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E-commerce is here to stay?
Sandefjord, 2000-09-24. © Florina

Today, almost everything is for sale on the Internet. But hardly any web shop can show a positive bottom line. Is this a permanent trend, or just a stage of immaturity of the New Economy?

 

E-Commerce
E-commerce is more than web shops, which are the tangible part of the New Economy for most people. The New Economy will have a greater impact on enterprise-internal communication and on communication between enterprises.

 

Consequences of the new economy are eroded margins and shortened time frames. Put this together with heavy investments in infrastructure, supply channels, branding and marketing, and it is not hard to imagine that money easy goes and not easy comes for web shops.

The main success factors for web shops are economics of scale; customer service; and automation.

Today, far too many web shop orders are processed manually, at enormous cost compared to the sales margin. This is the great paradox of the New Economy.

Delivery time is shrinking towards overnight-supply. Customer service with all order related information available for customers online will be regarded as a must. Web shops have to take logistics and fulfillment seriously in order to keep existing customers and attract new groups of consumers.

Web shops able to meet these demands: scale, service and automation, will have a chance to show positive numbers on the bottom line.



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