E-Commerce Has Helped to Redefine How Businesses

¶ … e-commerce has helped to redefine how businesses operate, subsequently changing how they interact with consumers. Due to the rise of e-commerce, channels of distribution are also changing and are giving consumers more purchasing options. As a major contender in the sale of consumer electronics, Apple has had adapt to the changing business model and provide consumers with new purchasing options.

Several methods of distribution can be employed to deliver goods from manufacturer to consumer. The two most commonly used channels of distribution are direct, in which the consumer may purchase goods directly from the manufacturer, and indirect, in which goods are sold through a third party, most commonly an authorized dealer.

Through the utilization of direct channels of distribution, Apple provides the consumer with many options not available through third party product distribution. Apple sells computer hardware, accessories, and software through its website, as well as its brick and mortar stores. Unlike brick and mortar stores, product availability is not an issue when purchasing from Apple via internet. Because brick and mortar stores can only sell inventory present at the physical store, purchasing goods directly from the manufacturer eliminates the need to maintain an inventory. Purchasing goods and services through the Apple website also provides the consumer with goods and services not available in the brick and mortar store. The Apple e-store gives the consumer the option to use trial versions of certain software before purchase, allowing them to test the software's functionality before purchase. The Apple e-store also facilitates the purchase of their hardware and software for educational, business, and government use through the organization of products under specific tabs, links, and webpages. The major selling points that Apple claims will benefit the consumer through this direct channel of distribution are the ability to build the perfect Mac, free iPod engraving, free shipping on purchases over $50, and signature gift wrapping ("Apple Store," 2010). The online Apple store also gives the consumer the opportunity to purchase refurbished Macs, iPods, and iPads, a feature that is not readily available in brick and mortar stores.

Another channel of distribution utilized by Apple, is distribution of their goods and services through a brick and mortar store. The two most common Apple product distributors are the Apple Store and Best Buy. Purchasing products via brick and mortar stores allow the consumer to test out hardware in store, as well as do a side-by-side comparison of accessories and other products available in the store. While purchasing products directly from Apple or through the brick and mortar store will provide the consumer with technical support directly from Apple and their Genius Bar, purchasing Apple products from Best Buy will require the consumer to refer to Best Buy's Geek Squad for assistance. Because Best Buy stores are more easily accessible than Apple stores, Mac products reach new audiences.