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Outline

Introduction
 
General: in recent years internet retailing has been growing steadily. on the strength of
rapidly evolving consumer shopping habits and game changing technology
 
Background: increasingly, existing clients of physical stores are shifting to online shopping,
who are driven by superior selection, lower prices and even greater convenience
 
Specific: with the highly improved technology and everything else running an online retailing
store would be easier and more successful
 
Opposing view: people choose traditional in store retailing over online, mostly for their
satisfaction, privacy and trust issues
 
Argument thesis statement: however, with sufficient technology and money online retailers
could overcome these challenges.
 
Preview: this essay will argue for the benefits of running an online retail business and why
running a traditional business so more challenging than an online business

Body
1. Consumer satisfaction
Argument 1: online retailing stores has a wider rage than a traditional store.
(Paraphrase1)
 
Counter argument 1: however, having a physical store can affect the customer's trust for
the brand (paraphrase 2) (quotation 1)
 
Refutation 1: with technology online shopping might be the best option for both
customer and the retailer.
(Paraphrase 3) 
2. Argument 2: online shopping has been increasing due to travelling difficulties
(paraphrase 4)
 
Counter argument 2: However, it may be difficult to set up an effective and efficient
distribution channel on such a scale than traditional retailing (paraphrase 5)
 
Refutation 2: online retailers seek to maintain substitutions and not to exceed stock-out
rates generally found across various product categories (Paraphrase 6)
 
3. Returning
Argument 3: with the use of internet increasing online shopping is getting popular
among teenagers (paraphrase 7)
 
Counter argument 3: inability to provide the customer with the opportunities to touch
and feel a product before purchasing (Paraphrase 8)

Refutation 3: use of multi-channel product distribution and how it help the online
retailer to over the challenges (Paraphrase 9)
 
 Conclusion

In short due to so many reasons both customer and the retailer will choose online
shopping instead of traditional in store shopping.
In recent years online retailing has been growing steadily on the strength of rapidly evolving

consumer shopping habits and game changing high technology. The success of a business all

depends on their customers. Hence the retailer should give more attention to the things that

can make the customer unsatisfied. Existing customers of physical stores are increasingly

switching to online shopping due to the improved assortment, lower pricing, and even greater

convenience that is offers. Moreover, for someone who is starting a new business, online

would be the best option because thousands of people that can be reached through the

internet, therefore it has a high chance of success. Despite that customers choose traditional

in store retailing over online mostly for their satisfaction, privacy and trustworthiness.

However, with sufficient technology and money online retailers should be able to overcome

these issues and build a strong relationship with their customers. This essay will argue for the

benefits of running an online retail business and why traditional retailing will possibly be

replaced completely by online due to the difficulties that the retailer faces while running the

business.

[Arg 1] Firstly, the range and variety of products offered on a retailer’s website have a big

impact on customer satisfaction and perception. Studies by Cao et al. (as cited in Nguyen,

Leeuw & Dullaert,2016) consumers frequently judge an online store first based on the variety

of products supplied while searching for a product in an online store. In addition to other

operational aspects, the product choice and product range explored affect the like hood of

repeat purchases. Since most of the online retailers can overcome these difficulties having a

wider range of products attract the customer more towards online shopping. Instead of

driving or travelling from one store to another, customers can move from one website to

another website by simply navigating between the websites. [CA 1] on the other hand

Jarvenpaaa, Tractinsky and Vitale (2000, pp.45-71) describes that “the presence of a physical

store or the recognition of the merchant’s name might have an effect on consumer trust in an
internet-based store.” In addition, they have shown the ability and motivation to consistently

supply goods of the expected quality are prerequisites for trust to exist and building this trust

in an online business is more difficult than a traditional retail store. [Ref 1] Even so, with the

help of technology online retailers have managed to make online shopping less tiring for the

customer which makes the customer more attracted to online shopping. Nepomuceno,

Laroche and Richard (as cited in Chakraborty, Lee & Upadhyaya, 2016) discuss that an

illustration of this would be adding products to a shopping cart and then checking out later,

this process is comparable to placing your items in a physical shopping cart and browsing the

aisles until it is time to pay, because online buying is so convenient, fewer people feel the

hazards that might have been associated with it because purchases aren’t tangible.

