A

PROJECT REPORT

On

“E- RETAILING”

MBA (Master of Business Administration)

Submitted by

HARSHA JAIKALYANI

UNDER THE GUIDANCE OF

PROF.ROOPESH RAO

SUBMITED TO

DATTA MEGHE INSTITUTE OF MANAGEMENT AND STUDIES,

ATREY LAYOUT, NAGPUR

2011-2013

INTRODUCTION

E-Commerce is a huge domain on conducting business over internet and e-retailing is part of it. When we discuss on digitally / Internet enabled commercial transactions between organizations and individuals using latest web technologies as per the policies of the Organization it takes the form of e-business. Nowadays, 'e' is gaining momentum and most of the things if not everything is getting digitally enabled. Thus, it becomes very important to clearly understand different types of commerce or business commonly called as e-Commerce.

There are mainly five types of e-commerce models

Business to Consumer (B2C)

This model involves organizations as business houses and consumers and customers. This is the most common model in e-commerce. In this model, online businesses sell to individual consumers. When B2C started, it had a small share in the market but after 1995 its growth was exponential. In this business model the business house will have a e-commerce website which will list all their product categories with detailed information about products with photographs, flash animation and comparing similar products etc., for quick decision making over web. E.g. An online Music portal selling CD’s / DVD’s and streaming Audio on the web e.g. www.imusti.com.

Business to Business (B2B)

International Journal of Business Research and Management (IJBRM),Volume(1):Issue(3) 106 It is the largest form of e-commerce involving business of trillions of dollars. In this form, the buyers and sellers are both business entities and do not involve an individual consumer. It is like the manufacturer supplying goods to the retailer or wholesaler. E.g. www.indiaplaza.in is a online store, which sells popular branded products to consumer, where its supply chain network directlylinked to Manufacturer. Hence Business to business model.

Consumer to Consumer (C2C)

E-Bay is an excellent example for this model an auction site where a consumer can sell their antique or old used items at discounted price to others, rest of the consumers who are all interested in those items will bid for that. This auction will happen for a time period and ends; now the highest bidder will make payment and buy the product. Here e-bay plays a role of having / facilitating a platform to make consumer to consumer transactions.

M-Commerce Now a day’s all business executives were busy and want to do financial transaction without going physically to bank. Example: Consumer want to pay their utility payments viz., Insurancepremium, Telephone bills, Income taxes etc., Transfer money to anybody in this world via mobile banking (e.g. ICICI Bank iMobile) opens up the new technology of ecommerce as Mobile commerce. Further the regular online stores were also optimizing their site user interface design in order to make consumers shop from their mobile devices viz., iPad, iPhone, Android enabled phones, and Microsoft windows mobile 6.x enabled devices.

There are other types of e-commerce business models too like Business to Employee (B2E), Government to Business (G2B) and Government to Citizen (G2C) but in essence they are similar to the above mentioned types. Moreover, it is not necessary that these models are dedicatedlyfollowed in all the online business types. It may be the case that a business is using all the models or only one of them or some of them as per its needs.

Q1. What is E-Retailing?

E-Retailing is the use of technology such as computers and the internet to sell a range of products and services online to the world.

E-RETAILING A BRIEFING

To start an e-Retailing business, an organization or an individual should have the below.

1. A Unique Idea / Product to sell

When all Personal computer assemblers sell PC’s and Servers in a traditional way, Michael Saul Dell, founder CEO of Dell Inc., got a unique idea of selling PC’s over web. Beyond this he allowed users to choose all components one by one based on their interests and requirements and delivered a assembled PC over web, which was a grand success.

2. A Perfect Business Plan

Is all about the e-Retailing business idea, Product or services, people involved, their expertise, a Project report with all standard projected statements prepared by a professional team, Competitor analysis, Capital investment, Loans, Business location, Government regulations & policies, Technology plans, and IT infrastructure required.

3. Technology Plans

Organization may start off in a small way and then based on the response they can get more funding and grow in a big way.

• They need to finalize an attractive easy to remember domain name e.g.www.dell.com. International Journal of Business Research and Management (IJBRM),Volume(1):Issue(3) 107

• Need to finalize a hosting server to book web space from their various plans e.g. www.Hostmonster.com to start with and later go for their own scalable IT infrastructure setup based on the response and growth.

