e retailing

E-RETAILING

GROUP 7:--AAKRITI - EDWIN-BHAWNA -PAYAL-CHANDANA -VARSHA

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

PROCESS OF E-RETAILINGConsumers 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

PRODUCT DELIVERY

USES

Web Store Front-- Online CatalogUsing 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

21%COLLEGE STUDENT(18-24)

YOUNG MEN(24-35)

MEN(36-58)

WORKING WOMEN

HOSEWIVES

33%

15%

11%6%

PRODUCTS

DVD

BOOKS

AIRLINE TICKETS/RESERVATION

CLOTHING/ACCESSORIES

34%21%

23%22%

FUTURE PROSPECTS

The report, part of the University of Michigan’s 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

Amazon’s 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

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

For Consumers

Credit card and security worries Lack of interaction Can’t see or feel the merchandise Don’t 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

RECENT DEVELOPMENTS

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