Online Retailing! Part One.
Benefits and Drawbacks of Online Retailing Tracks for Customer Contacts.
Online retailing is a phenomenon that has transformed the business world in recent years. It allows customers to shop for products online, pay electronically, and receive their orders through couriers. The first part will discuss the effect of online retailing on customers. It will show how online retailing has made shopping easier, faster, and cheaper for customers. It will argue that online retailing has brought many benefits to customers, such as convenience, choice, and price comparison. It will also highlight some drawbacks of online shopping, such as security risks, delivery delays, and a lack of personal interaction.
Definition
Online retailing is the process of buying and selling products or services over the internet without the need for physical interaction between the buyer and the seller. Online retailing has become a dominant force in the business world, as more and more customers prefer to shop from the comfort of their homes, using their computers, smartphones, or other devices. According to a report by eMarketer, global e-commerce sales were $4.28 trillion in 2020, an increase of 27.6% from 2019. The report also projected that e-commerce sales will account for 23.1% of total retail sales worldwide by 2023 and more in 2024.
Customer Benefits
Online retailing has brought many benefits to customers, such as convenience, choice, and price comparison.
Convenience is one of the main reasons customers shop online, as they can save time, money, and effort by avoiding travel, parking, queues, and crowds. They can also shop anytime and anywhere, as online stores are open 24/7 and accessible from any location with an internet connection. They can also enjoy fast and easy delivery, as online retailers offer various options for shipping, tracking, and returning products. For example, Amazon Prime members can get free two-day shipping on millions of items.
Choice is another benefit of online retailing, as customers can access products and services from different sellers and categories. They can also find products that are not available in their local stores or markets, such as niche products, rare items, or customized goods. They can also browse different online platforms, such as websites, apps, social media, or blogs, to discover new products or trends. For example, Etsy is an online marketplace that connects buyers and sellers of handmade, vintage, and unique products.
Price comparison is a third benefit of online retailing, as customers can easily compare prices and quality of products or services from different sellers and sources. They can also use online tools, like search engines, price comparison websites, or review websites, to find the best deals and offers. They can benefit from discounts, coupons, or online retailer cashback programs to attract and retain customers. For example, Groupon is an online platform that offers deals and discounts on various products and services from local businesses.
Customer Drawbacks and Challenges
Online retailing also has drawbacks for customers, such as security risks, delivery delays, and a lack of personal interaction.
Security risks are one of the main challenges of online retailing, as customers have to share their personal and financial information with online retailers or third parties. Identity thieves, scammers, or hackers may access or intercept online transactions and utilize this information. Customers can also be exposed to phishing scams or fake websites trying to trick them into revealing their information or paying for non-existent products or services. For example, cybercriminals stole $3.5 billion from consumers through internet fraud in 2019.
Another challenge with online retailing is delivery delays, where customers must wait for online retailers or couriers to process and ship their items. This can take longer than expected due to different factors: high demand, low supply, weather conditions, customs regulations, or human errors. Customers can also face problems with damaged, lost, or wrong products that do not match their expectations or specifications. They can also incur additional costs for shipping fees, taxes, or duties that are not included in the original price. For example, in 2020, many customers experienced delivery delays due to the COVID-19 pandemic, which disrupted global supply chains and logistics.
Lack of personal interaction is a third challenge of online retailing, as customers cannot see, touch, or try the products before buying them. They also cannot interact with salespeople, who can provide advice, assistance, or recommendations. They also miss out on the social and emotional aspects of shopping, such as fun, entertainment, or satisfaction. They do not trust and are loyal to online retailers who do not have a physical presence or reputation. For example, a study by PwC found that 78% of consumers prefer to shop in-store rather than online because they value human interaction.
Ending
Online retailing affects customers, who can enjoy many benefits, such as convenience, choice, and price comparison. Online retailing has made shopping easier, faster, and cheaper for customers. However, they have to deal with some challenges, such as security risks, delivery delays, and a lack of personal interaction. Knowing what and how to shop online has become popular with customers recently, especially after the pandemic. More and more customers are doing this as a basic routine of their daily lives. Therefore, getting familiar with online retail's impacts and effects of benefits and drawbacks is important to break down the enigma for customers.
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