Several years ago, technology brought shopping information to laptops. Today, it brings the products to people’s doorstep. An individual can purchase products from a virtual store (shopping website) using the Internet as a medium. Even though some thought recent technological advancement would take the joy out of shopping. Rather it has brought a whole new perspective like E-tailing.
Online channels have compelled many brick-and-mortar businesses to adopt e-commerce strategies to maximize their reach, leads, and sales. Companies that offer products and services are altering their business models to take advantage of the Internet and a range of distribution channels, such as internet websites, warehouses, and product shipping centers.
E-tail comes from the word retail. The letter E stands here for ‘electronic’ since parts of the shopping process occur through electronic media (Internet). Electronic retailing or e-tailing refers to the sale of goods and services online between businesses and consumers. It makes e-tailing a subset of e-commerce due to the way it functions. As the largest, most successful, and most popular online retailer, Amazon is a prime example of electronic retailing.
As thousands of e-commerce sites exist on the Internet, which behaves like an extension of existing startups, it’s the direct sale of information, products, or services via virtual stores available on webs and sites.
E-retailing success requires many ingredients, including an attractive business-to-business e-commerce portal, the proper revenue model, and Internet penetration.
Advantages of E-tailing
Market expansion/exporting: The ability to rapidly expand the market beyond local customers is one of its primary advantages over premises-based retailers. It is possible that there is a strong demand for the company’s products in other countries for which the company can provide targeted marketing, offer the website in a different language, or perhaps partner with a foreign company.
Cost reductions: An online store can eliminate the need for costly retail space and customer-facing personnel, freeing up resources to invest in more marketing and customer service.
Online customer intelligence: Targeting customers online and analyzing the website to gain insight into what they want. By providing advice on how to improve the on-site experience for the company’s customers.
Access to markets: Despite many challenges, entrepreneurs have never had it easier to access markets. With online marketplaces like eBay and Amazon, anyone can open a shop and sell products within minutes.
Rapid growth potential: Due to online sales, traditional limitations to retail growth – like finding and paying for larger ones – are less of an issue. In order to respond and boost sales, the company needs both a plan for scaling up order fulfillment systems and a digital marketing strategy.
Factors Contributing to the Growth of E-tailing
According to a report of Astute Analytica, the global e-tailing market is forecast to grow at a compound annual growth rate (CAGR) of 18% during the forecast period from 2021-2030. Several factors contribute to the significant market growth, including integrating technology into business practices, increasing internet penetration worldwide, shifting customer preferences towards internet buying, and availability of a wide range of products on a single platform at an affordable price.
Other major factors that contributed towards the success of E-tailing are:
A unique selling point: Electronic retailing is a subset of electronic commerce. In addition, many other competitors will benefit from it for their company’s growth. Merchandising that is unique to the target niche helps brands establish their uniqueness in the market.
Pricing Strategy: Unlike traditional retailing, e-tailing practices may require different strategies to stand out from the competition. Companies that offer competitive pricing or have pricing strategies can beat other brands. These brands may or may not use e-commerce for their brand.
Online Branding: E-tailers rely on effective online branding to optimize presence, lead generation, credibility, and loyalty.
Customer Value: E-commerce adds value to the lives of the customers and consumers. The brick-and-mortar companies use e-tailing to promote their products and services. They should always strive to add value to their audiences.
Customer relationship management (CRM): In e-commerce and e-tailing, customer relationship management or CRM is one of the primary practices. As it helps develop and nurture relationships with customers.
Efficient Distribution: An online retailer’s success also depends on its ability to distribute products and services efficiently. Achieving optimal distribution efficiency is critical for any e-tailing business.
An Affectionate Website Design: The design and function of the website are crucial for the efficient channeling of all processes involved in e-tailing. In addition, to optimize conversions, a good user experience is critical.
Services Transparency: E-commerce and e-tailing depend on transparency to succeed, and this is also true for businesses in general. The more transparent an e-tailing business is, the more sustainable it is.
Customer Support: The success of the e-tailing business model depends on providing good customer service along with a customized shopping experience.
The growth rate of online retailing is astounding, accounting for about a quarter of all retail sales. The number of customers ordering products online will continue to grow as retailers ignore e-commerce.
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