E-Retailing

Management and
Process
Traditional Retailing

Retailing is the process of selling products or services to

consumers for their non-business use.

Product satisfaction and value satisfaction is essential.

What is e-retailing

 Shopping through the Internet and other media forms.

 Anything anywhere at the click of a button.

 Anything anywhere refers to products and services

 Commonly known as e-tailing, electronic retailing

 E-retailing is B2c(business to
customers)business model that executes a
transaction between businessman and final
customer
 Subset of e-commerce
Mapping Traditional
Retailing -> e-retailing
 Specialized stores -> specialized e-stores
 Generalized stores -> Generalized e-stores
 Malls -> E-malls
 New form of business : e-broker/ e-auctions
Benefits of e-retailing

 To the Customer

 convenience
 better information
 competitive pricing
 customization
 shopping anywhere, anytime
 To the Business

 global reach
 better customer service
 low capital cost
 mass customization
 targeted marketing
 more value added services
 new forms of specialized stores and niche marketing
Common features of e-retailing
web sites include:
 method for selecting your purchases, e.g shopping cart
 mechanism for creating and submitting an order
 secure e-payment facility
 appropriate distribution mechanism
 browsing facility, normally by subject or by category
 searching facility
 mechanism for customer service and feedback
e-tailing models
 General e-stores
 Specialized e-stores
 e-malls
 Direct selling by Manufacturer
 e-broker
 e-services
 e-auctions

9
General e-store

1
Specialized e-store

1
e-mall

1
Direct selling by manufacturer

1
e-broker

1
e-services

1
e-auction

1
e-auction

1
B2C E - commerce

 Business-to-consumer e-commerce or commerce between

companies and consumer; involves customers gathering
information, purchasing physical goods or receiving
products over an electronic network.
 Example- ordering household items, ordering antivirus
software, etc.
B2C E-commerce
The Process of E-commerce (E – Retailing)
Integration of Brick and
Mortar with E-retailing
 Opportunities from Integration
 In store pickups
 In store returns
 Email promotions
 Store locators
ESSENTIALS OF ONLINE
RETAILING
Model for online retailing

 a) Common process models

 Web Store linked to one store
 Web Store linked to warehouse
 Each physical store has a web store front
 b) Models for web stores
 Spaces on Popular Platforms
 Store at the Marketplace
 Stand alone Stores
 Pure play
 Social Commerce
Advantages of E-Retailing

 Price and selection

 Opportunities to reach new markets
 Provides home shopping experience
 Extension to leverage
 Valuable insights
 24 hours
 Reasonable cost
Shortcomings of E-Retailing

 lacks an emotional shopping experience

 exposed to intangible merchandise (i.e., virtual display of
merchandise).
 Online customers are reluctant to part with their credit card
debit cards or net banking details
 lacking in family shopping experience
 There is always a sense of fraud
CHALLENGES IN E-
RETAILING
 Resolving channel conflict
 Requirement to Change Business Process
 Revenue models
 Legal Issues
 Security and Privacy
Thank you
dhivya.mba@Kongu.edu