Define E-Tailers. What are the advantages and disadvantages of E-Tailing?
They are the stores which sell their products online via the internet. They maintain a website on which products, their pictures, features, price, etc., are displayed. The buyers can log on to site, select the good, place the order and make payment all through the internet.
Their goods get delivered at their home. E-tailers have become very popular due to convenience and wide variety they offer. For example – Ebay, Snapdeal, Amazon, Jabong, etc.
Advantages of E-Tailing:
(i) Cost – The price comparison section allows consumers to quickly compare prices from a number of different e-tailers offering the same product/services such that consumer can compare different prices and pick the best option.
(ii) Access (no physical location) – The consumer does not have to travel or go anywhere to see the products/services of online retailers.
(iii) Inventory – Larger number and variety of inventory, both products and services can be placed online without worrying about limited space and product placement on shelves.
(iv) Flexible time – From the comfort of one’s home, individuals can access the E-tailing sites 24/7 and even shop in the middle of the night.
Disadvantages of E-Tailing:
(i) Cost for website maintenance – Having an online retailing business is an added cost including maintenance, updates, server fees and other such fees.
(ii) Fulfillment problems – Slow delivery time is the concern mentioned by most online shoppers. Even though payments are made right away, the product takes approximately 5-7 days to reach the customer.
(iii) Payment and security concerns – With major problems like credit card frauds and scams, people are worried that their private information will be used and abused if it is given online.
(iv) Technological issues – Some entrepreneurs feel helpless, as they have to be dependent on others to run their online retailing sites. They feel technologically behind and not able to run the company like they run their retail stores.
