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6 May 2001, Netherlands

Dear Dr.Ecommerce,

We would like to know about cyber-malls. What exactly is a cyber mall? What are its benefits for businesses, small and large? How does it work? Where do they get their money? And how do you know whether one is successful? How does a company register with a cyber mall like, for example, with cybermall.com?

Thank you in advance for your quick reply,

Regards,

Melody and Emile

Dear Melody and Emile:

On-line malls have changed a lot in the short history of Internet commerce. Originally, people thought that consumers would like on-line malls for the same reason they like bricks and mortar malls: they could do all their shopping in one location. What a lot of people forgot at the time was that In that on the Internet any two shops are only a click away from each other. Hence consumers gain no convenience by shopping at on-line malls.

However, small merchants can gain. The cost of setting up an on-line shop from scratch can be expensive and time consuming. Making catalogues and customising shopping cart and payment software is an exacting process.

So, on-line malls generally offer merchants everything they need to get going, including:

• a simple system for creating an on-line catalogue
• ready-to-go shopping cart software
• ready-to-go payment software

Some malls also offer marketing support or other services.

On-line malls generally get their income from charging a monthly fee to merchants and/or charging a commission on each sale made through the mall.

To find out how to register at cybermall.com or any other on-line shopping mall, simply visit the site and follow the appropriate links. Any mall that doesn't tell merchants how to register is not likely to be a very good mall!

Incidentally, I asked cybermall.com to comment on your question - but they have not responded.

Good luck,

Dr. Ecommerce