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How E-Commerce Has Changed An Industry Term Paper

E-Commerce in the Jewelry Industry The jewelry industry has changed dramatically over the past decade as 800 numbers and mail order catalogues have shifted to Web sites and orders online. Jewelers are discovering new ways to benefit from investing in e-commerce to make their sites fully functional and profitable, according to researchers and small businesses experts. For retailers, they are many advantages to developing a business strategy that takes advantage of the power of the Internet (NSW, 2003).

Retailers in the online jewelry market have been able to seriously increase their revenues as a result of e-commerce (Tracy, 2000). According to recent research, the United States market will grow from $77 million in 1999 to over $1 billion in 2004. In addition experts predict that growth of the online jewelry market will be faster than that of consumer e-commerce in general and of Web adoption in the U.S. In general.

The market will defy the conventional wisdom that says consumers would want to see and hold fine jewelry before they plunk down large amounts of money," according to Jonathan Gaw, a research manager with IDC's Consumer eCommerce Major Purchases program (Tracy, 2000). "Although (the industry) faces the same challenges with regard to channel conflict and infrastructure development as those confronted by their counterparts in other industries, fine jewelry retailers will be able to apply the lessons of those that came before them to accelerate their learning curve," Gaw said.

E-Commerce Customers and Features

The majority of customers who purchase jewelry online are experienced e-commerce purchasers who are comfortable with the process. "Online jewelry consumers will know what a good Internet selling experience is, and they won't...

Research shows that brick-and-mortar jewelry retailers who engage in e-commerce will have a significant advantage over brick -- and mortars from other industries that moved online. Brand names and the trust they convey will be the reason for the advantage as they are more important factors with jewelry purchases than other purchases.
In the modern global market, e-commerce strategies can produce results on the supply or demand side of just about any retail business, bringing in new business that would never have thrived without existence of the Internet and the new trading possibilities it brings to the retail world (NSW, 2003). In addition to the enhanced marketing capabilities that e-commerce provides, retailers can benefit from a variety of other e-commerce features.

For example, a small local jewelry store can sell their products or services to buyers in other areas of the country or around the world without having to open a store in the area. However, businesses must be sure to develop production capacity, transport and distribution channels to support increased market demands generated by e-commerce activity.

In addition, implementing e-commerce strategies can reduce labor, supplies, and human errors, which can all be detrimental to the cash flow of a small store. In addition, e-commerce quickens the pace of inventory turnaround, invoicing and accepting payments via the…

Sources used in this document:
Bibliography

Enos, Lori. (September 21, 2001). What Small Biz Gets from the Web. E-Commerce Times. Retrieved online at http://www.ecommercetimes.com/perl/story/13551.html

NSW Department of State and Regional Development Small Business. (2003). Brief on Electronic Commerce. Retrieved online at http://www.smallbiz.nsw.gov.au/textonly/issues/technology/brief/Why.html.

Tracy, Joe. (July 5, 2000). Online Jewelry Sales to Exceed $1 Billion in 2004. Webmaster Techniques Magazine. Retrieved from the Internet at http://www.webmastertechniques.com/index.html.
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