Electronic Retailing, Multi-Channel Retailing, Disintermediation in Retailing - Literature review Example

RETAIL TOPICS Name Date Course Electronic Retailing Electronic retailing is also referred to as e-tailing and it is defined as the process of carrying out the sale of goods and services through the internet. The transactions are usually carried out online in e-retailing (Thirumalai, et al, 2011). In most cases the business take place from business to consumer, for instance a consumer directly purchasing goods online from a company. The concept of carrying out ca sale of goods and services between the businesses to consumer through the internet is also referred to as B2C. Electronic retailing is increasingly becoming popular due to the increased access to the internet coverage in most parts of the world. Electronic retailing also takes place among the stakeholders in different countries. This method is important in terms of enabling the customers’ access of goods or services directly from the companies regardless of the country of location. The e-retailing revenue can be generated from the subscriptions to website contents, advertising or sale of goods and services. The concepts of electronic retailing play an integral role in terms of ensuring the customers have a direct interaction with the companies. E-retailing process requires the business organizations to tailor their traditional business processes. This means that the companies have to embrace the use of the internet for the purpose of carrying out its activities (Mookerjee, 2012). This means that a company has to establish its presence on the internet with an aim of enabling the customers to access their products and services. The payment is also made online when the electronic retailing process is embraced. It is also important to note that the e-retailers are not necessarily restricted to the internet. This is because they can operate websites to ensure that they reach their customers in the most convenient way. Online retailing process is also becoming common among most people as it is easier to conduct. The transactions also take a shorter period of time to conduct comparing to the ordinary process where the business is located in a different country from the consumer. It is also important to note that the e-retailing concept plays an important role in terms of breaking the international barriers to trade. The consumers are also advantaged by the process as they can obtain goods directly from businesses. Multi-channel retailing The multi-channel retailing involves the use of different channels in the shopping experience of the customers. It can also include the research that the customers have to conduct before making purchase decision. Examples of multi-channel retailing include the use of channels such as retail stores, mobile app stores, mobile stores and telephone sales. This method is advantageous to the customers as they are able to obtain all the information regarding a particular good that they intend to purchase. The customers also have an advantage in terms of defining the route that they take in terms of the decision making process. However, it is also important to note that the systems and processes that are in place may dictate the operations of the customers. Multi-channel retailing is also useful in terms of enabling the customers from different regions to purchase products and services. A multiple choices is also offered to the customers and hence making the process reliable (Sousa, 2012). Multi-channel retailing has systems in place which play the role of facilitating the customers to make transactions. The systems also enable the customers to be served when carrying out their transactions. The use of customer centric perspectives plays an important role in terms of enabling the customers to use the multi-channel systems (Badrinarayanan, 2012). It is also important to note that the prepaid and pres sale services are also available when using the multi-channel retailing. Browsing is also an important concept of multi-channel retailing as it enables the customers to access the goods and services. On the other hand, the multi-channel enables the customers to choose from a diverse range of stores. Omni-channel is also a term that is current used to describe the concepts of multi-channel retailing. The customer experience is thus enhanced through the concepts of multi-channel retailing. Disintermediation in Retailing The term Disintermediation in Retailing is used to refer to the removal of the middlemen, brokers or distributors that formerly linked the customers to the company. This means that the disintermediation process ensures that the companies are directly linked to the customers. The process plays a vital role in terms of reducing the costs of that the companies have to pat to the middlemen in order to link them with the customers (Morschett, 2012). On the other hand, the process plays an important role in terms of ensuring that the customers are able to interact directly with the company. The concepts of e-business have played an important role in terms of disintermediation in retailing. This is because the customers can be linked directly with the retailers of companies without the need for a broker. It is also important to note that the customers can hold the company accountable as they receive the products and services directly from them. The disintermediation also plays an important role in terms of ensuring that the company can access the crucial customer information. The profits margin of the producers is also impacted positively by the process (Lee, 2011). This is because extra costs will not be incurred which would have been used for the purposes of paying the brokers and middlemen. The concept is also beneficial to organizations in a highly competitive market. This is because the company has the direct contact with the customers and it can thus reduce the process of its products and thus gaining competitive advantage without incurring losses. The companies are able to meet the demands of the customers easily due to the direct contacts with the customers and hence leading to the customer satisfaction. Cost saving and access to the customer information is an advantage that disintermediation presents to an organization which leading to competitive advantage (Doh, 2012). Disintermediation process also offers the customers with an opportunity of customizing their products when making their orders. This plays an important role in terms of ensuring that the customers are fully satisfied. It is however important to note that the success of disintermediation is dependant on the type of market and goods or services. This is because some of the markets require the services of the middlemen while other markets can operate without the services of the middlemen. E-business present companies with an opportunity of disintermediation. Most of the organizations however have to consider various factors before embracing disintermediation. List of References Thirumalai, S. et al, 2011, Customization of the online purchase process in electronic retailing and customer satisfaction: An online field study, Journal of Operations Management, 29(5), 477-487. Mookerjee, V, 2012, Advertising strategies in electronic retailing: A differential games approach, Information Systems Research, 23(3-part-2), 903-917. Sousa, R, 2012, The impacts of e-service quality on customer behavior in multi-channel e-services, Total Quality Management & Business Excellence, 23(7-8), 789-806. Badrinarayanan, V, 2012, Transference and congruence effects on purchase intentions in online stores of multi-channel retailers: initial evidence from the US and South Korea, Journal of the Academy of Marketing Science, 40(4), 539-557. Morschett, D, 2012, Disintermediation in Distribution Channels–A Transaction Cost-based Analysis of Wholesalers, In European Retail Research (pp. 93-112). Gabler Verlag. Lee, F, 2010, The disintermediation of the furniture supply chain, Chinese immigrant entrepreneurs at the global-local nexus (Doctoral dissertation, The University of Sydney). Doh, J, 2012, Framework for Understanding Fair Trade Disintermediation, Business and Society Review, 117(4), 443-475. Read More