e_tailers

e_tailers - Blue Nile Sparkles -Class Discussion Would you...

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Blue Nile Sparkles -Class Discussion Would you buy a US$5,000 engagement ring at Blue Nile? Why is selling (or buying) diamonds over the Internet so difficult? How has Blue Nile built its supply chain to keep costs low? How has Blue Nile reduced consumer anxiety over online diamond purchases? What are some vulnerabilities facing Blue Nile? 1 http://hk.bluenile.com/?rf=pd
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Chapter 9 Online Retail and Services Learning Objectives Understand some retailing lexicon Identify e-tailing business models Discuss various e-tailers consumer aids Identify critical success factors and failure avoidance tactics for e-tailing Describe disintermediation & channel conflict in e-tailing 2
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Retailers vs. e-tailers 3
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Retail Sector – key terms Durable goods: consumed over longer period of time (> 1 year) Cars, appliances, furniture Non-durable goods: have shorter life span General merchandise (perfume, gift cards), clothing, drugs, music, groceries 4
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Factors in assessing Statements of Operations Revenues: growing and at what rate? Cost of sales: compared to revenues Gross margin (gross profit divided by net sales): increasing or decreasing? Operating expenses: What are they; increasing or decreasing? Operating margin: Indication of company’s ability to turn sales into pre-tax profit after operating expenses are deducted Net margin (net income or loss divided by net sales or revenue): increasing or decreasing? 5
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e_tailers - Blue Nile Sparkles -Class Discussion Would you...

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