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-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
PRODUCT DELIVERY
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

COLLEGE
STUDENT(18-24)
21% YOUNG MEN(24
-
6%
11% 35)
MEN(36-58)

15% WORKING
33% WOMEN
HOSEWIVES
PRODUCTS

DVD
23% 22
% BOOKS

21% 34% AIRLINE

TICKETS/RESERVATION
CLOTHING/ACCESSOR
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