Chapter 1: Overview of E-Tailing

Learning Objectives

 Appreciate the growth prospects of the e-Tailing sector

 Understand the socio-economic factors affecting e-Tailing
 Explain the role of different entities in e-Tailing
 Give examples of success stories in e-Tailing

Electronic commerce is the sales aspect of e-business. It also consists of the

exchange of data to facilitate the financing and payment aspects of business
transactions. The growing use of the Internet, tablet devices, and smart phones
coupled with larger consumer confidence will ensure the evolution and
expansion of e-Tailing.

It is a market entry strategy where the company may or may not have a physical
presence. Thousands of businesses are entering the online market each year.
The convenience, safety, and user experience of ecommerce has improved
exponentially since its inception. New technologies and innovations are helping
the process of e-Tailing becoming a way of life.

The number of online buyers is steadily increasing. E-commerce players have

scaled operations and expanded teams, with the fresh rounds of funding. A lot
of resources are being spent on driving traffic. The e-Tailers have improved
their service and delivery infrastructure as well. There is also a shift in the
consumer mindset. Shopping online is more than just experimentation for
customers.

The real estate prices are a huge entry barrier to setting up a physical shop.
Setting up a website with a modest inventory and logistics operation is
relatively simpler and inexpensive. Online stores also have low overhead
costs.
SSL encryption protocol is a vital part of web security and version 3.0 has
become the standard for most web servers today. Paypal performs payment
processing for e-Tailers, auction sites, and other commercial users. Verisign
gives the buyer the confidence to transact financially on a particular website.
For the more sceptical buyer there is the option of Cash on Delivery.

With social media growing exponentially, there are more engaging

conversations between businesses and consumers. Companies are using social
media space for branding their products and services, connecting with
customers for feedback and advertising new product launches.

Buyers

Investors Sellers
e-Tailing
Main
Players

Techno-
Govt
logy
Strengths Weaknesses Opportunities Threats

Increase in online
shoppers
Convenience and Security Threats
Choice Untapped market
Physical Inspection Increased fixed costs
potential
Cost effective Fierce competition
Non suitability for Improvement in
Easy connectivity some categories Fraudulent
infrastructure
Higher reach Complexity of the transactions
Common logistic
Changing lifestyles medium carriers Improvement in
Customer Effective customer infrastructure
Security issues
Engagement service Security hazard
Customer retention
Technology Effective business Information
model Website design
Information availability
Usage of technology Website navigation
Availability Identity threat
structure
Financial Viability Effective website Phishing
Limited internet
access