e-tailing

Nowadays, e-tailing take part in pure play-type business have the opportunity to gain higher profit margins because the overhead expenses associated with a physical retail space, such as retail space, labour and inventory is significantly alleviated. Pure play allows a retailer to reach customers world wide while they still maintaining in one location for each customer to visit. It is operate for 24 hours a day and 7 days a week.

Furthermore, e-tailing contains online clothes, online reservation the restaurant, eyeglasses, tourism, e-groceries and others. This is more convenient to us looking for different online categories to shopping.

For example, Dell is direct sell their computers and laptops online. They do not appoint any retailer to sell their product in shop. This is because they are able to save a lots cost through online services. However, they have now start to presence brick and mortar business. There is a first Dell physical store in Malaysia that located in Mid Valley Megamall’s IT World, Kuala Lumpur.

One of the reason that Dell implement this strategy is to increase the market share in the PC market as they have been taken over by Acer as the 2nd in worldwide notebook market. With this strategy, they are able generate more revenue. It enable the customer to physically feel and touch the product. It is more reality compare to the catalogue provided in e-tailing. Then, they may purchase the physical products through their shop.

Beside that, brick and mortar business is able to reduce the possible problem that incurred in e-tailing such as lost shipment, errors in shipments, overbilled customers, faulty products and credit card fraud. All this are often the causes that cause the customer felt unsecure of their product or the transaction process.