CHAPTER NO.

1 INTRODUCTION

1.1 MEANING OF E-RETAILING AND ITS

IMPORTANCE

MEANING OF E-RETAILING

Electronic retailing (E-tailing) is the sale of goods and offerings via the Internet. E-tailing can
include an enterprise-to-commercial enterprise (B2B) and business-to-patron (B2C) sales of services
and products. E-tailing calls for agencies to tailor their enterprise models to capture Internet sales,
which could include constructing out distribution channels together with warehouses, Internet
webpages, and product transport centers.

HOW E-RETAILING WORKS

 Electronic retailing consists of a vast range of groups and industries. However, there
are similarities among maximum e-tailing organizations that include an interesting internet site,
online marketing approach, green distribution of services or products, and consumer records
analytics.
 Successful e-tailing requires strong branding. Websites have to be enticing, without
problems navigable, and regularly updated to fulfill customers' converting demands. Products and
offerings need to stand out from competitors' offerings and upload costs to clients' lives. Also, a
business enterprise's offerings must be affordable so that customers do no longer favor one
commercial enterprise over another on a fee foundation only.
 E-tailers want sturdy distribution networks that are spark off and green. Consumers
cannot watch for lengthy intervals for the shipping of services or products. Transparency in
enterprise practices is likewise crucial, so clients accept as true with and live loyal to a business
enterprise.
 There are many ways agencies can earn revenue online. Of direction, the source of the
primary profits is through the sales of their product to consumers or groups. However, both B2C
and B2B groups ought to earn sales by using selling their offerings through a subscription-based
total version together with Netflix, which fees a monthly rate for access to media content.
 Revenue also can be earned through online advertising. For instance, Facebook earns
sales from ads placed on its website by corporations looking to promote to Facebook users.

FEATURES OF E-RETAILING
Many successful online shops that have been on the internet for a while do some unique things
well. It doesn’t remember in the event that they have the brightest, glitziest websites, or if the home
web page greets them with tune and singing. These matters alone do now not make customers
purchase from online shops. More regularly than not, these items definitely deter potential clients.
Online retail stores often conduct questionnaires using an online survey software program to
see what the purchaser’s preferences are or to investigate their shopping for conduct. This helps them
to make their net stores extra appealing and offer products that the client needs. Creating a happy
purchaser experience can come from a few attempted and authentic methods discovered with the aid
of successful online shops. They include:
 1. EASE TO NAVIGATE

The website must make it clean for the person to find what they’re searching out without quite
a few distractions. Minimize litter, remove the extra drop-down menus, and simply make things
straightforward. Limit the range of classes by including subcategories under the primary ones.

2. MINIMAL DESIGN

The internet site needs to make it smooth for the person to find what they’re looking for
without quite a few distractions. Minimize clutter, take away the extra drop-down menus, and simply
make matters honest. Limit the range of categories by using inclusive of subcategories beneath the
primary ones.
 3. EASY CHECKOUT

Asking clients to navigate four to five monitors deep just to pay for his or her wares will
simplest frustrate them. Successful online stores make the checkout high-quality and smooth through
preserving the steps simple, but additionally by means of taking pictures of the important records in a
succinct fashion.

4. PRODUCT SHOWCASE AND PROMOTION

 What makes a repeat customer? Product promotions and income, of course! By preserving
income merchandise or featured merchandise in an outstanding location at the site, customers sit up
for shopping. Product showcases also can entice customers to shop for a product that they weren’t
intending to shop for, however, they have been inspired through after they noticed it.

5. ACCURATE PRODUCT DESCRIPTION

Customers can’t contact or listen to the goods on the retail internet site. Therefore, it’s critical
to be as descriptive and correct as possible so they experience secure making their buy. Successful
sites take more steps to offer high definition snapshots and correct product descriptions. Accurate
descriptions additionally restrict the number of returns and upset customers.
With such a lot of online stores competing for the patron’s attention, it’s essential that retail
web sites make the shopping for revel in a breeze. They need to create websites that aren't best
consumer-friendly, however, that also makes the customers want to visit again and again,
understanding that they'll have a first-rate, nice, and non-demanding website visit.
 1.2 TYPES OF E-RETAILING

Today’s E-Retailing marketplace is predicated closely on maximizing the conversion price

ensuing extra income, revenue, and capability income. Setting up an e-retailing save opens up an
untapped sales circulation for new or present organizations.
Many exceptional forms of e-trade and transactions exist within the globe of e-trade these
days. Understanding those alternatives and selecting the one that most represents your enterprise will
help you in the technique of constructing your web page and selecting an e-retailing CMS, initially.

