Models for investment in electronic commerce-financial perspectives with empirical evidence

These investments may be seen as parts of a process, which aims to generate larger revenues to the firm, better services to the customers, a more efficient logistic system, and lower payment costs. A financial perspective is taken, where investment outlays for web services and marketing are balanced to cost savings when serving existing customers and net revenues from the generation of new customers. This financial approach is applied to five case studies from the sectors of capital goods, financial services, food, ornamental horticulture, and books and stationeries, where the given background from practice and conditions for success are developed in terms of a customer-base, margins, and sales growth. It is demonstrated that an existing customer base offline reduces the need for a marketing that is costly. It is also shown that a combination of services online and offline improves customer services and increases the extension of repeat purchases.