Shopping ..

A Rich
Experience
Online Shopping …..
E RETAILING
At Home with Technology

Ayyappan R 07MBA 020

BalaRadhaKrishnan 07MIB004
Chandru S 07MBA028
Gokul Anand G P V 07MBA038
Karunanithi J 07MBA053

Kandaswamy C 07MBA047
Mahendran S 07MBA059
Mohamed Naufal 07MBA063
Outline

 E Retailing Introduction
 Evolution
 Pros and Cons
 E Retailing Systems
 Online Service Providers
 Employment Opportunities
 Supply Chain Activities
 Social Presence
 Frauds and Mal practices
Meaning of Retailing

 E-retailing uses internet as a medium for customers to shop for the goods or
services. It can be either pure-plays or bricks-and-clicks. Pure-play uses
internet as primary means of retailing while bricks-and-clicks uses the
internet as an addition to the physical store.

 Now a day retailers have started offering almost everything under the sun on
internet. From products like groceries to services like online gaming and jobs,
e-retailing covers all frontiers.

 Unfortunately, India has lagged in e-retail growth story due to low density of
internet connections, lower penetration of credit cards and customer anxiety
in using new technologies. We now discuss these issues and suggest possible
avenues for e-retailers to turn them to their advantage.
Why do People like Online Shopping

 Convenience 84%
 Saves time 72%
 Avoids crowds 64%
 Allows more time to research 61%
 Lower prices 60%
 no salespeople involved 55%
Online vs. Offline Shopping

 Offline shopping:
– a wide range of emotions involving various types
of social interactions
– engages our five senses
 Online shopping:
– geared towards reducing the user’s cognitive
burden through features and performance based
Website design
– engages only 2 of our senses
Models of e-retailing

 There are several models for e-retailing and these include:

 Specialized e-store
 Generalized e-store
 E-mall
 Direct selling by the manufacturer
 Supplementary distribution channel
 E-broker
 E-services
EVOLUTION OF E-RETAILING

 E-retailing has become an accepted mode of

retailing – though one that will ultimately capture a
good market share of total retail sales .
 E-retail players from all over the world, including
the US. Amazon.com, Buy.com, eBay, J.C. Penney,
Lands’ End, Office Depot, and The Sharper Image
are among those retailers that have developed e-
commerce sites specifically to serve markets.
Contd..,

 One of the contributors to the area’s high

rates of Internet access is the area’s cold
climate, which encourages indoor activity.

 Furthermore, mobile technologies, including

mobile Internet access, are relatively
widespread in the region, given that Finland
and Sweden are home to mobile phone
giants Nokia and Ericsson, respectively.
Different types of products

Visual evaluation

Tactile evaluation
Basic Features of e-retailing
systems

 Common features of e-retailing web sites include:

 method for selecting your purchases, eg shopping

cart
 mechanism for creating and submitting an order
 secure e-payment facility
 appropriate distribution mechanism
 browsing facility, normally by subject or by category
 searching facility
 mechanism for customer service and feedback
The Techniques which make online
shopping possible

 The web developer has no built-in method for

tracking a user or remembering data from one page
to the next.
 Two main methods for tracking data: cookies and
sessions.
 The difference between a session and a cookie;
A cookie --- stores data on the client’s side
(user’s machine)
A session --- stores data on the server
Trust in the Online Environment

 Trust is more difficult to build in an online

environment because …
– different locations
– less data control
– lower barriers to entry and exit
– Perceptions of lower security
– lack of physical trust cues
– lack of physical evaluation
– impersonal, anonymous and automated
Major trends of e retailing :

 Technologies that help you see and experience the product

better
 e.g. virtual reality, Java 3D etc.
 Technologies that help you not to see at all but use an
intelligent agent (or mobile agent) that does all the
shopping tasks for you.
 Affiliate website through referrals
– Pros: a link in the famous website may provide a
good rank to the site
– Cons: risk of loosing the customers to competitors
 Business portals
– Pros: government support to the portal
– Cons: some big players are involved in it so
through market study is required
7 Tips For Selling Online

A picture is worth 1000 words.

