Is there any difference between E-commerce and retail

Retail and e-commerce both refer to what happens when a business sells a product to a consumer for their own use, the only difference being one of them, that is, e-commerce happens exclusively through the Internet.

Retail is conducted mainly through a brick-and-mortar store, where products are displayed on racks or shelves in an establishment called a shopping centre. However, there are a number of varied options that can be used to perform retail functions. E-commerce refers to commercial transactions made electronically through the Internet, EDI (Electronic Data Interchange) or other online systems.

E-commerce simplifies the buying process itself and is bent on convenience and accessibility. You do not have to leave the comfort of your home or wait in queues near the billing counter. All the purchases can be made through “click and pay”. The major advantage of retail over e-commerce is the interaction with the staff and physical proximity to the product of choice. You can touch and feel the product you decide to buy and even ask the staff for opinions or options.

Most importantly, in a retail store when you purchase a product you have it in your hand immediately and do not have to wait for it to be shipped.

Will e-commerce overtake retail stores?

The retail sector operates today in a fiercely competitive environment and it is vital for them to constantly innovate, re-invent and upgrade to become the preferred choice among the consumers. In addition to handling the rising cost, price-sensitive customers and the whimsical trends providing a multi-channel shopping experience have also become essential While online retailing is also developing fast, this does not, however, imply the end of physical stores because customers who are worried about touch and feel prefer to purchase the products from brick and mortar stores. However, those customers who are too busy to walk down to the stores and want groceries to be delivered in the comfort of their homes may choose to purchase online. This has now given rise to a hybrid model, more like an upgraded version of the traditional e-commerce used to portray the collaboration of both online and brick-and-mortar stores.

While a lot of physical retail stores are churning out their online variants, the same is happening with e-commerce stores as well. E-commerce retail stores are edging towards realising the value of physical stores where customers are suited with the realism of touching and feeling the products. Hence, many retail businesses now exist both in brick-and-mortar storefronts as well as through online websites or mobile applications. For example, Tesco, Walmart, D-Mart, Forever 21 – all these retail stores can be visited both through their online versions, or you can choose to walk round to their actual establishment for an actual physical shopping experience.

Advantages of hybrid retail business model

In todays’ digital environments, consumers have varied options than ever before. They can choose to browse through online retail inventories while on the go using their smartphones or i-pads. Being able to choose a product online and at the same time check it out in a nearby physical store can give much-needed assurance about a brand’s credibility and build trust. That is why the hybrid model reflects the future of retailing.

Marketing budget reduced and sales are increased

As the hybrid models combine both online and offline inventories, the marketing of the same line of products can be combined as well. However, as the online market is highly competitive, e-tailers must dig themselves into new forms of advertisements and organize events, which will add to recurring costs. The marketing budget, hence, dips substantially due to saving in advertisement costs.

Retaining the Touch and Feel the essence

Lines between offline and online are now blurred as e-tailers now combine both interactions. E-tailers have realized that to fully explore the untapped potential of the e-commerce market it is essential to retain the “touch and feel” shopping experience for online customers as well.

Enables Better Inventory Management

Inventory management is the most daunting task in the retail business. With customers demanding a wide range of products these days, even advanced forecasting and planning tools may not be able to deliver the desired balance between sufficient inventory and demand. Low product demand can lead to huge amounts of returns, especially for online orders. This stipulates retailers to build and maintain distribution centres to meet the ever-increasing and fluctuating demand. In addition, assessing overall labour impacts and analysing historical sales data is vital to maintain the right capacity.

To stay afloat in the retail game, it is imperative to re-invent the traditional selling patterns. The hybrid shopping experience promises to deliver a unique shopping experience by adapting unique functional bridges, opening out the doors to a large potential of online customers, and increasing customer loyalty and brand recognition. While adopting a hybrid model, ensure you keep in mind the customer’s convenience related to store layout, e-commerce transactions, product availability and streamline your supply chain with new, innovative and effective ways.
PR Source: www.openpr.com/news/23…and-retail