Amazon is clearly the leading e-tailer in terms of its reach, projected buyers and the unique users around the world. Although e-tailing is not ready to fully replace traditional sales outlets, it is growing at a much faster pace than brick-and-mortar stores. E-business strategy is more complex, more focused on internal processes, and aimed at cost savings and improvements in efficiency, productivity and cost savings. E-tailers have the advantage of being able to locate in low wage areas, or outsource to virtual workers in low-wage areas. While Retail refers to the sales of good, sold from a single point which includes malls, supermarts, departmental store to the consumer in a small quantity. The key for the online storeowner is to find and perfect a marketing mix that is within her budget, but also effective in bringing in customers. Early adoption e-tailing began to be used by major corporations and smaller entrepreneurs as early as 1997 when Dell Computers managed multimillion-dollar orders through its online Web site.
Customer retention: The holy grail of e-tailing Customer retention poses a significant challenge to the e-tailers. Limited access to the Internet — Not all customers have access to the web, as they do to the postal system. Mass Media — A supermarket is limited in its area of operation. The theory of planned behavior suggests that a consumer is more willing to buy from an Internet store that is perceived as low risk. Once this relationship is formed via the transaction , the e-tailer can follow up with a solicited marketing program to keep the customers engaged. Customer service should be proactive to ensure prompt delivery leading to satisfaction with the product and subsequently offer a medium of dialog to the customer with the e-tailer.
Customer service should be considered a profit center, since it impacts the long-term relationship of the customer with the e-tailer rather than the short-term transaction. Rules for commerce, and its legal framework, have evolved within the geographically limited national and state borders. Therefore, the overall impact of Internet on the retailing process extends beyond the online transactions and goes up to educating the consumer to make the right choice through the entire purchasing process. Shopping cart technology is used to facilitate the online transaction process. However, one has to compare these gains against certain web-related costs that have to be borne by a retailer.
Comfortable and easy to use - The Internet offers easy and comfortable access to all the required information by a customer. Fulfillment Costs Retailers provide product fulfillment to their customers by stocking shelves, providing shopping carts with real not virtual wheels, checkout stands, and plastic bags in which shoppers carry purchases to their cars. E-tailers can use previous transactions to identify the likelihood of products being purchased at certain price points and use this information for price discrimination. This is perhaps the most challenging aspect to overcome in order to help growth develop. It is a nice question and I must say it is a very thin line of difference between the two. So this includes planning an online sale of any kind of products or services. Examples include retailing of products like clothes, cosmetics etc.
Thus we will consider B2C, C2C and C2B as being retailing transactions, as they are all transactions facilitated by a business, and involving the final consumer. It is calculated by the number of sales transactions divided by the number of people who enter the store. We have some difference between E-Retail and normal retail. Yet, petrol retailing needs to adjust its retail business to attain a competitive advantage and continue to thrive. Catalog retailing accounts for about 10% of all retail transactions. College and career readiness activities covering writing, speaking, and listening are addressed. E-tailing solutions that can simultaneously address both the issues can make a significant impact on the growth of this segment.
It could mean two pairs of shoes for the price of one or two boxes of pasta for the price of one. The e-tailing route calls for a re-examination of the conventional retail value chain. However, if we dig deeper, the comparison and contrast between retailing and e-tailing, and the differences in the way business is conducted in both the segments should become clearer. E-commerce covers outward-facing processes that touch customers, suppliers and external partners, including sales, marketing, order taking, delivery, customer service, purchasing of raw materials and supplies for production and procurement of indirect operating-expense items, such as office supplies. E-retail, short for electronic retail, occurs when businesses use the Web to sell products. In fact, location is no longer the key to success if e-tailing is what we are talking about.
These companies have already reaped some of the biggest benefits from e-commerce strategies. Summary — E Tailing vs E Commerce The difference between e tailing and e commerce mainly depends on the range of services offered by; where customers can purchase goods and services through e tailing, e commerce involves a number of services such as electronic funds transfer, internet marketing and online transaction processing. Consumers may have more trust in a retailer with high reputation because a trustworthy retailer is less likely to jeopardize his reputation assets. For example, Apple has a B2C Web site. The C2B and C2C sectors are recent phenomena that have emerged taking full advantage of the various electronic media to evolve into potentially major sectors within the retail industry. This movement in the market place is gaining momentum. Who should ultimately own that data after the transaction and what rules are established in terms of the use of that data, will be important.
For markets to grow to their full potential, a medium of exchange needs to standardize, to reduce the friction in markets. B2C - business to consumer transaction mostly of physical goods. For the same reason, some pure Internet retailers are gradually making a transition to multi-channel retailing. An online consumer is more likely to trust a large sized business in comparison to a small sized business owing to the trust. Key Difference — E Tailing vs E Commerce E tailing and e commerce are two terms often used interchangeably and are confused.