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Issues and Challenges Facing Retailing - Article Example

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Issues and challenges facing retailing NAME: AFFILIATION: UNIVERSITY: Abstract The concept of online retailing has undergone various reforms to be compatible to the requirements of the customers so that they can reap the benefits of convenient online shopping…
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Issues and Challenges Facing Retailing
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"Issues and Challenges Facing Retailing"

Download file to see previous pages In order to enhance the effectiveness of digital retailing, the key factors that have to be considered by the retailers are availability of the latest products and services, transportation facilities for quick delivery and order fulfilment, easy payment mechanism, efficient logistics and distribution framework and cost-effectiveness. Contents Abstract 2 Introduction to retailing 4 Literature Review 5 Online retailing is the latest trend 6 Key drivers of online retail industry 6 Discussion 9 Limited potential for growth 9 High cost of delivery 10 Selection range trade-offs 11 Intense competition 11 Environmental impact of online retailing 12 Conclusion 12 References 14 Introduction to retailing In the consumer goods industry, retail has been playing a primary role in enhancing the productivity of the key players across the world. This retail sector has been expanding at an accelerating pace because the consumers are looking for convenience in the shopping arena. The significance of this industry is evident in the contribution made in the economies of UK, Mexico, USA, China, Dubai, Sri Lanka, Malaysia and Thailand; all of these countries have seen robust growth in their GDPs (Bell, Choi & Lodish, 2012). Some giant retail stores like Wal-Mart, Tesco, Kmart, Carrefour, Sainsbury’s and others have ensured that they provide the complete range of employment benefits to their personnel so that they can have an adequate standard of living while meeting all of their basic and mandatory requirements. Since 1990s, Internet has revolutionised the way in which organisations carry out their business activities; it has even impacted the retailing industry to a significant level. Internet in other words have changed the usual way of conducting business activities. As Internet is easily accessible by everyone with the help of the most up-to-date technological gadgets such as smartphones, tablets and etc., it has created the latest trend of online retailing. Internet has used the element of convenience for the customers and formed the aspect of online retailing for consumers. The pioneers of online retailing such as Amazon, BestBuy, eBay, Zulily and many more have ensured that the customers are provided the most sensational online shopping experience. These online organisations have proven their level of success and hence now we can observe many online retailing firms emerging in the market. There is constant improvements observe in the online businesses and also we can observe that the mode of payments are advanced and fully secure. In order to create a wholesome experience, the online stores are ensuring that they give utmost importance to each and every aspect of the e-retailing so that the customers are willing to increase their online purchases. According to a reputed research firm, Forrester, E-commerce is estimated to approach a figure of about $200 billion in terms of revenue alone in US which accounts for about 9% of the entire retail sector sales. There has been 5% increase in the retail sales as compared to its standing about five years ago (Rigby, 2011). Literature Review In the retailing industry, the retail stores are mainly classified in either of the two categories i.e. organised or unorganised. Within the organised sector, the retailers ensure that they provide the customers with the complete range of options from products to services so that they can take advantage of economies of scale and conveniently shop around the store. On the other hand, ...Download file to see next pagesRead More
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