E-retailing

• The sale of goods and services

• via Internet or other electronic channels
• for personal or household use by
consumers
 Marks and Spencer
www.marksandspencer.com
• Once the most successful retailer in Europe
• E-retail ‘a model of good practice’ (Sunday Times)
• Easy to navigate
• Good selection of:
• – Clothing
• – Underwear
• – Home furnishings
• – Gifts
• – FlowersMarks and Spencer
 Cont..
• • 2-day delivery free
• • Returns either to M&S store or post back free
• • Top-rated e-retailer for customer satisfaction and
• service (Computer Weekly)Next www.next.co.uk
• • A top name in high street fashion
• • Successful mail order - Next Directory - since 1987
• • Expertise in:
• – Order handling
• – Fulfilment
• – Customer care
• • Courier picks up returns free
• • No. 1 in UK clothing e-retailing (Verdict)
 Tesco www.tesco.com
• Biggest grocery retailer in UK
• Telesales since 1996 -
• – Developed from home delivery for less mobile
consumers
• – Became the pilot for e-retailing
• Proven delivery system based on hand-picking
from grocery stores
• Non-food now handled from non-store facilities
 Tesco

• £5 delivery charge
• Next-day delivery for most of UK
• Limited range available world-wide
• Claims to be world’s biggest e-grocer
 Dell www.dell.com

• Pioneers in telemarketing since the late 1980s

• One of the first e-retailers
• Investment in staff training and customer
service
• Auction site where customers can sell
equipment
• Dual channel, telesales / Internet (no high
street)
• Market leader world-wide for e-tailing computer
hardware
 Amazon
www.amazon.co.uk
• Start-up 1995: Books, CDs, DVDs and
videos
• UK site 1998 from take-over of Bookpages
• UK biggest market outside US
• Brand awareness built by heavy
advertising
• Affiliate system - e.g. Alta Vista search
engine
• links to books related to keywords
 Amazon

• CRM system advises customers of new books

• likely to be of interest
• Easy-search finds books from keywords
• World’s biggest e-retailer of books - second
• biggest retailer, even though only sells online
• Alliance with US discount retailer Target -
• ‘the biggest clicks-and-mortar [ever]’
 DISADVANTAGES OF
E-RETAILING
FOR RETAILERS
• May lack know-how and technology
• Substantial set-up, investment and ongoing costs
• Complex logistics of fulfilment
• E-selling less powerful than face-to-face –
• uptake slow for goods selected by taste or smell. Less
impulse purchases
• Legal problems
• Less role for traditional high street retail expertise
• Pressure on margins and prices in-store
• After-sales care difficulties
 ADVANTAGES OF E-RETAILING
FOR
RETAILERS
• Location is unimportant
• Size does not matter
• Saves on the wages and premises costs
• Reach a larger audience
• Higher disposable income profile than average
• Accepts orders 24-hours a day
• More opportunities for
• – CRM and micro-marketing
• – Cross- and up-selling
• If we don’t, our competitors will
 DISADVANTAGES OF E-
SHOPPING
FOR CONSUMERS
• Credit card and security worries
• Lack of personal and social interaction
• Can’t see or feel the merchandise
• Don’t know how
• Can’t be in to receive delivery
• Premium charged for delivery
• Difficulties with returning goods for refund
 Cont…
• Cost effective
• Convenient
• Easy
• Saves time
• Fits in with other activities
• Breadth and depth of products
• Easy search of many alternatives
• Personalisation of presentation and
merchandise
• Prices favourable
 THE DON’TS OF E-RETAILING

• Save your best page till last

• Use too many graphics
• Fill each page
• Use too much narrative
• Have too many click-through pages
 DOS OF E-RETAILING
• Easy to buy (3 clicks)
• Good service and aftercare
• Membership and loyalty incentives
• Communication and chat
• Reinforce branding Strong intro - home page
• Concise text
• Vivid benefits
• Short-cut navigation
• Expert information
• Testimonials, endorsements and guarantees