1. BUSINESS TO BUSINESS (B2B)

As the name indicates, a B2B transaction is in which one business is promoting to any other
enterprise. These transactions often involve customizing an order on a rolling foundation. B2B
transactions can consist of bulk pricing, large amount orders, or area of expertise merchandise that a
median client could in no way need on a day after day foundation. B2B transactions create powerful
and lengthy-lasting relationships among every side while orchestrated efficaciously. Typical
products which can be worried about B2B transactions encompass workplace elements, gasoline and
oil, medical device, airplanes, ships, and navy gadget. These objects are huge in bodily length or
quantities wanted which could be overwhelming for an average customer to buy on their own.
2. BUSINESS TO CONSUMER (B2C)

The most traditional transaction kind from a customer’s point of view is the B2C version. This
version mimics a purchase that made in-shop at a brick and mortar area however happens totally
online. Businesses sell goods instantly to consumers through their website. The internet serves as a
market in itself and the e-retailing keep serves because of the portal among companies and customers
buying online. Online stores are able to list more than one merchandise and SKUs which offers
clients many options to select and select from in the course of their buying revel in. This lets in for
extra options for a purchaser to analyze and find the correct fit. Clothing, electronics, and out of
doors leisure systems are just a few of the goods that efficiently offered online within the B2C. The
B2C transaction isn't always restrained to products, but offerings are quite frequently disbursed on
this style as well. Businesses might also provide services like economic advising, tutoring,
subscription memberships, and others to grow their presence on-line.

3. CONSUMER TO CONSUMER (C2C)

 With the upward thrust of e-retailing, an awful lot of innovation has taken region in lots of
forms. The net itself is an effective market in and of itself. Other marketplaces have come to fruition
to provide customers buying options and pathways to attain desired merchandise. Platforms like
eBay, Craigslist, Grailed, and even elements of Amazon allow clients to sell to purchasers. This
bridge permits men and women to promote items without putting in place a customized keep. This
consequences in speedy and clean character transactions making an allowance for niche objects, used
items, and person listings to be sold online.

4. CONSUMER TO BUSINESS (C2B)

On the opposite aspect of the spectrum, the C2B model lets in agencies to acquire fee from
clients whilst it's miles traditionally the alternative way around. Consumers are able to offer a
provider to organizations to reinforce their current business through a reverse auction machine.
Consumers can act like contractors bidding on certain initiatives which let in them carry value lower
back to the business. This calls your charge choice lets in agencies to reach extraordinary elements of
a community that can have been formerly untapped. For example, famous bloggers can rate a fee to
organizations wishing to have their item or idea listed a good way to acquire exposure. The client is
placing the price and has leverage over the transaction for the reason that they are imparting the
carrier.

5. GOVERNMENT TO BUSINESS

Government-to-business (G2B) is a business model that refers to authorities supplying

offerings or data to enterprise business enterprise. The government uses the G2B version internet site
to approach commercial enterprise organizations. Such websites aid auctions, tenders and application
submission functionalities.
 1.3 ADVANTAGES AND DISADVANTAGES OF E-
RETAILING
Online retailing is growing at an amazing fee, with online sales now accounting for around
one-quarter of the entire retail market. Retailers who forget about e-commerce can also see their
alternate lessening as clients hold to shift to ordering products online.

However, you want to think carefully and weigh all the benefits and disadvantages -
subsidized by way of good market research - before selecting whether or not or no longer to alternate
on-line.

ADVANTAGES OF E-RETAILING

1. EASY TO ACCESS MARKET

 In many approaches, the get admission to the market for entrepreneurs has never been simpler.
Online marketplaces which include eBay and Amazon allow everybody to installation a simple
online shop and sell merchandise inside minutes. See promoting through online marketplaces.

2. REDUCE OVERHEADS

Selling on-line can take away the need for luxurious retail premises and client-going through
personnel, allowing you to invest in higher advertising and purchaser experience on your e-trade site.

