E-Tailing

INTRODUCTION
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.
E-tailing requires companies to tailor their business models to capture internet sales,
which can include building out distribution channels such as warehouses, internet
webpages, and product shipping centers.
Notably, strong distribution channels are critical to electronic retailing as these are
the avenues that move the product to the customer.
KEY TAKEAWAYS

Electronic retailing 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.
Amazon.com (AMZN) is by far the largest online retailer providing consumer products
and subscriptions through its website.
Many traditional brick-and-mortar stores are investing in e-tailing through their
websites.
 FEATURES OF E-TAILING
Electronic retailing includes a broad range of companies and industries. However, there are
similarities between most e-tailing companies that include an engaging website, online
marketing strategy, efficient distribution of products or services, and customer data
analytics.
Successful e-tailing requires strong branding. Websites must be engaging, easily navigable,
and regularly updated to meet consumers' changing demands. Products and services need to
stand out from competitors' offerings and add value to consumers' lives. Also, a company's
offerings must be competitively priced so that consumers do not favor one business over
another just for price reasons.
E-tailers need distribution networks that are prompt and efficient. Consumers cannot wait for
long periods for the delivery of products or services. Transparency in business practices is
also important, so consumers trust and stay loyal to a company.
There are many ways companies can earn revenue online. Of course, the first income
source is through the sales of their product to consumers or businesses. Both B2C and
B2B companies can earn revenue by selling their services through a subscription-
based model such as Netflix (NFLX), which charges a monthly fee for access to media
content.
Revenue can also be earned through online advertising. For example, Meta (META),
formerly Facebook Inc., earns money mainly from ads placed on its Facebook website
by companies looking to sell to the millions who are "on Facebook," regularly
checking their pages.
TYPES OF E-TAILING
Online retailers - independent ecommerce apps and websites like ASOS (As Seen On Screen),
Target and Walmart
Marketplaces - online platforms that bring multiple sellers and buyers together in one place,
including Amazon, eBay and Alibaba
Coupon providers - e-tailers offering limited-time sales events with discounted prices on
specific products like Groupon and Woot
Subscription-based model - e-tailers providing products that customers pay recurring fees for,
like Dollar Shave Club or HelloFresh
Social commerce - e-tailers using social media channels like Instagram, Facebook and Pinterest
to sell their products
Auction sites - e-tailers using eBay to sell their products in a specific time frame via a bidding
process
Online classifieds - e-tailers enabling individuals and businesses to list products or services for
sale and connect with them directly, like Craigslist and Gumtree
ADVANTAGES OF E-TAILING
 E-tailing includes more than just e-commerce-only companies. More and more traditional
brick-and-mortar stores are investing in e-tailing. Infrastructure costs are lower with
electronic retailing versus operating brick-and-mortar stores.
 Companies can move products faster and reach a larger customer base online than with
traditional physical locations. E-tailing also allows companies to close unprofitable stores
and maintain the profitable ones.
 Automated sales and checkout cut down on the need for staff and sales personnel. Also,
websites cost less than physical stores to open, staff, and maintain. E-tailing reduces
advertising and marketing expenses as customers can find the stores through search
engines or social media. Data analytics is like gold for e-tailers.
 Consumer shopping behavior can be tracked to determine spending habits, page views,
and length of engagement with a product, service, or website page. Effective data
analytics can decrease lost sales and boost client engagement, which can lead to
increased revenue.
DISADVANTAGES OF E -TAILING
 There are disadvantages to running an e-tailing operation, though. Creating and
maintaining an e-tailing website, while less expensive than a traditional retail
location, can be expensive.
 Infrastructure costs can be substantial if warehouses and distribution centers need to
be built to store and ship the products.
 Adequate resources are necessary to handle online returns and customer disputes.
 E-tailing does not provide the immersive, emotional experience that physical stores
can offer.
 E-tailing does not give the consumer a chance to smell, feel, or try on products
before purchasing them—sensory experiences that often result in a decision to buy;
browsing is also more pleasurable in person, and lends to increased spending.
 Personalized customer service and interaction can also be an advantage to brick-
and-mortar stores.
SCOPE OF E-TAILING
 The market for E-tailing is forecast to reach $9.09 trillion by 2026, growing at a
CAGR of 15% from 2021 to 2026.
 Electronic retailing (E-tailing) is simply the sale of products and services through the
Internet.