• Need to Acquire IT team for developing e-Commerce website or to outsource the work. Also we can think of using Open source like OS Commerce a popular e- Commerce application and Open source CRM application for customer relationship.

• If we are going to develop from the scratch on our own technology, the below website development process will be followed as per Fig. 3. Web site development process.

• Compare and finalize Payment gateway based on their initial setup fee / transaction fee the popular payment gateway service providers are CC Avenue, ICICI, Bill desk, Pay pal and few more players.

• Once the website is launched, related internet marketing, popularly called as SEO (search engine optimization) work to be started to increase the popularity and visitors of the site.

• Plan and organize supply chain management to deliver product or service to the online users who place orders.

• Post sales support plans.

Q2. Which are the companies doing e-retailing and e- commerce?

List of Top E-commerce Companies of India:

Myntra.com:

It is a leading online fashion store in India where you can find fashionable and trendy clothes for men, women and kids. You can buy apparels of different brands and avail discounts on their offers.

Inkfruit.com:

Buy apparels for guys and girls, accessories and footwear on this e-commerce website on this Asia’s largest e-commerce website. They have the selective designs and give their customers the best things.

Dealsandyou.com:

This site offers various kinds of deals be it holidays,shirts etc. Also this site gives heavy discounts on regular basis that cab be profitable for the shoppers.Browse this site for more.

eBay:

eBay India is one of the largest online marketing site that offers diverse products. In most of electronic products EMI for 3 or 6 months is available with HDFC. They offer deals of the week with good discounts.

Homeshop18:

Homeshop18 is one of the largest electronic retailing companies of India which sells its products through Internet, TV and mobile. If offers a diverse range of products including apparels, jewelry, books, home appliances, toys and electronic items. It has a customer base of over 5 million and delivers products to more than 50 cities in India. With its highly user-friendly website, it provides a completely hassle free shopping experience.

Infibeam.com:

Infibeam is an e-commerce website that sells almost everything online. You can search for books, mobiles, gifts, computers, games, watches, movies, electronics, home and lifestyle and much more. Also Infobeam offers hot deals on many products, so you can save a lot by ordering it through this site. You can also shop on EMI. Check out their magic box to know the deal of the day.

99labels.com:

This site offers many fashion and luxury brands at good prices. Check this site for more brands.

Rediff Shopping:

Another online shopping where you can shop for wide variety of stuff is Rediff shopping. The rediff product catalogue contains more than 100,000 products. They have some of the best online deals.

Yebhi.com:

This online e-commerce website is the baby of Big Shoe Bazaar India Pvt Ltd. It started its online store under the name of www.bigshoebazaar.com selling just the footwear. But with the immense response, they added many other products such as accessories, apparels, bags, mobiles and jewelry in the product list. Yebhi is a winner of the Online Retail Awards 2011 Highly Commended (Fashion,Clothing & Footwear) and Winner of - Economic Times - Best E-commerce Company - Award 2010.

Zoomin:

One of its own kind, Zoomin does not sell the products mentioned above for different e-commerce websites, but it allows you to create a photo album of your by uploading the pics. Then you can place the order to buy that unique, photo book of your. You can order for photo prints, canvas prints, collage, zig zag minis, photo mugs, calendars, greeting cards and more products related to photos.

20North.com:

This website offers variety of products like electronics, books, music, movies, car accessories. The site also offers lucrative deals. Log onto the site to shop. Happy Shopping!!!

Indiangiftsportal:

This is known for providing gifts for various occasions like birthdays, anniversary, wedding, bhai dooj, diwali and many more. Also flowers, cakes, chocolates and many more things are offered by this site. Browse it today to send gifts to your loved ones.

MagazineMall:

This company specifically deals in magazines and one can get magazines of different and unique categories like Gardening/Housekeeping, lifestyle, fashion, luxury, current affairs and many more.

Bindaasbargain:

Here new deal comes everyday at 10 am and it is India's first One Deal A Day online shopping site. Check out the site for new deal.

Buytheprice.com:

The site offers Mobiles, Computers, Cameras, Home Appliances, Life style, Audio and Video and much more. Variety of products are available under each category.

Perfume2order:

It has categories like Perfumes for Men, Perfumes for Women, Deodorants & Deo Stick, Perfume Gift Set, Designer Wallet & Belts, Flowers, Handbags & Clutches, Sunglasses and many more things. To know more, check this site out.

