Sales & Distribution Management Module 5.pdf

Copyright © 2023 Jayanti Rajdevendra Pande. All rights reserved.
RASHTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY
MBA
SEMESTER: 3
SPECIALIZATION
MARKETING
SUBJECT
SALES & DISTRIBUTION MANAGEMENT
MODULE NO : 5
E-COMMERCE & E-RETAILING
- Jayanti R Pande
DGICM College, Nagpur

Q1. What is E-Commerce? Also elaborate about different types of E-Commerce.
E-COMMERCE (Electronic Commerce): E-commerce refers to the buying and selling of goods and services over the internet. It
encompasses various types of commercial transactions conducted electronically, primarily through websites and other digital
platforms. E-commerce has revolutionized the way businesses operate and how consumers shop, providing convenience,
accessibility, and a global reach.
DIFFERENT TYPES OF E-COMMERCE
TYPES OF E-
COMMERCE
2
B2B
4
C2B
5
B2G
3
C2C
1
B2C

1. B2C (Business to Consumer): B2C e-commerce involves transactions between businesses and individual consumers. This is
the most common form of e-commerce, where businesses sell products or services directly to end-users. Example: Online
retail stores like Amazon, Walmart, and eBay, where consumers purchase goods and services from businesses.
2. B2B (Business to Business): B2B e-commerce involves transactions between businesses. In this model, businesses sell
products or services to other businesses. These transactions often involve bulk quantities and are more complex than B2C
transactions. Example: Alibaba.com is a platform where businesses source products in bulk from manufacturers and
wholesalers.
3. C2C (Consumer to Consumer): C2C e-commerce involves transactions between individual consumers. In this model,
individuals sell directly to other individuals. Online marketplaces facilitate these transactions and may charge a fee for their
services. Example: Websites like eBay and Craigslist, where individuals sell used goods or unique items to other consumers.
4. C2B (Consumer to Business): C2B e-commerce occurs when individual consumers sell products or offer services to
businesses. This model is becoming increasingly popular, especially in the gig economy, where individuals provide services
or sell products to businesses. Example Freelance platforms like Upwork and Fiverr, where individuals offer their skills and
services to businesses looking for specific tasks or projects.
5. B2G (Business to Government): It involves businesses selling products or services to government agencies. This can include a wide
range of goods and services, from office supplies to software solutions, contracted by government entities. Example Companies
bidding for government contracts to provide services like IT consulting or supplying equipment for public infrastructure projects.

Q2. Explain alternative E-Commerce strategies and give the advantages & disadvantages of E-Commerce.
ALTERNATIVE E-COMMERCE STRATEGIES
Brick and Mortar: Brick and mortar e-commerce involves traditional physical stores that also operate online. These businesses
offer both in-store shopping experiences and online shopping options to customers. Example: Walmart, a multinational retail
corporation, operates physical stores globally and provides online shopping through its website and app.
Pure Click: Pure click e-commerce refers to businesses that exclusively operate online, without any physical storefronts. They sell
products or services solely through online platforms.Example: Amazon, the world's largest online retailer, operates exclusively
through its website, offering a wide range of products and services to customers globally.
Brick and Click: Brick and click e-commerce combines physical and online presence. Businesses in this category have physical
stores and also sell products or services online, providing customers with both offline and online shopping choices. Example:
Best Buy, an electronics retailer, has physical stores where customers can buy products in person. They also operate an online
store, allowing customers to make purchases through their website.
ADVANTAGES OF E-COMMERCE
Advantages to Customers:
1. Reduced Price: E-commerce often offers lower prices due to reduced operational costs, allowing customers to find products
at competitive rates.
2. Anytime Access: Customers can shop at any time of the day or night, providing unparalleled convenience and flexibility.
3. More Choices and Quick Delivery: E-commerce platforms offer a vast range of products, and customers can access a variety
of choices. Additionally, quick and reliable delivery services enhance the shopping experience.

