C&B Notes

Building E-Malls

This Emerging Global Web presentation highlights an important difference between e-commerce in the U.S. and elsewhere in the world.  Domestically, most online shopping is done with individual merchants, while in other parts of the world online marketplaces (in many ways, ‘e-malls’) are the dominant conduit for buying goods online.  Amazon’s remarkable efficiency and willingness to grow revenues with a very low return on capital employed has distorted the evolution of online retailing in the U.S.  When shareholders eventually demand a satisfactory return, will Amazon have any pricing power?