| dc.description.abstract | Electronic Commerce ("eCommerce") is a concept for trade based upon products and
services that are being marketed, contracted, and paid for over the Internet. Consequently, electronic
commerce demands for the investment in computer systems, marketing, logistics and payments.
This paper will focus on the profitability of investments in eCommerce with a special focus on
outlays for information technology systems and sales management. If the services are made more
standardized, if they do not change that often, or if they are well known to the customers so that
there is little need for supplementary information, then the less costly will the information
technology system become. The investment in marketing depends on how well known the brand
name is to the customer. eCommerce firms `Born on the Net' have to spend substantially more
resources on marketing than firms that `Move to the Net'.
These investments may be seen as parts of a process, which aims to generate larger revenues to the
firm, better services to the customers, a more efficient logistic system, and lower payment costs.
These costs and benefits are analysed and used in order to develop principles for investment
evaluations. Finally, the analysis is applied to five case studies from the sectors of capital goods,
financial services, food, ornamental horticulture, and books and stationeries, where the given
background from practice and conditions for success are developed in terms of a customer-base,
margins, and sales growth. | swe |
