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http://ebusinessscoop.com/cfs-filesystemfile.ashx/__key/CommunityServer.Blogs.Components.WeblogFiles/ebusiness/small_2D00_laptop_2D00_transparent.gifWelcome to eCommerce at eBusinessScoop.com. We've organized this section by business model, offering analysis, critical success factors and IT topics.

Check out our introductory articles and find more discussions in our forums!



The Conglomerate E-tailer

In this model, a single website will pull from multiple brands and companies and sell through one single portal. Amazon.com is a great example of this, as is Overstock.com which focuses on discount products and extra inventory.  In the clicks and bricks category of conglomerate e-tailers, we can look at monsters like Target.com, JCPenney.com or Walmart.com.

The information comes into these sites in various ways - and this is when we get into the nitty gritty of IT and Marketing coming together in the Vulcan mind meld. In the example of Target.com or JCPenney.com, these department based stores essentially offer their products in the online environment much as they do within their brick and mortar storefront. Their supply chain and their product information is already highly organized and is merely translated by their inhouse team onto the web. (heh. Merely...)

In the case of an Amazon.com or Overstock.com, smaller e-tailers literally create feeds of the products they want to offer through the conglomerate website, and the products are then offered within the category schema of the larger website. Although the transaction goes through, for example, Amazon, when you buy an item, it may actually ship from the original e-tailer. Amazon gets their cut, the e-tailer gets the benefit of the traffic and marketing power of Amazon and the consumer gets the benefit of finding what they wanted easily on Amazon and enjoying their simple, secure checkout process.

This model requires advanced technology to offer feeds into the conglomerate and smaller companies need to ensure that the profit margins work - but the benefit is the trust these types of companies have already established with consumers. While some might think this sounds very much like an affiliate program or a comparison shopping engine, these sites are different because you will always check out through the conglomerate website ensuring that, at the end of the day, their brand further saturates the market - not that of the smaller e-tailer.

http://www.amazon.com/

It almost goes without saying that Amazon is an incredible example of a site that sells across brand and industry. They bring in feeds, the partner with other companies, they offer user reviews, their checkout is easy and secure and they pay attention to what you buy so they can offer suggestions of what you might like in the future.

Even if you don't buy from Amazon, you can probably do research and find enough information on the site to make an informed decision. Not only are they a conglomerate e-tailer, they are also an information provider.

http://www.overstock.com/

Overstock.com is another excellent example of a conglomerate e-tailer, bringing together "over stock" from multiple stores and brands and selling their goods at a discount. The high end look, excellent shipping rates and security of the site have secured their success.

They, like Amazon, contract with many smaller e-tailers and offer products on the site via a feed.

http://www.bluefly.com/

We consider Bluefly.com to be an example of a conglomerate e-tailer because they sell multiple brands from multiple providers - but they are niche in that they specifically sell designer clothing.

With a great niche and smart marketing through venues like Project Runway, BlueFly.com is positioned well to offer designer clothing and accessories in a new way and it has become a go-to website for fashion followers everywhere.

Only published comments... May 16 2008, 08:57 AM by blair

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About blair

Blair Stephens is a co-founder and a primary contributor and editor of eBusinessSccop.com. Working in the web marketing and content generation world since 2004, Blair hopes to bring her knowledge of web marketing to help small business owners looking for a way to get ahead and differentiate themselves in a constantly changing marketplace. In her other life, she is the Vice President of Marketing and Internet Strategy and a partner in e2solutions, LLC, a boutique eCommerce development and marketing firm. Blair, a graduate of Mount Holyoke College, is based in Massachusetts where she continues to market for niche eCommerce websites and keeps her finger on the pulse of the small eCommerce business industry from her home office.

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