Kim Mattson

ITS 380

CH4

 

Case Study

1.       Why did Dick’s decide to leave eBay and take over its own e-commerce operations?

Dick’s had two significant expenses eating away at their bottom line. Dick’s agreement with eBay, who charged a fixed commission on all online sales, was becoming expensive as Dick’s e-commerce sales increased. Also, the maintenance of the physical stores was another expense to consider. With online sales becoming the preferred shopping method, it only made sense to eliminate those expenses and invest into their own e-commerce operations.

2.       What is Dick’s omnichannel strategy?

Dick’s is making online shopping as efficient as possible for both the company and customer. Online orders are shipped to customers from the nearest physical location. The company is utilizing their stores to function as a distribution center as well as a retail location. This allows for expansion of new stores, since they serve a dual purpose.

3.       What are the three steps in Dick’s migration to its new website?

First, Dick’s e-commerce platform was developed and integrated into the current system. Second, they moved Field & Stream and Golf Galaxy onto the platform and continued working on developing their e-commerce platform. Lastly, was the relaunching of their website to the platform.

4.       What are the primary benefits of Dick’s new system?

The new system focuses on buying online and pick up/ delivery options for customers. Their inventory status is always current and they also can experiment with different pricing and marketing approaches with regions to test what is more successful. And because they’re in control of their e-commerce structure, any changes made can be tested and implemented much quicker.

Projects

4.    Choose two e-commerce software packages and prepare an evaluation chart that rates the packages on the key factors discussed in the section “Choosing an E-commerce Software Platform.” Which package would you choose if you were developing a website of the type described in this chapter, and why?

 

 

Key Factors:

Shopify

CoreCommerce

Functionality

X

X

Business model support

X

X

Processing modeling tools

X

X

Site mgmt. tools & reporting

X

X

Performance & scalability

X

X

Connectivity existing systems

X                                                            

X

Compliance with Standards

X

X

Global/multicultural capability

X

X

Local sales tax/shipping rules

X

 

 

Shopify offends an extensive number of features for only $9/ month. One definite advantage Shopify has over CoreCommerce is the tax calculations.  CoreCommerce is $36/month with fewer features in the reporting and analysis category. Analytics can aid in deciding what aspects need modification or are succeeding in your business.

 

5.       Choose one of the open source web content management systems such as WordPress, Joomia, or Drupal or another of your own choosing and prepare an evaluation chart similar to that required by Project 4. Which system would you choose and why?

 

 

WordPress

Drupal

Themes

2176 themes

1223 themes

Plugins/themes

28,593 plugins

14,369 plugins

Ease of use

Technical knowledge not necessary, UI minimal

Simple user interface, more technical language

Upgrades/customization

Update alerts, updates installed with one click, customization of files in application

Updates manual, customizing only through new plugin or offline

 

WordPress would be the optimal choice. Besides almost double the themes and plugins to choose from, it is simpler to use and updates do not need files to be backed up prior to updating.