ONLINE RETAILING

WHAT IS E-RETAILING?

E-RETAILING=ELECTRONIC RETAILING Sale of goods and services via internet or other electronic channels for personal or household use by consumers.

EVOLUTION

It is the modernization of traditional retailing. It has many advantages over traditional retailing. Internet has played a vital role in making e-retailing such a big hit. Is spreading around the world on a fast pace

E-RETAILING IN PRACTICE
B2B B2C
C2C
Sales of goods and services among the businesses. eg -ChemConnects

Retailing products and services to individual shoppers Eg-Amazon.com,Barnesandnoble.com

Consumers selling directly to consumers Eg- ebay.

PROCESS OF E-RETAILING

Consumers find a product of interest Shopping cart software used A "checkout" process followed Consumers allowed to sign up for a permanent online account The consumer receives e-mail confirmation

MODES OF PAYMENT
CREDIT CARD DEBIT CARD PAYPAL

PRODUCT DELIVERY
DOWNLOAD

SHIPPING

DELIVERY WAYS

DROP SHIPPING

IN-STORE PICK UP

USES
Web Store Front-- Online Catalog Using the online catalog one will be able to manage online product listing pages, categories and pricing. Business Intelligence- Analytics

Helps understand each step taken by potential

customer Helps in increasing revenues and customer satisfaction

E-Marketing-- New Media Tools

blogging and conversation management, the business remains on the top of the vertical. Helps to connect with the audience who are more difficult to reach via traditional marketing and public relations.
Supply Chain Management

Helps in proper shipping of products through proper channels. Helps in managing inventories.

GROWTH

With the surge in PC penetration, Internet awareness, and computer literacy, people are using the Internet more as an enabler and facilitator of work than for mere messaging and entertainment. Findings by IAMAI (Internet and mobile association of India)

Rs 9000 crore worth of e-commerce was conducted online in 2007-08 from Rs 7000 crore in 2006-07,an estimated 29% plus growth.
55% of the visitors have adopted the Internet as a shopping medium. In the year 2000, 77% users were from metros, whereas in 2007, People from smaller cities have increased their presence.

STATISTICS OF ONLINE BUSINESS

11% 15%

6%

21%

COLLEGE STUDENT(18-24)

YOUNG MEN(2435) MEN(36-58)

33%

WORKING WOMEN HOSEWIVES

PRODUCTS

DVD
23%

22%
34%

BOOKS AIRLINE TICKETS/RESERVATION CLOTHING/ACCESSORIES

21%

FUTURE PROSPECTS
The

report, part of the University of Michigans American Customer Satisfaction Index shows, ranks consumers satisfaction with e-retailing at 83 out of 100. Certain improvements which need to be made are: Infrastructure level Extensive technology development Better supply chain logistics Innovative business model to attract customer

AMAZON
B2C

type of e-retailing which deals with sales of books, music CDs, DVDs, software, kitchen items etc Amazon tracks what its customers purchase and then uses that information to satisfy and meet customer expectations Amazons advantage lies in the fact that it lists huge catalogue of titles, and is much easier to search among them online

E-bay

E bay is C2C type of e-retailing Buyers can bid on items of interest and all eBay users to browse through listed items in a fully automated way. When an item is listed on eBay a nonrefundable Insertion Fee is charged. A fee is charged for additional listing options to promote the item. A Final Value (final sale price) fee is charged at the end of the seller's auction.

SNAP SHOTS

ADVANTAGES OF E-RETAILING

Advantages of e-retailing

To consumers

To retailers

To eretailers

To consumers

Convenience Better information Competitive pricing Ability to shop 24/7 Wider product availability Customized and personalized information and buying options Easy comparison shopping Quick delivery of digital products Ability to create a one-on-one relationship with the Seller

To Retailers
Location is unimportant

Size does not matter Saves on the wages and premises costs Reach a larger audience Accepts orders 24-hours a day More opportunities for CRM and micro-marketing

To e-retailers
Global reach Better customer service Low capital cost Mass customization More value added services

DISADVANTAGES

Disadvantages

To consumers

To retailers

To e-retailers

For Consumers

Credit card and security worries Lack of interaction Cant see or feel the merchandise Dont know how Premium charged for delivery Difficulties with returning goods for refund

For Retailers

May lack know-how and technology Substantial set-up, investment and ongoing costs Complex logistics of fulfillment E-selling less powerful than face-to-face Uptake slow for goods selected by taste or smell. Legal problems Less role for traditional high street retail expertise After-sales care difficulties

FOR E-RETAILERS

Your site must be available and operational 24 hours a day. This may mean employing a night shift of customer service operators or maintenance staff. The Internet market is still only small in comparison to the traditional market. You must be vigilant maintaining your site. Update offers, prices, specials and products regularly. Check for errors and working links. Answer queries promptly.

E-RETAILING IN INDIA AND OTHER COUNTRIES

INDIA Awareness of the benefits of B2B (and to a lesser extent B2C) ecommerce is increasing. Recently introduced ecommerce legislation

OTHER COUNTRIES USA rapid growth rate

SOUTH AFRICA slow but encouraging growth. Industry open to new changes.

INDIA Frequency and selling pitches are nothing like those in the US. The Indian Retail industry has always thrived on personalization, which no CRM software can claim to do. The Indian consumer is still very need oriented, not very impulse or deal oriented like the American counterparts.

OTHER COUNTRIES Eastern Bloc.- the growth rate is very slow and dismal

RUSSIA.- ecommerce has just entered. Most online transactions made in cash.

RECENT DEVELOPMENTS

 In US and UK latest technologies are been adopted to meet the need of customers

LandsEnd provides a virtual dressing room. Levis allow customers to input measurements and get custom fit jeans.

Hamamatsu, a 3-D scanning booth, stores customer body shape digitally

FUTURE PROSPECTS IN INDIA

Internet based businesses gaining momentum in India. With rise in internet awareness, people use it more to facilitate work. E-tailing catching up in India with major retailers setting shop online. TATA group announces opening of an e-mall, in the next 2 months. Vishal retail launches online shopping portal.

CHALLENGES OF E-TAILING IN INDIA

Less number of Internet user; Mostly concentrated in metros. Availability of Brick n mortar shops at every nook n corner thereby making it easy for customers. Easy availability of domestics at affordable wages. Aversion to using credit-cards owing to low penetration and popularity of debit and credit cards. Logistics management.

CONCLUSION
In emerging markets, initiating an e-tailing venture is easy but evangelizing, selling & keeping customers happy is more challenging. Best model that works in India is -a combination of retailing and e-tailing. E-tailing needs heavy promotions to get customers. Building trust and security is imperative.

THANK YOU