[Arg 2] Secondly, physical activity is required to move between retailers in offline traditional

stores. Instead of driving or travelling from on store to another, the customer moves from one

retailer to another in online stores by simply switching between the websites. This is a one of

the main reasons why online retailing is easier than traditional retailing because this make the

customer choose online shopping over traditional in store shopping even without a lot of

marketing. According to eMarketer (as cited in Mandel, Basu & Saha,2021) the impact of the

coronavirus pandemic was caused online retail sales to increase by 18% in 2020. [CA 2]

studies by Kopczak (as cited Koster, 2003) describes the ability to sell goods in a far larger

global territory than was previously conceivable seems to be made possible by the internet,

despite that setting up an effective and efficient distribution route on this scale can be

challenging. Which traditional in store retailers do not see as a challenge since the customer

come to the store themselves and buy their needs.[Ref 2] Nevertheless, Boyer and Hult( as

cited in Nguyen, Leeuw & Dullaert,2016) discuss that online retailers aim to maintain

substitutions and not to go above stock out rates that are often observed across different
product categories because they want to make sure that there is a wide variety of products on

their websites, as in a traditional store.

[Arg 3] Palmer describes (as cited in Koster, 2003) the importance of the internet as a new

sales channel is rising. Currently, just a small portion id the $2.2 trillion retail sector may be

attributed to the internet. However, this market is anticipated to grow 50 times more quickly

than in store buying. [CA 3] Online based retail businesses do present their own unique

difficulties. As Nageswaran, Cho and Wolf (as cited in Mandal, Basu & Saha,2021) argue

one of the issues confronting an online retailer is that online businesses the customer cannot

see and accurately assess a product in person before making a purchase. As a result, many

buyers return the products that do not meet their needs or expectations. Which is huge

challenge that most of the online retailers are experiencing. [Ref 3] Studies by Wolf (as cited

in Mandal, Basu & saha,2021) many retailers have begun using a multi-channel product

distribution strategy, supply products through both physical offline locations and web based

online stores, in order to address the difficulties posed by product returns. This way,

customers can explore or assess products and afterwards receive the necessary product

information for their online purchase.

In conclusion, despite studies indicating difficulties regarding the management of an online

retail business such as consumer satisfaction, efficient distribution and higher rate of product

returns, research implies that running a web based online store is simpler than maintaining a

traditional brick and mortar store. With time, highly improved technology as well as the

transport improvement will help the online retailer to overcome these challenges. An online

business often allows the retailer to avoid some of the significant costs associated with a

traditional business hence online businesses could completely replace traditional in store

businesses in the future.


Reference list

Chakrabort,R., Lee,J., Banchisen,S., Upadhyaya, & Rao,H.(2016). Online shopping intention

in the context of data breach in online retail stores: an examination of older and younger

adults. Decision Support System, 83, 47-56. https://doi.org/10.1016/j.dss.2015.12.007

Jarvenpaa,L., Tractinsky,N.,& Vitale,M. (2000). Consumer trust in an internet store. Journal

of information technology and management,1, 45-71.

https://doi.org/10.1023/A:1019104520776

Koster,R.B,M.(2003). Distribution strategies for online retailers. IEEE Transactions on

Engineering Management,50(4),448-457. 10.1109/TEM.2003.820135

Mandal,P., Basu,P., & Saha,K. (2021). Forays into omnichannel: an online retailer’s

strategies for managing product returns. European journal of operational research,

292(2), 633-651. https://doi.org/10.1016/j.ejor.2020.10.042

Nault,B.R., & Rahman, M.S., (2018). Proximity to traditional physical store: the effects of

mitigating online disutility. Production and Operations Management,28(4),1033-1051.

https://doi-org.ezproxy.auckland.ac.nz/10.1111/poms.12957

Nguyen,D.H., Leeuw,S.D.,& Dullaert,W.E.H. (2016). Consumer behaviour and order

fulfilment in online retailing: a systematic review. International Journal of Management

