S online sales not counting travel to support its

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Systems Analysis and Design in a Changing World
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Chapter 14 / Exercise 19
Systems Analysis and Design in a Changing World
Jackson/Satzinger
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over 25 percent of the U.S. online sales (not counting travel). To support its continu - ing expansion, Amazon added 13 distribution centers in 2009, giving it a total of 52 sites. These costs have impacted Amazon’s profit, and the company’s profits in - creased only 8 percent compared to the 36 percent increase in revenue. Some of the growth is fueled by digital products such as e-books, which now account for more sales than print books at Amazon. In other cases, simple convenience and searches encourage customers to shop online. Meaghan Keane, a Fairfield, CT nursing student noted that she did all of her holiday shopping online because “I was able to find all these different items that I wouldn’t have even known where to look for in stores.” Adapted from Stu Woo, “Expenses Eat at Amazon’s Profit,” The Wall Street Journal , January 28, 2011.
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Systems Analysis and Design in a Changing World
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Chapter 14 / Exercise 19
Systems Analysis and Design in a Changing World
Jackson/Satzinger
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435 Chapter 7: Electronic Business A second way to look at EC and food is to realize that few families cook their own meals. Takeout from a variety of restaurants and even grocery stores is a pop - ular substitute. Many restaurants—particularly pizzerias—deliver food on short notice with just a phone call. Would there be a reason to convert the phone sys - tem to an Internet connection? A few places do this, but many people still prefer phones. Theoretically, the Internet can provide menus and it is better at handling multiple customers at the same time. Furthermore, it could be used to provide feedback to the consumer—in terms of status of the order and when it will be de - livered. But most restaurants are small businesses, and they have resisted building the infrastructure to provide these features. Clothing offers more prospects for e-commerce. Selection is always an issue with local stores. No matter how large the store, it can carry only a small, targeted selection of styles and sizes. And larger selection means greater inventory costs. So, there is room for an EC firm to sell a wide selection of products across the na - tion. In fact, several catalog mail-order firms concentrate on these markets. These Reality Bytes: JCPenney’s Gets Caught on the Dark Side Search engine optimization (SEO) has become a popular topic among online ven - dors. The goal is to obtain as high a ranking as possible on Google and other search engines. If a site ranking closely matches a search term, it will be displayed at the top of the page automatically; without paying any money to Google. Some people spend a huge amount of time trying to determine how the search engines work. A few people spend huge amounts of time trying to figure out how to game the system and obtain a high ranking for their pages. But, trying to deceive the search engines is always a bad idea. Google succeeds only by returning accurate matches and decep - tion can result in punishment. JCPenney’s, an American department store, found out the hard way in 2010/2011. For several months in 2010, JCPenney’s was at the top of the result lists for many products and even manufacturers. Apparently, the retailer

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