Advantages to Businesses:
1. Low-Cost Advertising: Online marketing and advertising can be cost-effective, allowing businesses to reach a wider audience
without substantial expenses.
2. Low Barrier to Entry: Setting up an online store is relatively affordable compared to establishing a physical storefront, making it
easier for entrepreneurs to start their businesses.
3. Global Reach: E-commerce provides the opportunity to sell products or services globally, breaking down geographical barriers
and expanding the customer base.
DISADVANTAGES OF E-COMMERCE
Technical Disadvantages:
1. Low Bandwidth: Slow internet connections can affect the loading speed of websites, leading to a poor user experience,
especially for multimedia-rich content.
2. Limited Internet Access: Not all potential customers have access to the internet, particularly in rural or underdeveloped areas,
limiting the market reach of e-commerce businesses.
Non-Technical Disadvantages:
1. Security and Privacy: E-commerce transactions involve the exchange of sensitive information, making customers vulnerable to
data breaches and cyber-attacks if security measures are not robust.
2. Lack of Touch and Feel: Customers cannot physically touch or try products before purchase, which can lead to dissatisfaction if
the received product does not meet their expectations.
3. Legal Issues: E-commerce businesses need to comply with various laws and regulations related to online transactions,
consumer protection, and privacy, which can be complex and challenging to navigate.

Q3. What do you mean by E-Retailing? Elaborate different factors affecting E-Retailing.
E-RETAILING (Electronic Retailing): E-Retailing, also known as online retailing or e-commerce retailing, refers to the process of
selling goods and services to consumers over the internet. E-retailers operate online stores, allowing customers to browse
products, make purchases, and arrange for delivery, all through digital platforms.
FACTORS AFFECTING E-RETAILING:
1. Demographic Changes: Changes in population demographics, such as age distribution, income levels, and urbanization,
influence the types of products and services in demand. E-retailers need to adapt their offerings to cater to different
demographic segments effectively. Example: An aging population might lead to increased demand for health and wellness
products online, prompting e-retailers to focus on this demographic group.
2. Consumer Behavior: Consumer behavior, including preferences, buying habits, and brand loyalty, significantly affects e-
retailing. Understanding consumer preferences helps e-retailers tailor their marketing strategies, product offerings, and user
experience to meet customer expectations. Example: E-retailers use data analytics to analyze consumer behavior patterns,
allowing them to personalize product recommendations and improve customer engagement.
3. Technology Improvement: Advancements in technology, such as mobile devices, augmented reality, and secure payment
systems, enhance the e-retail experience. Improved website designs, faster loading times, and user-friendly interfaces
contribute to a positive customer experience. Example: Mobile apps and responsive websites enable customers to shop
conveniently from their smartphones and tablets, leading to increased online sales.
4. Overbuilding and Excess Capacity: Overbuilding and excess capacity in the e-retail industry can lead to intense competition
and pressure on profit margins. E-retailers must efficiently manage their inventory, logistics, and operational costs to remain
competitive. Example: If multiple e-retailers enter a niche market and saturate it with similar products, it can lead to price
wars and decreased profitability for all players. Effective inventory management becomes crucial in such scenarios.

Q4. How e-retailing is used as a channel of distribution?
E-RETAILING AS A CHANNEL OF DISTRIBUTION
• Minimum Investment: E-retailing allows businesses to reach a wide audience with minimal investment compared to setting up
physical stores. Online platforms provide cost-effective ways for businesses, especially small and medium-sized enterprises (SMEs), to
showcase and sell their products without the high overhead costs associated with brick-and-mortar establishments.
• Comfortable to Use: E-retail platforms are designed with user-friendly interfaces, making it convenient for customers to browse,
compare, and purchase products from the comfort of their homes. The ease of use encourages customers to explore a wide range of
products and make purchases without any hassle.
• Easy to Use: E-retail websites and mobile apps are intuitive and easy to navigate. Customers can quickly search for products, read
descriptions, view images, and make purchases with just a few clicks. The streamlined shopping experience enhances customer
satisfaction and encourages repeat business.
• Mass Media: E-retailing leverages digital marketing and social media platforms to reach a broad audience. Businesses can use
targeted online advertising, email marketing, and social media campaigns to promote their products and attract potential customers.
These mass media channels help create brand awareness and drive traffic to e-retail websites.
• Customer Interaction: E-retailing enables direct interaction between businesses and customers. Through features like live chat,
customer reviews, and feedback forms, businesses can engage with customers, address their queries, and gather valuable insights.
This interaction fosters trust and loyalty among customers, enhancing the overall shopping experience.
• Effective Price Discrimination: E-retailers can implement dynamic pricing strategies and personalized discounts based on customer
behavior and preferences. By analyzing customer data, businesses can offer customized promotions, discounts, and
recommendations. This effective price discrimination tailors offers to specific customer segments, maximizing sales and revenue.
• Global Reach: E-retailing transcends geographical boundaries, allowing businesses to sell products and services globally. Through online
platforms, businesses can reach international markets without the need for physical presence in every location. This global reach opens
up new opportunities for sales and expansion into diverse markets.