Timtara.com:

It offers many products under each category. For example,computer category has products like Antivirus, Blank CD/DVD, ePAD, Harddrives, Headphones, Keyboard, Laptops & Notebooks, Memory Cards, Mouse and much more.Browse this site for more categories and more products.

Caratlane.com:

CaratLane is India's first and largest online diamond jewellery store. With a network of over 4000 global vendors, CaratLane offers more than 1,00,000 loose diamonds, and over 1000 ready-to-choose diamond and gemstone jewellery like rings, pendants, earrings, bracelets and bangles. Every diamond sold at CaratLane is certified by internationally renowned labs like GIA, IGI, HRD and AGS, and their prices are up to 25% lower than other retailers in India.

Naaptol:

The site offers products like mobiles,cameras,laptops,jewellery,gifts and what not.check this site.

Fernsnpetals:

The Ferns 'N' Petals (FNP) is known for good quality flowers & flower arrangements. It has been claimed that it is a leading Florist in India. Send the flowers to your loved ones from this site and give happiness to them.

Q3. What are the new trends in e retailing?

Top 6 online retail trends for 2012

1.) T-Commerce and M-Commerce retail therapy – In 2011 web enabled mobile devices transformed E-commerce, opening up a new 24/7 channel to the consumer and creating innovative new ways to engage them, from QR codes to location based offers. In 2012 m-commerce will continue to gather momentum, but it is T-commerce that’s particularly exciting. The rich functionality of the tablet shifts the traditionally transactional and bargain hunting online experience into a virtual store experience, making the web an almost tactile experience. For example, Rakuten’s BuyTV in the US and Rakuten SuperTV in Japan bring video reviews to enrich the tablet shopping experience. Better still, mobile commerce is not exclusively for big brands with big budgets. Better still, mobile commerce is not exclusively for big brands with big budgets. Thanks to affiliate services and marketplaces like Rakuten, merchants large and small can harness the mobile channel without incurring heavy infrastructure costs. Gartner estimates that by 2013, smart mobile web devices will overtake the total number of PC’s in use, exceeding 1.8 billion. With 1.8 billion consumers just a click away this too big an opportunity for retailers to miss.

2.) Bricks and mortar in the cloud – The boundaries between online and offline worlds are becoming increasingly blurred, as retailers fuse their digital and real-world offerings. Barcode scanning services such as ShopSavvy help users find the best deal, by allowing them to scan the barcode and search for better offers online. However, the challenge with these applications is they fail to reward the store whose display instigated the purchase. To avoid cannibalising the high-street we believe a new system must emerge in 2012 that rewards offline and online ecosystems.

3.) Shopping with your social network– Getting a second opinion before committing to a purchase is nothing new, but now rather than taking a friend shopping you can take your entire social network with you. Retailers are becoming increasingly aware of the power of “the fan” and social will form an integral part of the E-commerce evolution in 2012. Data released in July by Hitwise indicated that 1 Facebook fan was equal to 20 additional visits to a retail website in the course of a year. Retailers are now using social not just for brand awareness, but for product development and customer service too. Rakuten’s ShopTogether feature lets all merchants capitalise on social service by enabling Rakuten marketplace users to invite friends to view products and live chat whilst looking at the product page.

4.) Borderless shopping communities – 2012 will see the rise of the local global e-marketplace. In 2012, international marketplace models will provide sellers of all sizes around the world with the opportunity to expand their operations internationally, without the cost intensive outlay traditionally associated with establishing local delivery models, storage facilities etc. Sellers will be able to dabble in international shopping communities and dedicate resources based on real world demand. This will open up opportunities with burgeoning markets, such as China, India and Brazil. In late 2011 Rakuten surveyed international interest in shopping globally online and the results revealed that consumers are open to borderless shopping. Brazil is leading the global

e-shopping charge with 81 per cent of consumers keen to shop in different markets online, followed by Indonesia (77%), Thailand (74%), China (69%) and Spain (66%).

5.) Flexible, Local shipping models -According to a report by Forrester in January 2011, shipping issues were one of the most common reasons for cart abandonment in Europe. It’s true that the internet has created a global marketplace, but local market shopping preferences must be taken into account. In Indonesia for example, locals are reluctant to pay online, to combat this Rakuten set up a shipping model, of local bike couriers, who collected payment on arrival. In 2012, flexible shopping models will be vital for growth, as evidenced by the growing popularity of the click & collect phenomenon, which accounted for 10.4% of all E-commerce sales in the UK this Christmas according to the IMRG.