 Do your online research.
 Learn all about shipping
 Pay as much attention to the writing of your
online listing as to your picture
 Offer a full slate of payment options,
including credit cards
 Focus on getting positive feedback first
 Be business-like
Benefits of e-retailing

 To the Customer
 convenience
 better information
 competitive pricing
 customization
 shopping anywhere, anytime
Benefits of e-retailing

 To the Business

 global reach
 better customer service
 low capital cost
 mass customization
 targeted marketing
 more value added services
 new forms of specialized stores and niche marketing
 Ebay.com

 Founded San Jose, California, USA

(September 3, 1995)
 Headquarters San Jose, California, United
States
 Revenue :▲$7.67 billion USD (2007)
 Employees: 15,500 (Q1 2008)
 Website www.ebay.com
 Type of site: Online auction
Types of Auction..

 Auction-style listings allow the seller to offer one

or more items for sale for a specified number of
days. The seller can establish a reserve price.
 Fixed Price format allows the seller to offer one or
more items for sale at a Buy It Now price. Buyers
who agree to pay that price win the auction
immediately without submitting a bid.
 Dutch Auctions allow the seller to offer two or more
identical items in the same auction. Bidders can bid
for any number from one item up to the total number
offered.
 eBay Categories
 Apparel & Accessories
 Books & Magazines
 Bus tickets
 Cameras & Optics
 Cars, Bikes & CVs
 Coins & Stamps
 Computers & Peripherals
 Consumer Electronics
 Fitness & Sports
 Flights, Hotels & Holidays
 Fun Stuff
 Health & Beauty
 Hobbies & Collectibles
 Home, Decor & Furnishings
 Jewellery
 Kitchen & Home Appliances
 Memory Cards, Pen Drives & HDD
 Mobiles & Accessories
 Movies & Music
 Musical Instruments
 Services & Real Estate
 Tools & Hardware
 Toys, Games & Baby
 Video & Computer Games
 Watches
 Everything Else
How Does Ebay Work . . .

 register first with ebay. Then

 research on how much other sellers are
selling or have sold the same items for in the
past
 Decide on your price, upload pictures of the
item and a description
 track of your items in your My Ebay account
 payments via PayPal
 You have 30 days to pay your fees to ebay.
Amazon

 Amazon.com is an American electronic

commerce company based in Seattle,
Washington.
 First major companies to sell goods over the
Internet
 Jeff Bezos Founder and Ceo of Amazon.com
Sell through existing venues

Step1
Go to sites like Amazon.com or Half.com to sell used books, CDs and
other items at a fixed price. You can list items in exchange for a percentage of
the sale. Avoid sites that charge you a fee to post an ad.
Step2
List items that are hard to ship (like a pool table or futon) on local sites
such as Craigslist.org or in regional online classifieds, so that the buyer can
pick it up.
Step3
Use online auction sites to sell collectibles, antiques, out-of-print books
and anything else you find in the attic or garage.
Step4
Get listed in local directories and on referral Web sites if you have a
professional service for hire. These sites conduct background checks and refer
potential customers to you for a fee.
Content Placeholder 3
Starting an Online Business ? ??

Step1
Set up an online store. A substantial investment is required for start-up
costs, which include domain name registration, site hosting, e-commerce
software, site development and maintenance, marketing, credit card transaction
fees, Internet access and customer service. There's also the time spent on
design, taking photos of inventory and updating the site
Step2
Design a sleek, professional, easy-to-navigate site that loads quickly at
both dial-up and broadband speeds. Or, check out Amazon.com, eBay.com and
Yahoo Shopping (shopping.yahoo.com) for turnkey solutions for building an
online store--the bonus is that you tap into the heavy traffic of these popular
sites and take advantage of search engines.
Step3
Include concise, informative copy and photographs to bring traffic to your
site. Update it frequently to keep the content fresh.
Contd..,

