E -Retailing - Clicks and Bricks

E -Retailing

Table of Contents
Does the growth in “online shopping” mean the extinction of the typical “high street” store 3
Examine the various models, “clicks”, “bricks”, bricks and Clicks and clicks and bricks.
Which if any is most suitable.................................................................................................4
We are increasingly hearing the term omni channel retailing what does this mean and how can
business exploit this new phenomenon ................................................................................4
Why are online travel services such a popular internet application? Why do many websites
provide free travel information? ............................................................................................7
Compare the advantages and disadvantages of distributing digitisable products electronically
versus physically ...................................................................................................................8
REFERENCES .............................................................................................................................10

Online retailing is defined as the process of sales of products and services using internet.
This consists of business to business and business to consumer sales of products and services.
The online retailing requires organisations to capture internet sales and this can include building
of distribution channel like internet webpages, product shipping centres and warehouses. This
report consists of various questions related to online retailing and these are answered for better
understanding of concept of E-retailing. E- relating is a platform where selling goods and
services sold through internet (Jones, and Livingstone, 2015). It is Anything Anywhere at one
click of button. Now a day it is at the boom, mostly people buy and sell their product and
services online only. E-Relating can be done between the business to businesses, business to
customer. It saves times, ability to operate 24/7 and also helps in increase in sales and maintain
relationship with customer. The Products which are sold online includes Computer hardware and
software, cars, services, jewellery ,Toys, health and beauty, Apparel and clothes, office supplies,
books, consumer electronics, sporting goods.
Does the growth in “online shopping” mean the extinction of the typical “high street” store
It can be said that growth and development in online shopping has decreased the high
street stores in the business environment. There is a drastic change in the shopping tradition after
the success of online retailing websites. The revolution of online shopping has affected the retail
shops to a higher extent. Online retail shopping has changed the way by which people purchase a
product (Amin, 2016). No person wants to go out of their homes and search for products they
want to buy. It takes a lot of time and thus most of the individuals around the world shop through
internet using smartphones or tablets (Reid, and Ross, 2015). There are several offers and
discounts which are given by online retailing websites. The delivering of products to consumers
at home or local store costs money to the company. The decrease in High streets reflects
disappearing of local shops or local jobs. It is more cheaper for a person to start a new business
in online retailing rather offline stores. The online shopping websites offers a great deal like 50%
- 70% discounts and this helps in attracting a number of customers to buy products through
online. The big retailing websites like Amazon and Alibaba.com are making a lot of money and
profits in market by selling products online (Hubbard, 2017). The online retailing websites
offers delivery and click and collect facilities for attracting more number of shoppers. But this is

suicide for business in a long term (Greenhalgh, Johnson, and Huntley, 2019). Online retailers
are a big challenge to offline brands and thus the high street stores and brands must develop their
business and establish changes in their strategies for sustaining in market for a longer period. It
can be clearly said that online shopping has taken over the high street stores (Johnes, 2019.).
Examine the various models, “clicks”, “bricks”, bricks and Clicks and clicks and bricks. Which
if any is most suitable
The term bricks and clicks is defined as the business which is having a physical retail
location is brick and online presence which generates significant sales is the click (Daly, and
Nataraajan, 2015.). A brick and click business provides several advantages of having a store in
which customers can come and sell their goods and services on internet or web. Branding is the
major advantage of the bricks and clicks model is that retail stores help in leveraging advantages
that are developed over years (Herhausen, and Et. AL., 2015). There are several businesses
which are able to develop trusted brand names and reputation which is translated to the internet.
The companies build their brand through scratch without the advantage of physical location
where needs and demands of customers has to be met. Another advantage of the bricks and
clicks model is that this helps in improving the supplier networks. Internet is providing wider
range for suppliers that helps in ordering new products and equipments. When the business starts
operating online the supply network of the company is enhanced (Chou, Chuang, and Shao,
2016). The products that can be sold to local community are put on internet and they are sold
online. A company can be visited if it is maintaining a physical store (Yan, Xiong, and Guo,
2015). This is helpful for business where customers are allowed to have physical inspection of
products before buying them (Van Schoor, and Mischke, 2014). The main disadvantage of of
bricks and clicks model is that businesses have high over headed costs when compared to the dot
coms and traditional brick and mortar businesses. This is because both internet presence and
physical presence have to be maintained (Jones, and Livingstone, 2015.). The main cause for the
companies to become internet companies is that it helps in increasing he sales and profit of the
company. The bricks and clicks model is the most suitable model as this demonstrates companies
to operate both both through internet and physical stores.

