E-tailing

Introduction

Electronic retailing,
also known as e-
Tailing, deals with
selling products and
services online via the
World Wide Web. E
tailing is synonymous
with business-to-
consumer (B2C)
transaction.
Top ten e-retailers
1.Amazon.com
2. Planetrx.com
3. Ticketmaster.com
4. Gateway.com
5. Barnesandnoble.com
6. Mothernature.com
7. Iprint.com
8. Hallmark.com
9. Buy.com
10. Bigstar.com
Indian e-tailers: Rediff.com, Jaldi.com, Fabmart.com,
Tsnshop.com and Satyamonline.com.

(Source: PC Data Online)

Challenges

Attracting the customers

Retaining the customer
Building confidence in revealing credit card
information
Frequent visits
Retailing to e-tailing

SOURCE:www.websem.be/blog/?p=
Advantages over living
retail stores
Much wider choice at fingertips
Price discrimination
Customized product
placements
No real estate costs
Easy and comfortably
Better interaction with the
customers
Mass Media
 Every God has an Evil to
face off.
Disadvantages over
living retail
stores
1.Limited only to on line users.

2. Ease of use is a problem

3. Trust, security and privacy concerns

prevail.
 

(

Source:
Forrester
Retailing Vs e-tailing
Retailing E-tailing
 retailing is location- an e-tailer can go global.
driven The primary aim of every
a retailer has to spend e-tailer is to attract a
considerable time, effort prospective customer to
his e-tail site.
and money
retaining a customer who
in setting up his shop has shopped through his
stocking inventory site
 creating display a loyalty on the Net is
patterns. difficult to obtain
a retailer has strong product is not physically
loyalty, available
product is physically
About Amazon.com
Amazon.com, Inc. is an
American-based
multinational electronic
commerce company.
Headquartered in Seattle,
Washington, it is America's
largest online retailer.
Jeff Bezos founded
Amazon.com, Inc. in 1994
and launched it online in
1995.
Product line
Amazon has steadily branched into retail sales of
music CDs
 videotapes and DVDs
 software
consumer electronics
kitchen items, tools, lawn and garden items, toys
& games, baby products, apparel
 sporting goods
 jewellery, watches
health personal-care items, beauty products,
musical instruments, clothing
 industrial & scientific supplies
Facts and figures
According to a research agency, 82% of
the online buyers have been found to be
satisfied with their purchases.
 The feature started with 120,000 titles (or
33 million pages of text) on October 23,
2003. There are currently about 250,000
books in the program. Amazon has
cooperated with around 130 publishers to
allow users to perform these searches.
The domain amazon.com attracted at least
615 million visitors annually by 2008
according to a Compete.com survey. This
was twice the numbers of walmart.com.
Amazon's profit in the fourth quarter of 2001
was $5.1 million, compared with a loss of
$545.1 million in the year-earlier period. For
the full year, Amazon still showed a net loss of
$567.3 million. But that was less than half the
previous year's loss of $1.4 billion.
Amazon.com is currently spending 174
percent of its entire revenue on marketing
.........cntd
Amazon reported over 1.3 million sellers sold
products through Amazon's World Wide Web
sites in 2007
the largest bookseller on the Internet.
Amazon.com is the most visited Internet site
in the world, with 17 million customers hailing
from more than 160 countries.
COPYRIGHT 2000 Lebhar-Friedman, Inc.
Technology in amazon
In the early years, the entire Amazon.com system
was written in "C", which is an open-source
software program language most commonly used
on UNIX systems.
Amazon also exploited the new CD-ROM version
of Books In Print. R. R. Bowker is the nation's
official registry for titles and assigns
International Standard Book Number (ISBN)
(Hamilton, 2004).
Amazon began with Oracle's relational
database software and, learning as they went
along, Amazon engineers layered their own code
on top of it (Hamilton, 2004).
 Amazon.com assigned a unique identifier to all items it
sold and it was the Amazon Standard Identification
Number (ASIN) (Wikipedia, 2004).
 One-Click ordering that streamlined the entire process,
allowing customers to shop without entering their
shipping and billing information each time they made
purchase (Saunders, 2001, pp.153-167).
 Another top-secret technology for Amazon.com was
A9.com and it was focused on product search (like
Google's Froogle).
 Amazon Simple Storage Service, or S3, allows businesses
to store their data on Amazon’s own computer servers.
S3 now held 5 billion “objects,” or pieces of data, up from
800million

Amazon's technological efforts had helped it reduce

costs and boost sales so much that revenues are
expected to surge 32% in 2003, to $5.2 billion. (Hof,
2003).
E-tailing in INDIA
Need for a critical mass
Growth in e-commerce will
come not from well-designed
websites or web-marketing but
from deeper penetration of the
Internet.
In the Indian FMCG business,
margins are as low as 10 per
cent. Hence, e-tailing in such
areas might not catch on.
For things like grocery, there is
a shop out there at every nook
Hurdles in Indian E-tailing
Internet is unlikely gather a sizable slice of
market.
Despite a higher Internet penetration, cities
like Mumbai or New Delhi might not be a
haven for an e-tailer
Cheap labour
Mounting competitive pressures
Shopping is still a touch--feel--hear experience
Inadequate information
Important hurdle to the growth of the e-tailing
industry is the efficient management of
logistics
How to improve E-tailing?
Offline promotions
Eg: Jaldi.com
It is important to include clickable thumbnail
images
e-tailing in India can be a success if the e-
tailers change their business models and
understand their customers more.
 
Scope for e-tailing
Cost advantage of e-tailing
Collaborative commerce ( e-commerce)
Create economic value
According to the KSA annual consumer
outlook, the consumers are more comfortable
buying certain items. An illustrative list with a
percentage of the consumers are: books and
music 47 per cent, home furnishing 29 per
cent, sports apparel 25 per cent, casual
clothes 21 per cent, shoes 14 per cent,
groceries 9 per cent and tailored clothes 9 per
cent.
CH.SIREESHA
G.SWATHI
KRISHNA
M.LAKSHMI
K.SRI VIDYA
K.SIVA KUMAR