 The E-tailing Market is estimated to witness sustainable growth over the forecast
period majorly because of improved online marketing strategy, distinctive offering,
customer data analytics integration and vast availability of products and services
available to the customers.
 E-tailing allows many established business and start-ups companies to sell their
goods and services in the global market with ease.
 E-retailing provides customers with different availing offers of product and services
which tends to drive its market growth globally.
 Offering door to door delivery of vast quantities of products and services to the
customers provides virtual transparency between Customers and Retailing company.
GROWTH DRIVERS TO E-TAILING
 Increase in online shopping population: According to (India Brand Equity Foundation)
IBEF, over 120 million are expected to shop online in 2024 and this number is
expected to go up to 175 million by 2030. This trend shows the magnificent
opportunities for e-tail sector in the country.
 Internet and Smart phone penetration: Technological advances in the country have
contributed to the increasing penetration of devices which are needed for the growth
of online retail business. Smart phones are now available at affordable prices and
the launch of 4G Internet services at low cost by domestic service providers is
offering huge opportunities for the growth of e-tail business in the country.
 In the first quarter of 2018 the penetration of Internet in India’s urban areas stood
at 82.10 per cent and that in rural areas stood at 19.48 per cent (IBEF, 2018).
Further, the online retailers in India are developing smart phone applications for the
further convenience of customers.
 Growing popularity of smart phones, tablets, and other smart devices can enhance
the e-tailing opportunities in the country.
 Multiple payment options: A customer making online purchases can now make the
payments according to his or her convenience.
The online retailers provide a wide option to the customers to select their payment
mode.
The various payment options available to the customers include debit/ credit cards,
Electronic/Mobile wallets, Unified Payments Interface (UPI), Net Banking, Equated
Monthly Instalments (EMIs), and Cash on Delivery (COD) options.
COD is the most popular payment option in India. With the emergence of secured
online transactions like Two-way authentication and OneTime Passwords (OTPs),
customers are now more comfortable making online payments for their purchase.
Banks and e-commerce sites are addressing the various security issues concerning the
customers and this has enhanced growth in online retail business.
Changing customer lifestyle: The customer lifestyle has been changing lately owing to
changes in the level of disposable income and rapid urbanisation. The disposable
income of the customers is gradually increasing over years and this has encouraged
them to make more online purchases
5. Internet content in local languages: Few years ago, only the customers who were
comfortable with English used to shop online. However, to reach the Non English speaking
population of the country, the online retailers are now offering their sites content in local
languages. Snapdeal.com was the first online retailer to provide product descriptions in local
languages in 2014. Soon, other global etailers operating in India added this feature in their
websites. Recently, Flipkart acquired the Artificial Intelligence Company Liv.ai, in order to
convert speech to text in nine Indian languages and help accelerate an end-to-end
conversational shopping experience to its users (Bansal, 2018).
6. Growth of logistics and warehouses: With the development in logistics sector in the country,
online retailers are now able to deliver even to remote areas of the country. According to IBEF,
with an estimated investment of nearly USD 2 million in the logistics and warehousing sector,
the online retailers are able to reach even the Tier-II and Tier-III cities of the country (IBEF,
2018).
 7. Growth of price comparison sites: One of the reasons for the vigorous growth of online
shopping is the development of price comparison sites. These sites allow the customers to
compare the product prices across various online stores and choose the store which offers the
cheapest price. Additionally, the payment and delivery options available can also be
compared side by side. This advantage created by the comparison sites urges the customers to
adopt online shopping as they can get the best deal. The negative side of this development is
that online retailers have to strive hard to gain customer loyalty as customers’ loyalty can shift
with few clicks.
8. Social Media influence: According to Statista, social network users in India are estimated to
reach 258.27 million in 2019 from 168 million in 2016. Social Media like Facebook, Twitter,
Instagram, Youtube, Pinterest and others have a great influence on customers’ purchase
decision and driving e-tail growth. Social media enables online retailers to establish stronger
web presence, generate leads and increase web traffic (Jothi & Gaffoor, 2017). The increase
in the Internet-habituated customer base, development of e-tailing enabling infrastructure, like,
penetration of Internet supporting devices and proliferation of technologies enabling Internet
