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  1. 1. White Paper Presentation on e-tailing Dhirendra Gupta PGDM - III Roll no. -19
  2. 2. What is e-tailing ? <ul><li>e-tailing is the transaction of goods and services ; and the payment for those goods and services over the Internet. </li></ul>
  3. 3. Revenue Generators
  4. 4. Problems / Challenges faced by the e-Commerce <ul><li>Failure to understand the customers behaviour. </li></ul><ul><li>Becoming the victim of organised crime. </li></ul><ul><li>Two main methods are as follows: </li></ul><ul><li>(1) Using identity theft techniques like phishing. </li></ul><ul><li>(2) Extortion by using a network of compromised “zombie”. </li></ul><ul><li>Concerns about security due to concerns about theft and credit card fraud. </li></ul>
  5. 5. Contd.. <ul><li>The problem of access to web commerce due to poor infrastructure esp. in developing/under developed countries. </li></ul><ul><li>It takes time to enter the market for any new e-business. </li></ul><ul><li>Problem of Cross Cultural Barriers. </li></ul><ul><li>The two main challenges faced by B2C e-commerce are building traffic and sustaining customer loyalty. </li></ul>
  6. 6. Survey done by Harris Interactive in Aug 2000 <ul><li>Why haven't you bought anything online in the last 12 months? </li></ul><ul><li>57% Afraid my credit card number will be stolen if given online </li></ul><ul><li>57% Concerned that my personal information may be abused </li></ul><ul><li>38% Worried that sellers may be fraudulent </li></ul><ul><li>26% Want to be able to talk to someone when I place an order </li></ul><ul><li>37% Don't know if sellers will be reliable </li></ul><ul><li>47% Want to see a product in person </li></ul><ul><li>25% Other. </li></ul><ul><li>Sample size was 2015. </li></ul><ul><li>Source : “E-Consumer Confidence Study,” commissioned by the National Consumers League with the support of Dell Computers. </li></ul>
  7. 7. Opportunities in E-commerce <ul><li>Here are Reasons why you should give attention to using your company’s Website to reach out to global markets: </li></ul><ul><ul><li>Foreign economies like European countries , Asian markets are healthy. </li></ul></ul><ul><ul><li>A further point in their favor, Europe (and Asian) countries are going online faster than ever. </li></ul></ul><ul><ul><li>Most countries online populations have doubled in the last year. </li></ul></ul><ul><ul><li>Expand internationally before your competitors do to be more competitive. </li></ul></ul><ul><ul><li>Increases sales and a huge market. </li></ul></ul><ul><ul><li>People in other countries may not be satisfied with the best of the availabe products and services. </li></ul></ul><ul><ul><li>Satisfy your shareholders. </li></ul></ul>
  8. 8. OBJECTIVE <ul><li>The objective of this research is to understand </li></ul><ul><li>1) The pros and cons of the e-retailing </li></ul><ul><li>2) The impact e-tailing has created in the minds of the customer in the U.S market. </li></ul><ul><li>3) To understand whether e-tailing will beat offline retailing industry. </li></ul>
  9. 9. Hypothesis <ul><li>H 0: Online retail stores will beat offline retailers in U.S. </li></ul><ul><li>H 1: Online retail stores will not be able to beat offline retailers in U.S. </li></ul>
  10. 10. Methodology Tools <ul><li>The research conducted over here is exploratory and qualitative to understand the consumer behavior towards e-tailing. </li></ul><ul><li>Sources of information: </li></ul><ul><li>The information used for this project was collected from second hand source, they are as follows; </li></ul><ul><li>Second Hand Source:- </li></ul><ul><ul><li>Website. </li></ul></ul><ul><ul><li>Books. </li></ul></ul><ul><ul><li>Newspaper . </li></ul></ul>
  11. 11. SCOPE OF RESEARCH <ul><li>The study includes the various research done in U.S on the consumer behavior of e-tailing. Various parameters were considered like CRM, Convenient facilities, etc and accordingly the research was done. </li></ul>
  12. 12. LITERATURE REVIEW Research done by ACSI/Foresee in the year 2005 83 2003 84 2004 80 2005 CUSTOMER SATISFACTION INDEX 80 88 77 86 84 84 E-BAY AMAZON
  13. 13. Contd… Research done by The Council of Better Business Bureaus in the year 2001 60 % 1692 1999 72 % 3913 2000 Complaints Resolved NO. OF COMPLAINTS YEAR
  14. 14. Contd… <ul><li>According to the research done by Jupiter Media Metrix . </li></ul><ul><li>74 percent of businesses will spend more money on customer relationship management (CRM) infrastructure in 2001 than they did in 2000 . </li></ul><ul><li>Majority committing to increasing their spending by as much as 25 to 50 percent than they did in 2000 . </li></ul><ul><li>The number of individuals seeking online customer service will jump from 33 million in 2001 to 67 million in 2005. </li></ul>
  15. 15. LIMITATIONS OF THE STUDY <ul><li>Time period to do the research was limited. </li></ul><ul><li>The limitations of secondary data are applicable on this research as the data has been taken from secondary data. </li></ul><ul><li>The size of the sample may not be applicable to the whole population. </li></ul>
  16. 16. Tentative Conclusions <ul><li>The consumer behavior towards the following parameters : </li></ul><ul><li>No touch and feel effect of the product. </li></ul><ul><li>Payment problems in online trading. </li></ul><ul><li>Fraud activities on the internet. </li></ul><ul><li>Delivery problems of the product. </li></ul><ul><li>Various online threats like Virus, threats, etc. </li></ul><ul><li>Lack of personal approach by seller. </li></ul><ul><li>Trial and use of the product before purchasing. </li></ul>
  17. 17. <ul><li>Customer lacks trust on the retailers who are only online retailers. </li></ul><ul><li>Customer finds online retailing to be most convenient form as customer gets all the information by just one click . </li></ul><ul><li>Online retailers can have an edge over the offline retailers as more number of customers could be targeted. </li></ul><ul><li>Various products like softwares, e-books, e-newspaper,etc. which could be downloaded online may not require to go for any kind of retail shops as the products could be downloaded on internet. </li></ul><ul><li>We can conclude that offline retailers will have advantage when they will be going online over the competitors. For ex: Future Group going online. </li></ul>Contd…
  18. 18. <ul><li>THANK YOU </li></ul>