E-tailing PDF

**E tailing** The most important new trend in distribution in recent years is probably the development of online distribution. It is often called e-commerce or e-tailing because it involves the use of electronic systems to sell goods and services. There are two main types. BUSINESS TO CONSUMERS B...

**E tailing** The most important new trend in distribution in recent years is probably the development of online distribution. It is often called e-commerce or e-tailing because it involves the use of electronic systems to sell goods and services. There are two main types. BUSINESS TO CONSUMERS Business to consumers (B2C) is the selling of goods and services by businesses to consumers. Most e-tailing involves ordering goods online and taking delivery at home. However, new \'click and collect\' services are being developed where people order goods online and then pick them up from a store or a central hub. In London, UK, underground stations are being used as sites for hubs. Most large retailers now have online services. Other examples of B2C e-commerce include: tickets for air, rail and coach travel tickets for sports events, cinemas, theatres and theme parks, such as Alton Towers in the UK holidays, weekend breaks and hotel rooms access to online audio and film broadcasts a wide range of goods on eBay and other auction sites agent or broker intermediary that brings together buyers and sellers financial services such as banking and insurance. BUSINESS TO BUSINESS Business to business(B2B) involves businesses selling to other businesses online. Businesses can also use specialist software to purchase resources. The software helps to find the cheapest supplier and carries out all the paperwork. The benefits to consumers and businesses of online distribution are summarised in the two boxes opposite. Benefits to businesses of online distribution E-tailers may not have to meet the costs of operating stores Lower start-up costs - both fixed and variable costs are lower Lower costs when processing transactions - many systems are automated Less paper is needed for documents such as invoices and receipts Payments can be made and received online using credit cards or online payment systems B2C businesses can offer goods to a much wider market - for example, global Businesses can serve their customers 24/7 Businesses have more choice when locating their operations Despite the advantages to both consumers and businesses of online distribution, there are some disadvantages. Businesses will face increasing competition since selling online is a relatively cheap method of distribution and can be organised from any location in the world. Consequently, businesses will face more competition from overseas. There is a lack of human contact, which might not suit some customers. There is also a heavy dependence on delivery services where e-tailers often lack control on the quality of delivery. There may be technical problems online. For example, websites may crash. The site may be affected by malware and Internet connections can go down. There is a security risk as computer hackers might gain access to sensitive information. Consumers cannot touch or look at goods before purchase and people may have problems taking delivery of goods if they are out. Customers may experience poor aftersales service. Customers without Internet access and credit cards may be excluded. Fake traders may be more difficult to identify online.