E-tailing: E-tailing or e-retailing, also called e-retail, means sales of goods and services via the internet or other electronic sources for personal and household use by consumers. Amazon, Flipkart, Zomato. Swiggy and Makemy Trip are examples.
•The notion of e-retailing was first developed in Europe. The features of e-tailing are
•Easy and convenience of shopping at home which save time and efforts
•E-tailors offer a wide variety of products and services
•Consumers get good discounts and get products and services in competitive prices.
•Buyers get detailed information about the products,
• They can make comparison of various models/brands and choose the best. Most popular types of e-retailers are:
(i) Pure Play (Virtual) e-retailers: These retailers only have the electronic platforms. They have no physical outlet. Amazon and Flipkart are this type of e-retailers.
(ii) Brick and click (Click-and-Mortar) e-retailers: These retailers have both online and offline transactions. Dell comes under this category.
Some advantages and disadvantages of e-tailing are given below:
Advantages for Retailers:
(i) Location Utility: Retailers do not have any place constraint to sell their products and services. They can do it from anywhere.
(ii) Less Expensive: E-tailing is less expensive because the sellers do not have to spend on wages of salesmen and cost on premises and its maintenance.
(iii) High Reach: E-tailers can reach to large audience through internet.
(iv) 24 x 7 Businesses: Retailers do not have time constraint. They can sell at any time.
(v) Feedback: They easily get feedback of consumers which help in improving the offers.
Disadvantages for Retailers:
(i) Lack to Infrastructure: Retailers face the problems of accessibility and connectivity of internet. Initial investment cost is also very high in e-tailing,
(ii) Lack of Technological Expertise : all retailers cannot afford to have technological expertise to run the business.
(iii) Complex Logistic Management: There are Intrinsic and Extrinsic Challenges which increase the complexities in tailing logistics.
(iv) Customers’ Expectations: Customers have high expectations in terms of flexibility in delivery, detailed product descriptions, cost and security of delivery, flexible payment options.
(v) Lack of Personal Touch: E-tailing lacks face-to-face interaction, persuasion and handling the customers’ query.
(vi) High Competition: E-tailers have to compete with other e-tailers and the organised and unorganised retailers in the market that increase the competitions for them.
Advantages for buyers:
(i) Time Utility: Consumers can shop at the time of their convenience.
(ii) Place Utility: Consumers can place order from anywhere.
(iii) Convenience Utility: Consumers can shop from any mode via computer, laptops or mobile.
(iv) Option Utility: Consumers have wide varieties of options via e-tailing,
Disadvantages of buyers:
(i) Uncertainty on quality of products and services: Consumer cannot make sure about the quality of products and services.
(ii) Fear of Fraud: Consumers face the risk of fraud and loss of money.
(iii) Unavailability of Products: Consumers do not the products and services they require.
(iv) Lack of Technological Know-how: Consumers lack technical expertise.
The disadvantages of E-tailing for retailers are:
(i) It is Expensive: Planning, designing, creating, hosting, securing and maintaining a professional e-commerce website is not cheap, especially if you expect large and growing sales volumes.
(ii) Security and Fraud: The growth of online retail market has attracted the attention of sophisticated criminal elements. The reputation of your business could be fatally damaged if you don’t invest in the latest security systems to protect your website and transaction processes.
(iii) Legal Issues: Getting to grips with e-commerce and the law can be a challenge and you have to be aware of and plan to cope with the additional customer rights which are attached to online sales.
(iv) Advertising Costs: While online marketing can be a very efficient way of getting the right customers to your products, it demands a generous budget. This is especially true if you are competing in a crowded sector or for popular keywords.
(v) Customer Trust: It can be difficult to establish a trusted brand name, especially without a physical business with a track record and face-to-face interaction between customers and sales staff. You need to consider the costs or setting-up a good customer service system as part of your online offering
(vi) No Personal Touch: It does not allow face-to-face interaction, persuasion and handling the customers’ query.
(vii) High Competition: There are many other e-tailers as well as the organised and unorganised retailers in the market that increase the competitions among them.
The advantages of e-tailing for buyers are:
(i) A wide range of products and services: E-tailing allows customers to choose a product or service of their choice from any supplier anywhere in the world. The customer has a wider choice than he would have had if he’d picked a brick-and-mortar store.
(ii) Simplicity and Comfort: Customers can buy any product from any e-commerce in the world without having to step foot from their workplace or home.
Due to bad weather, economic situation or for any other reason, many people cannot go shopping. E-tailing is convenient when buying goods or services without creating physical limitations for consumers.
(iii) It Saves Money: Costs incurred by a provider of products or services in co-operation with an intermediary are paid by the customer.
When there are no middlemen, the customer may not have to spend so much money. Products offered over the Internet are generally cheaper than those in the shops.
(iv) It Saves Time: Saving time is one of the major benefits of online shopping. Products are delivered to customers within a week.
If you order goods that are heavier, you do not have to worry about it. The messenger will bring them to your doorstep.
(v) It Provides Complete Information: The Internet is used as the main tool for making e-commerce transactions. It allows customers to search for product information, compare prices and benefits and ultimately evaluate whether it is really worth the money.
On the web, customers also find warranty information that contains product descriptions and other details. Before purchasing the product, you are fully aware of the conditions.
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