Net retailers offered ‘back office’ package

Uunet Pipex, Europe’s largest direct Internet service provider, has launched a range of on-line shopping facilities to retailers and merchants, aimed at kick-starting the market for UK Net shopping.

Richard Nuttall, director of electronic commerce at Uunet Pipex, says the three-tier service, tied into the launch of a secure credit card transaction system for Internet use last week, is designed to take care of a major slice of the “back office” functions for electronic retailers.

Small-scale Internet merchants are being offered the DialStore service, with an upfront cost of 500 and a 9.5 per cent commission on each transaction.

Retailers using DialStore or the CornerStore and DirectStore systems for larger companies will still be required to arrange their own delivery of goods.

But the remainder of the trans-actional functions could be offered centrally by DialStore and its sister electronic retailing products.

Martin Wright, IS infrastructure manager at Sainsbury’s, says the retail giant has enjoyed some success in offering electronic retail-ing since launching its wine, flowers, and chocolate gift services last year.

But he strikes a note of caution over the likelihood of offering the on-line weekly grocery in the near future. Substantial problems remain in generating cost-effective methods of achieving order fulfilment and distribution and for large quantities of low-value grocery items, he says.

Concerns over the security of Internet-based payments remain a block to the growth of electronic commerce, according to US-based consultant Amos Kermisch.

Speaking at a conference on electronic marketing organised by the A Plus group last week, he said retailers who ignored developments in electronic retailing did so at their peril. Traditional retailers could eventually be wiped out as producers and new electronic merchants find ways of cutting overheads and attacking retail markets in many product areas.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here