3. POTENTIAL FOR RAPID GROWTH

 Selling on the net approach conventional constraints to retail boom - e.g. finding and
purchasing larger - aren't primary factors. With a great digital marketing strategy and a plan a scale-
up order fulfillment systems, you could respond and enhance developing income.

4. WIDEN THE MARKET/EXPORT

One primary benefit over premises-primarily based outlets is the potential to expand your
market past nearby clients in no time. You may additionally find out a robust demand in your
products in other international locations which you could reply to by centered advertising and
marketing, providing your internet site in a specific language, or perhaps partnering with a distant
places enterprise.

5. CUSTOMER INTELLIGENCE
 Ability to apply on-line advertising equipment to goal new clients and website analysis gear to
advantage perception into your customers’ desires. For advice on improving your consumer’s on-
website experience see measuring your online advertising and marketing.

DISADVANTAGES OF E-RETAILING

1. WEBSITE COSTS

Making plans, designing, developing, website hosting, securing and maintaining an expert e-
retailing internet site isn’t cheap, especially in case you anticipate big and growing sales volumes.

2. INFRASTRUCTURE COSTS
 Even if you aren’t paying the fee of client-facing premises, you’ll want to think about the
charges of physical space for order fulfillment, warehousing goods, handling returns and staffing for
those duties.

3. SECURITY AND FRAUD

The boom of the online retail marketplace has attracted the attention of state-of-the-art crook
elements. The popularity of your business can be fatally damaged if you don’t make investments
inside the trendy protection structures to guard your website and transaction procedures.

4. LEGAL ISSUES
 Getting to grips with e-trade and the regulation can be a project and also you’ll need to be
aware of, and plan to address, the extra consumer rights which can be attached to online income.

5. ADVERTISING COSTS

Whilst online advertising and marketing can be a totally green way of having the right
customers on your products, it needs generous finances. This is in particular authentic if you are
competing in a crowded sector or for famous key phrases.

6. CUSTOMER TRUST
 It may be tough to set up a relied on logo call, particularly without a physical business with a
music file and face-to-face interplay among customers and sales workforce. You want to do not
forget the prices or setting up an awesome customer service machine as part of your on-line
supplying.

1.4 FAMOUS RETAILING SITES IN INDIA

Recent years have seen a remarkable evolution in the way India trades and stores. E-Retailing
is one of the rapidly developing sectors, stimulating a whole era of entrepreneurs, big scale
production of small and medium-sized organizations. E-trade has enabled helped lessen barriers and
produce the producer closer to the consumer. The presence of a digital keep on e-commerce websites
has helped thousands and thousands of enterprises flourish in India and has brought about more
employment opportunities as properly.

Today, a generation has superior at a fast pace and with the use of clever telephones, the net
shopping experience has to end up seamless for clients. With easy to apply cell apps with elaborate
shop catalogs, e-commerce has ushered new possibilities for each buyer and clients.

India is one in every of the most important markets of e-trade gamers. With giants like
Amazon, Flipkart, Snapdeal, and Myntra, new entrants like Paytm Mall, Shopclues, and so on are
also organizing a robust maintain in the Indian market.

1. AMAZON
 Amazon is one of the largest online stores with a worldwide presence. It not best gives a
selection of product picks but additionally affords a first-rate person experience and high-quality
customer support. Besides putting prominence to personalization, Amazon additionally monitors a
person’s browsing and purchase patterns in order to offer them encouraged merchandise for future
purchases. It operates in India as a marketplace rather than a store.

Amazon SSR allows sellers to self sign-in in the Amazon market, regardless of place and
length of the catalog. It permits sellers to start promoting within a day without any 0.33 birthday
celebration intervention. With Amazon Easy Ship, the seller has to percent the shipment and affirms
to Amazon that they're equipped to ship. Amazon Logistics guarantees that the percent is brought to
the customers within a few working days. With new capabilities that include Amazon Prime,
customers can obtain shipping of merchandise within 24 hours. By lowering the transport time,
Amazon keeps both outlets and customers satisfied and will increase client stickiness on the website.

2. FLIPKART
 Flipkart is an Indian based e-retailing project and over the years, it has garnered loads of
hobby within the minds of Indian customers. It has spread out the scope for the Indian e-tail market
in a first-rate way. It commenced out as an online bookshop and now it has a gamut of merchandise
starting from books, apparel, electronics, virtual tune, home care, and beauty. Moreover, it has now
emerged as a mega-market.

