Digital Business Applications - I

Electronic Retailing

• Electronic retailing (E-tailing) is the sale of goods and services through

the internet.
• E-tailing can include business-to-business (B2B) and business-to-
consumer (B2C) sales of products and services.
• The process of e-tailing requires the company to capture internet sales
by building out different sorts of distribution channels.
• It is the direct sale of information, products, or service via virtual
stores available on webs and sites as thousands of e-commerce sites
are present on the internet which are behaving like an extension of
existing start-ups.
• In 1995 , e-retailing was used in internet firstly.
• Also called as Online Retail, Electronic retailing or Internet Retailing
• E-retailing through the websites along with helpful links.
• Minimized problems of traditional shopping
Electronic Retailing

• E- Retailing
• Retailer
• Retailor is a sales intermediaries, a seller that operates between
manufactures and consumers.
• E-tailers
• Retailers who sell over the Internet
• Amazon.com is the most recognize e-tailer worldwide
• E- retailing
• Retailing conducted online, over the Internet.
• E-tailing makes it possible for a manufacture to sell directly to
consumers, cutting out the intermediaries
Electronic Retailing

• Characteristics E- Retailing
• Offer an assortment of product
• Products are usually not on hold
• Cannot touch & feel the product
• Provides better information
• To perform competitive shopping
• Digitized format (e.g., software, music, or videos)
• High brand recognition (e.g., Sony)
• Easy access 24x7
• Multiple payment method
• Accessible
• No of products at one places
Electronic Retailing

• Advantages E- Retailing
• Minimum Investment
• Easy to use
• Customer Interaction
• Mass Media
• Search Option
• User friendly
• Effective price Discrimination
• Customized product Display
• Global reach
• Cost reduction
 Electronic Retailing
• Disadvantages E- Retailing
• Security Issues
• Unsuitable for certain Products category
• Shopping is Still a Touch –Feel hear Experience
• Limited access to the internet
• e-tailing does not provide the emotional shopping experience that
physical stores can offer. Emotional shopping often results in consumer
spending.
• E-tailing does not give the consumer experience shopping where consumers
hold, smell, feel, or try on products before purchasing them.
• Adequate resources are necessary to handle online returns and customer
disputes.
 Electronic Retailing
• Types of E- Retailing
• Business-to-Consumer (B2C) E-Tailing
• Business-to-consumer retailing is the most common of all e-commerce
companies and the most familiar to most Internet users.
• This group of retailers includes companies selling finished goods or
products to consumers online directly through their websites.
• The products could be shipped and delivered from the company's warehouse
or directly from the manufacturer.
• One of the primary requirements of a successful B2C retailer is maintaining
good customer relations.
 Electronic Retailing
• Types of E- Retailing
• Business-to-Business (B2B) E-Tailing
• Business-to-business retailing involves companies that sell to other
companies.
• Such retailers include consultants, software developers, freelancers, and
wholesalers.
• Wholesalers sell their products in bulk from their manufacturing plants to
businesses. These businesses, in turn, sell those products to consumers.
• In other words, a B2B company such as a wholesaler might sell products to
B2C company.
E- tailing Business Model
 E- tailing Business Model

• Classification of Model by Distribution Channel

1. Traditional Mail-order retailers that go online

2. Direct marketing from manufacturers
3. Pure-play retailers
4. Click-and-mortar retailers
5. Internet (online) malls
 E- tailing Business Model
• Classification of Model by Distribution Channel

1. Traditional Mail-order retailers that go online

• Important in UK marketplace
• 11% of women’s wear
2. Direct marketing from manufacturers
• Sellers can understand their markets better because of the direct connection
to consumers
• Consumers gain greater information about the products through their direct
connection to the manufacturers
3. Pure-play retailers
• Firms that sell directly to consumers over the Internet without maintaining
a physical sales channel
 E- tailing Business Model
• Classification of Model by Distribution Channel

4. Click-and-mortar retailers
• To refer a business in which a company uses offline as well as online
channels.
5. Internet (online) malls
• Also called virtual shopping mall
• Collection of multiple online stores.
Online malls are of two types
1. Referring Directories
2. Malls with shared shopping services
Social Shopping
 Social Shopping
• Social shopping is a method of e-commerce where shoppers' friends become
involved in the shopping experience.
• .Social shopping is a type of e-commerce that seeks to involve people with
similar tastes in an online shopping experience.
•  Also called as Sales 2.0
• Involves shoppers as well as their friends
• To imitate social interactions
• Social media tools & networks are used to shopping experience
• It merges e-commerce with social media
• It uses following features
• Discussion groups
• Blogs
• Recommendations
• Review
Social Shopping
• Social shopping can be categorized as
• 1. Group shopping sites :
• Allows individual customers to purchase products/services in a group
• These sites encourage groups of people to buy together at wholesale prices
• Example: Groupon, Costco, Living Social, Gilt City
• 2. Shopping Communities :
• Shopping communities bring like-minded people together to discuss,
share, and shop.
• Using the wisdom of crowds, users communicate and aggregate information
about products, prices, and deals.
• Many sites allow users to create custom shopping lists and share them with
friends
• Fashion communities have largely dominated this space
Social Shopping

