Electronic Retailing Strategies: A Case Study of Small Businesses in the Gifts and Collectibles Industry

The objective of this case study is to better our understanding of the strategic deliberations of managers and owners of small businesses as they pursue electronic retailing, since they face different barriers and constraints when dealing with electronic retailing issues than do their larger counterparts. Detailed phone interviews were conducted with four small businesses within the Gifts and Collectibles industry. Findings indicate that the development of a transactional website, which is often utilized by large retailers, is not the initial strategy, nor the primary strategy, that these businesses devise to generate online sales. Rather, owners and managers select strategies that are less intrusive to their present brickand-mortar operations while allowing them to maintain needed control of online sales levels. Contributions include a comparison of the electronic retailing strategies that are utilized, including the business owners’ perceptions of the technological capabilities that are needed for each strategy, and the identification of other factors that weigh heavily into their selection of a strategy. Interview excerpts from the owners and managers supplement the discussion.