Shopping .. A Rich Experience

Online Shopping …..

Ayyappan R 07MBA 020

BalaRadhaKrishnan 07MIB004

Chandru S 07MBA028

Gokul Anand G P V 07MBA038

Karunanithi J 07MBA053

Kandaswamy C 07MBA047

Mahendran S 07MBA059

Mohamed Naufal 07MBA063

E RETAILING At Home with Technology

Outline

E Retailing Introduction Evolution Pros and Cons E Retailing Systems Online Service Providers Employment Opportunities Supply Chain Activities Social Presence Frauds and Mal practices

Meaning of Retailing

E-retailing uses internet as a medium for customers to shop for the goods or services. It can be either pure-plays or bricks-and-clicks. Pure-play uses internet as primary means of retailing while bricks-and-clicks uses the internet as an addition to the physical store.

Now a day retailers have started offering almost everything under the sun on internet. From products like groceries to services like online gaming and jobs, e-retailing covers all frontiers.

Unfortunately, India has lagged in e-retail growth story due to low density of internet connections, lower penetration of credit cards and customer anxiety in using new technologies. We now discuss these issues and suggest possible avenues for e-retailers to turn them to their advantage.

Why do People like Online Shopping

Convenience 84%Saves time 72%Avoids crowds 64%Allows more time to research 61%Lower prices 60%no salespeople involved 55%

Online vs. Offline Shopping

Offline shopping: – a wide range of emotions involving various types of

social interactions – engages our five senses

Online shopping: – geared towards reducing the user’s cognitive

burden through features and performance based Website design

– engages only 2 of our senses

Models of e-retailing

There are several models for e-retailing and these include:

Specialized e-store Generalized e-store E-mall Direct selling by the manufacturer Supplementary distribution channel E-broker E-services

EVOLUTION OF E-RETAILING

E-retailing has become an accepted mode of retailing – though one that will ultimately capture a good market share of total retail sales .

E-retail players from all over the world, including the US. Amazon.com, Buy.com, eBay, J.C. Penney, Lands’ End, Office Depot, and The Sharper Image are among those retailers that have developed e-commerce sites specifically to serve markets.

Contd..,

One of the contributors to the area’s high rates of Internet access is the area’s cold climate, which encourages indoor activity.

Furthermore, mobile technologies, including

mobile Internet access, are relatively widespread in the region, given that Finland and Sweden are home to mobile phone giants Nokia and Ericsson, respectively.

Different types of products

Visual evaluation

Tactile evaluation

Basic Features of e-retailing systems

Common features of e-retailing web sites include:

method for selecting your purchases, eg shopping cart mechanism for creating and submitting an order secure e-payment facility appropriate distribution mechanism browsing facility, normally by subject or by category searching facility mechanism for customer service and feedback

The Techniques which make online shopping possible

The web developer has no built-in method for tracking a user or remembering data from one page to the next.

Two main methods for tracking data: cookies and sessions.

The difference between a session and a cookie;

A cookie --- stores data on the client’s side

(user’s machine)

A session --- stores data on the server

Trust in the Online Environment

Trust is more difficult to build in an online environment because …– different locations– less data control– lower barriers to entry and exit– Perceptions of lower security– lack of physical trust cues– lack of physical evaluation– impersonal, anonymous and automated

Major trends of e retailing :

Technologies that help you see and experience the product better e.g. virtual reality, Java 3D etc.

Technologies that help you not to see at all but use an intelligent agent (or mobile agent) that does all the shopping tasks for you.

Affiliate website through referrals– Pros: a link in the famous website may provide a

good rank to the site– Cons: risk of loosing the customers to competitors

Business portals– Pros: government support to the portal– Cons: some big players are involved in it so

through market study is required

7 Tips For Selling Online

A picture is worth 1000 words. Do your online research. Learn all about shipping Pay as much attention to the writing of your online

listing as to your picture Offer a full slate of payment options, including credit

cards Focus on getting positive feedback first Be business-like

Benefits of e-retailing

To the Customer convenience better information competitive pricing customization shopping anywhere, anytime

Benefits of e-retailing

To the Business

global reach better customer service low capital cost mass customization targeted marketing more value added services new forms of specialized stores and niche marketing

Ebay.com

Founded San Jose, California, USA (September 3, 1995)

Headquarters San Jose, California, United States

Revenue :▲$7.67 billion USD (2007) Employees: 15,500 (Q1 2008) Website www.ebay.com Type of site: Online auction

Types of Auction..

Auction-style listings allow the seller to offer one or more items for sale for a specified number of days. The seller can establish a reserve price.

Fixed Price format allows the seller to offer one or more items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid.

Dutch Auctions allow the seller to offer two or more identical items in the same auction. Bidders can bid for any number from one item up to the total number offered.

eBay Categories

Apparel & Accessories Books & Magazines Bus tickets Cameras & Optics Cars, Bikes & CVs Coins & Stamps Computers & Peripherals Consumer Electronics Fitness & Sports Flights, Hotels & Holidays Fun Stuff Health & Beauty Hobbies & Collectibles

Home, Decor & Furnishings Jewellery Kitchen & Home Appliances Memory Cards, Pen Drives & HDD Mobiles & Accessories Movies & Music Musical Instruments Services & Real Estate Tools & Hardware Toys, Games & Baby Video & Computer Games Watches Everything Else

How Does Ebay Work . . .

register first with ebay. Then research on how much other sellers are selling

or have sold the same items for in the past Decide on your price, upload pictures of the item

and a description track of your items in your My Ebay account payments via PayPal You have 30 days to pay your fees to ebay.