We are increasingly hearing the term omni channel retailing what does this mean and how can
business exploit this new phenomenon
The Omni channel retailing is also termed as omni channel which is a fully integrated
approach to commerce which provides customers to have an unified experience through online
as well as offline channels (Verhoef, Kannan, and Inman, 2015). The true omni channel retailing
and shopping extends from brick and mortar locations to e-commerce marketplaces, social
media, retargeting, mobile browsing, etc (Beck, and Rygl, 2015). There is a change shift from
single channel to the multi channel retailing. The following diagram helps in understanding this
shift -
The single channel is defined as the traditional retail model that focuses on one sole
channel sale that is based on a single distribution system (Hübner, Holzapfel, and Kuhn, 2016).
Different retailers owns various brick and mortar stores which are offline stores and web stores
which are online. This model helps in achieving a lot of accomplishment as when the focus is on
single channel then all expenses and sales growth are minimised (Bernon, Cullen, and Gorst,
2016). When the provider is dominant in the market then a single strategy will provide benefits
in having good control and management (Franco, Pancino, and Blasi, 2016). When there is
requirement of more convenience of customers then multichannel and multiple platforms and
Illustr
ation 1: Omni channel retailing, 2019

devices are used. A single strategy is not helpful when there is a need of meeting the demands of
customers. This puts pressure on retailers for reshaping the demands of customers and managing
stores. The multichannel retailing helps customers as in this digital technology is used for selling
and buying of goods and services.
On the other hand, the another kind of strategy is the shift from multi channel to the omni
channel retailing. This is given in the following diagram -
The multichannel retail is a business model that was launched with the digital revolution.
When the retailers adopts this strategy then customers have various opportunities for purchasing
products and services through online and offline channels ( Ailawadi, and Farris, 2017.). This is
more flexible and convenient way for customers to buy services and goods and this helps in
boosting sales of the company. Another disadvantage of using his strategy is that it provides a 24
hour access to people and customers who want to buy the products or services. Retailers are
benefited from this strategy as it helps in improving analytics and understanding consumer
behaviour as building a good customer experience is necessary while operating in digital era.
Few retailers were not able to manage purchases done through various channels and thus they
were not able to fulfil the requirements of customers. Customer service is a huge aspect as
Il
lustration 2: Omnichannel vs Multichannel,2019

retailers have to communicate with customers in the multi channels. Sometimes retailers get
confused with synchronisation of data in separate systems (Elbeltagi, and Agag, 2016). The
multi channel retailers faced problem associated with the internal processes. Supply chain is the
most essential matter in the retailing sector. Different channels of the distribution system needs
availability of more warehouses of higher inventory accuracy. The multi channel strategy lacks
in visibility of inventory and management of warehouse.
Why are online travel services such a popular internet application? Why do many websites
provide free travel information?
He mobile applications play a significant role in various business domain and personal
life. Travel and tourism industry are experiencing a huge success over mobile applications (Li,
and Liu, 2014). Nowadays people do not use guidebooks, paper maps for searching for places to
visit. On the other hand, customers use amazing and interactive mobile applications for getting
details about travel and tourism planning (Amaro, and Duarte, 2015). Several customers are
attracted towards attractive mobile application of travel and tourism and all bookings are done
using a single click. Internet marketing and online business promotions are very important for
enhancing visibility and productivity of business. This is an effective marketing strategy which
helps in playing important role in every business. It is important for entrepreneurs of the
company to advertise applications in an appropriate manner so that customers will be able to get
all details and information about the travelling plans (Agag, and El-Masry, 2016). The mobile
applications of travel and tourism industry makes easy for customers to book their favourite
destination with just one click (Khan, and Rahman, 2016). This is a prime reason for customers
who are holiday lovers to use mobile applications for entire booking at a single platform. The
mobile application contains all information associated with booking of tickets for reaching a
particular spot, cab booking for sightseeing, searching a destination, accommodation for pocket
friendly tariffs, exploring many local places, etc. the mobile applications also provides facilities
to add bonus features in the application like weather updates (Gao, and Bai, 2014). This helps
tourist when he is travelling in a mountain region where weather is unpredictable. This
application also provides information about many famous restaurants and hotels which offers
local renowned cuisines and also these applications tells shopping destinations of tourist places.

Many websites provide travel information as it helps in attracting more number of customers
towards fulfilling the requirements and needs of customers in grabbing information about travel
and tourism industry (Ling, Guo, and Yang, 2014).
Compare the advantages and disadvantages of distributing digitisable products electronically
versus physically
In today's world digitisable products are sold both through internet as well as stores.
There are both advantages and disadvantages of purchasing products and services (Ling, Guo,
and Yang, 2014). If the digitised products are bought online there are following advantages and
disadvantages-
When digital products are sold online
Advantages Disadvantages
 The selling of digital products through
online medium is less risky as there is
no need for investing in inventory (Wu,
2018).
 This helps in avoiding storage costs and
there is no worries and issues related to
stock of product (Pantano, and
Priporas, 2016).
 The digital products can be scaled more
quickly than the physical products.
 The major benefit of using internet for
selling digital products is that delivery
of product is free and instant.
 The selling of digital product needs a
lot of time and effort. The company
requires a good planning,
demonstrating and explaining about the
product (Malherbe, 2018).
 The digital products are not tangible or
real. Thus, they have lower perceived
value.
 A proper planning and testing is
required to launch a digital product in
the market (Dapp, Slomka, and
Hoffmann, 2014).
 There is a lot of competition for in the
online selling websites so every online
retailing company must be competitive.
When digital products are sold through stores

Advantages Disadvantages
 It is more convenient for the buyer to
analyse the product in an effective
manner (Shi, and Et.al., 2017).
 When these products are sold at stores
it is easier for a person to use the digital
product and know it's efficiency in a
right manner (Rudman, 2015.).
 This might face problem if product is
not available in stock.
 These products require more staff and
storage of the product.


