The Keys to E-Retail Success - Essay Example

The Keys to E-Retail Success Introduction The application of e-commerce is growing significantly in this present day context due to increased level of liberalization and gaining momentum of internationalization. In this similar context, it can be apparently observed that worldwide Business-to-Consumer (B2C) e-commerce sales have augmented sharply in recent years, driven by certain imperative aspects like transformations in consumer behavior and mounting online population (JLL, 2013). Justifiably, e-retailing is close to 10% of all retail spending and is incessantly growing.

However, the main concern lays in the fact that whether e-retailing would close to more than 50% of all retail spending in future. With this concern, the essay intends to discuss about ten success factors or practices that would help accomplishing the above stated objective. Factors for E-Retail Success Price Price can be duly regarded as the prime factor or best practice, which might contribute in making e-retail successful in terms of enabling e-retailing closer to more than 50% of all retail spending.

This can be justified with reference to the fact that this factor determines the placement of e-retailers in numerous websites or search engines. It can be recommended that the e-retailers must offer the products at discounted prices for attracting the customers, which would eventually result in making more retail spending (Bolds, 2013). Customer Service E-retailing can attain success through providing quality services to the customers. The factor of customer service would also play a decisive role in deriving e-retail success by way of generating trust along with confidence amid the customers.

This factor is quite important to be considered for steering the growth of e-retailing business to over 50% of all retail spending, as it tends to create repeat e-retailing business and most importantly, attain greater customer satisfaction (PricewaterhouseCoopers Private Limited, 2011). Online Value Proposition Online value proposition is the other important factor or best practice, which can be recommended as contributing towards e-retail success within the global phenomenon. This factor aids in determining the procedures to be adopted for differentiating online offerings that deliver greater value to the audiences or the customers.

Thus, it is expected that this particular aspect would facilitate e-retailing to surpass the margin of 50% of all retail spending (Dubelaar & et. al., 2005). Trust This is the other vital factor, which can bring greater success towards e-retailing. It is quite important to build greater trust along with confidence amid the customers with the aim of attaining several benefits that include greater profitability and competitive business position among others. It can be affirmed accordingly that the factor of trust would eventually facilitate in making e-retailing closer to more than 50% of all retail spending in terms of attracting huge figure of customers to participate in the e-retailing process by a considerable extent (Dubelaar & et. al., 2005).

Cost of Shipping Online retailers have been viewed to adopt, follow and develop numerous pricing strategies relating to online shipping. These includes ‘bundled items’ (lower shipping prices), ‘weight-based shipping price’ (actual shipping costs) and ‘average built-in shipment cost’ (free shipping). It can be recommended in this regard that an ‘average built-in shipment cost’ (free shipping) can be taken as an important factor for e-retail success with the aim of getting closer to more than 50% of all retail spending as this pricing method is quite preferred by the online consumers (Bolds, 2013).

Easy and Wide Access to Products and Services It is quite obvious that e-retailing is close to 10% of all retail spending and is incessantly growing in this modern business scenario owing to the reason of facilitating the consumers to access their preferred products and/or services with adequate ease. Thus, this factor can be recommend as one of the prime factors or practices contributing in attaining e-retail success, steering its growth to more than 50% of all retail spending (Bolds, 2013).

Customer Feedback Obtaining customer feedbacks can also be duly regarded as one of the prime factors or practices for e-retail success. This can be justified with reference to the fact that this factor would not only aid in informing others about the ways of conducting e-retailing business procedure but would also guide in identifying various sorts of errors and the methods to fix those that appear in the process (Bolds, 2013). Application of Innovative Technologies The adoption along with the execution of pioneering technological advancements can be duly regarded as the significant aspect, which contributed in making e-retailing closer to 10% of all retail spending.

In this similar concern, the application of innovative technologies might act as a prime success factor for e-retailers, as it smoothen the entire retailing procedure, helping the businesses to attract the customers towards participating in e-retailing procedure (Bolds, 2013). Focus on Adding value for Customers It can be apparently observed that the preferences of the customers are incessantly changing in this modern day context, as they desire to obtain quality and quick services from the e-retailing business procedure.

In this regard, the online retailers require adding greater value to the customers in terms of offering them with best product prices and speedy delivery of the services for complying with the requirements of the customers with greater efficiency. Through this factor, it is expected that e-retailing business will be able to surpass 50% of all retail spending (Kha, 2000). Focus on Improving Customers’ Experience In order to attain success to surpass the given margin of 50% of all retail spending, extreme focus ought to be laid on offering quality products and speedy services to the customers with greater availability of the same.

This signifies that the e-retailers require integrating their respective systems as well as information to leverage knowledge and form strong customer relationship (Kha, 2000). Conclusion As per the above analysis and discussion, it can be comprehended that e-retailing is close to 10% of all retail spending and that this trend, is constantly increasing due to the factors that majorly include augmented participation of the consumers in e-retailing activities. It can be affirmed in this regard that the business of e-retailing will be able to exceed 50% of all retail spending through the execution of various success factors that encompass building trust, generating greater value proposition and offering quality services to the customers among others.

References Bolds, T. (2013). Six best practices for online retailers. Retrieved from http://www.forbes.com/sites/yec/2013/07/09/six-best-practices-for-online-retailers/ Dubelaar, C., Sohal, A., & Savic, V. (2005). Benefits, impediments and critical success factors in B2C e-business adoption. Technovation, 25, 1251-1262. JLL. (2013). Key takeaways. E-commerce Boom Triggers Transformation in Retail Logistics, 1-27. Kha, L. (2000). Critical success factors for business-to-consumer e-business: lessons from Amazon and Dell.

Retrieved from http://dspace.mit.edu/bitstream/handle/1721.1/28223/45745438.pdf PricewaterhouseCoopers Private Limited. (2011). E-commerce. Retrieved from http://list2.pwc.fr/assets/files/lettre_retail-and consumer/pwc_winning_in_india_retail_sector_1.pdf