Chapter 3

Multichannel Retailing

A view into the future

Multichannel Retailer
• A multichannel retailer is a retailer that sells
merchandising or services through more than one
channel.
Exhibit 3.1
Stores
Catalog
Internet
Store channel
• Browsing
• Touching and Feeling products
• Personal services
• Cash Payment
• Immediate gratification
• Entertainment and Social Experience
Catalog
• Convenience
• Portability; easily accessible
• Safety
• Visual presentations
• Internet
Electronic Retailing Issues
Benefits offered by the Electronic Channel:
• Broader selection
• More information to evaluate
merchandise
• Personalization
• Problem solving information
• Virtual communities
 Electronic retailing in India
https://www.researchgate.net/publication/288823401_Elect
ronic_Retailing_in_India_-_
Past_Present_Future
India started and crashed before they could bloom. Over a
decade Indian Internet driven companies learnt a lot from
their mistakes and evolved in their approach to online
business models. Although many companies of the 1999
era couldn’t survive till 2011; but those which did, have
set some high benchmarks for the newbies in this second
wave of e-commerce in India. From Rs 81,450 million in
2007, E-commerce market in India has grown to Rs 2,
06,530 million in 2009, which is expected to continue to
grow rapidly to over 55, 0000 million in 2011 as per
Top 10 Internet Shopping Sites 2019
• 1. Amazon.com
Since it was founded in 1996, Amazon.com has become known as the go-to online retailer for almost
anything, from books, toys, clothes, and shoes to food, furniture, and other household items. For a
recurring fee, its Prime membership offers free two-day shipping on most purchases, as well as the
ability to stream music, movies, and other media, as well as other perks.
• 2. Ebay.com
Officially founded in 1998, Ebay.com is an e-commerce platform that allows people to buy and sell new and
used items. The company’s recent Price Match Guarantee ensures that customers are getting the best
prices available on most of the items available in its selection of eBay Deals.
• 3. Craigslist.com
Craigslist.com has been credited with all but killing off newspaper classifieds since its launch in 1996. Built
like an online version of newspaper classifieds, listings are posted by community and region—and they
are free. The website now is a top resource for anyone looking to buy or sell used items locally.
• 4. Walmart.com
Since the first Walmart store opened in 1962, the retail giant has been determined to offer low prices along
with great service. The company took that philosophy online in 2000 when it rolled out Walmart.com
 in the U.S.
• 5. Etsy.com
Etsy.com was launched in 2005 with the goal of giving artists, craftspeople, and makers of all kinds a
platform to sell their creations online. Now, it’s one of the top destinations for people who want to
shop for vintage wares, one-of-a-kind gifts, and handmade items.
• 6. HomeDepot.com
The Home Depot opened its first store in 1979 and opened homedepot.com in 2000. It is the largest home
improvement retailer in the U.S., as of 2018, with more than 2,200 stores worldwide. Customers can
order everything from small items to major appliances online for delivery or in-store pickup.
• 7. Target.com
Target has affectionately been referred to as “Tar-zhay” since the first brick-and-mortar department store
opened in 1962, but the retailer didn’t have an internet presence until it launched Target.com in 1999.
Since then, it has won awards for its mobile app and introduced Cartwheel, a mobile digital coupon app
developed with Facebook.
• 8. Wish.com
Wish was founded by a former Google software engineer in 2010 and has since made a fast and sizable
expansion in the online shopping world. Wish.com and its popular app feature a wide range of products
coming directly from Chinese manufacturers at very low prices. You must sign up and log in to browse
products, and in turn, you get a customized shopping experience.
• 9. BestBuy.com
Best Buy was founded in the 1960s as an audio specialty store, but in 1983, it broadened its offerings to a
wider selection of electronics and changed its name to Best Buy. Its website, bestbuy.com, was
launched in 1998 and revamped in 2004 to broaden its offerings. The electronics chain is known for its
wide selection of products and appliances and for its Geek Squad, which provides repair services for
computers and other electronics.
• 10. AliExpress.com
Part of The Alibaba Group, AliExpress.com launched in 2009 to help small Chinese exporters, manufacturers,
and entrepreneurs sell their goods internationally. Rather than identifying as an online store, the
company sees itself as an online platform that connects sellers and consumers. The site offers a wide
range of goods, from wholesale electronics to clothing and supplies for the home and garden.
What are the 6 best-selling products on the
Internet? Can you enter those markets?
• Fashion Items
• Trips and Tourism
• Tech Products
• Second hand Sells
• Books and Music
• Educational Courses
Sales Growth Depends on

Perceived Risks of Electronic Relative Advantages of

Shopping Electronic Shopping
WILL OFFERING AN ELECTRONIC CHANNEL LEAD
TO MORE PRICE COMPETITION?
Why did so many Electronic Retailer
Entrepreneur Fails?
Resources Needed to Successfully Operate an Electronic Channel

1. Well known brand name and trustworthy image

2. Customer information
3. Complementary merchandise and services
4. Unique merchandise
5. Information systems for effectively presenting information
on web pages and managing the fulfillment process
6. A distribution system to efficiently ship merchandise to
homes and receive and process returns
The Evolution Toward Multichannel Retailing

REASONS FOR BECOMING A MULTICHANNEL

RETAILER
• Expanding Market Presence
• Leveraging existing assets
• Overcoming limitations of existing format
• Insights into customer shopping behavior
• Increasing share of wallet
Issues in multichannel retailing
• Brand Image
• Merchandise assortment
• Pricing