Business-to-Business Internet Marketing, Fourth Edition - Lifecycle ...

Selling on the Internet 283
How E-commerce Works with Your Selling Model
Dell’s selling model is 100% direct, but that isn’t every company’s selling
model. Before you launch a serious e-commerce effort, consider how
you sell now, and how the Internet works with your existing selling
model. Next we briefly examine the impact of electronic commerce on
several common b-to-b selling models.
The Retail or Mail Order Model
At its roots, Dell is a direct retailer. The retail model is basically one in
which the customer makes a direct purchase from a location—a store.
The customer must physically come in to make the purchase. If the
store has the item in stock, the customer can purchase it immediately;
otherwise, the item needs to be ordered and the customer needs to return
to get it, or have it delivered when available.
The mail order model is a variation on the retail store model. It
simply uses a different distribution channel to complete the transaction.
Here, the customer does not physically come to a place to purchase but
rather orders an item via phone, mail, fax, e-mail, or the Web. Representative
of mail order, probably more than anything else, is the catalog.
It is no accident that many retailers have mail order catalogs and
many mail order companies have opened retail stores. Why? Because
the products are the same, only the distribution channel is different—so
the basic underlying business process can be retained and applied to
both selling models.
In many respects, Dell is both a store and a catalog. It is an electronic
storefront with millions of items, which are classified and crossreferenced
so that each product can be individually purchased by any
number of criteria. Every product has its own description, its own order
number, and its own price.
The Internet difference is that you can visit the catalog. You do
not actually drive there, open physical doors, walk down the aisles,
look at physical products, pay at the cash register, and leave with your
purchase. You can say it differs from a traditional bricks-and-mortar
store in that there is a loss of personal contact, the tactile browsing
experience, and the immediacy of getting your merchandise on the
spot, but consider the other benefits of the electronic store. You do