While some prognosticators forecast that e-tailing will more or less eliminate the need for physical stores in the not-too-distant future, others are not so quick to predict the death of "traditional" retailing. Whether a replacement for store-based retailing or not, e-tailing continues to demand more attention as more and more shoppers perceive on-line purchasing as a viable option. However, before regular on-line buying by large numbers of consumers becomes a reality, many important issues must be addressed. For example, distribution continues to be a significant stumbling block to many e-tailers. While e-tailers have proven that they can provide potential customers with information about products, and have developed sophisticated programs to facilitate transaction, the vast majority of on-line stores still face difficulties actually getting the product to the consumer. Specifically, products that are low margin, fragile, or require significant explanation are problematic for e-tailers.

The readings in this module focus on Internet-based shopping and seek to explain some of the problems and opportunities that need to be addressed by e-tailers. Our discussion will include issues relative to both "pure" e-tailers and traditional retailers who have chosen to compete on-line.