Share on Facebook There once was a time when the only way people could make a purchase was to physically go to a brick-and-mortar retail store. Then came catalog sales, where people could sit in the comfort of their own home and browse through pages of color pictures and descriptions of products. Some products, however, need to be held, smelled, touched and listened to in person, making them poor candidates for e-tailing.
Characteristics of Successful Electronic Retailing Successful e-tailing requires strong branding. Websites must be engaging, easily navigable and regularly updated to meet consumers' changing demands.
Products and services need to stand out from competitors' offerings and add value to consumers' lives. In addition, a company's offerings must be competitively priced so consumers do not favor one business over another based on cost alone.
E-tailers need strong distribution efficiency so consumers are not waiting long periods of time for the products or services they purchase. Transparency in business practices is also important so consumers trust and stay loyal to a company. As consumers continue buying from the business, revenue increases.
Advantages of Electronic Retailing E-tailing helps traditional brick-and-mortar stores reach more consumers worldwide and increase sales. Individual and startup e-tailers may be launched from a single room with one computer and expand rapidly rather than pay for an entire building with expensive overhead.
E-tailers may trace consumers' shopping behavior while gaining valuable insights into their spending habits, which may lead to increased revenue. In addition, customers shop from the comfort of their homes at any time rather than being physically present in the store during specific hours.
Many brick-and-mortar retailers have chosen to expand their offerings online because it saves cost. Automated sales and checkout cut down on the need for personnel and websites cost less than physical stores.
It also reduces advertising and marketing expenses as customers can find the stores through search engines or social media.
Disadvantages of Electronic Retailing However, creating and maintaining an e-tailing website may be expensive.
Infrastructure costs for order fulfillment, warehousing goods, dealing with returns and other issues add up quickly. Also, consumers may not trust a company that is not well-established and may not buy from it as frequently as a brick-and-mortar store. In addition, e-tailing does not provide the emotional shopping experience encouraging consumer spending the way being physically present in stores does.
E-tailing does not let consumers hold, smell, feel or try products or services for the sensory support of buying them. It also does not provide the personal service many consumers are accustomed to when shopping. Consumers may be concerned about providing credit card information online and having their personal details jeopardized.
Also, operating with an unproven business model increases the odds of an e-tailer failing.Go Online, Lose Customer Relationships. Online retailing offers the advantage of a retail pricing structure with the added boost of drop shipping, if this model makes sense for your business.
E-commerce, or the act of selling goods or services online as opposed to selling at brick and mortar establishments, has reshaped the modern marketplace in recent years, but this new form of trade comes with its own sets of advantages and disadvantages over traditional methods.
Advantages and disadvantages of different retail business There are various forms of retail and among them classification based on ownership seems quite popular. There types based on this are independent, chain and franchise retailer.
Advantages and Disadvantages of Online Shopping Advantages of online shopping Due to rapid growth of technology, business organizations have switched over from the traditional method of selling goods to electronic method of selling goods. Advantages & Disadvantages of E-commerce Retailing The retail shopping experience has been revolutionized by the emergence of the e-commerce shops in the early s.
E-commerce refers to the entire process of selling, marketing and delivering goods as well serving customers over the internet. Advantages and disadvantages of online retailing Online retailing is growing at an astonishing rate, with online sales now accounting for around one quarter of the total retail market.
Retailers who ignore e-commerce may see their trade lessening as customers continue to shift to ordering products online.