Q5. Elaborate the structure of e-enabled distribution system.
STRUCTURE OF E-ENABLED DISTRIBUTION SYSTEM
E-enabled distribution systems have reshaped the way products and services move from manufacturers to consumers. These
systems incorporate digital technologies to streamline the distribution process. Here's an overview of the structure, including
disintermediation and reinter mediation concepts:
1. Disintermediation
Disintermediation refers to the removal or reduction of intermediaries in the traditional distribution process due to the direct
interaction between producers and consumers facilitated by digital technologies. There are two types of disintermediation :
A. Partial Disintermediation : [ PRODUCER → WHOLESALER → CONSUMER ]
Partial disintermediation involves reducing the role of intermediaries in the distribution chain, allowing consumers to interact
directly with manufacturers or service providers for certain products or services.
Example: Online travel booking platforms enable consumers to directly book flights and accommodations with airlines and
hotels, reducing the reliance on travel agents.
B. Complete Disintermediation/ Cybermediary: [ SUPPLIER → CYBERMEDIARY → CONSUMER ]
Complete disintermediation eliminates intermediaries entirely, enabling producers to sell products or services directly to
consumers through online platforms, cutting out traditional middlemen.
Example: E-books and digital music often bypass traditional publishing or record companies, allowing authors and musicians to
sell directly to consumers through platforms like Amazon Kindle Direct Publishing or music streaming services.

2. Re-intermediation
Re-intermediation refers to the introduction of new intermediaries or the empowerment of existing intermediaries in the
digital distribution process. There are two main concepts within re-intermediation:
A. Infomediary: Infomediaries are intermediaries that aggregate and analyze information about products, services, or market
conditions. They provide valuable insights to consumers, helping them make informed decisions about their purchases.
Example: Product review websites and comparison platforms collect and present user reviews and expert opinions, assisting
consumers in choosing products that match their preferences and needs.
B. Intermediary Empowerment: Intermediary empowerment refers to the enhancement of existing intermediaries' roles in the
digital distribution ecosystem. These intermediaries leverage technology to enhance their services and provide more value to
both producers and consumers.
Example: Real estate agents use online platforms to showcase properties, provide virtual tours, and facilitate negotiations,
enhancing the buying and selling experience for customers and property owners.

Q6. What do you understand by e-enabled logistics management? Give its importance.
E-ENABLED LOGISTICS MANAGEMENT
E-enabled logistics management refers to the use of digital technologies and internet-based solutions to optimize and
streamline various aspects of logistics and supply chain management. It involves the integration of electronic systems, software,
and communication tools to enhance the efficiency, accuracy, and responsiveness of logistics operations.
IMPORTANCE OF E-ENABLED LOGISTICS MANAGEMENT
1. Competitive Advantage: E-enabled logistics management provides businesses with a competitive edge by improving the
speed and accuracy of order processing, inventory management, and delivery. Companies that can fulfill customer orders
quickly and accurately gain a competitive advantage in the market.
2. Ease of Communication: Digital communication tools enable seamless communication between different entities in the
supply chain, such as suppliers, manufacturers, distributors, and retailers. Real-time information exchange ensures everyone
is on the same page, leading to better coordination and decision-making.
3. Simple to Implement: Many e-enabled logistics solutions are user-friendly and relatively easy to implement, especially with
the availability of cloud-based software and services. This simplicity in implementation allows businesses of various sizes to
adopt e-enabled logistics practices without significant technical expertise.
4. Creates New Customers: E-enabled logistics enable businesses to expand their customer base by offering services such as
online tracking, faster delivery options, and convenient return processes. These improved services attract new customers
and enhance customer loyalty among existing ones, leading to increased sales and revenue.
5. Essential in Operational Optimization: E-enabled logistics provide valuable data and analytics that help businesses optimize
their operations. By analyzing supply chain data, companies can identify inefficiencies, reduce costs, and improve overall
operational performance. Predictive analytics also aid in demand forecasting and inventory management.