Flip kart’s fundamental differentiator is its deliver chain performance— definitive shipping of
products. It has been continuously growing and improving the client experience. The internet site is
straightforward to browse, hassle-unfastened, and convenient.

Two of the maximum crucial reasons for Flipkart’s grand success are the reductions and the
option of Cash- on- Delivery which makes clients more confident in shopping merchandise. Flipkart
has a first-rate consumer retention rate with 70% of repeat clients.

Apart from the buying revel in, Flipkart’s biggest online shopping competition – Big Billion
Days are one of the most successful campaigns and it churns out thousands and thousands of orders
for the duration of that purchasing season.

3. JABONG

Jabong came into the e-retailing marketplace with a smack and created a revolution in a period
of 6 to 7 months of launch. Besides promoting merchandise on their personal through inventories,
Jabong is also an internet marketplace for 1/3-celebration dealers. They predominantly cater to garb,
footwear, jewelry, and accessories and catalog more than 50,000 products across 700 manufacturers.

Jabong is understood for its own logistics network that guarantees speedy delivery. If you're in
a metropolis like Delhi, you are bound to receive the product inside 24 hours of order placement.
Jabong is likewise looking to amplify its worldwide presence through its web site
‘JabongWorld.Com’. It ships Indian merchandise to global customers.

One of Jabong’s areas of expertise lies in its new idea of a style magazine— “The Juice” a
thrilling blend of style, humans, developments and popular culture. The mag has the whole thing in it
that readers would really like to examine in a style mag. Jabong has additionally collaborated with
films which include “Bhaag Milkha Bhaag”, “Main Tera Hero”, and “Humpty Sharma ki Dulhaniya”
to offer special merchandise inspired by means of the film.

The diverse charge gateways provided through Jabong have made it handy for customers to
reserve products from the website. In 2016, Jabong becomes acquired by Myntra.

4. SNAPDEAL

Snapdeal is a success e-retailing portal catering to patron’s buying needs at a miles wider
component. It changed into mounted with a concept of creating products to be had to the customers
at a reduced charge via offers and Snapdeal coupons.

It offers you the quality offers in a selected town in numerous carrier categories starting from:
restaurants, spas, and salons, apparel, footwear, child care, domestic and décor. It has followed the
marketplace business version. Snapdeal got here up with a unique concept of permitting
neighborhood carriers and producers to put up their product catalog and promote it at the Snapdeal
portal. This avoids highly-priced charges involved in constructing personal inventory.
 Snapdeal’s commercial enterprise version turned into provided with colossal investment to
scale up its products, commercial enterprise, and operations. It specializes in logistics and green
delivery to customers. It operates in this type of rapid pace that a new product is brought in every 30
seconds.

5. MYNTRA

Myntra is one of the largest shopping e-tailers in style and lifestyle merchandise. It substances
a wide range of products from clothing to shoes and add-ons. It specializes in bringing the maximum
stylish manufacturers for its clients. In 2014, Myntra became received with the aid of Flipkart.

Myntra has created a spot inside the territory of e-trade and subtle consider from humans.
Additionally, from reductions to Cash-on-Delivery benefits, the Myntra achievement mantra belongs
to its hybrid logistics model. It takes uttermost care of its supply chain control and employs transport
sellers with excessive enjoyment.

Myntra has also given you an entire manual on your normal fashion and cutting-edge fashion
developments. The “MyntraLookGood” is everyday restored of fashion hints, splendor tricks, celeb
style, and non-forestall leisure. The tie-united states with celebrities and occasions are a high-quality
strategy by means of Myntra to symbolize that style is in its DNA. Myntra has many celeb
manufacturers— Hrithik Roshan’s HRX, Salman Khan’s Being Human, Deepika Padukone’s All
About You, and Farhan Akhtar’s MARD. They trust that Bollywood impacts style and frequent tie-
up with celebrities allows conveying customers towards Myntra.

6. PAYTM
 Paytm is the second-largest e-retailing platform in India and has also made its way to the
listing of unicorn startups. Primarily started as a cell pocket, in 2016, PayTm entered the e-commerce
industry with Paytm Mall. As the call indicates, it's miles an online marketplace vicinity for products
starting from electronics to daily consumer wishes.

