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Retail marketing - Essay Example

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Summary
As an online retailer, the business provides customers with pictures and descriptions of the products posted for sales transactions. Using a credit card, customers can purchase through the computer. The…
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Retail marketing

Download file to see previous pages... As Hahn puts it, it is the strength of the online shopping business like that of eBay that is inherent by the fact that it is online (Hahn, 2006). Use of the internet allows both the sellers and bidders to participate in online auctions from anywhere in the world. A seller let’s say in China can put up a doll in an online auction site that can be bid on by bidders that reside in the United States. In essence due to the absence of territorial barriers made possible through the use of the virtual space, items can be purchased by technically everybody anywhere in the world.
Inherent in the worldwide interdependence of buyers and sellers is the comfort given to the buyers. The buyer simply sits in front of the computer, logs on to the online shopping site, uses an e-money, then waits for the delivery of the product. There is no longer a need for personal visit on stores which could require much effort especially for busy buyers. The Internet offers variety that is simply impossible in traditional stores (Postrel, 2004). Definitely, buyers do more than purchase items of their choice because they also work or study. More than the comfort offered by online shopping, time is saved for other purposes. Basically, the cost of participating into internet auctions through various retail agents is zero (Hahn, 2006). Online shopping also allows buyers to customize their products, as well as benefit from cheaper prices. As buyers are purchasing directly from the supplier, it eliminates the need for retailers and distributors who often add to the cost of the product. Postrel (2004) found that prices on the Internet were 6 percent to 16 percent lower than prices off-line.
Aside from the fact that purchase through online auctions saves time, it also allows the buyer to offer a bid at the time convenient to him since there are time constraints (Miller and Layton, 2000). Bids ...Download file to see next pagesRead More
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