CH-3Retailing on Internet

8/17/2019 CH-3Retailing on Internet

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Retailing on the

Internet

Retailing–Then and NowRetailing–Then and Now

The E-Tail ExperienceThe E-Tail Experience

1

Retailing onRetailing on

the Internetthe Internet

SectionSection 3-1

SectionSection 3-2

Chapter 2


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Retailing on the Internet

Section 3-1

Why It’s Iportant

To attract customers and win market share, retailers

develop new strategies to outdo their competitors.

Understanding how the retail business has

evolved since the 1800s will help you understand

how retailing and e-commerce became what they

are today.

2Section 3-1


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Section 3-1

!ey Tersretailers

wholesalers

e-tailing

services retailers

non-store retailers

3Section 3-1


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Retailing "e#ore

E-$oerceFirst and oremost,

retailers want your

business.

retailers

establishments that sell

goods and services to

the general public

%Section 3-1

The retailing process is

the inal step in the

distribution o products.


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Retailing "e#ore

E-$oerceWholesalers supply

retailers with products.

wholesalers

businesses that sell

products to distributors

or retailers and notusually to the end-user

or consumer

&Section 3-1


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the #irst

retailers

cons'ers (o'ght

directly #ro

cra#tsen) #arers)

and local

an'#act'rers

general

stores

direct-to-cons'er

ail-order

*+ain Street,

shopping

strip

alls

shopping

alls

(ig-(ox retailers andcategory illers

The .istory o# Retailing

/

Retailing Tieline

Section 3-1

10s 1s 12s1&s 1&s 10s 1s


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The most modern

innovation in retailing is

e-tailing.

e-tailing the buying and

selling o retail goods on

the !nternet

0Section 3-1

"-tailing enables

consumers to choose rom

an almost ininite variety oproducts and purchase

them without leaving their

own homes.


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!n the 1#80s, big-box retailers such as $mart,

Target, and %al-&art brought about a revolution in

retailing.

'ig bo( retailers have special distribution systems

that keep operating costs and prices low.

Section 3-1


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!n the 1#80s, category killers became common.

These large stores speciali)e in a particular type

o product, such as toys, hardware, books, orsporting goods.

They are called category killers because, by

oering the lowest prices available, they are able

to *kill+ their competition.

Section 3-1


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Retailing Today

1

+a4or $ategories o# Retailers

Section 3-1

specialty

stores

departent

stores

disco'nt

stores

ser5ices

retailers

non-store

retailers


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Retailing Today

Specialty stores, such as

., are stores that

speciali)e in speciic kinds o products orproduct lines and oer a wide assortment

within their given categories.

11Section 3-1


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Retailing Today

category o

department stores.

These stores oer a variety o products and

choices within each product line and a loor plan

that provides speciali)ed departments.

12Section 3-1


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Retailing Today

Discount stores such as %al-&art oer very

low prices.

ome consumers preer not to shop at discount

stores because they oten drive many small,

local stores out o business, putting people out

o work.

13Section 3-1


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Retailing Today

Ser5ices retailers play

an important role in our

economy by providingspeciali)ed skills and

e(pertise most consumers

lack and need.

ser5ices retailers

businesses that provide

services

1%Section 3-1

'anks, dental care, and

ay /are are e(amples o

services retailers.


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Retailing Today

Non-store retailers are

able to lower costs by

selling directly toconsumers without the cost

o maintaining a storeront.

non-store retailers

businesses that use

means other than

traditional storeronts tosell their products, such

as inomercials,

catalogs, door-to-door

solicitation, trade shows,

and vending machines

1&Section 3-1

"-tailing is a orm onon-store retailing.


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Section 3-1

Re5iew

ow were early retail stores less convenient

or shoppers than those o today

ow do category killers *kill+ theircompetition

%hy might some retail customers preer notto shop at discount stores

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1/Section 3-1


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Section 3-2

Why It’s Iportant%hen you understand the comple(ities o running a

secure and reputable e-commerce site, you can

better plan your business and purchases.

Section 3-2 10


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Section 3-2

!ey Tershyperlink

"lectronic Funds Transer

smart carde%allet

e-cash

ecure ockets 2ayer

digital certiicates

Section 3-2 1


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The Nat're o# E-Tailing

etting up and maintaining an online business

comes with a set o uni3ue challenges.

To be a successul e-tailer, you have to create

an engaging e-tail e(perience and ensure the

security o inormation.