REFERENCES
Books and Journals
Amin, M., 2016. Internet banking service quality and its implication on e-customer satisfaction
and e-customer loyalty. International Journal of Bank Marketing, 34(3), pp.280-306.
Chou, Y.C., Chuang, H.H.C. and Shao, B.B., 2016. The impact of e-retail characteristics on
initiating mobile retail services: A modular innovation perspective. Information &
Management, 53(4), pp.481-492.
Cicatiello, C., Franco, S., Pancino, B. and Blasi, E., 2016. The value of food waste: An
exploratory study on retailing. Journal of Retailing and Consumer Services, 30, pp.96-
104.
Elbeltagi, I. and Agag, G., 2016. E-retailing ethics and its impact on customer satisfaction and
repurchase intention: a cultural and commitment-trust theory perspective. Internet
Research, 26(1), pp.288-310.
Khan, I. and Rahman, Z., 2016. E-tail brand experience’s influence on e-brand trust and e-brand
loyalty: the moderating role of gender. International Journal of Retail & Distribution
Management, 44(6), pp.588-606.
Pantano, E. and Priporas, C.V., 2016. The effect of mobile retailing on consumers' purchasing
experiences: A dynamic perspective. Computers in human behavior, 61, pp.548-555.
Shi, Y., Yang, Z., Yan, H. and Tian, X., 2017. Delivery efficiency and supplier performance
evaluation in China’s E-retailing industry. Journal of Systems Science and
Complexity, 30(2), pp.392-410.
Zehir, C. and Narcıkara, E., 2016. E-service quality and e-recovery service quality: Effects on
value perceptions and loyalty intentions. Procedia-Social and Behavioral
Sciences, 229, pp.427-443.
Online
Omni channel marketing,2019. available through:
<https://webengage.com/resource/webinar/what-why-and-how-of-omni-channel-marketing/>
Omnichannel vs Multichannel, 2019. available through:
<https://multichannelmerchant.com/blog/omnichannel-vs-multichannel-different/>
Video references
1. GfK (GFK, 2015): Young Shoppers expect brick-and-click retailing
https://www.youtube.com/watch?v=geMoByjd0so
2. (Fox Business, 2017) Has brick-and-mortar stores lost the battle against ecommerce?
https://www.youtube.com/watch?v=zZU2hEghTGc
3. (CBS This Morning, 2014) Amazon to open its first brick-and-mortar store in New York City
https://www.youtube.com/watch?v=dcKuPg5rqF0
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References
Does the growth in “online shopping” mean the extinction of the typical “high street” store
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Twenty-first century clicks and bricks. Journal of Corporate Real Estate, 17(3), pp.226-
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Examine the various models, “clicks”, “bricks”, bricks and Clicks and clicks and bricks. Which
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Daly, T.M. and Nataraajan, R., 2015. Swapping bricks for clicks: crowdsourcing longitudinal
data on Amazon Turk. Journal of Business Research, 68(12), pp.2603-2609.
Herhausen, D. and Et. AL., 2015. Integrating bricks with clicks: retailer-level and channel-level
outcomes of online–offline channel integration. Journal of retailing, 91(2), pp.309-325.
Yan, W., Xiong, Y., Xiong, Z. and Guo, N., 2015. Bricks vs. clicks: Which is better for
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Van Schoor, W. and Mischke, G., 2014. From bricks to clicks: A new model for higher
education. Research and development in higher education: Higher education in a
globalized world, 37, pp.304-313.
Jones, C. and Livingstone, N., 2015. Emerging implications of online retailing for real estate:
Twenty-first century clicks and bricks. Journal of Corporate Real Estate, 17(3), pp.226-
239.
We are increasingly hearing the term omni channel retailing what does this mean and how can
business exploit this new phenomenon
Verhoef, P.C., Kannan, P.K. and Inman, J.J., 2015. From multi-channel retailing to omni-channel
retailing: introduction to the special issue on multi-channel retailing. Journal of
retailing, 91(2), pp.174-181.
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Ailawadi, K.L. and Farris, P.W., 2017. Managing multi-and omni-channel distribution: metrics
and research directions. Journal of retailing, 93(1), pp.120-135.
Why are online travel services such a popular internet application? Why do many websites
provide free travel information?
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of online travel services. Information & Management, 51(8), pp.1043-1052.
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online. Tourism management, 46, pp.64-79.
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travel community and effects on consumer intention to purchase travel online and
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pricing and travel agency on-line distribution of rooms. Tourism management, 45,
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