Eretailing

E-Retailing

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

A customer (consumer) visits an online business at the Web equivalent of a showroom: the electronic storefront. An electronic 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 web that allows customers to collect a purchase. 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 connection1. The transaction and financial data are automatically verified at a banking web site. If the bank approves the transaction, the customer receives an online confirmation notice of the purchase.

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 web so the customer can track the order. The customer typically receives the order in a few days after the purchase (Microsoft Word Project 2002 Project 2).

E-retailing presents a new way to