Seven levers to exploit Success on the Internet will require land-based retailers to do much more than replicating online their existing business models, which generally work only at considerable scale. However, the correct exploitation of seven levers could help online retail operations to succeed, with high profitability possible at far lower sales volumes. Exploiting two channels to close one transaction Established retailers can offer customers a choice of channels, such as providing the opportunity to preview and order goods online and then picking them up in-store. It is thought that higher average transaction sizes are due to the marketing of premium products, the bundling of products and services, and cross-selling. An online presence offers retailers a wider range of selling opportunities.
Many websites also sell advertising space on their sites.
For web-based retailers, acting as an agent on behalf of customers could become a future revenue source. A web presence supplies the personalized attention that could keep customers loyal. E-tailers should build trust by providing information on the product and customer experience, as well as easy links to advisors, complementary vendors and other customers. Although the Internet is a supposedly price-transparent medium, prices do in fact vary online. Research suggests a relative indifference to price compared with convenience, so e-tailers should work aggressively to capture some margin premium, at least in the early days of their websites.