IEEE Spectrum - Special issue on technology 1999, analysis and forecast
Digital village: predatory disintermediation
Communications of the ACM
E-Commerce Trust Metrics and Models
IEEE Internet Computing
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
A framework for performance measurement in the e-business environment
Electronic Commerce Research and Applications
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The e-tailer's dilemma refers to the difficulty web-based retailers (or e-tailers) have experienced in achieving profitability. The problem centers on the need to increase effective (purchasing) visitors and on the increased costs associated with the electronic commerce infrastructure upgrades necessary to service these additional visitors. This may lead e-tailers into a cycle of achieving increased revenues that are merely offset by rising costs. There are ample examples where commonly employed metrics (unique visitors, page views, sales, etc.) suggest success while companies struggle to obtain profitability. This paper examines several aspects of this dilemma. The formalization of both the tangible and intangible aspects of an electronic commerce infrastructure is proposed. Next, an intuitive, utility-based model to help describe and interpret e-tail visitor dynamics is developed. Finally, a visitor function model of e-tail profitability incorporating necessary infrastructure improvements and visitor characteristics is developed.