After the hype: e-commerce payments grow up

On June 18, 2003, the Payment Cards Center of the Federal Reserve Bank of Philadelphia and the Electronic Commerce Payments Council (eCPC) of the Electronic Funds Transfer Association co-hosted a workshop forum to explore areas of mutual interest related to the proliferation of e-commerce payments. This was the second event jointly sponsored by the groups. ; The first forum, “The Future of e-Commerce Payments,” which was held in June 2002, focused on the possibilities ahead, as various electronic payment channels displace paper checks as a primary payment form. The more recent forum, “After the Hype: e-Commerce Payments Grow Up,” continued the dialog, emphasizing recent economic and marketplace realities that impact ecommerce payments innovation, acceptance, and maturation. ; Participants and speakers included Federal Reserve staff and industry leaders.Electronic commerce

ESSAYS ON RETAIL ENTRY AND EXIT

The landscape of the retail industry has witnessed dramatic changes over the past decades. Both manufacturers and retailers are increasingly challenged to find innovative ways to reach and delight not only their existing customers, but also potential new customers. In this dissertation, I aim to pin down the entry effects of an innovative channel -- online marketplaces in Essay 1 and Essay 2, and the exit effects of a traditional channel – Walmart supercenter in Essay 3. In Essay 1 “The Value of Online Marketplaces to Brand Manufacturers in Emerging Markets”, I apply an event-study methodology to examine whether manufacturers’ decisions are justified by studying the net impact of adopting marketplaces on a firm’s stock market return. To further gain insight into to whom gains may arise, I use a contingency framework and relate manufacturers’ short-term abnormal returns to manufacturers’ market knowledge and marketing strengths. The findings provide comprehensive guidance for manufacturers, global or local, to assess whether and to what extent they can take advantage of online marketplaces to thrive in emerging economies. In Essay 2 “For Better or for Worse: The Halo Effects of Online Marketplaces on Entrenched Brick-and-Mortar Stores”, I evaluate the impact of online marketplaces on entrenched brick-and-mortar stores -- whether and to what extent retailers and all brands within the category stand to lose or win. To address this question, I use a seemingly unrelated regression (SUR) model to quantify the impact of online marketplaces. The study not only contributes theoretically to the scant literature on the interaction between online marketplaces and offline channels but also offers manufacturers insightful instructions on multichannel decisions. In Essay 3 “When Stores Leave: The Impact of Walmart Supercenter Closure on Retail Price”, I seek to understand how retail prices change following the exit of a local retailer by using Walmart supercenter closures in local U.S. markets as a working example. By using a difference-in-difference estimator with correction for selection bias, I find that, on average, consumers have to pay a higher price (+1.6%) after a Walmart supercenter’ exit. The study provides valuable insights into the potential impact of retail exit on price and consumer welfare.Doctor of Philosoph

Amazon\u27s Antitrust Paradox

Amazon is the titan of twenty-first century commerce. In addition to being a retailer, it is now a marketing platform, a delivery and logistics network, a payment service, a credit lender, an auction house, a major book publisher, a producer of television and films, a fashion designer, a hardware manufacturer, and a leading host of cloud server space. Although Amazon has clocked staggering growth, it generates meager profits, choosing to price below-cost and expand widely instead. Through this strategy, the company has positioned itself at the center of e-commerce and now serves as essential infrastructure for a host of other businesses that depend upon it. Elements of the firm’s structure and conduct pose anticompetitive concerns – yet it has escaped antitrust scrutiny. This Note argues that the current framework in antitrust – specifically its pegging competition to “consumer welfare,” defined as short-term price effects – is unequipped to capture the architecture of market power in the modern economy. We cannot cognize the potential harms to competition posed by Amazon’s dominance if we measure competition primarily through price and output. Specifically, current doctrine underappreciates the risk of predatory pricing and how integration across distinct business lines may prove anticompetitive. These concerns are heightened in the context of online platforms for two reasons. First, the economics of platform markets create incentives for a company to pursue growth over profits, a strategy that investors have rewarded. Under these conditions, predatory pricing becomes highly rational – even as existing doctrine treats it as irrational and therefore implausible. Second, because online platforms serve as critical intermediaries, integrating across business lines positions these platforms to control the essential infrastructure on which their rivals depend. This dual role also enables a platform to exploit information collected on companies using its services to undermine them as competitors. This Note maps out facets of Amazon’s dominance. Doing so enables us to make sense of its business strategy, illuminates anticompetitive aspects of Amazon’s structure and conduct, and underscores deficiencies in current doctrine. The Note closes by considering two potential regimes for addressing Amazon’s power: restoring traditional antitrust and competition policy principles or applying common carrier obligations and duties

