction

Advertising/Marketing• Marketers record search page usage, and every click/bid/

purchase on its site.– “This has improved the efficiency of eBay’s front page ten

times,” VP of marketing and merchandising. 33

• eBay currently practices print, online, and television advertising.– In 2001, eBay spent $45.1 M in online advertisements,

including banner ads and e-mails.34

– Teamed up with Burger King.

– First Z3 BMW sold on eBay for $100,000.35

– eBay & Sony developing a TV show profiling eBay users and items they buy using the site.

The Future of• 2005 Goal

– CEO in 2000 announced a goal of reaching $3 billion in revenues by 2005, a 50% annual increase.

– 150 million registered buyers and sellers. 36

• Diversify

– CEO promises to transform eBay from an online auction house into a much bigger, general purpose shopping destination-the first place people turn when they want to buy anything at all.37

• “We want people to think of eBay first when they are in shopping mode, the way they might think of Wal-Mart,” Marketing head, Cobb.38

Expansion• Strategic Alliances, Partnerships, and Acquisitions

– In 1999- signed a new $75 million deal with AOL, allowing eBay to expand across all properties—notifications of bid status using AOL’s ICQ service.39

• Courting new kinds of sellers – 30 giant companies are on eBay—Sears, Circuit City

Mitsubishi, Palm, Home Depot, IBM, Sun, Compaq and Dell.

– Giant sellers account for 3 percent of eBay sales.40

– Using eBay as another sales channel, to unload discontinued goods or excess, returned, or hard-to-sell inventory.

– Investors looking for big growth if brand name retailers sell on site.

The GAP Background• Established in 1969 by Donald Fisher and wife.

• Started selling only Levi’s jeans.

• Today: 3,300 retail outlets globally

• Store Brands: Gap, GapKids, BabyGap, GapBody, Banana Republic(1983), and Old Navy(1994)

• All of them have online retail offerings

• In 2001, the group was listed in S&P 500, testifying to its great influence in the apparel retailing industry.

10 BusinessWeek 2001 Special Bonus Issue, p.88.

Gap Success• Expansion and marketing management-a success.

• Each brand has its own customer target, merchandise mix and marketing approach.

• Gap-Famous for casual, but stylish basics, including jeans, T-shirts and Khakis.

• Moderately priced.

• Serves customers based on age and purpose.

• http://www.gap.com/asp/home.html?wdid=0

• http://www.gap.com/asp/sitemap_index.asp?wdid=0

Gap Financial Measures

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Revenues (millions)

Net Income (hundredsof thousands)

The Gap’s Stock PerformanceNote: Big 2001 drop was before Sept 11th.

Gap E-commerce• Launched gap.com in 1996.• gapkids.com and babygap.com in 1998• Online sales introduced at bananarepublic.com in

1999• Sold merchandise online at oldnavy.com in 2000• Success:

– Developed into a “much praised” e-commerce business without generating financial plague from its online division.

– Sites have gained stable traffic and purchasing amounts per month, which displays the potential for profitability.

12 Katherine Hobson

Gap E-commerce Success Attributed to…• Built upon existing brick-and-mortar stores, with a large

number of distribution channels already in place.

• Simple styles and standard S/M/L sizes allow consumers to become familiar with their merchandise without spending much effort.

• And most of their online consumers already know their sizes and the “look” of Gap clothes.

• The Gap has used the Web to do what it cannot do in stores, such as: Offering extended sizes, exclusive products that may not always be available in offline stores.- to attract specific market segments.

Background• The Start

– Established by Gary Comer in 1963.– In its early years—one catalog of sailboat hardware

and equipment.

• Today– Sells traditional/casual clothing for men, women and

children and also accessories, home goods, luggage and corporate gifts.

– Distributes 269 million copies of catalogs annually worldwide, operates 20 outlets/retail stores in the US and UK.1

E-Commerce• In 1995, e-commerce sales transformed LE from a US catalog

company to a global direct merchant and a successful online sales model in the apparel retailing industry.

