E-Retailing

E-RETAILING

Retail is one of the more visible market sectors on the World Wide Web. In retail merchants sell products and services directly to a buyer. E-retail, also called e-tail, occurs when retailers use the World Wide Web to sell their products and services (Sanchez 16). E-retailers constantly challenge the old ways of conducting business as they bring new products and services to market. All e-retailers, however, operate in a similar way.

A customer (consumer) visits an online business at the web equivalent of a showroom: the electronic storefront. An electric storefront, also called an online catalog, is the website where an e-retailer displays its products. It contains descriptions, graphics and sometimes product reviews. After browsing through the merchandise, the customer makes a selection. This activates a second area of the store known as the shopping cart. The shopping cart is a software component on the World Wide Web that allows the customer to collect purchases. Items in the cart can be added, deleted or even saved for a future visit.

When ready to complete the sale, the customer proceeds to the checkout. At this time, the customer enters personal and financial data through a secure internet connection.1The transaction and financial data are automatically verified at a banking web site. If the bank approves the transaction, the customer receives an online confirmation of the purchase.

Then, the e-retailer processes the order and sends it to the fulfillment center where it is packaged and shipped. The E-retailer notifies the bank of the shipment, and payment is sent via electronic channels to the E-retailer Inventory systems are updated. Shipping information is posted on the World Wide Web, so the customer can track the order. The customer typically receives the order a few days after the purchase (Microsoft word 2002 project 2).

E-retailing presents a new way to shop. The store is