Reviews, 20(2),255-276. https://doi.org/10.1111/ijmr.12129


Original texts My in-text citations
When searching for a product in a web Studies by Cao et al. (as cited in Nguyen,
shop, consumers often will assess an Leeuw & Dullaert,2016) consumers
online retailer first based on the variety frequently judge an online store first based
of products offered. Product selection on the variety of products supplied while
and product range investigated, among searching for a product in an online store. In
other operational factors, have an
addition to other operational aspects, the
impact on repeat purchase intentions
product choice and product range explored
affect the like hood of repeat purchases.
Using an experiential survey, on the other hand, Jarvenpaaa, Tractinsky
Jarvenpaaa et al. (2000) found that for and Vitale (2000, pp.45-71) describes that
trust to exist a consumer must believe “the presence of a physical store or the
that the seller has both the ability and recognition of the merchant’s name might
motivation to reliably deliver goods of have an effect on consumer trust in an
the quality expected, and this trust is internet-based store.” In addition, Jarvenpaaa
more difficult to engender for an online
(2000) has shown the ability and motivation
store than a traditional retail store.
They speculate that “the presence of a to consistently supply goods of the expected
physical store or the recognition of the quality are prerequisites for trust to exist, and
merchant's name might have an effect building this trust in an online business is
on consumer trust in an Internet-based more difficult than a traditional retail store
store” (Jarvenpaaa et al. 2000).
One such example would be saving Nepomuceno, Laroche and Richard (as cited
items in a “shopping cart” and in Chakraborty, Lee & Upadhyaya, 2016)
checking out at a later point. This discuss that an illustration of this would be
workflow is akin to dropping objects in adding products to a shopping cart and then
a physical shopping cart and walking
checking out later, this process is comparable
around the store until it is time to check
out. This convenience in online
to placing your items in a physical shopping
shopping experience has reduced the cart and browsing the aisles until it is time to
perceived risks towards online pay, because online buying is so convenient,
shopping that could have been fewer people feel the hazards that might have
attributed to the lack of physical been associated with it because purchases
tangibility. (Nepomuceno, Laroche and aren’t tangible.
& Richard,2014)

 According to eMarketer’s forecast, the According to eMarketer (as cited in Mandel,


e-commerce sales will grow by 18% in Basu & Saha,2021) the impact of the
2020 due to the impact of the coronavirus pandemic was caused online
coronavirus pandemic (eMarketer, retail sales to increase by 18% in 2020.
2020a)
The Internet seems to offer the studies by Kopczak (as cited Koster, 2003)
possibility to sell products in a large describes the ability to sell goods in a far
worldwide region that is beyond what larger global territory than was previously
was traditionally possible. However, it conceivable seems to be made possible by
may be difficult to set up an effective the internet, however setting up an effective
and efficient distribution channel on
and efficient distribution route on this scale
such a scale
can be challenging
- Since online retailers want to ensure However, Boyer and Hult (as cited in
that there is a wide range of products Nguyen, Leeuw & Dullaert,2016) discuss
on their website, as in a traditional
shop, they seek to maintain that online retailers aim to maintain
substitutions and not to exceed stock- substitutions and not to go above stock out
out rates generally found across rates that are often observed across different
various product categories (Boyer and product categories because they want to
Hult 2005b). make sure that there is a wide variety of
products on their websites, as in a traditional
store
The INTERNET is becoming Palmer describes (as cited in Koster, 2003)
increasingly important as a new sales the importance of the internet as a new sales
channel. Currently, the Internet is only channel is rising. Currently, just a small
responsible for a minor segment of the portion id the $2.2 trillion retail sector may
$2.2 trillion retail market. This be attributed to the internet. However, this
segment is, however, projected to grow
market is anticipated to grow 50 times more
50 times faster than in-store shopping
(Palmer,2000) quickly than in store buying.

The most compelling is the inability of As Nageswaran, Cho and Wolf (as cited in
customers to physically inspect and Mandal, Basu & Saha,2021) argue one of the
precisely evaluate a product before issues confronting an online retailer is that
purchasing it (Nageswaran, Cho & online businesses the customer cannot see
wolf,2020)
and accurately assess a product in person
before making a purchase.
To address the challenges associated Studies by Wolf (as cited in Mandal, Basu &
with product returns, many retailers saha,2021) many retailers have begun using a
have started adopting a multi-channel multi-channel product distribution strategy,
product distribution approach by supply products through both physical offline
offering products through both web-
locations and web based online stores, in
based digital channels and physical
offline stores (Wolf, 2018). 
order to address the difficulties posed by
product returns.
 Using an experiential survey, Jarvenpaaa, Tractinsky and Vitale (2000,
Jarvenpaaa et al. (2000) found that for pp.45-71) describes that “the presence of a
trust to exist a consumer must believe physical store or the recognition of the
that the seller has both the ability and merchant’s name might have an effect on
motivation to reliably deliver goods of consumer trust in an internet-based store.” In
the quality expected, and this trust is
addition, they have shown the ability and
more difficult to engender for an online
store than a traditional retail store.
motivation to consistently supply goods of
They speculate that “the presence of a the expected quality are prerequisites for trust
physical store or the recognition of the to exist and building this trust in an online
merchant's name might have an effect business is more difficult than a traditional
on consumer trust in an Internet-based retail store.
store”

(998words)

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