6. ) Online shopping gets personal – The old adage “Information is power” takes on new impetus in 2012 as retailers seek to capture the fickle attention spans of information savvy internet shoppers. Gone are the days, when retailers tracked consumer behaviour based on loyalty points. Today’s online retailers can acquire huge volumes of data on both their potential and existing customers based on user browsing habits alone. In 2012 data exchange between retailers and social networks will begin to provide solid business models for social platforms and offer new insights into the psyche of the shopper. What matters most to retailers however is how their marketing teams translate this wealth of data into meaningful and timely communications with customers. The web generation is already jaded from a surfeit of push advertising, to truly engage consumers in 2012 and beyond, retailers must learn how to harness user specific data to provide timely, personalized and relevant communications.

Commenting on the E-commerce industry in 2012, Adam Stewart, Marketing Director, Rakuten’s Play.com said: “In 2011 we barely scraped the surface of what’s possible with online retail. We are on the cusp of creating an experience-rich, 24/7 international shopping community. In the year ahead, cutting edge mobile devices, worldwide mobile and broadband penetration and innovative social shopping services will open up global markets, providing huge growth opportunities for merchants large and small and unparalleled consumer choice.”

Q4. Various Business Models of E-Retailing?

There are mainly five types of e-commerce models

Business to Consumer (B2C)

This model involves organizations as business houses and consumers and customers. This is the most common model in e-commerce. In this model, online businesses sell to individual consumers. When B2C started, it had a small share in the market but after 1995 its growth was exponential. In this business model the business house will have a e-commerce website which will list all their product categories with detailed information about products with photographs, flash animation and comparing similar products etc., for quick decision making over web. E.g. An online Music portal selling CD’s / DVD’s and streaming Audio on the web e.g. www.imusti.com.

Business to Business (B2B)

International Journal of Business Research and Management (IJBRM),Volume(1):Issue(3) 106 It is the largest form of e-commerce involving business of trillions of dollars. In this form, the buyers and sellers are both business entities and do not involve an individual consumer. It is like the manufacturer supplying goods to the retailer or wholesaler. E.g. www.indiaplaza.in is a online store, which sells popular branded products to consumer, where its supply chain network directlylinked to Manufacturer. Hence Business to business model.

Consumer to Consumer (C2C)

E-Bay is an excellent example for this model an auction site where a consumer can sell their antique or old used items at discounted price to others, rest of the consumers who are all interested in those items will bid for that. This auction will happen for a time period and ends; now the highest bidder will make payment

and buy the product. Here e-bay plays a role of having / facilitating a platform to make consumer to consumer transactions.

M-Commerce Now a day’s all business executives were busy and want to do financial transaction without going physically to bank. Example: Consumer want to pay their utility payments viz., Insurancepremium, Telephone bills, Income taxes etc., Transfer money to anybody in this world via mobile banking (e.g. ICICI Bank iMobile) opens up the new technology of ecommerce as Mobile commerce. Further the regular online stores were also optimizing their site user interface design in order to make consumers shop from their mobile devices viz., iPad, iPhone, Android enabled phones, and Microsoft windows mobile 6.x enabled devices.

There are other types of e-commerce business models too like Business to Employee (B2E), Government to Business (G2B) and Government to Citizen (G2C) but in essence they are similar to the above mentioned types. Moreover, it is not necessary that these models are dedicatedlyfollowed in all the online business types. It may be the case that a business is using all the models or only one of them or some of them as per its needs.

Q4. Various payment Gateways of E-Retailing?

Now the e-Retailers web site is ready with products listed and when the online users orders the product online, the Retailers should link the Bank account with 3rd party payment gateway, to which the payment will be credited.

Paypal Integration ICICI Credit Card Integration HDFC Credit Card Integration AXIS Credit Card Integration CCAVENUE Credit Card Integration EBS.in Credit Card Integration Authorize.net Payment Gateway integration Verisign PayFlow Payment Gateway integration PayPal Payment Gateway integration StormPay Payment Gateway integration 2CheckOut Payment Gateway integration iBill Payment Gateway integration FastCharge Payment Gateway integration Pay-Me-Now Payment Gateway integration LinkPoint Payment Gateway integration MoneyBookers Payment Gateway integration BluePay Payment Gateway integration GoMerchant Payment Gateway integration CC-Avenue Payment Gateway integration HDFC Payment Gateway integration ICICI Payment Gateway integration Axis Bank Payment Gateway integration SecPay Payment Gateway integration World Pay Payment Gateway integration Paypoint Payment Gateway integration

Q5. Advantages and Disadvantages of E-Retailing?

