Consumer Oriented
E-Commerce
LlE retailing is directly selling to the
customer who will be end user.
Introduction Temporary relationship
Low volume of transaction
How it is different from Business
Small payment
oriented e commerce
E retailing
It is selling of goods and service.
Goods can be of two types tangible and non tangible
Tangible good are divided into physical good and digital good.
Physical goods can be divided as perishable and non perishable goods.
Traditional retailing
It is selling of goods to customer directly by the help of physical outlets.
Normally it involves a chain strating from manufacturer to a wholesaler and then to
retailer.
Example of physical outlets are:
Malls
Generalized stores
Specialized store
Franchise stores
Malls
Collection of individual stores.
Each store has separate management.
The mall management only provides the physical location where the retailer can
create his outlets.
Example are mantri mall , Garuda mall etc
Generalized stores
It has unified management but sells different product lines.
May sell from to kitchen appliances to TV to home appliances in a single shop or
within one physical store.
1 management many products system.
Specialized stores
It sells a specific product line.
Example sapna book store
Franchise stores
A store where there is a single marketing chain and brand name for the store ,but
the individual stores may be run by a different management with a royalty
arrangements back to the franchise.
The franchise would be responsible for the marketing advertising and supply of
merchandise.
More recent forms of traditional retailing
Direct mailing
Telemarketing
Door to door sale
Vending machine
Corresponding e retail store of traditional retailing
Specialized e store they specialize in a particular product line
Ex : 1-800-flowers and amazon.com( which started by specializing in selling
books)
Apart from specializing a particular product line by the help of Internet has
allowed specialize in a particular class of buyer and seller. Ex: lastminute.com
Last minute.com allows last minute purchase of travel tickets, gifts to be matched
among last minute sellers of the same item.
Benefits of E retailing
To the customer
Convenience
Better information.
Competitive price
Customization.
Benefits of E retailing
To the business
Global reach
Better customer service
Low capital cost
Mass customization
Targeted marketing
More value added service
Key success factors for traditional retailing
Size
Number of outlets
Visibility
Location
Store atmosphere
Store layout
Price
Variety of goods
Key success factors for e retailing
Size
Visibility
Location
Look and feel of website
Price
Models of e retailing
Specialized e stores
Generalized e store
E mall
Direct selling by the manufacturer
Supplementary distribution channel
E broker
E service
Specialized e stores
Two types of specialization
Along product line
Bringing a particular class of customer and seller
Case studies
Amazon.com
1-800-flowers
CD now
Basic features of an e retailing system
A website must provide
A method for selecting a purchase
A mechanism for creating and submitting an order.
A secure e payment facility for purchase
An appropriate distribution mechanism
Browsing facility normally by subject or category
Search facility
Customer service and feedback mechanism
Generalized e stores
A store that sells several product line under single management.
Example are Walmart JC penny
E malls
It provides a web hosting services for individual stores In same way as in
traditional malls
Example are yahoostore, Geo shop, CNET stores.
Generalized e stores
Sells large number of product unlike specialized e store.
Case study
Value America
Walmart
E malls
Cyber space is rented to cyber e stores to sell their goods.this store can be
specialized or generalized e stores.
Case study
Yahoo store
Direct selling by manufacturer
A number of manufacturer with well known brand name product have chosen to
use the internet to carry out the direct selling
Example are Ford, cisco systems and Dell computer
It allows mass customization.
No intermediaries are required so less cost for customer and more profit for
manufacturer.
Supplementary distribution channel
Traditional retailer have turn to internet and created e store following may be the motivation
to do so:
Fending off a challenge by aggressive e store in their product line.
Providing additional sales order mechanism.
Enhancing their service like customer service operation using internet.
Different ways in traditional retailer can enter e retailing world:
Integrate e retailing into business.
Create e retailing subsidiary
Develop an alliance with an existing e retailing company.
E broker
E broker doesn't sell directly to the customer but brings customer and supplier
together.
Example suppose a customer wants to buy a goods at a cheapest price so e
broker will do search for a supplier that would provide cheapest goods.
A customer may want a particular type of product then e broker may determine the
supplier that can provide those goods.
