Could there be a backlash against electronic shopping?

Wingham Rowan

Chapter Chapter 13 in Net Benefit, 1999, pp 125-141 from Palgrave Macmillan

Abstract: Abstract US phone company AT&T used to run a seductive commercial in which two young women, dismayed at the shortcomings of their hard plastic sunglasses, set up in business making a more pliant alternative. Although the mechanics of manufacture present no problem, their newly founded company, Rubbereyes, cannot find retail distribution. In despair, they turn to AT&T Web Site Services, start selling over the Internet and enjoy swift success. This notion, that Net selling will, by its nature, create one level playing field in which a small newcomer can immediately reach world-wide consumers, has been enthusiastically propagated, not least by companies who would like to see every corner store and lone trader setting up a website. The reality, however, is shaping up very differently. ‘People say there are no limits to channels on the Internet. But that’s not the limiting factor here. The real limits are how to get through to people and get their attention’, explains one commentator.7 The number of online enthusiasts who will enter, say, ‘sunglasses’ into Internet search software then laboriously peruse even a few of the 190 000 sites returned at time of writing is diminishing sharply. Instead, interactive shoppers increasingly call up a ‘one stop’ site that allows them to shop with a manageable number of pre-selected retailers. These Net ‘portals’ are widely seen as the way forward in Net commerce because they simplify a range of online facilities, including shopping. With millions of users visiting a typical portal every day, the operators can sell their virtual real estate to the highest-bidding retailers.

Keywords: Call Centre; Electronic Commerce; North American Free Trade Agreement; Electronic Market; Retail Distribution (search for similar items in EconPapers)
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-333-98280-8_14

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DOI: 10.1057/9780333982808_14

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