Advantages

The greatest and the most important advantage of e-commerce, is that it enables a business concern or individual to reach the global market. It caters to the demands of both the national and the international market, as your business activities are no longer restricted by geographical boundaries. With the help of electronic commerce, even small enterprises can access the global market for selling and purchasing products and services. Even time restrictions are nonexistent while conducting businesses, as e-commerce empowers one to execute business transactions 24 hours a day and even on holidays and weekends. This in turn significantly increases sales and profit.

Electronic commerce gives the customers the opportunity to look for cheaper and quality products. With the help of e-commerce, consumers can easily research on a specific product and sometimes even find out the original manufacturer to purchase a product at a much cheaper price than that charged by the wholesaler. Online commerce also offers buyers a wider range of products and services to choose from, as opposed to conventional shopping, without the hassles of lugging around heavy shopping bags and getting stuck in messy traffic jams, which turns out to be more convenient and time-saving. Besides these, people also come across reviews posted by other customers, about the products purchased from a particular e-commerce site, which can help make purchasing decisions.

For business concerns, e-commerce significantly cuts down the cost associated with marketing, customer care, processing, information storage and inventory management. It reduces the time period involved with business process re-engineering, customization of products to meet the demand of particular customers, increasing productivity and customer care service. Electronic commerce reduces the burden of infrastructure to conduct businesses like physical store setups and thereby raises the amount of funds available for profitable investment. It also enables efficient customer care service by collecting and managing information related to customer behavior, which in turn helps develop and adopt an efficient marketing and promotional strategy.

Disadvantages

Electronic commerce is also characterized by some technological and inherent limitations which has restricted the number of people using this revolutionary system. One important disadvantage of e-commerce is that the Internet has still not touched the lives of a great number of people, either due to the lack of knowledge or trust. A large number of people do not use the Internet for any kind of financial transaction. Some people simply refuse to trust the authenticity of completely impersonal business transactions, as in the case of e-commerce. Many people have reservations regarding the requirement to disclose personal and private information for security concerns. Many times, the legitimacy and authenticity of different e-commerce sites have also been questioned.

Another limitation of e-commerce is that it is not suitable for perishable commodities like food items. People prefer to shop in the conventional way than to use e-commerce for purchasing food products and objects that need to be felt and touched before actually making the purchase. So e-commerce is not suitable for such business sectors. The time period required for delivering physical products can also be quite significant in case of e-commerce. A lot of phone calls and e-mails may be required till you get your desired products. However, returning the product and getting a refund can be even more troublesome and time-consuming than purchasing, in case you are not satisfied with a particular product.

Thus, evaluating the various pros and cons of electronic commerce, we can say that the advantages of e-commerce have the potential to outweigh the disadvantages. A proper strategy to address the technical issues and to build up customers' trust in the system can change the present scenario and help e-commerce adapt to the changing needs of the world. Read more at Buzzle:

Q7.Buying behaviour and consumer behaviour of E-Retailing?

Consumer Behaviour on the Internet

The Internet provides an information-rich environment offering to the consumers’ continuous up-to-date information, about different suppliers, products and/or services (Bruner, 1997; Chung-Hoon, 2003; Settles, 1995). As a result of the information available to the consumers and the easeof switching from one supplier to another, the power as Lindstrom (2002) argues has moved awayfrom the brand and onto the consumer. Previous researchers have studied aspects related to con-sumers’ behaviour online. For example, Rowley considered how consumers search the Web forinformation. Rowley (1996 and 2000), Morganosky and Cude (2000) studied the criteria of e-consumers’ selection of products; Merrilees and Fry (2002) studied how consumers develop brandattitudes about e-retailers. The factors determining the consumers’ purchasing decisions are chang-ing as they embrace e-commerce with expectations about efficiency, service and support. Notably,Schultz (2000) describes e-customer loyalty in cyberspace as an evolution from the traditionalproduct driven, marketer controlled concept towards a distribution driven, consumer controlled,and technology-facilitated concept. Hence, understanding the drivers and dynamics of how cus-tomer loyalty is developed and maintained in cyberspace is a critical tool for marketers developingfuture marketing strategies in this area (Gommans et al., 2001).

