E-Commerce

Question 1

Annagram =

Answer 1

GFSE COD

Question 2

G =

Answer 2

Growth of E-commerce
- 15% of retail now online
- 5% of grocery sector (Tesco market leader of 37%)
- Stern (1999)
Advantages = Low start up costs, React to market trends, Access to global markets, More choice+ comparison
Disadvantages = Costs of distribution (incl dodgy areas), High web design costs, Cant ‘try before you buy’, High rates of return
- 1779 shop closures in 2012 (e.g. Woolworths)
- Is this the death of distance?

Question 3

F =

Answer 3

Frameworks of consumption (Weltevreden, 2006)

• Neutrality
• Modification
• Complementarity
• Subsititution

Question 4

S =

Answer 4

Sociodemographics (Longley et al., 2015)

• Groups A-E (E-unengaged to E-advanced)
• Can then map usage

Can also map other characteristics

Question 5

E =

Answer 5

Estimating Online Demand
Using age/income/ client data
Mapping:
- All Stores and demand
- Your stores and demand
- Demand
- Online market share
Compare to ONS estimates
Conclusions: GEOG STILL MATTERS
1. Distance from all stores (Efficiency theory)
2. Distance from your store 
3. Sociodemographic effects (AB)
4. Rural/Urban effects (Innovation diffusion)

Question 6

C =

Answer 6

Click and Collect
Online can lose money for retailers, therefore this is halfway house
Expected to overtake home delivery in 2015
BUT/ where do you pick it up?
1. Stores
2. Car parks
3. Stations - underground, train, petrol
4. Schools/Unis
5. Drive-through stores (Baldock, 2010)
6. Independent - e.g. Click and Collect

Question 7

O =

Answer 7

Other Formats
Virtual Stores
- e.g. Gatwick Tesco
Pop-Up stores
- not yet in UK, but stock box in US
- Useful for festivals/sports events

Question 8

D =

Answer 8

Dark Stores
- Save av. £6 per order
- Tesco have 7
Characteristics: Warehouse like, 24/7, Staff Pickers (mechanised)
Location; mostly in SE, need to minimise delivery distances, are they replacing superstores?

Question 9

Stern, (1999)

Answer 9

Advantages of E-commerce:

• Low start up costs
• Access to global markets
• Compare easily
• React to market trends quickly

Disadvantages of E-commerce

• High web development costs
• Can’t try before you buy
• High Return rates
• Distribution costs: incl. problem estates, EGG,

Question 10

Weltevreden, (2006)

Answer 10

Frameworks of E-consumer

• Neutrality
• Modification
• Complementarity
• Substitution

Question 11

Longley et al., (2005)

Answer 11

Sociodemographics of e-commerce

A-E (E-unengaged to E-expert)

Question 12

Baldock, (2010)

Answer 12

Drive through stores