Document Type



The emergence of the Internet has revolutionized retailing industry. However, the technology stock slump worldwide last year has made financing much more difficult for many e-tailer. As more well-established traditional retailers roll out their own online divisions and branches, online market, or marketplace, becomes increasingly competitive. How can Australian e-tailers successfully survive in this new competitive environment? This paper attempts to integrate research on Australian e-tailers and empirically explore, using a case study approach, some strategic issues in managing e-tailers.

Research so far on Australian e-tailers has shown that Australian e-tailers have used state-of-the-art Internet technology in designing their Web site and have offered a big range of products to their online customers. They also perform reasonably well in customer services. The most difficult challenge facing them is fulfillment because of its geographic isolation and low population density. Australian government is actively involved in tackling those issues concerned by consumers, such as privacy and security, by legislation and promoting 'best practice model'.

The findings from a case study of an Australian e-tailer helps us understand several strategic issues in managing pure e-tailers. To survive, e-tailers need to carefully select product offerings, streamline business processes, minimize marketing budget and HR costs, improve fulfillment efficiency, and adopt a long -term growth strategy