Online brand loyalty

There are a number of definitions of brand loyalty focusing on different parameters such as behav-ioural and attitudinal brand loyalty (see East, 1990; Sheth et al., 1999; Webber, 1998). However,for the purpose of this study we use a definition of brand loyalty given by Dick and Bashu (1994)which conceptualises loyalty as the “strength of the relationship between an individual’s relativeattitude towards a brand and repeat patronage”.

Customer loyalty has sometimes been operationalised as a behaviour (hard-core loyalty, repeatpurchase probability, and other) and at other times as an attitude (brand preference, commitment,intention-to-buy). As behaviour, customer loyalty has been measured as the long-term choiceprobability for a brand (Dekimpe et al., 1997; Jeuland, 1979), or as a minimum differential neededto prevent switching (Raju et al., 1990).

Attitudinal approaches focused mainly on brand recommendations (Boulding et al., 1993), resis-tance to superior products (Narayandas, 1996), repurchase intention (Anderson and Sullivan,1993), and willingness to pay a price premium (Narayandas, 1996; Zeithaml et al., 1996).

While academic research is continuously engaged in refining various conceptualisations for cus-tomer loyalty (see Jacoby and Chestnut, 1978; Kahn et al., 1986; Samuelson and Sandvik, 1997),much less attention has been paid to e-brand loyalty with some exceptions, such as: Gommans etal. (2001); Lodorfos et al. (2003); Lodorfos and Dennis (2005); Reichfeld and Schefter (2000),Ribbink et al. (2004) and Smith (2000).

Factors affecting the consumer’s online purchase decision

Previous research into online brand loyalty suggests that consumers weight differently the impor-tance of factors influencing their purchasing decisions in the online market than those in the tradi-tional shopping environments, which in turn may affect their e-brand loyalty. Factors that havebeen extensively covered in previous research as having a significant effect on the consumers’purchasing decisions online, are: beliefs about brand, price, trust, experience and convenience (seeChung-Hoon, 2003; Constantinides, 2004; Donthu and Garcia, 1999; Fayawardhena, 2003; Kunget al., 2002; Lodorfos et al., 2003; McCole, 2002; Quint, 1998; Retlev, 1991). In addition to theabove issues, time, ease and effort have also been identified as factors affecting e-purchase deci-sion (Devaraj et al., 2003).

Price

In addition to the rapid growth of the Internet population there has been an emphasis on Internet exchanges occurring at lower prices than in conventional outlets. In part this is assumed to be due to the belief that a primary role of an online store is to provide price related information and prod-uct information to help reduce consumers’ search and purchasing costs (see Bakos, 1997; Kung etal., 2002; Phau, 2000). The belief that price is a primary purchasing determinant for online buyersis reinforced by the success of ‘auction sites’ (Kung et al., 2002). In addition, there is the percep-tion that the Internet will lead to increased price competition and the standardisation of prices es-pecially when products or services are incapable of significant differentiation (Jarvenpaa andTodd, 1997; Kung et al., 2002). However, a study by Brynjolfsson (2000) which considered pric-ing comparisons of CDs and books on the Internet to those offered by High Street stores identifiedthat whilst prices were between 9 and 16 per cent lower on the Internet, the online dispersion ofprices was high (25% for CDs and 33% for books). He also identified that those e-tailers of CDsand books with the lower prices did not make the most sales. This suggests that price may not al-ways be the determining purchase factor for e-consumers.Price incentives were notably the motivation for early e-shoppers expecting to find the lowestprices from e-tailers as a reward for their risk taking. This may be changing now because as Fay-awardhena (2003) identified the online prices have risen despite the fact that the purchasing cost isstill one of the customers’ key concerns. However, according to a number of studies previous ex-perience with an e-brand or value recognition of a product affects the consumers’ views about theimportance of the purchasing price (Fayawardhena, 2003; and Grunert, 2002).

Trust and security

Currall and Judge (1995) defined trust as an individual’s reliance on another party under condi-tions of dependence and risk. Considering that risk is a function of the probability that a hazard arises and the consequences of the hazard (Schneider, 1998), an individual’s trusting behaviourdepends on the nature of the consequences. In the context of high-consequence systems such as e-transactions, risk avoidance behaviour may arise.