Step4
Register your URL on all the major search engines (including Google.com and
Yahoo.com) to make sure your site shows up in relevant searches. Include
keywords in meta tags in HTML files to increase the chances of getting hits
from search engines. You may, however, find that paying for placement results
in more traffic.
Step5
Advertise your Web site on heavily trafficked sites and through banner swaps
Step6
Establish trust. Post your privacy policy prominently. Have customer service
information clearly displayed, including third-party recommendations, and
provide quick response. Set up a secure server to handle credit card
transactions. Answer customer queries by phone or e-mail promptly, effectively
and courteously.
Step7
Use discretion: Obnoxious, blinking ads and spam e-mails drive away customers.
SCM in E-Retailing :

 Supply Chain Management is a top strategic

objective for many companies. Supply chain
management is flexible enough to cater to the
demands of customer as and when there is a
demand. Supple supply chain fulfills the requirement
of what the customer wants, when and where it's
wanted and at the lowest possible cost. The supple
SCM is only possible when management practices
are integrated with information technology to
optimize information and product flows among the
processes and business partners.
Supply Chain Management in E-
retail:

* Customer focus
* Retaining existing customers
* Streamlining of operations
* Minimum Fixed Cost
* Elimination of paper work
* Just in time
* Transparency at all levels
* Developing multiple supply sources for a multiple
components
* Customer value enhancement and cost reduction
The e-Business applications are
divided into three categories

 E–Commerce
 E – Collaboration
 E–Procurement
 Strategic Partnership
 Online Search Strategy
 Combined Strategy
THE THREE LEVEL
FRAMEWORK OF
E-RETAILING
Scope & Employment
opportunities of E Retailing :

 Site Design
 E commerce Platform
 Web Hosting
 Site Search
 Content Management
 Payment Processor
 Search Engine Management
 CRM
 Web Analysis
 Content Delivery Network
 Rich media
Social Presence in E Retailing :

 Social presence (SP) is the extent to which a

medium allows users to experience others as being
psychologically present
 It can also refer to the richness of the media or the
interactivity afforded by the media
 SP could also be connected to the warmth felt
through the medium.… A feeling of human contact
.... Sociability .... Sensitivity
 Instilling human warmth through:
– actual interaction with other humans
– stimulating the imagination of interacting with other humans
Low Social Presence
Medium Social Presence
High Social Presence
Low Social Presence “straight forward” “clear”

“to the point”

“too plain”
“dull and boring”

“lacked a personal touch”

Medium Social Presence “fun and imaginative”
“interesting”

“not helpful in assessing what the

[product] looks like”

“did not help in making a decision”

 “Clothing was masked by all the
actions in the pictures”
High Social Presence

“Appealing” “enjoyed seeing people

wearing the clothing
and the activities
they were taking
part in”

“Helped better visualize the product”

“Gives me ideas on how to dress … in which

situations I should wear the clothes”
Cross-selling
promoting accessories related to the current choice.
Up-selling
promoting a better or more expensive version of the current choice
Frauds that can be committed by
sellers include

 receiving payment and not shipping merchandise;

 shipping items other than those described;
 giving a deliberately misleading description;
 knowingly and deliberately shipping faulty merchandise;
 selling counterfeit or bootleg merchandise;
 knowingly selling stolen goods;
 inflating total bid amounts by bidding on their own auction with "
shill" account(s), either the seller under an alternate account or
another person in collusion with the seller
 misrepresenting the cost of shipping; and
 shipping at a slower service than that paid for.
Fraud is combated by

 third-party businesses, such as CheckMEND,

compiling lists of stolen goods from local
authorities and businesses so consumers
can check to see whether the goods they are
buying are stolen; and
 third-party software that could potentially
eliminate account hijacking by alerting users
if they are being tricked into going to a
bogus, or "spoof", Web site
The Boom in Electronic
Retailing  

Video Marketing
Nonstore retailing to consumers via standard and cable television
Electronic Shopping
Nonstore retailing in which information about the seller’s products and
services is connected to consumers’ computers, allowing consumers
to receive the information and purchase the products in the home
Electronic Storefront
Commercial Web site in which customers gather information about
products, buying opportunities, placing orders, and paying for
purchases
Cybermall
Collection of virtual storefronts (business Web sites) representing a
variety of products and product lines on the Internet