E-TAILING: CHALLENGES AND

OPPURTUNITIES
A SELF- STUDY PAPER
SUBMITTED TO
DEPARTMENT OF MANAGEMENT

Under the Supervision Submitted By

Dr. Manisha mani Reena Sharma

Assistant professor M.B.A. 4TH Semester
Department of Management Roll No. 16000102004
Ch. BansiLal University, Bhiwani

Countersigned by

Self Study Paper In-Charge

DEPARTMENT OF MANAGEMENT
CH. BANSI LAL UNIVERSITY, BHIWANI

May, 2018
 CERTIFICATE-1

This is to certify that the material embodied in the Self-Study Paper entitled
“e- tailing: challenges and oppurtunities” based on my original work. My
indebtedness to other work has been duly acknowledged at the relevant places.

Reena Sharma

MBA 4th Sem

16000102004

CERTIFICATE-2

This is to certify that the Self-Study Paper entitled, “e-tailing: challenges and
oppurtunities” submitted by Reena Sharma, Roll No. 16000102004 has been
supervised and checked by me and I find it fit for submission.

(Supervisor)

Dr. Manisha mani

Assistant Professor of

Department of Management

Ch. Bansi Lal University, Bhiwani

 ABSTRACT

The increase in penetration of internet and information and communication technology (ICT)
along with change in consumer lifestyle and growing population of internet savvy consumers
presents an encouraging platform for e-retailers in emerging markets. Education, technology
and growing demand from middle class consumers are further driving the growth vehicle of
e-tailing in these nations. There is adequate literature available for electronic business in the
context of developed nations but applying that knowledge without any consideration of the
unique business environment prevalent in emerging markets may spell danger for online
traders. Therefore, the proposed chapter focuses on the growth of e-tailing in emerging
economies. It talks about the driving forces for success of e-tailing in various developing
economies. The opportunities, challenges and unique issues associated with e-tailing in
emerging markets are also discussed. The chapter ends with a discussion on the future of e-
tailing in emerging nations

KEY WORDS

E-tailing, penetration, B2C,

MEANING

Electronic retailing is the sale of goods and services through the internet. Electronic retailing,
or e-tailing, can include business-to-business (B2B) and business-to-consumer (B2C) sales of
products and services, through subscriptions to website content, or through advertising. E-
tailing requires businesses to tailor traditional business models to the internet and its users.

OBJECTIVES

The main objectives of the topic are as follows:

1. To know about what is e-tailing in detail.

2. To know the challenges in e-tailing
 3. To learn what are the oppurtunities in e-tailing market.

INTRODUCTION

Retail scenario has been wearing new approach rapidly due to the revolution in field of
information technology. IT enabled world has been changing market scenario by introducing
new hi-tech technology rapidly by internet, maximizing uses of smart phones, tablet and new
electronic equipment covered with new application and software. The fact is not denying that
in IT enabled world a huge number of customers are consuming internet facilities and it
become as a necessary need of life. Today is the era of globalization and customer is aware in
respect to variety of products and bound within a particular pace to access products available
anywhere in the world. Now he can go beyond the boundaries of any market area where he
lives to access the things of his interest.

At kearney’s 2013, global retail e-commerce index stated that India has unharnessed online
retail potential. India has become a attractive destination for e-commerce due to a huge size
of peoples are using internet and mobile internet facilities so growth prospect of online retail
are high as well as growth opportunities there are threat which need to be considered.

ESSENTIALS FOR E-TAILING

There are certain essential components for an e-Retaling business to be successful. Before
setting up an electronic storefront, one must consider these components well in advance.
The important essentials of eretailing are as

1. E-Catalog

2. Search Engine

3.Shopping CarT

4.Distribution of Digital goods

5. On line customer sales person

6. An order status checking facilities

7.Create consumer community.

TYPES OF E-TAILERS

PURE PLAY BRICK AND

E-TAILER MORTAR E-TAILER

1. PURE PLAY : It is the one in which the retailer uses internet as the primary means.
2. BRICK AND MORTAR: It is the one under which retailer uses both internet stores
and brick stores to sell its product

STEPS IN E-TAILING

CONSUMER VISIT

CHOICE OF PRODUCT

PAYMENT ONLINE

PRODUCT DELIVERY

ACCEPTANCE OR
RETURN
 FEEDBACK

ADVANTAGES

• Much faster transactions available 24/7

• Products and services are easy to find.

• Easier time managing a business.

• Doesn’t require much physical space.