Convenience

Studies investigating e-consumers motivations to purchase products online suggest that conven-ience is a primary factor affecting e-consumers purchasing decision (Tracy, 1998). This finding is supported by other research, which demonstrates that e-shoppers are convenience oriented (see Constantinides, 2004; Donthu and Garcia, 1999; Korganonkar and Wolin, 1999). There are a num-ber of definitions in the literature for convenience linked to e-consumers purchasing behaviour,however for the purpose of this study we focus on two aspects of convenience, e-satisfaction andease of use. Szymanski and Hise’s (2000) research suggests that site design and convenience havea significant influence on e-satisfaction levels. These findings are also supported by Brown et al.(2003) and Jiang and Rosenbloom (2005). Ease of use includes saving time, site design, site navigation, information architecture, site speed, ordering and payment process, accessibility and search facilities (Constantinides, 2004; Wolfin- barger and Gilly, 2001; Szymanski and Hise, 2000). According to Jiang and Rosenbloom (2005), 73 percent of e-customers will leave an internet page and/or site if it takes more than two to three clicks to get to where they want. Huber et al. (2001) as well as Jiang and Rosenbloom (2005) sug- gest that e-customers satisfaction criteria affect their purchasing attitude and their attitude to the e-retailer. Therefore, satisfaction in this context is the consumer’s satisfaction based on ease of use criteria prior to the purchase (see Alba et al., 1997; Wolfinbanger and Gilly, 2001). In addition tosatisfaction and ease of use, convenience includes expectations, atmosphere, comfort, selectionand control as attributes (Walsh et al., 2003; Wolfinbarger and Gilly, 2001).

Experience

In the literature on e-commerce, there has been extensive research on consumers’ shopping experi-ence and their evaluations based on perceptions concerning e-brands (Griffith et al., 2001; Jarvenpaa and Todd, 1997; Szymanski and Hise, 2000). Fry and Merrilees (2001) found that those consumers with high levels of perceived security risk were more likely to reduce their levels of risk perception via in-depth experience with the internet site. Experience has been recognised as an important factor leading to brand loyalty, as a consumer’s experience with a brand will affect the attitudes that the consumer holds towards the brand as well as its intention to purchase from the brand in the future.

Q8.Various types of E-Retailing?

The Five Different Types of E-Commerce

Business to Consumer (B2C)

B2C stands for Business to Consumer as the name suggests, it is the model taking businesses and consumers interaction. Online business sells to individuals. The basic concept of this model is to sell the product online to the consumers.

B2c is the indirect trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s website.

Directly interact with the customers is the main difference with other business model. As B2B it manages directly relationship with consumers, B2C supply chains normally deal with business that are related to the customer.

Business to Business (B2B)

B2B stands for Business to Business. It consists of largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.  Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products.

“It is one of the cost effective way to sell out product through out the world”

Benefits:

Encourage your businesses online Products import and export Determine buyers and suppliers Position trade guides

Consumer to Consumer (C2C)

C2C stands for Consumer to Consumer. It helps the online dealing of goods or services among people. Though there is no major parties needed but the parties will not fulfill the transactions without the program which is supplied by the online market dealer such as eBay.

Peer to Peer (P2P)

It is a discipline that deal itself which assists people to instantly shares related computer files and computer sources without having to interact with central web server. If you are going to implement this model, both sides demand to install the expected software so that they could able to convey on the mutual platform. This kind of e-commerce has very low revenue propagation as from the starting it has been tended to the release of use due to which it sometimes caught involved in cyber laws.

m-Commerce

It deals with conducting the transactions with the help of mobile. The mobile device consumers can interact each other and can lead the business. Mobile Commerce involves the change of ownership or rights to utilize goods and related services.

Q9.Diffrent between brick Retailing and Click Retailing?

Q10. What is finding, conclusion and future of E-Retailing?

Now that we have reviewed all basic information about e-Commerce specific to e-Retailers and the challenges, advantages and disadvantages. From the government point of view, it has to take effective steps to resolve all barriers or disadvantages for e-commerce growth create opportunities for private, public participation in infrastructure development. Similarly all our public organizations should plan ahead to train our Indian business community to learn more about the future business opportunities to compete global competition and towardsour countries growth. My future study is to plan, research and come out with strategic plans which are more realistic, easy to adopt and implement across the country which will resolve most of the prevailing issues.