Business plan: Boutique 0

This project consists in the development of a business plan to launch "BOUTIQUE 0", an ecommerce outlet dropship business that helps Portuguese fashion manufacturers destocking, by selling Portuguese designs and brands at discount prices. "BOUTIQUE 0" aims to digitalize the Portuguese fashion outlet market’s landscape, giving Portuguese manufacturers and brands access to an all year long solution to sell their held stocks, and provide buyers the chance of accessing high quality fashion products from Portuguese manufacturers at low prices. The main objective of this project is to assess the viability and implementation strategy of "BOUTIQUE 0", defining a plan to bring this new business to market, including strategic, marketing, technological, organizational and financial considerations. To support this business plan, a literature review on E-commerce, Business Plans and Dropship Logistic Models was conducted. Also, to analyze the opportunities and difficulties of this market and decide on the implementation strategy of "BOUTIQUE 0", a deep research was carried out on the fashion ecommerce market in Portugal, the online outlet competition and best practices, technologic solutions and possible partners, amongst others. Following this research and reflection, the implementation policies were defined, and, in the end, a financial evaluation was developed to conclude on the viability of this project.Este projeto consiste na elaboração de um plano de negócios para o lançamento da empresa "BOUTIQUE 0", um negócio online de venda de stocks de produtores e marcas portuguesas a baixo preço. "BOUTIQUE 0" pretende trazer o mercado de moda outlet portuguesa para o online, apresentando aos produtores e marcas portuguesas, uma solução que lhes permita escoar os seus stocks durante todo o ano sem estarem dependentes dos pontuais stock markets e proporcionando aos consumidores a oportunidade de comprar produtos produtos portugueses de elevada qualidade a preços baixos. O objetivo deste plano de negócios é analisar a viabilidade e estratégia de implementação da "BOUTIQUE 0", elaborando um plano de lançamento deste novo negócio, incluindo considerações estratégicas, de marketing, tecnológicas, organizacionais e financeiras. Para dar suporte a este plano de negócios, foi realizada a revisão de literatura de conceitos chave como Comércio Eletrónico, Planos de Negócio e o Modelo Logístico de Dropshipping. Para além disso, como base à análise de oportunidades e dificuldades neste mercado e decisão da estratégia de implementação, foi efetuada uma análise aprofundada do mercado de moda online em Portugal, da concorrência online de moda outlet e melhores práticas, soluções tecnológicas e possíveis parceiros, entre outros. Após esta análise e reflexão, foi definida a estratégia de implementação e no final, uma avaliação financeira para comprovar a viabilidade do projeto

Secure mobile multiagent systems in virtual marketplaces : a case study on comparison shopping

The growth of the Internet has deeply influenced our daily lives as well as our commercial structures. Agents and multiagent systems will play a major role in the further development of Internet-based applications like virtual marketplaces. However, there is an increasing awareness of the security problems involved. These systems will not be successful until their problems are solved. This report examines comparison shopping, a virtual marketplace scenario and an application domain for a mobile multiagent system, with respect to its security issues. The interests of the participants in the scenario, merchants and clients, are investigated. Potential security threats are identified and security objectives counteracting those threats are established. These objectives are refined into building blocks a secure multiagent system should provide. The building blocks are transformed into features of agents and executing platforms. Originating from this analysis, solutions for the actual implementation of these building blocks are suggested. It is pointed out under which assumptions it is possible to achieve the security goals, if at all

