Electronic Retailing (E-tailing): An online marketplace

Electronic Retailing (E-tailing) An online marketplace

Electronic Retailing (E-tailing): What is it?

Consumers can buy and sell goods directly from businesses using online retailing (e-tailing), which is an internet-based sales platform where goods can be purchased and sold without having to physically inspect them.

Developing a business model for online retailing poses a number of challenges and difficulties for organizations.

A business model based on e-commerce aims to capture market share by attracting consumers, converting them to buyers, and producing the best web pages.

Logistics and distribution play a crucial role in ensuring that customers receive their purchases in a timely fashion. The reason businesses like Amazon are focusing on reducing shipping times and offering options such as “one-day delivery” directly correlates to this.

Transaction Subcategories in E-Commerce 

(E-tailing)

In either case, there are two categories of transactions executed regardless of the method of transaction. They carry different implications for B2C and B2B transactions in the electronic retailing market.

  1. e-tailing for business-to-business

B2B e-tailing allows businesses to purchase products and services from other businesses’ websites for their own use or as components of their own products. B2B transactions conducted online differ from traditional B2C transactions because fast shipping and quality are more important.

Online wholesale purchases are usually large orders for businesses. Negotiating reasonable prices requires fast shipping and safe handling.

In order to develop the best e-tailing business model for B2B transactions, the wholesale business must offer quantity discounts, reasonably fast shipping, and ensure that the goods remain undamaged.

2. Business-to-Consumer (B2C) E-tailing

An e-commerce transaction between a business and a consumer is called a business-to-consumer transaction (B2C). For example, a sports apparel company might sell shoes on its website. As a result of consumer demand and expectations for fast delivery and quality guarantees, B2C transactions differ from B2B transactions.

Any company’s e-tailing business model relies heavily on shipping times and handling standards.

Electronic Retailing (E-tailing) Types

E-tailers include:

1. E-tailers that are pure plays

There are certain types of businesses known as pure play e-retailers that only deal in electronic commerce and do not have physical stores customers can visit.

In addition to Amazon, Ali Express, Ali Baba, and drop-shipping companies, there are several pure play e-retailers.

2. E-tailers with bricks and clicks

E-tailers who have brick-and-mortar stores and offer both e-tailing and e-commerce are brick-and-mortar e-tailers.

In addition to Apple, Foot Locker, and Sport Check, a number of brick-and-mortar businesses currently use e-tailing.

Challenges in e-commerce

Businesses face a variety of challenges when operating a segment of their business online. A few of them are:

  • Internet access is not available to some target consumers
  • Completely online business is complex
  • Consumer information will be hacked by hackers
  • Insufficient physical examination and sizing of the item leads to a high return rate
  • Shopping online has a lower quality experience than shopping in person
  • Website maintenance costs are high
  • Inventories need to be stored
  • Returns and complaints must be handled by a customer support team
  • Legal issues related to e-commerce
  • Customer loyalty is lower in e-commerce than in physical retailing. With both of them being improvable over time, e-commerce poses an immediate threat to traditional retail.

Strengths of e-tailing

Aside from the challenges associated with operating an e-tail storefront, there are a lot of benefits to be gained. Below is a list of strengths:

  • Consumers can reach a broader audience with e-tailing.

  • Unique products that aren’t available in their country can be purchased by consumers.
  • Internet access and internet literacy are commonplace around the world.
  • Rent and sales staff overhead are significantly reduced.
  • Retailing will eventually be overtaken by e-commerce, which is growing rapidly.
  • Market differentiation and a broader range of products.
  • Targeting and retaining new customers with customer intelligence tools.
  • When compared to shopping at a regular retailer, e-tailing increases convenience for consumers.
  • Customers become more engaged with advertising.

It provides a system that notably reduces a business’ operating costs and is more user-friendly and customer-oriented than physical retailing.

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