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Theme: Shortening the Supply Chain

Issue 10, May 15, 1998    ISSN 1094-9001
Make the Crucial Decision
Dr. Ralph F. Wilson, Editor Manu-
facturers' Dilemma: To Sell or Not to Sell Directly?

by Dr. Ralph F. Wilson
E-Commerce Consultant
Manufacturers are faced with a hard choice. If they sell products directly over the Internet they can increase their margins substantially, but they risk alienating and destroying the distributor and dealer network they have worked so hard to build.

This article outlines four approaches manufacturers are taking toward Web sales. While you can read this promotional issue free, we think you'll agree this kind of information is well worth an annual subscription to Web Commerce Today. READ THE ARTICLE

ASSOCIATE PROGRAMS
How to Retain Your Affiliates
One of the most attractive ways to promote an online retail store is to set up a network of affiliates whom you pay a commission on every sale resulting from a link from their site. But one of the weaknesses that's beginning to show up is retailers not showing care in retaining and nurturing their affiliates. This article tells you how. Read the article.

HANDS ON TIPS
Tips for Preparing Product Photos
When you're preparing a catalog full of product photos, you'd better have mastered the basics. Here are some tips to produce fast-loading, sharp photos. Read the Tips

Getting Web Graphics Right

Designing Web Graphics, Second Edition Lynda Weinman, Designing Web Graphics 2 (New Riders Publishing, Feb 97). Whenever a book goes into a second edition, you know it's been pretty popular. Lynda Weinman gives a very thorough description of various formats (including PNG in this edition), a Web-safe pallete for Photoshop, and lots of very practical tips on reducing file size to the practical minimum. Includes a CD. Strongly recommended if you do graphics for websites.

Lynda Weinman, Preparing Web Graphics (New Riders Publishing, May 1997) is a less technical (and less expensive) version of Designing Web Graphics for Web designers who aren't graphic artists.

Lester Wunderman
The Future of Direct Marketing Lester Wunderman, the Lester Wunderman, called the "Father of Direct Marketing," offers some startling insights into the future of online sales. These are quotes from his keynote address at Web Marketing '98 in Seattle.

On Disintermediation

"Companies will eliminate layers of intermediaries. The first Industrial Revolution created mass production and new layers of distribution and communication intermediaries. The second created white collar workers and hierarchical layers of management. Both resulted in the institutional loss of information, service, relevance and dialogue. As a result, we are beginning to see the beginning of what the economist Joseph Schumpeter called the 'creative destruction' of many of these redundant and expensive go-betweens left over from earlier times.

"Disintermediation is already happening and it is increasing profit margins, reducing prices and providing consumers with more information and service. The virtual factory, warehouse, or store, can be global, open twenty-four hours a day, seven days a week, even where local laws forbid it. Converting homes to workplaces and shopping centers are surely ideas whose time has come, even if the technology is still a work in progress."

The Promise of the Virtual Store

"The virtual store is on its way. Such stores will pay little rent and have fewer employees and no inventory. They will basically be information-processing centers. The virtual retailer, freed of the costs of physical inventory, high rent and the danger of over-stocking too many of the wrong things, can concentrate on the business of providing service."

Click here to read these quotes in context, and for more insights on the future of direct marketing on the Web.


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