The get big fast as a business model in e-commerce : a case study of Zalando

The purpose of this thesis is to identify the properties of the internet that help e-commerce companies to growth so much and so fast, along with the analysis of the Get Big Fast strategy. Such strategy exploits online business activities based on first mover advantage, allowing incumbents to preempt competition by gaining market share as fast as possible and generate positive feedbacks. This qualitative research is a case-study of Zalando, an online fashion retailer. Though initially specialized in footwear, the firm quickly broadened its product portfolio, expanded into new markets and acquired millions of clients, becoming the Europe’s market leader. Hence, this study investigates to what extent Zalando has followed the Get Big Fast principles, based on data provenient from five interviews and multiple secondary sources. The findings indicate that certain properties of the internet stimulate the scalability of business operations, such as: 1) Mediating Technology 2) Information Density 3) Universal Standards 4) Distribution Channel 5) Infinite Virtual Capacity and 6) Global Reach. Moreover, it was found that Zalando has actually pursued the Get Big Fast strategy by being an early mover in the market, applying three out of four common tactics to gain market share (capacity expansion, heavy advertising and formation of strategic alliances), following product and market development strategies and generating four positive feedbacks (economies of scale, learning effects, network effects and accumulation of complementary assets). Nevertheless, some limitations exist, including an extensive scope of research, limited amount of interviews conducted via Skype and a generalization problem.O propósito desta tese é indentificar as propriedades da Internet que ajudam as empresas de comércio electrónico a crescer tanto e tão rápido, juntamente com a análise da estratégia Get Big Fast. Esta estratégia explora a actividade económica online baseada em first mover advantage, permindo aos incumbentes antecipar os seus rivais através da rápida conquista de quota de mercado e da produção de feedbacks positivos. Este estudo qualitativo é um caso de estudo sobre a Zalando, uma loja virtual de moda. Apesar de ser inicialmente especializada em calçado, a empresa alargou rapidamente o seu portofolio de produtos, expandiu-se para novos mercados e adquiriu milhões de clientes, tornando-se no líder de mercado Europeu. Portanto, esta tese investiga em que medida a Zalando segiu os princípios Get Big Fast, de acordo com informação recolhida em cinco entrevistas e múltiplas fontes secundárias. Os resultados indicam que certas propriedades da Internet estimulam a expansibilidade do comércio online, tais como: 1) Tecnologia Mediadora 2) Densidade de Informação 3) Normas Universais 4) Canal de Distribuição 5) Capacidade Virtual Infinita 6) Alcance Global. Além disso, verificou-se que a Zalando seguiu efectivamente uma estratégia Get Big Fast por ser pioneira no mercado, aplicar três de quatro tácticas comuns destinadas à conquista de quota de mercado (expansão de capacidade, forte investimento publicitário e formação de alianças estratégicas), seguir estratégias de desenvolvimento de produtos e mercados e gerar quatro feedbacks positivos (economias de escala, efeitos de aprendizagem, efeitos de rede e acumulação de activos complementares). Contudo, existem algumas limitações, tais como o extenso âmbito de investigação, o número limitado de entrevistas realizadas por Skype e um problema de generelização

Supply chain network considerations for e-retail of luxury goods in Canada

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2012.Cataloged from PDF version of thesis.Includes bibliographical references (p. 85-89).The Internet has changed the way people purchase goods in the 21st century: many types of goods and services have become available online. Luxury goods followed this trend after an initial delay, primarily due to the nature of these goods. At the time of the preparation of this document, there were no proven guidelines for building the most successful e-retail website for luxury goods from the brand management and profitability perspectives. Ralph Lauren (RL) is an established American brand, well known for quality and consistent style in the following categories: clothing for women, men, and children; home goods, accessories; and fragrances. RL Corporation houses many labels that constitute premium and luxury offerings. RL currently sells through the Internet in many countries, in addition to countless company owned stores, 9 flagship stores, department stores and boutiques distributed around the world. To continue growth, RL wants to launch an e-retail website for Canada. This thesis aims to provide supply chain network considerations for the successful operation of the Canadian e-retail website for RL. These considerations stem from a careful look into potential luxury website characteristics that would meet the company objective of elevating the brand towards the luxury category. It is recommended that RL secure expansion capacity that will likely be necessary for B2C operation at its Toronto distribution center (DC). In addition, material handling equipment that will process a high volume of small orders should be placed in this DC. The Vancouver cross-docking facility could be expanded in the future as prompted by sales volume and coupled with a DC to cater to the West Coast of Canada. Also, it is recommended that advanced customer tracking systems and databases be employed, especially to determine high value customers for tailored offerings in the luxury segment.by Dilek Tansoy and Yi Linn Teo.M.Eng.in Logistic

Bricks vs. Clicks: How Businesses Survive

Traditional retail has transformed into a digital shopping marketplace, as revenue for e-commerce businesses have increased and is expected to rise over the next five years, whereas traditional brick and mortar companies without online capabilities have experienced a decline in revenue. The paper will discuss what businesses must do to survive the digital shift in shopping from brick-and-mortar shopping to e-commerce shopping. Two major players in the e-commerce market today are Amazon and Wal-Mart. Both companies have become profitable e-businesses leading the way in transforming retail trade and e-commerce. As customers shift more of their shopping to online platforms, I want to discuss how e-commerce has changed the face of retail, and focus on two businesses, Amazon, and Wal-Mart and the evolution of both companies and their success