8/8/2019 g v Venkatesh Seminar
1/72
Page 1
E-retailing
Venkatesh G V
8/8/2019 g v Venkatesh Seminar
2/72
Page 2
What is E-Retailing
E-RETAILING = ELECTRONIC RETAILING
Electronic retailing (e-tailing)
E-Retailing is the use of technology such ascomputers and the internet to sell a range of
products and services online to the world.
E-tailers
Retailers who sell over the Internet
8/8/2019 g v Venkatesh Seminar
3/72
Page 3
History
The first recorded B2C online home shopping wasGateshead SIS/Tesco in 1984.
The world's first recorded online home shopper wasMrs. Jane Snowball, 72, of Gateshead, England in May1984.
In 1995 Amazon expanded its online shopping, and in1996 eBayappeared.
8/8/2019 g v Venkatesh Seminar
4/72
Page 4
Growth
Findings by IAMAI (Internet and mobile association
of India)
Rs.9000 crore worth of e-commerce was conducted onlinein 2007-08 from Rs.7000 crore in 2006-07, an estimated29% 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 theirpresence.
8/8/2019 g v Venkatesh Seminar
5/72
Page 5
Growth of e-retailing in US
8/8/2019 g v Venkatesh Seminar
6/72
Page 6
Size and Growth of the B2C Market
Reported amounts of online sales deviate substantiallybased on how the numbers are derived
Annual online 2004 sales were estimated to be over $70
billion.
The average online shopper spent over $350 per quarter. Forrester Research estimates that e-tailing will reach
$316 billion by 2010.
8/8/2019 g v Venkatesh Seminar
7/72
Page 7
E-tailing in India
The E-commerce market had reached 9210 Crore
INR in 2007-08,
The top E-tailers in India are indiatimes.com,fabmart.com, rediffshopping.com.
E-tailers have developed many innovative promotions
to lure customers and there by growing the market.
As per the survey conducted by Internet and Mobile
Association of India and Indian Market Research
Bureau (IMRB).
8/8/2019 g v Venkatesh Seminar
8/72
Page 8
Size of the B2C Market
8/8/2019 g v Venkatesh Seminar
9/72
Page 9
Growth of E-retailing in India
8/8/2019 g v Venkatesh Seminar
10/72
Page 10
Barriers to Growth
Most Indians are not comfortable using their
credit cards for shopping and there is always a
fear ofwhat you see may not be what you get.
There may be a problem with complaint
resolution, especially after receipt of wronggoods or delayed delivery.
8/8/2019 g v Venkatesh Seminar
11/72
Page 11
Touch points to focus on
Customer is the King
Supply Chain
New Business Models
Comparison Shopping and
Customer Reviews
8/8/2019 g v Venkatesh Seminar
12/72
Page 12
What Sells Well on the Internet?
Computer hardware & software
Consumer electronics
Office supplies
Sporting goods
Books and music
Toys
Health and beauty
Apparel and clothing
Jewelry
Cars
Services
Others
8/8/2019 g v Venkatesh Seminar
13/72
Page 13
Factors to consider in Internet
Retailing
Goodwill of retailer
Merchandise characteristics
Website effectiveness
Ease to access the website
Consumer access towards Internet buying
8/8/2019 g v Venkatesh Seminar
14/72
Page 14
How to Sell On-line?
Design a website
Website should be hosted with a reputable source,with little downtime and reliable technical support.
The website must also be secure as it will need tocollect personal and financial information fromcustomers.
First define the purpose and goals for the site
Develop a strategic plan
8/8/2019 g v Venkatesh Seminar
15/72
Page 15
Information load
Designers of online shops should consider the
effects of information load
Complexity-number of different elements orfeatures of a site, which can be the result of
increased information diversity
Novelty-Novelty involves the unexpected,suppressing, new, or unfamiliar aspects of thesite.
8/8/2019 g v Venkatesh Seminar
16/72
Page 16
Special features of e-tailing
Online Store Look
Visual Density On-line Merchandising
On-line Pricing
Logistics and supply chain
Promotions on-line
8/8/2019 g v Venkatesh Seminar
17/72
Page 17
Modes of payment
Online shoppers commonly use credit card to makepayments, however some systems enable users to createaccounts and pay by alternative means, such as:
Debit card
Internet Banking
Cash on delivery (offered by very few online stores) Cheque
Wire transfer/delivery on payment
Postal money order
8/8/2019 g v Venkatesh Seminar
18/72
Page 18
Product delivery
Download
Shipping
Drop shipping
In-store pickup: The customer orders online,
finds a local store using locator software and
picks the product up at the closest store. This isthe method often used in the bricks and clicks
business model.
8/8/2019 g v Venkatesh Seminar
19/72
Page 19
Shopping cart systems
Shopping cart software allows the consumer toaccumulate multiple items and to adjust quantities,
Provides online services to help small businesses get
online store, improve you way to increase sales, andprovide better customer service.