Amazon

Amazon.com is an American electronic commerce company based in Seattle, Washington.

First major companies to sell goods over the Internet

Jeff Bezos Founder and Ceo of Amazon.com

Sell through existing venues

Step1

Go to sites like Amazon.com or Half.com to sell used books, CDs and other items at a fixed price. You can list items in exchange for a percentage of the sale. Avoid sites that charge you a fee to post an ad.

Step2

List items that are hard to ship (like a pool table or futon) on local sites such as Craigslist.org or in regional online classifieds, so that the buyer can pick it up.

Step3

Use online auction sites to sell collectibles, antiques, out-of-print books and anything else you find in the attic or garage.

Step4

Get listed in local directories and on referral Web sites if you have a professional service for hire. These sites conduct background checks and refer potential customers to you for a fee.

Starting an Online Business ? ??

Step1

Set up an online store. A substantial investment is required for start-up costs, which include domain name registration, site hosting, e-commerce software, site development and maintenance, marketing, credit card transaction fees, Internet access and customer service. There's also the time spent on design, taking photos of inventory and updating the site

Step2

Design a sleek, professional, easy-to-navigate site that loads quickly at both dial-up and broadband speeds. Or, check out Amazon.com, eBay.com and Yahoo Shopping (shopping.yahoo.com) for turnkey solutions for building an online store--the bonus is that you tap into the heavy traffic of these popular sites and take advantage of search engines.

Step3

Include concise, informative copy and photographs to bring traffic to your site. Update it frequently to keep the content fresh.

Contd..,

Step4

Register your URL on all the major search engines (including Google.com and Yahoo.com) to make sure your site shows up in relevant searches. Include keywords in meta tags in HTML files to increase the chances of getting hits from search engines. You may, however, find that paying for placement results in more traffic.

Step5

Advertise your Web site on heavily trafficked sites and through banner swaps

Step6

Establish trust. Post your privacy policy prominently. Have customer service information clearly displayed, including third-party recommendations, and provide quick response. Set up a secure server to handle credit card transactions. Answer customer queries by phone or e-mail promptly, effectively and courteously.

Step7

Use discretion: Obnoxious, blinking ads and spam e-mails drive away customers.

SCM in E-Retailing :

Supply Chain Management is a top strategic objective for many companies. Supply chain management is flexible enough to cater to the demands of customer as and when there is a demand. Supple supply chain fulfills the requirement of what the customer wants, when and where it's wanted and at the lowest possible cost. The supple SCM is only possible when management practices are integrated with information technology to optimize information and product flows among the processes and business partners.

Supply Chain Management in E-retail:

* Customer focus* Retaining existing customers* Streamlining of operations* Minimum Fixed Cost* Elimination of paper work* Just in time* Transparency at all levels* Developing multiple supply sources for a multiple components* Customer value enhancement and cost reduction

The e-Business applications are divided into three categories

E–Commerce E – Collaboration E–Procurement

Strategic Partnership Online Search Strategy Combined Strategy

THE THREE LEVEL FRAMEWORK OF E-RETAILING

Scope & Employment opportunities of E Retailing :

Site Design E commerce Platform Web Hosting Site Search Content Management Payment Processor Search Engine Management

CRM Web Analysis Content Delivery Network Rich media

Social Presence in E Retailing :

Social presence (SP) is the extent to which a medium allows users to experience others as being psychologically present

It can also refer to the richness of the media or the interactivity afforded by the media

SP could also be connected to the warmth felt through the medium.… A feeling of human contact .... Sociability .... Sensitivity

Instilling human warmth through:– actual interaction with other humans– stimulating the imagination of interacting with other humans

Lo

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Soc

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nce “straight forward”

“lacked a personal touch”

“dull and boring”“too plain”

“to the point”

“clear”

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“interesting”“fun and imaginative”

“did not help in making a decision”

“not helpful in assessing what the[product] looks like”

Hig

h S

ocia

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senc

e“Clothing was masked by all theactions in the pictures”

“Helped better visualize the product”

“enjoyed seeing peoplewearing the clothingand the activitiesthey were takingpart in”

“Gives me ideas on how to dress … in whichsituations I should wear the clothes”

“Appealing”

Cross-sellingpromoting accessories related to the current choice.

Up-sellingpromoting a better or more expensive version of the current choice

Frauds that can be committed by sellers include

receiving payment and not shipping merchandise; shipping items other than those described; giving a deliberately misleading description; knowingly and deliberately shipping faulty merchandise; selling counterfeit or bootleg merchandise; knowingly selling stolen goods; inflating total bid amounts by bidding on their own auction with "

shill" account(s), either the seller under an alternate account or another person in collusion with the seller

misrepresenting the cost of shipping; and shipping at a slower service than that paid for.

Fraud is combated by

third-party businesses, such as CheckMEND, compiling lists of stolen goods from local authorities and businesses so consumers can check to see whether the goods they are buying are stolen; and

third-party software that could potentially eliminate account hijacking by alerting users if they are being tricked into going to a bogus, or "spoof", Web site

The Boom in Electronic Retailing

Video Marketing  

Nonstore retailing to consumers via standard and cable television

Electronic Shopping  

Nonstore retailing in which information about the seller’s products and services is connected to consumers’ computers, allowing consumers to receive the information and purchase the products in the home

Electronic Storefront  

Commercial Web site in which customers gather information about products, buying opportunities, placing orders, and paying for purchases

Cybermall  

Collection of virtual storefronts (business Web sites) representing a variety of products and product lines on the Internet