e-commerce for fashion

E-Commerce for Designer Salippe

What is E-Commerce?

• E-Commerce is when goods and services are traded over the internet

• Sales transactions are performed online

• Also involves passing information on to consumers using the internet

Terminology to Know

• B2B – This is Business to Business, or selling the products to another business.

• B2C – Business to Consumer, or selling directly to the consumer of the product

• Clicks and Mortar – A business that has physical outlets, as well as online sales

• E-tailer – A business that sells their products online

• Online Presence – When a business has a website for e-commerce.

• A large presence means that they can be found on Google, etc

• Spam – Unwanted marketing via email. It is seen as very unethical.

Benefits of E-Commerce

•Extra source of revenue•An additional channel of

distribution, especially for consumers who live very far from a fashion house

•No overhead for rent, etc, or operating costs

•Faster transactions•Consumers can see new

collections faster

Disadvantages of E-Commerce•High set-up costs•Charges apply for online

transaction•Risk of fraudulent trade•Internet is volatile•Customers cannot try on the

clothes, etc•May cheapen the image of the

business

Price•Greater price transparency•No need for intermediaries•Offer benefits to customers

• However, given the nature of the fashion industry, lower or changing prices are not desirable▫Loses prestige and customer

loyalty

Place

•Reach a global market at a lower cost•More convenient for consumers•Produce information in many languages at

a lower cost

•There is a lot of value in the physical outlet, and most customerswant to enjoy the services offered

Product

•Able to show their complete range

•Offer more products•Can give more information

Promotion• Can suit the needs of the

customers, like different languages

• Can run competitions with prizes,

or do special offers

•However, fashion is not a cheap

business like others, so these promotions don’t tend to be

suitable

•Alexander McQueen Official Website. 2010 www.alexandermcqueen.com/ Accessed 17/07/2010

•Chanel Official Website. 2010. www.chanel.com/ Accessed 17/07/2010

•Hoang, Paul. “Business and Management.” Victoria: IBID Press. 2007.

• IBscrewed4business. “4.8 – E-Commerce.” 2010. http://ibscrewed4business.blogspot.com/ Accessed 17/07/2010

•Louis Vuitton Official Website. 2010 www.louisvuitton.com/ Accessed 17/07/2010