8/8/2019 g v Venkatesh Seminar
20/72
Page 20
Contd.,
Open source shopping cart packages include advancedplatforms such as Interchange, and off the shelfsolutions asAvactis, Satchmo, osCommerce.
It is usually installed on the company's own web serverand may integrate into the existingsupply chain so thatordering, payment, delivery, accounting and
warehousing can be automated to a large extent.
Shopping CartSystem v6.0.lnk
8/8/2019 g v Venkatesh Seminar
21/72
Page 21
8/8/2019 g v Venkatesh Seminar
22/72
Page 22
Strategy for Online Marketing
Larger amount of content
Increase the proportion of customers Geo location or geo targeting
Promoting business through related websites
Google and Facebook Email newsletters are also used by a number of
companies who are trying to find new clients
8/8/2019 g v Venkatesh Seminar
23/72
Page 23
Search Engine Optimization
Preservation ofPosition
A number of the things to be kept in mind forWebsite positioning are
Key phrases
Website linkPopularity
Superior Content
Appropriate Name Tags
8/8/2019 g v Venkatesh Seminar
24/72
Page 2424
E-Retailing Business Models
Classification byDistribution Channel
1. Mail-order retailers that go online
2. Direct marketing from manufacturers
3. Pure-play e-tailers
4. Click-and-mortar retailers
5. Internet (online) malls
8/8/2019 g v Venkatesh Seminar
25/72
Page 25
E-Retailing Business Models
Virtual (pure-play) e-tailers
Firms that sell directly to consumers over the internet
without maintaining a physical store sales channel.
Multichannel business model
A business model where a company sells in multiplemarketing channels simultaneously (e.g., both physicaland online stores)
8/8/2019 g v Venkatesh Seminar
26/72
Page 26
Intermediation
There was speculation that the Internet would eliminateintermediaries in the supply chain.
The process of shortening the supply chain is known asdisintermediation
New intermediaries often arise to facilitate theshortened supply chain. This is known as re-intermediation
Re-intermediation means that the intermediary functionis shifted rather than completely eliminated.
8/8/2019 g v Venkatesh Seminar
27/72
Page 27
ManufacturerManufacturer ManufacturerManufacturerManufacturerManufacturer
WholesalerWholesaler
DistributorDistributor
RetailerRetailer
ConsumersConsumers ConsumersConsumers ConsumersConsumers
DisintermediationDisintermediation
ElectronicElectronic
IntermediariesIntermediaries
Traditional distribution systemTraditional distribution system Direct Marketing through InternetDirect Marketing through Internet Electronic IntermediariesElectronic Intermediaries
8/8/2019 g v Venkatesh Seminar
28/72
Page 28
The E-retail Mix- 7Cs
Customer value & benefits Convenience
Customer franchise 7Cs Cost
Communication & CRM Customer care & service
Computing and category Management
8/8/2019 g v Venkatesh Seminar
29/72
Page 29
Consumer Issues
There are a number of consumer issues that areimportant to Internet retailers.
Technical issuesare important as they replace the
conventional retail store ambience:
Access speed
Speed of navigation and downloading
Network security issues
Bandwidth
Access restrictions
8/8/2019 g v Venkatesh Seminar
30/72
Page 30
Online Purchase-Decision Aids
Shopping portals
Gateways to e-storefronts and e-malls; may be
comprehensive or niche oriented
Shopping robots (shopping agents or shopbots)
Tools that scout the Web on behalf of consumers whospecify search criteria
8/8/2019 g v Venkatesh Seminar
31/72
Page 31
Contd.,
Business Ratings Sites
Bizrate.com, gomez.com
Trust Verification Sites
TRUSTe (truste.org),Verisign.com
Other Shopper Tools
Escrow services
Communities of consumers who offer advice andopinions
E-wallet (or e-purse)
8/8/2019 g v Venkatesh Seminar
32/72
Page 32
The role of trust
Trustworthiness ofTrustworthiness of
ee--tailertailer
AbilityAbilityIntegrityIntegrity
benevolencebenevolence
Trustworthiness ofTrustworthiness of
InternetInternet
Shopping mediumShopping medium
TechnicalTechnical competencecompetenceReliabilityReliabilityUnderstanding of mediumUnderstanding of medium
Contextual factorsContextual factors
Effectiveness of thirdEffectiveness of third
party certificationparty certificationEffectiveness of securityEffectiveness of security
infrastructureinfrastructureCurrent media reportageCurrent media reportage
Other factorsOther factors
SizeSize
BrandingBrandingPresence of physical storePresence of physical store
IndividualIndividual
trusttrustpropensitypropensity
ConsumerConsumer
demographicsdemographicsPersonalityPersonality
characteristicscharacteristicsClue seekingClue seeking
ConsumerConsumer
trust intrust in
InternetInternet
shoppingshopping
8/8/2019 g v Venkatesh Seminar
33/72
Page 33
Trust Stamp
A Trust stamp indicates that the customer details
on tradeindia.com are authentic & verified. Only
members that have completed a verificationprocedure conducted by a third-party get to display
a Trust Stamp on tradeindia.com.