One of the appealing features of Paytm has been its cashback characteristic. Consumers are
given an expansion of bargain coupons to chose from and additionally provide proper savings on the
acquisition of goods. With close to a hundred and twenty million customers at the platform, Paytm
Mall is locating new ways to beautify the shopping for revel in. It is likewise collaborating with retail
brick-and-motor shops and with the use of its cell app and QR codes, it takes the client through an
internet purchasing enjoy with attractive discounts.

Thus, India is a growing market and e-commerce industries are sure to flourish. But with the
right era and layout method, new entrants will have an aggressive aspect.
 1.5 GROWTH OF E-RETAILING IN INDIA

 India has emerged as one of the most dynamic retail industries in the international.
Accounting for over 10 consistent with cent of U. S. A.’s Gross Domestic Product (GDP) and
approximately eight consistent with cent of the employment, it's far expected to almost double
from US$ 600 billion in 2015 to US$ 1 trillion with the aid of 2020. That might imply a Compound
Annual Growth Rate (CAGR) of 16.7 in keeping with cent over 2015-2020.
 The retail enterprise, which currently stands at US$ 625 billion, has developed over
the last decade with essential home and global gamers gambling a large role. They have lengthy-
time period plans of expanding commercial enterprise across verticals, cities, and codec’s owing to
a spurt in online retail hobby within the last few years.
 India's growing consistent with capita income, a growing center class, the converting
demographic profile, urbanization and attitudinal shifts in customer spending sample all suggest
the retail area's ability to be the actual growth engine of the economy. Online retail is catching on
fast, now not just in larger metros but also in the Tier II and Tier III towns. This increase can be
attributed to increasing net penetration and the telephone revolution. Today, the quantity of tech-
 savvy purchasers who discover a couple of channels before making essential buy selections has
grown manifold.
 Keeping in mind developing on-line ability, no longer just brands however retail
chains are upgrading sites to make it greater handy for customers to store online. Going ahead, the
whole variety of on-line customers is anticipated to develop 3. Five instances from 50 million in
2015 to 175 million via 2020.
 Consumer goods in distinct classes such as electronics, food, grocery, clothing, and
domestic appliances are available online and the variety of products is anticipated to grow further.
A thrilling trend is that online style is rising because of the quickest developing class in India's
booming e-commerce market, backed by means of strong generation and marketing techniques.
 By 2020, India is expected to generate US$ one hundred billion online retail sales out
of which US$ 35 billion will come from fashion e-commerce. This clearly implies that on-line
apparel income is set to grow 4 instances within the subsequent five years and will contribute
notably to the burgeoning boom in e-trade.

 This may additionally marvel some given that Indian garb buyers have traditionally
been skeptical approximately purchasing for garments on-line, as they cherished the touch, sense,
and match of their clothes. This initially deterred them from buying on-line. Today, that hurdle is a
factor of the beyond. With accelerated cognizance and easy-to-use applications, customers have
largely migrated to purchasing online for garb.
 E-tailers are constantly attempting progressive techniques to cater to the precise
wishes and preferences of customers. They offer customers pleasant products and services to
bolster their belief. They have bridged the distance among stores and clients via on-line to the
offline area leading to an enhanced buying revel in for the consumer.
 A thrilling fact is that almost all the internet boom in India is occurring at the cellular
and is using growth throughout systems. By 2018, India is ready to witness 500 million net users
and the 280 million telephone customers will be the key drivers for e-commerce portals.
 The online retail zone has been given a similar increase with the government of
India's Digital India initiative. The authorities will supply offerings via cellular connectivity. It is
expected to take Internet and broadband centers to remote corners of us of a, presenting the
underlying connectivity for e-trade. This will, in addition, amplify the reach of the e-trade
marketplace into U. S. A.’s Tier IV cities and rural areas.
 The government is likewise revamping the Indian Postal Service to develop it as a
distribution channel for e-commerce services. This will appreciably improve delivery services and
coins transactions through coins on delivery charge options in more far-flung and rural areas,
growing the attain of e-commerce gamers and increasing the market.
 Contemporary customers have an ever-growing preference for products at the bottom
prices. E-retailing is developing the biggest disruption within the retail industry. This fashion will
maintain. The coming years are anticipated to convey transformation in generation utilization as
small and medium corporations make their on-line presence felt. With increasingly agencies
embracing e-trade and many roadblocks like connectivity and logistics being taken care of out, the
Indian online retail area will pressure consolidation in the market.