• LE is one of the very few apparel retailers that have been profitable in their Internet sales. – The sales of landsend.com increased exponentially since 1998, up from

$18 million to $61 million in fiscal 1999 to $138 million in fiscal 2000, to $218 in fiscal 2001.2

– According to LE, of the company’s total earnings of $48 million in fiscal 2000, Internet sales were more profitable that catalog sales.3

• Site had 38 million visitors in fiscal 2000.4

• Profits and large customer base has turned LE into the largest apparel Web site in the world, recognized by FORTUNE magazine as one of the top 10 companies that “get it” when it comes to e-commerce.5

2001

2000

1999

Year

66.91,569.1

34.71,462.3

48.01,416.9

Net Income7

(millions)

Revenues6

(millions)

Features

• The success of LE largely results from its ability to provide customized service via its Web site.

• Since only 20 stores, LE had to overcome the inability to offer a try-on service for consumers in the real world. LE created features online to perform these functions.

– My Virtual Model

– My Personal Shopper

My Virtual Model• Registered consumers choose from a variety of physical features

to create a 3-D model similar to their body measurements and coloring, including:– face shape,

– hair color,

– skin tone, and

– physical proportions.

• Consumer can try clothes on her/him and see what they look like on the virtual body from different views.

Virtual Model Benefits• Benefits to the consumer

– Faster shopping process on the Internet than in real world.

– Makes consumers more comfortable ordering goods online, because they can get a good idea of how the clothes may look on them.

– Provides more privacy in trying on clothes than in brick-and-mortar stores.

• No limitations on amount can try on.

• No wait in line.

• No salesclerks whom watch over the consumer.

• Benefits to Lands’ End– Better understanding of its customers.

• Information of customer’s body size and shape.8

• Track clothes tried on by customer to analyze his/her preference.

• Reinforces LE’s other unique offering—“My Personal Shopper.”

My Personal Shopper

• Matches customer preference with appropriate products.• This tool in combination with the knowledge obtained from “My Virtual

Model,” suggests clothing styles for customers.

• Short questionnaire – Choose among six photographs, revealing clothing preferences-fit,

style, favorite colors, materials, and special requests-as no-dry-clean-only items.9

• Customer benefits– Can give customers advice about how to minimize some “anxiety

points such as bulging tummies” through appropriate styles of clothes.10

• LE benefits– Can select clothes, and “hang” them in customers’ virtual “dressing

rooms” for the next time they visit the site.– Features likely to attract customers to re-visit site, building

customer loyalty.

Other Customization Services• Oxford Express

– Customers search through hundreds of “fabrics, styles, collars, cuff options, and sizes within seconds to find just the dress shirt that fits them.”

• Toll-free phone lines to sales and customer service– Open 24 hours a day, 364 days a year.11

• Fabric swatches– Swatches are supplied free of charge.12

• Repairs– Belt, button, luggage and attaché repairs are also free of charge.13

• Online reminder service– Prompts customers about important dates such as anniversaries and

birthdays.

• Electronic greeting cards

Surviving in E-commerce

Why do companies perish in the Web?

From a group of 117 dot-com failures over a period of 12 months showed1

34% lacked sufficient benefits for the intended customers.

55% had no competitive advantage 59% of these ventures had a poor revenue

and poor cost-and-profit model Only 15% had organizational and execution

problems. Just 8% had significant supply chain

management problems

Different strategies for different ventures… Small Businesses

Local Stores

Pure E-tailers LandsEnd.com E-bay

Clicks and Mortar The Gap Borders

Small Business When working with a small budget

concentrate on advertising and promotion of your products and services.

Start simply by identifying the most basic goals of your online idea and implement those first.

Use a high-quality store hosting service.

Small Business Lack of know how? Consider a Web

development agency. Convey to the shopper you are a

reliable source.

Not ready for online transactions? Take orders on the phone first.

Things to think of… Cybercrime

By Fall 2003 half of small businesses will be victims of net fraud.

