The Essence Of E-Tailing 2
How to Sell On-line?
Whether we design it our self, purchase a template, or hire someone to develop an e-commerce website for our retail business, it must be professional looking, easy-to-navigate, and content rich. The website should be hosted with a reputable source, with little downtime and reliable technical support. The website must also be secure as it will need to collect personal and financial information from customers.
We must first define the purpose and goals for the site and then, develop a strategic plan and design the site accordingly. The web site’s purpose–whether it’s to gather leads or sell products–should drive the design of the pages.
The answers to the following questions can help in planning:
Who is our target audience?
How to navigate the site?
What graphics, fonts, and colors will the site use?
How to design the site for different browsers?
How to optimize the site for the search engines?
What content will the website offer?
How to build trust and convey credibility?
How to deliver products to customers?
What methods of payment will be accepted?
What steps will be taken to keep customer information safe and secure?
How to drive traffic to our site?
How to market our website and products?
Planning an e-commerce website is very similar to writing a business plan. The objective is to identify the focus of the website, the needs of the customer and what the competition is doing on-line.
Special features of e-tailing
Online Store Look Every e-Tailing site has a store front with an identity, image and positioning. The online store front has its signature identity with features that trigger off browsing and persuade customers to buy its product offerings. The navigation triggers the browser buttons and the “cookies” lead the customers completely through the site’s offerings.
Visual Density Visual density is all about virtual space utilization like shelf space management in retail. On-line retailers use visual density very effectively to promote offerings and sell merchandise. A site’s visual appeal ensures that the browser stays with the site for a long time.
On-line Merchandising One of the major advantages of on-line merchandising is that the site can have an unlimited number of SKUs on display. This is because virtual space is almost unlimited. The offering mix can be made to appeal to a wide customer base. Back-end merchandise analysis can be made for the click stream analysis and conversions thereof. One can also measure the number of non-buyers who visit the site. Offers linked to purchase act as buying triggers. In on-line retailing, there is no obsolescence due to the fact that merchandise is not exposed at all nor is there an inventory carrying cost on the web. Expenses being low, there is potential for high margins in e-Tailing. The following table shows, gender-wise, the most shopped categories across the world on-line.
On-line Pricing Prices of merchandise on-line are competitive compared to brick-and-mortar stores. This is because operating expenses saved by working through the Internet are generally passed on to the consumer.
New On-line Retail
The recent development of sending e-greetings has helped customers get into the habit of using the Internet. Another area of development is bill presentment. Retail banking and related services through the Internet is also being promoted and a good deal of transactions takes place through the net. Shopping robots on the net help instant price comparisons to enable customers make purchase decisions.
Logistics and supply chain The key success factor for on-line retailing is efficient logistics to ensure that the right product is delivered to the right customer at the right time. The supply chain network is triggered in an automatic fashion, meeting promised delivery dates. Alliances are critical in the areas of sourcing and vendor management, warehousing, transportation and effective order deliveries. Storing merchandise in satellite warehouses enables timely deliveries in operations that are spread over a wide area.
Promotions on-line There is good scope for promoting on site products merchandised and sold on-line. The site itself can host links of products/ services offered by other companies for a fee. Banners, crawlers, browser buttons, URL links, etc. can be put on other non-competing sites. There is a lot of opportunity to create customer stickiness by constantly communicating with them through e-mail. Personalized offerings can be made to individual customers based on individual’s shopping characteristics.
Advantages of e-tailing
-Move from physical space to cyber space.
-No location boundaries.
-Wider spectrum of customers
-Non-geocentric buying habits of customers.
Challenges for e-tailing
On-line merchants must cater to increasingly on line-savvy, time-crunched consumers.
Competitors are just a click away When consumers search, they have multiple options available, and many use search to navigate the Web rather than type in or bookmark specific sites.
Visitors can disappear seconds On line consumers are goal-oriented shoppers. If they don’t immediately find what they’re looking for, they’re gone in seconds.
Shopping is a multi step process. Consumers love to browse. Many spend a fair bit of time visiting several sites just to gather information. They may also compare the offerings of several competitors before hitting the “buy now” button.
Time between initial visit and purchase has increased. Increasingly financially challenged consumers may wait longer before buying.
Customers wait for merchants’ best offer. Having been seduced during the holiday season with free shipping and handling and other price-driven offers, consumers have been trained to wait for a special deal.
Pitfalls of E-Tailing
No Theatrical Ambiance on line retailing site does not have a theatrical ambiance which can be felt by the customer.
No Emotional Experience There is no emotional shopping experience that the customer can get in e-Tailing as he would in a brick-and-mortar environment.
Intangible Merchandise The customer cannot hold, smell, feel or try the product.
Security Issues Customers on-line are reluctant to part with their credit card details on the net, fearing they may be misused. Customers are not yet convinced that these methods are foolproof.
Impersonal Customer Service Indian customers are used to tangible personalized customer service which on-line retailing cannot provide.
Some organizations have tried to use the Internet along with their brick-and-mortar operations. It is just a matter of time before on-line retailing picks up in India. If there is consistency in quality and delivery on time, certain convenience categories like books and music will undoubtedly perform well.