Advantages and disadvantages of e retailing

Share on Facebook There once was a time when the only way people could make a purchase was to physically go to a brick-and-mortar retail store. Then came catalog sales, where people could sit in the comfort of their own home and browse through pages of color pictures and descriptions of products. Some products, however, need to be held, smelled, touched and listened to in person, making them poor candidates for e-tailing. Musicians, for example, will typically want to play an acoustic guitar before making a purchase, since every guitar has its own unique feel and sound.

Advantages and disadvantages of e retailing

This one-on-one aspect introduces a degree of transparency and accountability into retail sales. As a merchant, you can promote your offerings on your own terms and respond to customers firsthand. However, this directness comes with added responsibility as customer service interactions become more personal, and mistakes and mishaps have the potential to undo carefully fostered trust.

Price and Scale Because retailers sell products directly to end users, they are able to earn more for the same items than wholesalers, who must allow room in their pricing structures for retailers to mark up these same products.


A merchant selling a shirt directly to customers can ask full price, but a wholesaler offering the same shirt must sell in to retailers at a discount so those retailers can also earn a slice of the pie.

Conversely, retailers tend to operate smaller enterprises than wholesalers, handling less volume and finding fewer opportunities to reap economies of scale. Marketing Options A retail business provides a wealth of marketing opportunities, from sampling food products, to dressing rooms to try-on clothing to in-person advice and recommendations.

These marketing strategies help sell retail items and develop relationships that can lead to repeat business. However, they can be expensive and require extra labor and infrastructure, such as staffing to hand out advice and samples, or extra floor space to install dressing rooms.

Some entrepreneurs specifically choose retail business models because they enjoy and are good at these types of marketing. Other retailers may have less of a natural feel for in-person marketing and may struggle to reach customers and to use marketing resources cost effectively.

Video of the Day Brought to you by Techwalla Brought to you by Techwalla Online Retailing Online retailing offers the advantage of a retail pricing structure with the added boost of drop shipping, if this model makes sense for your business.

Advantages and disadvantages of e retailing

By ordering directly from manufacturers and wholesalers only when customers place their orders, you circumvent the need to dedicate capital and space to inventory waiting to be sold. References Management Study Guide: In she transformed her most recent venture, a farmers market concession and catering company, into a worker-owned cooperative.

She does one-on-one mentoring and consulting focused on entrepreneurship and practical business skills. Cite this Article A tool to create a citation to reference this article Cite this Article.Advantages of E-tailing: 1.

Advantages and disadvantages of e retailing

Cost: The presence of software like e-tailware has made it an extremely simple task for online retailers to keep up-to-date with prices of the competitors.E-tailware.

Go Online, Lose Customer Relationships.

Personal Interaction

Online retailing offers the advantage of a retail pricing structure with the added boost of drop shipping, if this model makes sense for your business. What is 'Electronic Retailing - E-tailing' Electronic retailing is the sale of goods and services through the internet.

Electronic retailing, or e-tailing, can include business-to-business (B2B. While e-tailing, or e-commerce, has many advantages, such as being open for business 24/7, this retail medium does have some disadvantages. Can't Feel Products Just looking at a photograph and reading a description of a product may give enough information for a consumer to make a purchase online.

Advantages and disadvantages of online retailing Online retailing is growing at an astonishing rate, with online sales now accounting for around one quarter of the total retail market.

Retailers who ignore e-commerce may see their trade lessening as customers continue to shift to ordering products online. When deciding if your company should establish eCommerce as a method of retailing, carefully weigh both the advantages and disadvantages.

Convenience .

Advantages and Disadvantages of Online Shopping