60% will not detect their systems being compromised. If you host your own site take network

strengthening measures. Firewalls Antivirus software Network Security Consultant

Website Builders Clearly state what you want from your website…just

for info? Checkout functions? Security?

Click and Mortar Concentrate on a promotional effort to

promote both online and offline businesses, allowing each to leverage the strengths of the other.

Make sure messages and advertisements are consistent trough all channels.

Integrate as seamlessly as possible web and store operations.

"Companies that give the same experience, the same results, in each channel are going to see more spending [and] more repeat customers," David Schehr (Research Director at Garther Group)

Click and Mortar Make it easy for customers to

move from one channel to another. Train store clerks to refer shoppers to the

website. Offer Web-lounges in high traffic stores

with direct connection to the website.

Offer in store returns and pickups.

Circuit City

http://www.gap.com/html/locator/locator.asp

Pure E-Tailers Avoid pitfalls of products that require look

and touch-and-feel. Study multi-channel options. Create value added applications to make

transactions a unique personalized experience that competitors will have a tough time replicating.

Shorten the checkout process. Make it quick and easy.

Use Affiliate Marketing Low CPM compared to banners

Overview Endnotes1 Hof, Robert D., “No New Behemoths” Buiness Week: Industrial/technology edition,

Issue 3774, March 18, 2002, p. EB5.

2 Hof, Robert D., “No New Behemoths” Buiness Week: Industrial/technology edition, Issue 3774, March 18, 2002, p. EB5.

3 “eBay: Last Man Standing” Knowledge at Wharton, http://knowledge.wharton.upenn.edu/whatshot.cfm viewed March 29, 2002.

4 Pastore, Michael and Saunders, Christopher. “Ad Spending Down, Use of Larger Ads Increases” www.cyberatlas.com March 8, 2002.

5 Pastore, Michael, “E-Business Spending Creeping Back” www.cyberatlas.com 2002.6 Neilsen/NetRatings Audience Measurement Service. Net Ratings, Inc. March 2002.7 SEC Edgar eBay 2000 10-k form

www.sec.gov/archives/edgar/data/1065088/0001012870-00-001759/index.html8 SEC Edgar eBay 2000 10-k form

www.sec.gov/archives/edgar/data/1065088/0001012870-00-001759/index.html9 “Top Ranking Brands and Channels for February 2002” Cyberatlas,

www.cyberatlas.internet.com. April 4, 2002.10 “Top Ranking Brands and Channels for February 2002” Cyberatlas,

www.cyberatlas.internet.com. April 4, 2002.11 “Top Ranking Brands and Channels for February 2002” Cyberatlas,

www.cyberatlas.internet.com. April 4, 2002.

eBay Endnotes1 Brown, Eryn, “How can a dot-com be this hot?” ABI-Inform, Fortune, Vol.145, 2, Jan. 21, 2002 pp. 78-84.

2 Schonfeld, Erick, “eBay’s Secret Ingredient” Business2.0 www.business2.com/articles/mag/print/0,1643,37743,00.html viewed April 2, 2002.

3 Keefe, Collin, “Where haves meet wants” ABI-Inform, Dealerscope, Vol.44,1, Jan 2002, pp. 50-54.

4 “eBay: Last Man Standing” Knowledge at Wharton http://knowledge.wharton.upenn.edu/whatshot.cfm viewed March 29, 2002.

5 Brown, Eryn, “How can a dot-com be this hot?” ABI-Inform, Fortune, Vol.145, 2, Jan. 21, 2002 pp. 78-84.

6 Schwartz, Matthew, “Grow your Site, Keep Your Users” Computerworld Jun. 2001, www.computerworld.com/cwi viewed March 19, 2002.

7 Schwartz, Matthew, “Grow your Site, Keep Your Users” Computerworld Jun. 2001, www.computerworld.com/cwi viewed March 19, 2002.

