What Is Electronic Retailing (E-tailing)?

What Is Electronic Retailing (E-tailing)?

• 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.

When designing an e-tailing business model, organizations strive to capture market share by producing the best web pages which attract the most shoppers and convert them to buyers.

When selling products online, logistics and distribution are of critical importance to ensure customers are satisfied with the timeliness of delivery for their purchase. It directly correlates to why businesses such as Amazon are focussed on finding ways to decrease shipping times and offer options such as “one-day delivery.”

1. Business-to-Business (B2B) E-tailing

1. Business-to-Business (B2B) E-tailing

• Business-to-business (B2B) e-tailing occurs when a business purchases a product or service from another business’s website, for its own use or to use as a component in its own products. The business model differs in B2B transactions when conducted online because fast shipping, quality, and price become increasingly more prominent.
• Generally, when a business purchases wholesale products online, they are buying large quantities of goods. Therefore, it is important to negotiate reasonable prices with fast shipping and safe handling.
• In order to develop the best e-tailing business model for B2B transactions, the wholesale business must offer quantity discounts, reasonably fast shipping, and ensure that the goods remain undamaged.

2. Business-to-Consumer (B2C) E-tailing

• Business-to-consumer (B2C) e-tailing transactions are when a consumer buys a product or service from a business’s website, such as shoes off a sports apparel company’s website. The business model differs in B2C transactions when conducted online because consumers are very demanding and expect fast delivery and guarantees that the product’s quality matches the online description.
• This makes shipping times and handling standards very important in any company’s e-tailing business model.

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