access, and improved e-commerce ecosystem in the country have resulted in rapid growth of
e-tail sector.
Some of the major merchandise categories and the major players therein are listed below:
Art and handicrafts: Engrave.in, Craftslane.com, TheIndiaCraftHouse.com,
Kauthuk.com, Artzolo.com
Auto parts and spares: Boodmo.com, Spareshub.com, GenuineParts.in,
Snapdeal.com, Sparesncare.com, Amazon.in, Autokartz.com
Books: Amazon.in, Flipkart.com, Infibeam.com, Bookswagon.com,
Sapnaonline.com
Clothing, Apparels, and Accessories: Amazon.in, Flipkart.com,
Snapdeal.com.com, Myntra.com, Jabong.com, Limeroad.com, Ajio.com
Desktops, Laptops, and Accessories: Amazon.in, Flipkart.com, Croma.com, Shopclues.com,
Paytmmall.com, The IT Depot, Infibeam.com
Electronics: Croma.com, Tatacliq.com, Amazon.in, Paytmmall, Snapdeal.com, Shopclues.com,
Flipkart.com
Eye wears: Lenskart.com, Eyeplus.titan.co.in, Specswala.com, Smartbuyglasses.co.in
Food: Foodpanda.in, Zomato.com, Swiggy.com
Grocery: Bigbasket.com, Grofers.com, Naturesbasket.co.in, Zopnow.com, Amazon.in,
Freshdirect.com
Home furnishing: Pepperfry.com, Urbanladder.com, Woodenstreet.com, Amazon.in,
Flipkart.com, Shopclues.com, Hometown.in
Industrial supplies: Amazon.in, Industrybuying.com, Supplify.com, Tolexo.com,
Industrykart.com, Snapdeal.com
Jewellery: Bluestone.com, Caratlane.com, Voylla.com, Candere.com, Amazon.in, Flipkart.com,
Craftsvilla.com, Titan.co.in, PCJeweller.com
Kitchen supplies: Amazon.in, Flipkart.com, Snapdeal.com, Limeroad.com, Homeshop18.com
Luggage: Amazon.in, Flipkart.com, Pepperfry.com, Jabong.com, Safari.in, Shop.vipbags.com
Medicines: NetMeds.com, Medlife.com, Pharmeasy.in, Medplusmart.com, Medibuddy.in,
Practo.com, Appollopharmacy.in
Mobile phones and accessories: Snapdeal.com, Amazon.in, Flipkart.com, SangeethaMobiles,
Infibeam.com, Shopclues.com
Office Supplies: Amazon.in, Flipkart.com, Offimart.com, OfficeDepot.com, Stationaryshop.in,
Statmo.in
Pet supplies: Petsworld.in, Amazon.in, Pupkart.com, Petsmart.com, Dogspot.in, Flipkart.com,
PetshopIndia.com, Marshallspetzone.com
Recharges: Freecharge.in, Mobikwik.com, Paytm.com
Sports: Sports365.in, Khelmart.com, Decathlon.in, Sportsjam.in, Amazon.in, Flipkart.com
Toys, Baby Products, and Kids fashion: Firstcry.com, Hopscotch.in, Babycouture.in,
Babiesbloomstore.com, Amazon.in, Flipkart.com, Myntra.com
Watches: Amazon.in, Flipkart.com, Titan.co.in, Tatacliq.com, Ethoswatches.com
Yoga Accessories: Amazon.in, Indiamart.com, Fitbit.com, Yoghita.com, Juruyoga.com
 E-TAILING STRATEGIES
1. Search engine optimization
Launching a website is a win for any e-commerce company, but websites aren't enough for consumers to easily find the brand. To
improve visibility, marketing teams must optimize websites for search engines. Positive search engine optimization (SEO) requires
marketing teams to continually update websites with rich and relevant content that provides useful information for customers.
An SEO strategy can help organizations ensure their content shows up on search engine results pages (SERPs) for relevant queries and
deliver positive CX when customers find the information they need. Marketing teams should use SEO keywords and phrases organically
within content to alert search engines to the site's relevance for those queries.
Marketing teams should also use easy-to-read URLs and descriptive page names that contain a primary keyword. These URLs and
names can also include familiar words or phrases that customers likely use as they search. This strategy requires keyword research to
identify opportunities for new content.
2. Content marketing
To support SEO and build brand authority, marketing teams should embrace content marketing in their e-commerce marketing strategies.
For example, a blog can help build a successful marketing strategy and enable brands to produce relevant content about their products.
Blogs let marketing teams target important keywords that might not fit naturally on product or category pages. This content can speak
directly to consumer needs, offer helpful solutions, build trust and strengthen relationships. Overall, blogs can lead to increased brand
visibility and higher conversion rates from new and existing customers.
Content marketing helps answer customers' questions, educate them, deliver the company narrative and lead people to make a
purchase. Additionally, different content types, like video, downloadable guides and user-generated content, can strengthen a brand's
reputation. This content can also feed the blog and bring more eyes to the organization and its offerings.
3. Social media marketing
In addition to strong SEO that helps content show up on SERPs, brands should meet consumers where
they are: on social media. These channels can help engage an active audience.
Billions of people use social media each month, and social media can help brands create authentic
connections with their followers. On social media platforms, marketing teams can also respond to
comments, publish relevant content and provide more information about their company's products.
Marketing teams should select the right platforms to manage and distribute this content. For example,
people on Twitter want to see different content than people on Instagram. Marketing teams should
know which platforms the customer base is most likely to use and align the channel they use with them.

