Virtual Business

• Start-ups – also known as a new business

• Boom of them when the internet started conducting business on-line

• What can you buy on-line?

Virtual Business

• E-commerce (electronic commerce)– Business done over the internet

• E-tail– Electronic retail – Amazon.com– J Crew sells items in stores, by mail and

on-line• This is an example of a multi-channel

retailer

Virtual Business

• E-commerce makes it easier for companies to put their catalogues on-line– Saves money putting them on-line vs.

mailing them to the consumer

Virtual Business

• How does E-tail benefit consumers

– Convenience• Shop from home• Internet never closes – shop 24 hours a day

– Choices• Easier to compare prices between

companies• Many options in retailers to buy the same

things

Virtual Business

• What are disadvantages to E-tail– Buying power

• Easy to overspend or buy the wrong items

– Other charges• Shipping charges, return charges are higher

– Immediacy• Have to wait for the products to be delivered

– Relying on observation• Can’t try on a pair of shoes or sit in a chair

on-line – you have to rely on pictures