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