Trust stamp is an indicator of companies standingin the market. It is an effective tool through which
buyers get credible information
8/8/2019 g v Venkatesh Seminar
34/72
Page 34
Benefits of Trust Stamp
For Sellers
Gives instant credible information of thecompany.
Offers high chances to receive enquiries from
buyers. Provides buyers with extra confidence in
dealing with Trust Stamp suppliers.
8/8/2019 g v Venkatesh Seminar
35/72
Page 35
Retailing vs E-Tailing
8/8/2019 g v Venkatesh Seminar
36/72
Page 36
Challenges for e-tailing
Competitors are just a click away
Visitors can disappear seconds
Shopping is a multi step process
Time between initial visit and purchase hasincreased.
Customers wait for merchants' best offer.
8/8/2019 g v Venkatesh Seminar
37/72
Page 37
What opportunities does E-retailing provide?
E-Retailing opens up many doors for companies.
E-Retailing provides a greater range of people to sell the
products to.
This can lead to increase in profits and a decrease in
costs. The web site can also lead to opportunities of better and
cheaper products to sell thought globalisation.
8/8/2019 g v Venkatesh Seminar
38/72
Page 38
Issues in E-Tailing
Disintermediation
The removal of organizations or business processlayers responsible for certain intermediary steps in a
given supply chain
Reintermediation
The process whereby intermediaries (either newones or those that had been disintermediated) take onnew intermediary roles
8/8/2019 g v Venkatesh Seminar
39/72
8/8/2019 g v Venkatesh Seminar
40/72
Page 40
Managerial Issues
What should ourstrategic position
be?
Are wefinancially
viable?
Should werecruit out of
town?
Are thereinternational legalissues regardingonline recruiting?
Do we haveethics and privacy
guidelines?
How willintermediaries
act incyberspace?
Should we setup alliances?
8/8/2019 g v Venkatesh Seminar
41/72
Page 41
Bottlenecks Faced
By E-retailing
in India
Problems withthe Payment
System
Problems withShipping
Offlinepresence
Productsoffered at
discountedrates
LanguageProblem
8/8/2019 g v Venkatesh Seminar
42/72
Page 42
The Top 10 online retailers (internet
retailers) are as followed
Amazon.com Inc.
Staples Inc.
Dell Inc. Office Depot Inc.
Apple Inc.
OfficeMax Inc.
Sears Holding Corp. CDWCorp.
Newegg.com
Best Buy
8/8/2019 g v Venkatesh Seminar
43/72
Page 43
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
8/8/2019 g v Venkatesh Seminar
44/72
Page 44
Advantages of E-retailing
To e-retailers
Global reach
Better customer service Saves on the wages and premises costs
Reach a larger audience
Accepts orders 24-hours a day Mass customization
More value added services
8/8/2019 g v Venkatesh Seminar
45/72
Page 45
Disadvantage of E-Retailing
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
8/8/2019 g v Venkatesh Seminar
46/72
Page 46
FOR E-RETAILERS
Substantial set-up, investment and ongoing costs 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.
Complex logistics of fulfillment
8/8/2019 g v Venkatesh Seminar
47/72
Page 47
Future Prospects In India
Development should be made in
Infrastructure level
Extensive technology development
Better supply chain logistics
Innovative business model to attract customer
Internet based businesses gaining momentum
in India.
8/8/2019 g v Venkatesh Seminar
48/72
Page 48
Contd.,
With rise in internet awareness, people use it
more to facilitate work.
E-tailing catching up in India with majorretailers setting shop online.
TATA group announces opening of an e-mall,
in the next 2 months. Vishal retail launches online shopping portal.
8/8/2019 g v Venkatesh Seminar
49/72
Page 49
Amazon.com
AMAZON B2C type of e-retailing which dealswith sales of books, musicCDs, DVDs,
software, kitchen items, etc. Amazon tracks what its customers purchase and
then uses that information to satisfy and meetcustomer.
Expectations Amazons advantage lies in thefact that it lists huge catalogue of titles, and ismuch easier to search among them online
8/8/2019 g v Venkatesh Seminar
50/72
Page 50
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 fullyautomated way.
When an item is listed on eBay a non refundableinsertion fee is charged.
A fee is charged for additional listing options topromote the item.
A final value (final sale price) fee is charged at theend of the seller's auction.