8 Abelson, Alan, “Up & down Wall Street: Bad news bulls” Barron’s, Vol. 82, 10, Mar 11, 2002, pp. 5-6.




eBay Endnotes12 Damon Mercadante, Director of Revenue of eBay, interviewed by phone by Jenny Stoehr, Matthew Doughty and Eduardo Yamuni, April 12 2002.

13 SEC Edgar eBay 2000 10-k form www.sec.gov/archives/edgar/data/1065088/0001012870-00-001759/index.html viewed April 2, 2002.


15 Abelson, Alan, “Up & down Wall Street: Bad news bulls” Barron’s, Vol. 82, 10, Mar 11, 2002, pp. 5-6.




19 Damon Mercadante, Director of Revenue of eBay, interviewed by phone by Jenny Stoehr, Matthew Doughty and Eduardo Yamuni, April 12 2002.




23 Maynard R., “eBay Play” ABI-Inform, Builder, Mar 2002, p. 18.


25 Keegan, Paul, “Online Auctions:From seedy flea markets to big business” ABI-Inform, Upside, Vol.11,7, 1999, pp. 70-81.









34 Pastore, Michael and Saunders, Christopher, “Ad Spending Down, Use of Larger Ads Increases” www.cyberatlas.com March 8, 2002.

35 Damon Mercadante, Director of Revenue of eBay, interviewed by phone by Jenny Stoehr, Matthew Doughty and Eduardo Yamuni, April 12 2002.

36 Bannan, Karen, “Sole Survivor” ABI-Inform, Sales and Marketing Management, Vol. 153, 7, Jul 2001, pp..36-41.



39 Borrell, Jerry “eBay jumps on the Wells Wagon” ABI-Inform, Upside, Vol. 12,6, Jul 1999, p.44.


41 Bloomberg, Toby, “Internet Marketing Overview”

eBay Endnotes42 Boorstin, Julia, “No ho-ho for e-tailing stocks this season” ABI-Inform, Fortune,Vol. 144, 11, Nov 26, 2001, p. 230.


44 Overby, Stephanie, “Not just beanie babies” ABI-Inform, CIO, Vol. 15, 9, Feb 12 2002, p. 30.

45 Rezendes Khirallah, Diane, “eBay Party Animal” ABI-Inform, Informationweek, Issue 880, Mar 18, 2002, p.17.

Lands’ End Endnotes1 “About Lands’ End”

www.landsend.com/cd/fp/help/0,2471,1_26215_26859_26908__,00.html viewed March 29, 2002.

2 Lands’End Investor Relations Home/Profile 2002. www.lands’end.com199.230.26.96/le/ viewed April 2, 2002.

3 Lands’End Annual Report 2000. http://199.230.26.96/le/pdfs/LandsEnd2000AR.pdf viewed March 13, 2002.

4 Lands’End Annual Report 2000. http://199.230.26.96/le/pdfs/LandsEnd2000AR.pdf viewed March 13, 2002.

5Lands’End Annual Report 2000. http://199.230.26.96/le/pdfs/LandsEnd2000AR.pdf viewed March 13, 2002.

6 “Land’End-Investor Reltations: Key Statistics” http://199.230.26.96/cgi-bin/ir/le/keystat.html viewed April 1, 2002.

7 “Land’End-Investor Reltations: Key Statistics” http://199.230.26.96/cgi-bin/ir/le/keystat.html viewed April 1, 2002.

8 Gillenson, Mark and Sherrel, Daniel, “Information Technology as the Enabler of One-to-One Marketing” Fogelman College of Business and Economics, The University of Memphis. http://cais.aisnet.org/articles/2-18/article.htm.

9 Purdy Levaux, Janet, “Adapting Products and Services for Global E-Commerce” World Trade, Vol. 14, 1, January 2001, pp.52-54.

10 Blakey, Elizabeth. “Lands’ End Brings Virtual Swimsuits to the Net” E-Commerce Times, May 24, 2000.

Lands’ End Endnotes11 “About Lands’ End”, Fact Sheet. www.landsend.com/cd/fp/help/0,2471,1_26215_26859_26908___,00.html?sid=2110092239906187330 viewed March 10, 2002.

