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ich at this point is the most efficient. Online panies are having a difficult time satisfying their customers, because of something that isn’t their fault. The pany that they select to ship their product isn’t handling the demand. For high volume panies this can be easier to solve.There is a definite need for panies to manage the relationship with the shipping panies. The bigger the pany the more power it posses in the supply chain. The have the ability to hurt the shipping pany by choosing to change shippers. Even though there are few shipping panies, the online pany can claim they will switch, if their quality of service doesn’t increase. By threatening a switch, it will hopefully create better service for a large pany.One of the biggest problems with online buying is the lack of automated inventory and warehousing systems. The lack of automation really hinders in the efficiency and speed of meeting the customer needs. For small panies, it is a good idea to outsource the warehouse and distribution functions, because they aren’t efficient enough to meet customers’ needs. Outsourcing will reduce the actual profit, because it is expensive. Over time it will prove to be beneficial, because it will help in building loyalty. The most important thing to understand is choosing the correct outsourcer. Companies want to pick an outsourcer that isn’t overbooked with clients so they can efficiently handle demand requirements.Large online panies really need to consider automating the inventory and warehousing functions. This may be the best way to stay petitive in the future. The use of logistics consultants is a good strategy to assist in choosing an automated system that matches pany needs.PricePrice is very important when dealing with emerce problems. Price can be a key issue when trying to increase demand or when decreasing demand. Price is definitely a weapon of choice by many panies. The two typical pricing methods are skimming and penetration. Skimming pricing is charging a high price when the product is relatively new, in hope of making more profit. Penetration pricing is deployed to capture a large market share. The theory is based on creating a large market share, by being lower than petitors.To increase demand, emerce panies need to focus on penetrating the market. This will work best for products that are in the introduction and growth stage. If the product is near the maturity stage, lowering the price won’t increase profits very much. For relatively new products, offering the product below petitors will increase demand.Pricing of a product an reduce demand without reducing profit. If an online pany is doing very well, but isn’t able to keep up with the current demand, it may be smart to actually raise the p