Electronic Retailing
(E-Retailing)
Roshani Chaudhary, Radnyee Chide, Shreyas Deo, Swapnil Deshmukh, Dhanisha Dhikale
K. K. Wagh Institute Of Engineering Education And Research (MBA SECOND YEAR)
What is Electronic Retailing
Electronic Retailing, refers to selling goods and services to
customers over the internet.
It is also known as E-retailing or E-tailing
It’s a part of e-commerce, where businesses use websites or
apps to showcase their products, and customers can browse,
select, and purchase items online.
Here's a simple example:
You need a pair of shoes. Instead of visiting a physical store,
you log onto Amazon or official company website , search
for shoes, and explore various options.
You read reviews, compare prices, and make your choice.
After making an online payment or opting for cash on
delivery, the shoes are shipped to your address.
Main Types of Electronic Retailing
E-tailing can include business-to-consumer(B2C) and
business-to-business (B2B) sales. It can be a convenient way
for customers to shop, and a relatively quick and easy way
for businesses to sell products and services.
Here's a simple example:
B2C - You visit Nike's online store to buy a pair of sneakers.
Nike is the business, and you (the individual customer) are
the consumer.
B2B - A clothing retailer orders 1,000 T-shirts from a
wholesale supplier like [Link] to stock in their physical
store.
The retailer is the one business, and the wholesale supplier is
another business providing the products.
Process of E-retailing
Challenges in E-retailing
Security Concerns Logistics Issues Customer Trust Returns and Refunds
Online Fraud Managing Delivery Building Trust In Handling product
Identity Theft Times Virtual Platforms returns and refunds
Variable Shipping Ensuring can be expensive
Data Breaches
Costs Satisfaction logistically
challenging
Benefits of E-Retailing
Convenience Cost-Efficiency
24/7 Shopping: E-retailing allows customers to Lower Operational Costs: E-retailing eliminates the
shop anytime, day or night, eliminating the need for expenses like rent, utilities, and in-store staff,
constraints of store hours. This is particularly reducing overall operational costs for businesses.
helpful for people with busy schedules or those in
different time zones. Economies of Scale: Online businesses can scale up
operations (e.g., adding more products or reaching
No Geographical Boundaries: Customers can more customers) without proportionally increasing
shop from anywhere without needing to travel, costs, maximizing profitability.
making it easier for rural or remote buyers to
access goods that might not be available locally.
Benefits of E-Retailing
Wider Market Reach Personalization
Global Access: E-retailing enables businesses to Tailored Recommendations: E-retailers use AI and
sell their products to customers worldwide, data analytics to analyze customer behavior, offering
expanding their customer base beyond local or personalized suggestions that enhance the shopping
regional markets experience and increase the likelihood of a purchase.
.
Overcoming Physical Limitations: Unlike Targeted Marketing: Businesses can send customized
physical stores that are confined to a specific emails, ads, or offers to individual customers based on
location, e-retail platforms can cater to diverse their browsing and purchasing history, fostering
demographics simultaneously without requiring stronger customer relationships.
additional physical infrastructure.
E-retailing Channels
Online Stores Mobile Apps
Definition: Dedicated websites or platforms designed for Definition: Applications designed for smartphones and
businesses to showcase and sell their products or services tablets, providing a user-friendly and streamlined
directly to customers. These stores often serve as the shopping experience for on-the-go customers.
primary online presence of a business.
Key Examples
Key Examples Apps like the Amazon app and Flipkart app allow users
Platforms like Shopify and Magento help businesses create to browse products, receive personalized
customized online storefronts with features like secure recommendations, and make quick purchases with just a
payment gateways, inventory management, and analytics. few taps.
Advantages Advantages
Complete control over branding and design. Push notifications for deals and updates keep customers
Direct engagement with customers without intermediaries. engaged.
Optimized for convenience, enabling features like one-
click checkouts and mobile payments.
E-retailing Channels
Social Commerce
Marketplaces
Definition: The use of social media platforms to sell
Definition: Online platforms where multiple sellers can list products, combining social networking with e-commerce
their products and compete for customers, offering a wide for an interactive shopping experience.
range of goods in one location.
Key Examples
Key Examples Features like Instagram Shopping and Facebook
Platforms like Amazon Marketplace, eBay which host a Marketplace allow businesses to showcase products
variety of sellers, catering to diverse customer needs. directly on social feeds, enabling users to make purchases
without leaving the app.
Advantages
Large customer base and established trust make it easier for Advantages
sellers to find buyers. Direct interaction with customers through comments,
Sellers can leverage the platform’s logistics, payment messages, and live videos builds trust and engagement.
systems, and marketing tools. Leveraging social media trends and influencers boosts
visibility and sales.
E-Retailing Technology & Models
Technology in E-Retailing
E-Retailing Business Models
Mobile Commerce (M-Commerce): Shopping via mobile
devices. Direct Sellers: Companies that manufacture and sell
Augmented Reality (AR): Virtual product trials (e.g., their own products (e.g., Apple, Dell).
IKEA’s AR app). Dropshipping: Retailers sell products they don’t
Artificial Intelligence (AI): Personalized physically store (e.g., Oberlo).
recommendations, customer support chatbots. Subscription-Based: Businesses offer recurring
Blockchain: Enhancing transparency, security, and delivery of products (e.g., Amazon or Flipkart).
payment systems. Marketplace Model: Facilitating sales between third-
Big Data Analytics: Analyzing customer behavior for party sellers and customers (e.g., eBay, Amazon).
better targeting and marketing
E-Retailing Trends & Future
Future of E-Retailing
E-Retailing Trends
Omnichannel Retailing: Integrating online and offline Increased Integration of AI: For personalized
shopping experiences. shopping experiences and predictive analytics.
Voice Commerce: Shopping via voice assistants (e.g., Smart Devices: E-retailing integrated with IoT
Alexa, Google Assistant). (Internet of Things) devices.
Sustainability: Consumers increasingly prefer eco- Sustainability Focus: Green logistics and eco-
friendly products and brands. friendly product offerings.
Frictionless Payments: Use of mobile wallets, one-click Virtual Reality (VR): Shopping in virtual
payments, and digital currencies. environments, replacing traditional stores.
Social Media Shopping: Direct purchasing via platforms Regulation and Privacy: Stricter laws around data
like Instagram, Facebook. protection, customer privacy, and e-commerce
taxation.
Conclusion
E-Retailing: A Transformative Force
E-retailing has revolutionized the way businesses operate
and customers shop, offering convenience, wider market
reach, and innovative shopping experiences. With
advancements in technology and changing consumer
preferences, it continues to shape the global retail
landscape.
Future Prospects and Challenges
While e-retailing presents immense growth opportunities,
businesses must navigate challenges like cybersecurity,
competition, and logistics. By leveraging emerging
technologies and focusing on sustainability and customer-
centric strategies, the future of e-retailing promises endless
possibilities.
THANK YOU