12 “About Lands’ End”, Fact Sheet. www.landsend.com/cd/fp/help/0,2471,1_26215_26859_26908___,00.html?sid=2110092239906187330 viewed March 10, 2002.

13 “About Lands’ End”, Fact Sheet. www.landsend.com/cd/fp/help/0,2471,1_26215_26859_26908___,00.html?sid=2110092239906187330 viewed March 10, 2002.

Surviving In E-Commerce1Schwartz, Evan I. Digital Darwinism. New York: Broadway Books, 2001.

Other Sources1. Global Internet Statistics (by Language) www.glreach.com/globstats

/index.php3 (2/24/02)2. Cyberatlas staff, “Men Still Dominate Worldwide Internet Use” www.

cyberatlas.internet.com (1/22/02).3. Gallanis, Peter J., “Women become on-line majority; teen girl ratio increases

most” Dsn Retailing Today, Vol 39, 19, 10/2/00, startpage 17-18, via ABI-Inform.

4. Cyberatlas staff, “Men Still Dominate Worldwide Internet Use” www.cyberatlas.internet.com (1/22/02).

5. Horiuchi, Vince, “On the Internet, It’s Men Who Shop More” www.ecommercetimes.com/perl/printer/17193/ 4/11/02.

6. Pastore, Michael, “Young Internet Users Prefer E-Browsing to E-Commerce” www.cyberatlas.internet.com/big_picture/demographics/article/0,,5901_707631,00.html 3/7/02.

7. Pastore, Michael, “E-Commerce Among Gen Y: It’s a Boy Thing” www.cyberatlas.internet.com/big_picture/demographics/article/0,1323,5901_586571,00.html, 3/7/02.

http://www.glreach.com/globstats/index.php3





http://www.cyberatlas.internet.com/



http://www.chrispancake.com/



http://www.ecommercetimes.com/perl/printer/17193/





http://www.cyberatlas.internet.com/big_picture/demographics/article/0,,5901_707631,00.htlm



http://www.cyberatlas.internet.com/big_picture/demographics/article/0,1323,5901_586571,00.html



Other Sources8. Rainie, Lee, “Women surpass men as e-shoppers during the holidays”

Pew Internet & American Life Project, www.pewinternet.org 4/10/029. Stead, Bette Ann, and Gilbert, Jackie, “Ethical issues in electronic

commerce” Journal of Business Ethics, Dordrecht, vol34 issue2 part2 pg75-85, Nov 2001, via ABI-Inform.

10. Anonymous, “US shows its commitment to e-commerce” International Tax Review, London, Vol. 13, 1, Dec 2001/Jan 2002, startpage 5, via ABI-Inform.

11. Merrill, Peter R., “International taxation of e-commerce” The CPA Journal, New York, Vol. 71, 11, Nov 2001, startpage 30-38, via ABI-Inform.

12. Fox, Susannah, and Rainie, Lee, “Time Online” Pew Internet & American Life Project, www.pewinternet.org, 4/10/02

13. Patel, Vispi, “India takes a bold approach to e-commerce” International Tax Review, London, Vol. 13, 2, Feb 2002, pg42-44,Via ABI-Inform.

14. Iyer, Lakshmi S., Traube, Larry, and Raquet, Julia, “Global E-commerce: Rationale, digital divide, and strategies to bridge the divide” Journal of Information Technology Management, Marietta, Vol. 5, 1, 2002, startpage 43, via ABI-Inform.

http://www.pewinternet.org/






Other Sources15. Schwartz, Evan I. Digital Darwinism. New York: Broadway Books,

2001.16. Rich, Jason R. Starting a Business Online. IDG Books Worldwide, Inc.,

2000.17. Thompson, G. Liam. E-Business To Go. Appallaso Press, 2001.18. Gutzman, Alexis D. The E-Commerce Arsenal. AMACOM, 2001.

Documents

E-commerce: B-2-C Jenny Stoehr, Eduardo Yamuni, & Matthew Doughty