Q7. Explain about various forms of e-enabled tracking system.
E-ENABLED TRACKING SYSTEM is a digital solution that utilizes technologies like RFID, GPS, or barcoding to monitor and trace
the movement of goods, assets, or vehicles in real-time, enhancing supply chain visibility and operational efficiency.
VARIOUS FORMS OF E-ENABLED TRACKING SYSTEMS
Automated Order Processing System
Radio Frequency Identification
Device
Electronic Data Interchange
Barcode Technology
Satellite Tracking System
Various forms of e-enabled tracking
systems

1. Automated Order Processing System: Automated order processing systems use software and algorithms to manage and
process customer orders without manual intervention. These systems can track orders from placement to fulfillment, ensuring
efficient order processing, inventory management, and timely delivery. E-commerce platforms often employ automated order
processing systems to handle a high volume of orders, reducing processing time and minimizing errors.
2. RFID (Radio Frequency Identification Device):RFID technology uses radio waves to identify and track objects. RFID tags attached
to items emit radio signals that are read by RFID readers, allowing for real-time tracking and monitoring of items throughout
the supply chain. RFID technology is widely used in inventory management, logistics, and retail to track products, monitor
shipments, and prevent theft or loss of goods.
3. EDI (Electronic Data Interchange): EDI enables the electronic exchange of business documents, such as purchase orders,
invoices, and shipping notices, between trading partners. It replaces paper-based processes with digital formats, allowing for
faster and more accurate data exchange. EDI is used in supply chain management to enhance communication and
collaboration between suppliers, manufacturers, and retailers. It facilitates seamless data exchange, reducing manual errors
and improving efficiency.
4. Satellite Tracking System: Satellite tracking systems use GPS (Global Positioning System) satellites to track the movement of
vehicles, shipments, or assets in real-time. These systems provide accurate location information and can monitor routes,
speed, and environmental conditions. Logistics companies use satellite tracking systems to track the movement of trucks,
ships, and cargo containers. This technology ensures route optimization, improves security, and enhances overall
transportation efficiency.
5. Barcode Technology: Barcode technology involves the use of visual symbols (barcodes) representing data. Scanners read these
codes, translating them into digital information. Barcodes are commonly used for product identification, enabling quick and
accurate tracking. Barcoding is widespread in retail and logistics. Products are labeled with barcodes, allowing retailers to
track inventory, manage stock levels, and automate the checkout process. It simplifies supply chain management by providing
detailed information about products as they move through the distribution network.

Q8. Explain different types of Cybermediaries.
TYPES OF CYBERMEDIARIES
1 Publishers: Publishers, such as blogs and news websites, host content like articles and reviews, often monetizing through ads
and sponsored posts, serving as intermediaries between advertisers and consumers.
Example: Blogs hosting sponsored articles for various products and services.
2 Directories: Directories compile and categorize business information, simplifying consumer searches for specific products or
services.
Example: Online business directories like Yelp, enabling users to find local businesses based on categories and locations.
3 Malls: Online malls host multiple individual stores, offering a centralized platform for retailers to showcase and sell products,
enhancing consumer accessibility.
Example: Amazon Marketplace, allowing third-party sellers to list products alongside Amazon's offerings.
4 Auditors: Auditors validate online transactions, ensuring security, trust, and data protection during payment processing.
Example: Payment service providers like PayPal, securing online transactions and customer data.
5 Intelligent Agents: Intelligent agents, such as chatbots on e-commerce websites, utilize AI to assist users by offering product
suggestions, comparing prices, and guiding them through the purchasing process.
Example: Chat bots engaging with customers, answering queries, and facilitating purchases.
6 Virtual Resellers: Virtual resellers act as intermediaries, purchasing products online from suppliers and selling them at a
markup without physically handling the items.
Example: Drop shipping businesses forwarding customer orders to third-party suppliers for direct shipment.

IMPORTANT DEFINITIONS IN THIS MODULE
1 E-Commerce:
• E-commerce refers to the buying and selling of goods and services over the internet, involving online transactions between
businesses and consumers.
2 E-Retailing:
• E-retailing, or online retailing, is the process of selling products and services directly to consumers through digital
platforms, offering a wide range of goods accessible online.
3 E-Enabled Logistics Management:
• E-enabled logistics management utilizes digital technologies to optimize supply chain and logistics operations, improving
efficiency through tools like RFID, GPS, and automated systems.
4 E-Enabled Tracking System:
• An e-enabled tracking system is a digital solution that utilizes technologies such as RFID, GPS, or barcoding to monitor and
trace the movement of goods, assets, or vehicles in real-time, enhancing supply chain visibility and operational efficiency.

Copyright © 2023 Jayanti Rajdevendra Pande.
All rights reserved.
This content may be printed for personal use only. It may not be copied, distributed, or used for any other
purpose without the express written permission of the copyright owner.
This content is protected by copyright law. Any unauthorized use of the content may violate copyright laws
and other applicable laws.
For any further queries contact on email: jayantipande17@gmail.com

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