• Social shopping can be categorized as

• 3. Recommendation engines:
• Recommendation engines allow shoppers to provide advice to fellow
shoppers.
• The in-store analogy for this category of social shopping is asking a fellow
shopper for advice.
• 4. Social Shopping Marketplaces:
• Social Shopping Marketplaces which bring sellers and buyers together to
connect and transact
• The marketplace bridge gap between buyers & sellers by creating a forum 
Social Shopping
• Social shopping can be categorized as
• 5. Shared Shopping mechanisms
• Shared Shopping mechanisms for catalog-based e-commerce sites.
• These allow shoppers to form ad hoc collaborative shopping groups in
which one person can drive an online shopping experience for one or more
other people, using real-time communication among themselves and with
the retailer.
Social Shopping
• Benefits of Social shopping
• Brings all products into one place
• Shares information about its users with retailers
• Focuses on user recommendations & interactions
• Concentrate on motivation to its customers
• Improved Customer Engagement
• Consistent Audience Growth
• Increased Average Order Value
• Higher Search Engine Ranking
• Improved Customer Insights
Social Shopping
• Drivers of Social shopping
• Advertisers are attracted by no of people
• Ease & Speed of accessing increasing no of recommendations
• Requirement to compete & fulfil customer satisfaction
• Number of potential customers
• Need to cooperate among business partners
• Huge discount
• Group buying oriented
• Ease of purchasing from social networks
• Ease of communication between friends
 Social Shopping Aids
• Recommendation in Social Commerce
• Online consumers use shopping aids for comparing price & reading product
reviews.
• Rating & reviews :
• Evaluation of quality of any product on a given scale is referred as Rat-
ing.
• The written summery of any product & reason for recommending or not
recommending that product is referred as a review.
• Some tools for conducting rating & reviews:
1. Customer Rating & Reviews
2. Customer Testimonials
3. Expert Rating & reviews
4. Sponsored reviews
5. Conversational Marketing
6. Video product review
Social Shopping Aids
• Social Recommendation & Referrals
• Recommendation means that any shoppers can give and take advice to and
from others.
• Recommendation & referrals are integrated with the rating & reviews.
• Some of methods commonly used for Recommendation & Referrals are :
• Social Bookmarking
• Personal Social Recommendations
• Referral Programs
• Matching Algorithms
Social Shopping Aids

• Social Marketplace & Direct sales

• Like online mediator between customers & sellers
• It is basically marketplace which uses social tools & platforms.
• Example : craigslist, Fotolia, Flipsy
Real Time online shopping

• Allow shoppers to log on to a site and connect with the site through Social me-
dia
• Facebook immediately from mobile or computer
• Connected using twitter
• On social media sites friends shop together at real time
The Online Vs Offline Competition
• Searching Cost of Customers
• Online - Cost is very low due to search , comparison engine & mobile
• Offline - as compared to online cost is high
• Delivery Time
• Offline : Physical store order fulfillment immediate
• Online : It will take time
• Distribution Cost
• Offline – Spend their money in developing stores ,managing inventories
• Online- Pay mostly for packaging & shipping
• Price –
• Online mostly offer low price
• Offline sometimes with higher price
The Online Vs Offline Competition
• Information Accessible to Purchasers
• Online – can not touch physically but able to see information about product
• Offline – touch physically
• Other Influencing factors
CLICK & BRICK Model
• A business model which integrates both online(Bricks) & offline (Clicks)
• Also called as click & mortar, click & bricks , Click & flips

• Advantages :
• Core competency
• Current Supplier Network
• Existing distribution channels
• Brand Equity
CLICK & BRICK Model
• A business model which integrates both online(Clicks) & offline (Bricks)
• Also called as click & mortar, click & bricks , Click & flips
• Purchase Products by visiting the stores but can order the products online.
• Most of traditional retailers who have extensive use of logistics and supply
chain are dependent on this model.
• Improve the supplier network.
• Developed stores.

• Advantages :
• Core competency
• Current Supplier Network
• Existing distribution channels
• Brand Equity
Product and Service Customization and
Personalization
• Personalization
• Personalization is the act of tailoring an experience or communication
based on information a company has learned about an individual. 
• To meet the needs of customer in pre effective & efficient manner.
• Makes interaction faster & easy
• Enhance customer satisfaction
Product and Service Customization and
Personalization
• Customization
• Modification of something to match a particular task.
• To modify or build according to individual or personal specifications or
preference
• Mass customization is used to meet large demand for customized product.
• Customized products offered by various companies
• Example – Netflix - when customers sign up for Netflix, the service asks users
to select a few shows they like and then displays a list of options based on
those choices.
Fintech (Financial Technology)
• E-Banking
• Use of computers and telecommunications to enable banking transactions to
be done by telephone or computer rather than through human interaction
• Electronic banking has many names like e banking, virtual banking, online
banking, or internet banking.
• Electronic banking has vastly reduced the physical transfer of paper money
and coinage from one place to another or even from one person to another.

• Services provided by Internet Banking

• Bill Payment
• Fund Transfer
• Credit card services
• Investment
• Recharging prepaid phones
• Shopping
Fintech (Financial Technology)
• E-Banking
• Advantages
• Convenient
• Unlimited Services
• No time constraints
• Easy access
• Easy bill payment
• High rate of interest
• Easy transaction
• Efficient & Effective
Fintech (Financial Technology)
• Mobile Banking
• Mobile banking is a service provided by a bank or other financial institution
that allows its customers to conduct financial transactions remotely using a
mobile device such as a smartphone or tablet.

• Services offered by mobile banking

– Getting mini statement
– Getting alert
– Getting summery of loan
– Requesting new cheque book
– Recharging mobile
Fintech (Financial Technology)
• Pure Virtual Banks
Fintech (Financial Technology)
• Pure Virtual Banks
• A financial institution that handles all transactions via the Web, email,
mobile check deposit and ATM machines. 
• Customer access banking related services over the internet
• Include ATMS, RTGS , NEFT.
• Can check all transactions real time
• Reduced customer waiting time