4. Email marketing
Email marketing can also let prospects and customers know about new products or information. If
marketing teams provide timely and relevant information through this channel, they can inform new
and existing customers of sales, new product releases and new blog content.
Personalized email communications have lasting benefits in customer retention and repeat purchases. If
marketing teams show they understand a buyer's purchase or browsing history through personalized
communications, they can establish a strong and loyal customer base.
Email marketing is one of the easiest ways to keep in contact with all different types of customers.
5. Customer loyalty programs
Customer loyalty programs can help increase revenue and retain customers over time. Loyal customers are highly
valuable because they have already made purchases. If marketing teams incentivize loyalty and repeat purchases, they
can increase CLV and create strong brand advocates.
Marketing teams have various types of loyalty programs to choose among, but programs that are consistent and add
value to the consumer often succeed the most. Loyalty programs also have strong personalization opportunities, as they
can collect more information about consumers and insights into the best times to trigger communications to these
individuals.
Additionally, loyalty programs can provide special offers, discounts and birthday wishes to strengthen the relationship
between business and consumer.

6. Optimized product pages and checkout experiences

An e-commerce website includes category and product pages. However, optimizing the product pages can help with
conversion rate optimization. These pages should make it easy for visitors to see the product, learn about its
specifications or features and make a purchase.
Product marketers can evaluate which pages to optimize for conversion based on analytics data to see where sales
come from or where sales are lost. These teams should also optimize the checkout experience for ease of use and
reduce the number of steps it takes for someone to complete their purchase.
7. Pay-per-click advertising
Some e-commerce marketing strategies have a lower cost associated with implementation, but
sometimes, brands need to pay to get their products and services in front of consumers. Pay-per-click
(PPC) strategies can ensure that product pages are at the top of SERPs in the form of ads.
Good PPC campaigns contain an ad, offer and landing page. This approach can support SEO efforts
and let businesses use marketing budgets to get offers in front of consumers. Marketing teams can
deploy search and display campaigns within search engines or within their support ad networks.
Within ad networks, these campaigns can follow users to other sites they visit and increase visibility to
products and offers. Additionally, marketing teams can use paid advertising strategies on social media
platforms.
8. Retargeting
Building off a PPC strategy, a retargeting strategy is another paid approach to get people to revisit
a website they already visited and expressed interest in. While PPC can bring new eyes to a website,
retargeting tracks people who already visited a page but left without making a purchase.
Brands can build different audience lists based on website pages viewed. If someone comes to an e-
commerce site and views various product pages, representing an interest in those items, brands can
deploy relevant ads on other websites within the brand's ad networks. These ads can drive users to the
specific product pages they visited before and reinforce that they should buy the product.
9. Influencer marketing
Influencer marketing is a growing strategy among brands that want to tap into a specific audience through someone the
community trusts already. Influencers exist in all different types of markets and industries. From tech review blogs and
YouTube channels to lifestyle products and TikTok channels, brands that use influencers can reach their followers.
In particular, this approach can benefit organizations releasing new products. Companies can send influencers free
products in exchange for reviews, promotions, a third-party perspective on the product and an increased reach for the
brand. While organizations can engage with influencers in many ways, they often include product or sponsorship costs
depending on the influencer's terms.
Marketing teams should consider influencer marketing as a strong channel for an e-commerce marketing strategy, as it
involves positive relationships with influencers and ensures they can provide a positive review or promotion for the
products.

10. SMS marketing

SMS texting is a resurging and growing channel for e-commerce marketing strategies. While the mix of strategies
includes creating relevant content, sending emails and promoting through paid channels, social media or influencers,
marketing teams can't ignore that consumers are on their phones most often.
Brands that want to take advantage of an SMS marketing strategy can collect phone number details from consumers
and send frequent and timely offers to both prospects and customers.
Online shopping retailers are currently some of the most successful businesses that uses SMS marketing. This approach
offers cross-sell and upsell opportunities and abandoned cart recovery, and it can also provide exclusive offers or
promotions to drive increased sales.
Thank you