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Advantages/Disadvantages of Pure Play Internet Retail
by Margot B
Advantages: Convenience of shopping
on-line with increasingly secure technologies safeguarding
Internet transactions, e.g. on June 27th Visa International
announced that more than 60 of the world's top Internet
solutions providers combined to launch its "Visa
Authenticated Payment". This will enhance the
security of Internet-based payments on a global
scale. This provides Visa and the consumer the same
level of security in the virtual world as they have
in the physical world. Pure play doesn't have the
challenges and risks associated with balancing their
resources between traditional media and the on-line
channel; pure plays are able to invest more in their
on-line storefronts than brick-and-mortar companies
are able to do. While established brand names do
attract traffic, it is a positive shopping experience
that brings the customer back. Consumers are finding
that their shopping experience on-line is more convenient,
there is greater ease of making price comparisons
and gaining information about products and services.
With Internet retailing there is a good selection
of products and services.
For the Internet retailers, there
is reduced unit operating and customer acquisition
costs; it is a low cost medium.
Disadvantages: Pure plays usually
don't have the advantage of established brand names
and customer bases; they have to start from ground
zero. While brick-and-mortar companies are immediately
able to serve their existing customers on-line and,
synchronistically, focus on acquiring new customers,
pure plays do not have the advantage of an established
brand name, customer base, and an inventory system,
but must devote their resources and time to building
a brand name and customer base.
Pure plays are occasionally beset
with costly e-mail viruses, and must be ever-vigilant
against spammers. Security and technical problems
sometimes have to be dealt with; they must retrain
for the Internet sales format, must learn how to
use an e-mail dialogue with customers, starting
slowly and, because customer trust of the pure play
retailer is often lacking, they must gradually build
the customers' trust.
Some retailers consider the Internet
technology to be too expensive, too difficult to
use, of little value, or intrusive. Many consumers
believe that ads and cookies invade their privacy.
Many consumers hesitate to shop from a pure play
retailer because they cannot try or feel an item
before purchasing nor, in the case of clothing,
try it on. Many find it inconvenient to return purchased
goods if they are not satisfactory and a large percentage
are not comfortable using a credit card online and
disclosing their personal information. Customer
service is often lacking, as well as proper delivery
of goods.
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References: http://www.internetretailer.com/contents.asp
(6/29/01) 12:40PM
Love, Jack Shakeout in a Healthy Market. Available
on-line: http://www.internetretailer.com/pressReleaseDetail.asp?id=4331
(6/29/01). 1:15PM
Wagner, Mary K.I.S.S. Keep It Simple for the Shopper.
Available on-line: http://www.internetretailer.com/article.asp?id=402,
(6/2001) 1:22PM
http://www.pagecatcher.com/aimNews/A014.html, (6/29/2001)
1:30PM http://www.internetretailer.com/pressReleaseDetail.asp?id=4310,
(6/27/2001) 2:10PM
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About the Author
Margot
margotb@margotbwritersforum.com
Margot B is a writer & web site designer - has
written a book and 100s of articles specializing
in health and the environment. mailto:margot@margotbwritersforum.com
Web sites:
http://www.worldisround.com/home/margotb/index.html
http://websitebldg.tripod.com
http://margotbwritersforum.com
http://margotbworldnews.com
http://e-nuchatlaht.tk
http://margotstravels.tk
http://larrybphotography.tk
