E Tailing Eretailing The sale of goods and

E Tailing

E-retailing • The sale of goods and services l via Internet or other electronic channels l for personal or household use by consumers

Marks and Spencer www. marksandspencer. com l l l l l Once the most successful retailer in Europe E-retail ‘a model of good practice’ (Sunday Times) Easy to navigate Good selection of: – Clothing – Underwear – Home furnishings – Gifts – Flowers. Marks and Spencer

Cont. . l l l • 2 -day delivery free • Returns either to M&S store or post back free • Top-rated e-retailer for customer satisfaction and service (Computer Weekly)Next www. next. co. uk • A top name in high street fashion • Successful mail order - Next Directory - since 1987 • Expertise in: – Order handling – Fulfilment – Customer care • Courier picks up returns free • No. 1 in UK clothing e-retailing (Verdict)

Tesco www. tesco. com Biggest grocery retailer in UK l Telesales since 1996 l – Developed from home delivery for less mobile consumers l – Became the pilot for e-retailing l Proven delivery system based on hand-picking from grocery stores • Non-food now handled from non-store facilities l

Tesco £ 5 delivery charge l Next-day delivery for most of UK l Limited range available world-wide l Claims to be world’s biggest e-grocer l

Dell www. dell. com l l l Pioneers in telemarketing since the late 1980 s One of the first e-retailers Investment in staff training and customer service Auction site where customers can sell equipment Dual channel, telesales / Internet (no high street) Market leader world-wide for e-tailing computer hardware

Amazon www. amazon. co. uk Start-up 1995: Books, CDs, DVDs and videos l UK site 1998 from take-over of Bookpages l UK biggest market outside US l Brand awareness built by heavy advertising l Affiliate system - e. g. Alta Vista search engine l links to books related to keywords l

Amazon l l l l CRM system advises customers of new books likely to be of interest Easy-search finds books from keywords World’s biggest e-retailer of books - second biggest retailer, even though only sells online Alliance with US discount retailer Target ‘the biggest clicks-and-mortar [ever]’

l l l l l DISADVANTAGES OF E-RETAILING FOR RETAILERS May lack know-how and technology Substantial set-up, investment and ongoing costs Complex logistics of fulfilment E-selling less powerful than face-to-face – uptake slow for goods selected by taste or smell. Less impulse purchases Legal problems Less role for traditional high street retail expertise Pressure on margins and prices in-store After-sales care difficulties

ADVANTAGES OF E-RETAILING FOR RETAILERS l l l l l Location is unimportant Size does not matter Saves on the wages and premises costs Reach a larger audience Higher disposable income profile than average Accepts orders 24 -hours a day More opportunities for – CRM and micro-marketing – Cross- and up-selling If we don’t, our competitors will

DISADVANTAGES OF ESHOPPING FOR CONSUMERS l l l l Credit card and security worries Lack of personal and social interaction Can’t see or feel the merchandise Don’t know how Can’t be in to receive delivery Premium charged for delivery Difficulties with returning goods for refund

Cont… l l l l l Cost effective Convenient Easy Saves time Fits in with other activities Breadth and depth of products Easy search of many alternatives Personalisation of presentation and merchandise Prices favourable

THE DON’TS OF E-RETAILING l l l Save your best page till last Use too many graphics Fill each page Use too much narrative Have too many click-through pages

DOS OF E-RETAILING l l l l l Easy to buy (3 clicks) Good service and aftercare Membership and loyalty incentives Communication and chat Reinforce branding Strong intro - home page Concise text Vivid benefits Short-cut navigation Expert information Testimonials, endorsements and guarantees