Answers:
A. Advantages of e-tailing/multi-channel retailing
There are advantages of e-tailing which cannot be found in other forms of retailing:
1. Cost: e-tailware software helped retailers in updating the information against competition & avoids the expenses by creating online catalogues instead of paper catalogue.
2. E-tailing creates a global bazaar style marketplace that gathers many consumers and many retailers.
3. Access (no physical location): travelling is not required to see and compare products since all information about the products are available online.
4. Inventory: Inventory of the products can be placed in larger quantity with all ranges available with a particular retailer without worrying about the space limitation and shelve availability for that product.
5. Flexible time: time flexibility in accessing the shop is a significant advantage of e-tailing. A customer can access the shop 24/7 according to their need and comfort.
B. Disadvantages of e-tailing/multi-channel retailing
The following can be the reasons for e-tailing not gaining as much popularity as expected.
1. Shopping is still a touch-feel-see-hear experience: In India, shopping is still considered to be a family outing and people do not feel the lack of time while going out for shopping. So, e-tailing faces the problem of customer retention.
2. Customer service, distribution and logistics related issues: it is evident that e-tailing facilitates business transactions but care should be taken to ensure that the products are delivered on time.
3. Mode of payment related issues: Credit cards are the preferred mode of payment for all online purchases. There is always a possibility of misuse of the card details.
4. Weak financial structure: The three elements that help in deciding if the e-tailing operation is profitable are:
· Average transaction size.
· Gross margins.
· Marketing costs.
5. Integrating online and offline orders: From an operations perspective, the easiest route for companies with a foot in both real and virtual world might be to enter electronic orders manually into the offline order management system.
retailers as they fear a possible misuse.