eCommerce and the Internet

Paper Summary:

This paper discusses the way channel conflict operates with businesses developing an Internet presence, noting how the use of the Internet has opened many new sales channels for business to reach the consumer, but this fact has also raised concerns about channel conflict and its possible effects. It looks at how such concerns predated the Internet but have increased because of the particular mode of direct selling offered by Internet websites. It shows how different sales models are possible and how a comparison of the direct sales model with others shows where some of the channel conflict develops and how it might be avoided.

From the Paper:

"The Internet is used more and more for e-commerce, with direct sales transactions replacing many standard retail transactions. The use of the Internet has opened many new sales channels for business to reach the consumer, but this fact has also raised concerns about channel conflict and its possible effects. Such concerns predated the Internet but have increased because of the particular mode of direct selling offered by Internet websites. Different sales models are possible, and a comparison of the direct sales model with others shows where some of the channel conflict develops and how it might be avoided."

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