1Section 3-2


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7rod'ct +erchandising

4nline merchandisers use

hyperlins as

merchandising cues topresent their products and

motivate consumers.

hyperlin also called a

hyperte(t link, or simply a

link5 connects the current

!nternet document withanother location in the

same document, another

document on the same

%eb site, or another

document somewhereelse on the %eb5 a blue,

underlined ont identiies

hyperte(t links

2Section 3-2


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21Section 3-2

cross-sell hyperlin

'psell hyperlin

recoendationhyperlin

prootion hyperlin

.yperlins

Takes the user to an item associated with the

item the user is currently viewing.

6eers the user to a similar but more upscale

and e(pensive item.

Takes the user to a product that might interest

the user based on products the user has

purchased beore.

6eers the user to a *hot+ product or sales

item the site is currently oering.


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7 company can oer photos, color change

interaces, and video clips to enhance the

presentation o its products on its %eb site.

%hen customers are able to see more details o

a product, they are more likely to buy.

22Section 3-2


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Setting 8p an 9nline

7'rchasing 7rocess'eore you can sell goods to customers, you must

either have them available in stock or have the

ability to get them rom a manuacturer 3uicklyonce youve received orders.

The %eb allows new orms o online collaboration

between retailers and their suppliers.

23Section 3-2


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7ayent 9ptions

2%Section 3-2

9nline 7ayent 9ptions

credit cards de(it cardsElectronic :'nds

Trans#er ;E:T<

sart cards eWallets

e-cash e-checs


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7ayent 9ptions

/onsumers use credit cards to pay or

appro(imately #9 percent o all purchases on

the !nternet.

%hen customers use debit cards or their

online purchases, they are authori)ing the

withdrawal o money rom their bank accounts.

2&Section 3-2


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7ayent 9ptions

%hen you purchase a

product online using

Electronic :'ndsTrans#er ;E:T


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7ayent 9ptions

7 sart card can be used

to make inancial

transactions over the!nternet.

sart card credit card

with an embedded

microchip, which is

loaded with data that canbe programmed or

various applications

20Section 3-2

&ore than a billion smart

cards are currently in use,mostly in "urope.


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7ayent 9ptions

&uch like a smart card, an

eWallet can be used to

make online purchases.

eWallet a sotware

application that stores a

customer:s data or easy

retrieval during onlinepurchases

2Section 3-2

The e%allet utility encrypts

your personal inormation.


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7ayent 9ptions

E-cash provides rapid,

secure, and reliable real-

time payment processingworldwide.

e-cash a legal orm

o computer-based

currency that allows or

the purchase o items bycredit card, check, or

money order

2Section 3-2

4ne o the global leaders

in online e-cash payments

is ;ay;al.

R ili h I


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7ayent 9ptions

"-checks, or electronic checks, provide a handy

way to get payment rom customers who do not

own or use credit cards.

3Section 3-2

R t ili th I t t


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9rder :'l#illent and

$'stoer Ser5ice;art o your customers e-tail e(perience consists

o receiving the goods they ordered 3uickly and

eiciently.


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Sec'rity Iss'es and

$oncerns4ne issue that may keep customers rom making

purchases on your %eb site is security.

!t is important to protect customers personal

inormation and have proo that you are a legitimate

business.

32Section 3-2

R t ili th I t t


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Sec'rity Iss'es and

$oncernsSec're Socets =ayer

;SS=< encrypts customers

personal inormation,keeping it sae rom

hackers.

Sec're Socets =ayer

;SS=< helps encrypt and

protect the inormation

that customers enter into%eb pages when making

a purchase5 this protocol

is built into most browsers

and is supported by most

%eb servers

33Section 3-2

R t ili th I t t


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Sec'rity Iss'es and

$oncernsTo help your customers

eel conident that you run a

reputable business, purchase

a digital certi#icate.

digital certi#icate

computer ile used to

veriy to customers that

a company is what itclaims to be

3%Section 3-2

igital certiicates are issuedby a trusted third party.

R t ili th I t t


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>d5antages and

?isad5antages o# E-Tailing>d5antages

7 great %eb site can attract new customers,

/ustomers can shop =>?@.

?isad5antages

/ustomers concerned about security may bereluctant to release personal inormation.

/ustomers are not able to e(amine merchandise.

3&Section 3-2

R t ili th I t t


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Section 3-2

Re5iew

%hat is a cross-sell %hat product might be cross-sold to acustomer purchasing a coeemaker %hy

ow could a company enhance the presentation o itsproducts on its %eb site ow would this inluence itssales

%hy might a %eb sites sales suer i it only permitscustomers to pay using smart cards and "FTs

ow can a %eb site assure customers o security

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3/Section 3 2

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CH-3Retailing on Internet