E-tailing and Online Distribution Quiz

E-tailing (Online Distribution)

• E-tailing, also known as e-commerce, is a significant trend in modern distribution, using electronic systems for selling goods and services.
• Two primary types exist: Business-to-Consumer (B2C) and Business-to-Business (B2B).

Business-to-Consumer (B2C)

• Involves businesses selling directly to consumers.
• Often includes online ordering and home delivery.
• Emerging "click and collect" services are allowing customers to order online and pick up from physical stores or central hubs.
• Examples include purchasing tickets (air, rail, events), booking holidays, accessing online entertainment (e.g., audio, film), and purchasing goods from auction sites (e.g., eBay).
• Online services are increasingly offered by large retailers.

Business-to-Business (B2B)

• Businesses selling goods or services to other businesses.
• Often utilizes software for efficient purchasing processes, finding suppliers, and managing paperwork.
• Software can help determine the cheapest supplier and automate paperwork.

Benefits of Online Distribution (for Businesses)

• Lower startup costs (fixed and variable).
• Automated transaction processing, saving costs.
• Reduced paperwork and use of resources such as less paper needed for invoices and receipts.
• Payments can be made and received using online systems and credit cards, which are automated options
• Access to a wider global market with potential to reach customers anywhere globally.
• Availability to serve customers around the clock (24/7).
• Increased operational flexibility, with opportunities to locate operations more strategically.

Disadvantages of Online Distribution

• Increased Competition: Easy online access allows businesses to compete from any location, including overseas businesses and international competitors.
• Reduced Human Contact: Online platforms may lack the personal interaction some customers prefer.
• Reliance on Delivery Services: Quality control of delivery services can be challenging to manage.
• Technical Issues: Potential for website crashes, malware, and internet connection problems.
• Security Risks: Computer hackers might access sensitive customer information.
• Difficulty with Order Verification and Delivery: Customers may have difficulty verifying or receiving products due to inability to physically view the merchandise before purchasing.
• Potential issues including taking delivery if customers are out.
• Customers may experience difficulties with after-sales service.
• Customers lacking internet access or credit cards may be excluded.
• Potential for fraudulent activity (e.g., fake traders) may make it difficult to identify legitimate businesses.

Test your knowledge on e-tailing, a key trend in online distribution. This quiz covers the distinctions between Business-to-Consumer (B2C) and Business-to-Business (B2B) approaches, including examples and emerging services. Dive into the world of e-commerce and discover how businesses leverage online platforms.