• No geographical limitations translates as a bigger customer reach.

• Higher quality of services and lower operational cost.

DISADVANTAGES

• no guarantee of product quality.

• Customer loyalty becomes a bigger issue as there is a minimal direct customer

company interaction.

• Inability To experience products beforehands leads to more checkout dropouts.

• Anyone can start an online business,which sometimes leads to scam and phishing
sites.

• Hackers target web shops more often than you think

 OPPURTUNITIES

1. Increase in the number of Internet users and online buyers: According to Google,
India now have around 200 million internet users which is expected to reach 500
million by 2018. Every year there is an estimated increase of 5 million
2. Smart phone revolution and Mobile Internet: India is one of the markets which is
witnessing growth in smart phone customers. In 2013, there were 51 million smart
phone users in India which is expected to reached by 104 million in 2014. Access to
4G mobile data networks and availability of cheap smart phones can enhance the
customer transaction using mobiles.
3. Increase in transaction by Debit cards, Credit cards, Net and mobile banking: Credit,
Debit cards and Net banking can facilitate quick and convenient transaction for
customers which can augment the growth of e-retailing in India. With the emergence
of secure transaction methods like two factor authentication, One Time
Passwords(OTP) and payment gateways, consumer’s preference to shop and do
financial transactions online has increased. This can enhance online retailing because
of enhanced security and easiness in doing the transaction.
4. . Convenience Factor: Online retailers are moving towards enhancing the convenience
factor and thus attracting the shoppers to use this channel. Moreover the growth of the
mobile communication has led to the growth of the online retailing as people are more
accessible to internet 24 x 7.
5. Payment Mode: As compare to the earlier days where we have to make the payment
in advance and wait for our order for weeks, now we make the order first and make
the payment when the goods are delivered to us but now it has made convenient as the
goods deliver before the payment is made.
6. Product Comparison: without having to move from one shop to other for comparing
the benefits of the product, the shopper gets the benefit of comparing the features and
cost analysis one place. Most of the sites are providing this facility wherein shopper
can choose the product which exactly suits him.
7. Cost and Time Saving: a shopper saves a good amount of time and money by
shopping online. In the metros and even in the smaller towns which are growing fast,
the life of an average person has become very fast. He has very little time after his
 normal routine office schedule to go to the market and purchase even the daily need
items.

CHALLENGES

1. Borderless economies : Mobile technology has empowered consumers in myriad

ways. It has opened doors to a digital economy, taking globalization to a new level.
Traditional boundaries are clearly blurring, with online retailers expanding to new
geographies. This leaves companies to deal with government regulations, geopolitical
status, "stateless income", and extensive local and international competition.
2. Building trust and brand as the key differentiator: Building consumer trust and
brand loyalty is essential for any business to succeed. The traditional brand building
exercises are mostly irrelevant in the current e-Commerce sector. It is easy to lose an
online customer to the "next big thing". Failure to deliver on any one aspect of
customers' demands would lead to failure in retaining them.
3. . Lack of cross-departmental collaboration : Saurabh Chandra, Head of IT, Myntra
talks about the challenges of running an online store that involves four key divisions -
Technology, Data Curation, Product Delivery and People Management. Modern
companies face the challenge of collaborating between different departments, some
geographically isolated and present in different time zones. Marketers, merchandisers
and e-Commerce managers need to learn to strategically operate throug
4. Personalization : Modern e-Commerce thrives on delivering the best personalized
experience to their consumers. Managing a repository of customer data is a challenge
in itself, added to that e-Commerce companies have to understand how to use that
data. Delivering customized content in the form of advertisements, special offers etc.
are some of the methods which can be employed.
5. . Ease of use and technology: Ease of use and advancements in technology have
given consumers more power and increased global competition in the e-Commerce
sector. Omni-channel retailing is the way forward for e-Commerce. This places
pressure on companies to deal with technical issues of running an online store like:
server issues, bandwidth issues, dynamic IP address, data privacy and security issues.
The transition from a multi-channel business to an omni-channel is another.

CONCLUSION

E- tailing besides having few challenges it has vast oppurtunities to grow and flourish at
global level. New trends in e-tailing adds value to the existing market. It has open ways for
many retailers who don’t have brick and mortal . it has given wide varieties available to the
consumer at reasonable prices.

REFRENCES

1 .https://businessjargons.com/electronic-retailing.html

2 https://tutorialspoint.com

3 https://etail.net

4.https://wikipedia.com