8/8/2019 g v Venkatesh Seminar
51/72
Page 51
Survey objective
To identify key factors influencing online
shopping purchase behaviour.
To identify the factors that can explain the
differences in online buying behaviour of
Indian Consumer and Foreign Consumer.
8/8/2019 g v Venkatesh Seminar
52/72
Page 52
Ways of Survey
Direct contact
Phones
Reputed intermediaries/Agents
8/8/2019 g v Venkatesh Seminar
53/72
Page 53
E-retailing
0%
50%
100%
YES
NO
73%
27%
YES NO
8/8/2019 g v Venkatesh Seminar
54/72
Page 54
Current Sales
75%
25%
SALARIED PROFESSION AL STUDENTS
8/8/2019 g v Venkatesh Seminar
55/72
Page 55
Cards own for purchase
1%
91%
8%
CREDIT CARD
DEBIT CARD
BOTH
8/8/2019 g v Venkatesh Seminar
56/72
Page 56
Internet Access
17%
14%
7%
62%
Sales
OFFICE HOME MOBILE PHONES OTHERS
8/8/2019 g v Venkatesh Seminar
57/72
Page 57
10%
32%
19%
39%
when did you shop online
with in last fortnightwith in last month
with in last 6 months
more than 6 months
8/8/2019 g v Venkatesh Seminar
58/72
Page 58
Highest amount spent
0. 0%0. 0%
33. 32%
12. 12%
57. 56%
Less than Rs.500Rs.500 - Rs.1000
Rs.1000 - Rs.5000
Rs.5000 - Rs.10000
More than Rs.10000
8/8/2019 g v Venkatesh Seminar
59/72
Page 59
More secure websites
16%
52%
0%0%
20%
12%Amazon.com Inc.
Dell Inc.Fabmart.com
Rediffshopping.com
Ebay
India times shopping
8/8/2019 g v Venkatesh Seminar
60/72
Page 60
United states survey details
Survey population 20
Purchasing through online 100%
Access internet 100% in home only Every one are having both credit and debit card.
8/8/2019 g v Venkatesh Seminar
61/72
Page 61
Online shopping compared to
offline shopping
0
28
13
32
0
14
6
0 0 0
coimbatore US
8/8/2019 g v Venkatesh Seminar
62/72
Page 62
Price Comparison
0 0
33
40
0
0
5
10
15
2025
30
35
40
45
Very cheap Cheaper Similar Moreexpensive
Veryexpensive
Very cheap Cheaper Similar More expensive Very expensive
8/8/2019 g v Venkatesh Seminar
63/72
Page 63
Method of payment
credit/debitcard
bank transfer cash ondelivery
money transfer
47
1
10
0
16
0 4 0
Chart Title
coimbatore US
8/8/2019 g v Venkatesh Seminar
64/72
Page 64
0% 20% 40% 60% 80% 100% 120%
have to wait for delivery
significant discount are not
naad to touch and feel the
cannot bargain/ negotiate
not sure of product quality
have to waitfor delivery
significantdiscount are
not there
naad totouch andfeel the
product
cannotbargain/negotiate
not sure ofproductquality
disagree 0% 17.80% 0% 0% 19.17%
neutral 0% 23.20% 20.54% 0% 31.50%
agree 100% 58.90% 79.45% 100% 49.31%
Chart Title
8/8/2019 g v Venkatesh Seminar
65/72
Page 65
What helps to decide which site
17
10
0
14
32
0
11
03
6
coimbatore US
8/8/2019 g v Venkatesh Seminar
66/72
8/8/2019 g v Venkatesh Seminar
67/72
Page 67
Online shopping is useful
totally agree agree neutral disagree totallydisagree
9
27
24
12
0
87
5
0 0
coimbatore US
8/8/2019 g v Venkatesh Seminar
68/72
Page 68
Online shopping easy to do
totally agree agree neutral disagree totallydisagree
15
27
20
10
0
87
5
0 0
coimbatore US
8/8/2019 g v Venkatesh Seminar
69/72
Page 69
Online shopping secure
8
23
14
28
00
13
7
0 0
totally agree agree neutral disagree totally disagree
coimbatore US
8/8/2019 g v Venkatesh Seminar
70/72
Page 70
Conclution
According to the survey most of the consumers
are looking for
Assured security for financial transaction.
Branded product.
Must have money-back guarantee.
Immediate exchange on dissatisfaction . The web site is duly certified and registered
under government authority.
8/8/2019 g v Venkatesh Seminar
71/72
Page 71
RECOMMENDATION
Efforts need to be taken to educate the online
buyers on the steps that need to be undertakenwhile making an online purchase.
Proper security should be assured to the peoplemaking online purchases.
Government should play a bigger role in
encouraging online shopping.
8/8/2019 g v Venkatesh Seminar
72/72
Thank You
for your esteemed presence
Top Related