E-tailing or E commerce can be described as
transactions that are conducted over an electronic network,
where the buyer and merchant not at the same physical
E tailing may be B2B, B2C, B2G
Retail means sale of goods and services from individuals
or businesses to the end users.
Major E tailers
•Barnes & Noble
Advantages of E tail
Online stores are usually available 24 hours a day, and
many consumers have Internet access both at work and at
home. Other establishments such as internet cafes and
schools provide access as well.
Information & Reviews
Online stores must describe products for sale with text,
photos, and multimedia files. Some stores even allow
customers to comment or rate their items.
There are also dedicated review sites that host user
reviews for different products.
Price & Selection
One advantage of shopping online is being able to
quickly seek out deals for items or services with many
different vendors (though some local search engines
do exist to help consumers locate products for sale in
Disadvantages of E tail
Fraud & Security concerns
Given the lack of ability to inspect merchandise
before purchase, consumers are at higher risk of fraud
on the part of the merchant than in a physical store.
Merchants also risk fraudulent purchases using stolen
credit cards or fraudulent repudiation of the online
Hands on inspection
Typically, only simple pictures and or descriptions of
the item are all a customer can rely on when shopping
on online stores. If the customer does not have prior
exposure to the item's handling qualities, they will not
have a full understanding of the item they are buying.
Customer service & Warranty
Sometimes product bought through online may lack
proper customer service
Taxes & Shipping Charges
Depending up on where you live you have to pay sales
tax and shipping charges for delivery of item may vary.
Items which are needed immediately cannot be
purchased through online.
Differences between E tail &
In retailing merchants display their products to
attract customers. Customers can use all their
senses to enhance their selection area
In e tailing customers can only see the product
Constructing an retail store large enough to hold
everything can be a major cost.
There is no much cost for building an e tail store
Adaptation to changes
Changes and modifications to an online store can be made
any time. This means E tail stores can react faster to
changing market conditions
Retail stores operate on longer time frames. Changing
them can be a major effort, so alterations are typically
made every five to ten year
Time period for delivery
Impact of E tail on Retail
In developed economies, started to face stagnating retail
Retailers forced more to invest in order to develop new
channels to compete with online entrants
Due to high fixed costs and increased capital expenditure,
profit margin of the retailers reduced
From all these graphs we came to understand that
future of commerce lies with the internet and other
electronic means. So it would be tough competition for
retailers. The only way of retailers is to enhance their
level activities up to the satisfaction of their customers.