New Words

establishment  n. 机构，建立 establish

satisfactory   adj. 满意的  satisfy

generous  adj. 慷慨的，大方的 general

supplemental  adj. 补足的，追加的 supplement  n.vt.

demonstration  n.示范 demonstrate

background  n.背景，后台

identity  n. 身份 identification

duty  n.关税, 职责  tax, tariff

spam  n.垃圾邮件

suitability  n.合适，适当 suitable

modification   n.更改，修正  modify

reliable  adj. 可靠的，可信赖的

recommendation  n.推荐，介绍 recommend

Phrases

review site 评价网站 comment, rate

real-time chat 实时聊天 (instant massager)

sales tax 营业税（消费税）

cross-border purchase 跨境购买  (cross-border e-commerce)

tangible good 有形货物 

social media 社交媒体

1. Advantages

  1.1 convenience

available 24 hours

Internet access: work, home, Internet cafes, schools

generous return policies (e.g. Zappos.com) 无理由退货

1.2 Information and reviews

provide or link to supplemental product information

allow customers to comment or rate items (DSR)

dedicated review sites

some online stores have real-time chat features (Instant Messaging) (淘系平台旺旺、千牛)

• 店铺动态评分（DSR）：商品描述相符、服务态度、发货速度三项评分
   近6个月综合评分，在同行平均值以上，向上红色箭头，相反向下绿色箭头
  

  

• 千牛卖家版

  

  

  
  

1.3 Price and selection

seek deals by search engine, online price comparison

shipping costs reduce advantage, but lack of sales tax

some retailers offer free shipping

for retailers: rapidly switch suppliers and vendors

 2. Disadvantages

  2.1 Fraud and security concerns

consumers: lack of ability to inspect merchandise

merchants: stolen credit cards

SSL generally solved the problem (secure sockets layer)

    credit card information, hackers

    computer security: firewalls and anti-virus software

product delivery

2.2 Lack of full cost disclosure

not easy to see the total cost up front

   especially cross-border purchases: duties and brokerage

2.3 privacy 

personal privacy: spam and telemarketing

    many websites keep track of consumer shopping habits

 3. Product Suitability

  many virtual companies deal with digital products

  other marketers use drop shipping or affiliate marketing

  items can fit in a standard mailbox are suitable for…

  spare parts and industrial equipment also good for online

  less suitable: low value-to-weight ratio; have a smell taste, or touch component; need trail fittings

 4. Aggregation

  high-volume websites offer hosting services

  virtual shopping malls

 5. Impact of reviews of consumer behavior

  benefits (online): able to read product reviews

  important role: electronics (57%), cars (45%), software (37%); 90% purchases are influenced by social media