E-Commerce and Marketing: Advantages and Future Prospects

This report provides a comprehensive analysis of the e-commerce and marketing landscape, focusing on the competitive advantages of e-retailers over traditional retailers. It delves into the crucial factors that must be considered when entering the e-retailing business, such as market penetration, identification of needs, and competition analysis. The report highlights current trends, including the rise of mobile marketing, suggestive selling, and social selling, and identifies potential sectors with significant market opportunities, such as FMCG and service providers. The report concludes that e-retailing has undergone significant evolution and transformation, emphasizing the importance of adapting to changing consumer behavior and market dynamics to achieve success in the e-commerce sector. The report also provides valuable insights into the strategies and principles employed by successful e-retailers to gain and maintain a competitive edge.

Running head: E-COMMERCE AND MARKETING
E-commerce and marketing
Name of the student
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Executive summary
The aim of this report is to discuss about the competitive advantages of the e-retailers over the
traditional retailers. Moreover, the factors that are important to be determined to enter in the e-
retailing business are also being discussed in this report. Recent trends that are being emerged in
the e-businesses are being discussed along with determining the potential sector, which will have
maximum market opportunity among the various e-businesses. This report concludes that, e-
retailing has evolved extensively in the recent years and changed entirely from the state it was
started. In addition, FMCG sector and service sector are having more opportunities over others.

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Table of Contents
Introduction......................................................................................................................................3
Strengths of E-retailing over traditional retailers............................................................................3
Business principles followed by the e-retailers...............................................................................4
Factors to be considered in starting e-retailing................................................................................5
Current trend in the E-retailing business.........................................................................................6
Potential e-businesses......................................................................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

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Introduction
One of the most promising trend emerged in the recent time is the success of the e-
retailing. E-retailing is proving a huge challenge for the traditional brick and mortar retailers.
This is due to the reason that, market penetration and market coverage of e-retailers is
significantly higher than that of the traditional retailers. Moreover, customer convenience is more
in the E-retailing than in the traditional stores (Burns, 2018). Thus, with time, customers are
more inclining towards the E-retailing. However, with the boom in his sector, there are various
factors also emerging, which should be determined effectively in order to have the maximum
benefit and return from the market.
Moreover, with the increase in the competition, it is also important for the e-retailers to
consider various factors related to the customer satisfaction in order to stay ahead in the
competition. This is due to the reason that, competition is rapidly increasing with the entry of
more number of e-retailers.
This report will discuss about the qualities, principles and strengths that are important for
the e-tailing in the current competitive scenario. Moreover, the factors that should be considered
to be successful in the E-retailing will also be discussed in this report. The current trend and
potentiality in the E-retailing will also be discussed in this report.
Strengths of E-retailing over traditional retailers
 Customer convenience is one of the strengths possessed by E-retailers over the traditional
retailers. This is due to the reason that, in the case of the E-retailing, customers has the
shopping experience from their conveniences rather than visiting the stores in the case of

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the traditional stores (Elbeltagi & Agag, 2016) Thus, the preferences for e-retailers are
increasing.
 Huge product assortment is strength of E-retailing over the brick and mortar stores. This
is due to the reason that, according to the reports, online marketplace offers more sort of
diversified products compared to the traditional retailers (Digital Commerce 360, 2018).
It is easy for the e-retailers to offer different products from their portal and on the other
hand, it is difficult for the traditional retailers to offer diversified products under one roof
(Sardar & Lee, 2015).
 The cost of operation is lower for the e-retailers compared to the traditional retailers. This
is due to the reason that, major cost for the e-retailers is involved in the warehousing and
logistics (Lu & Liu, 2013). On the other hand, traditional retailers such as departmental
stores are having the cost of store maintenance, warehousing and logistics. Thus, the
operational cost for e-retailers is low and it helps them to offer lower price to the
customers compared to the traditional retailers.
Business principles followed by the e-retailers
 One of the key principles being followed by the e-retailers is the product diversification.
It helps then to have their presence in different and diverse product category (Kang,
2013). Thus, it is one of the key competitive advantages for them. Customers will have
the advantage to have holistic shopping experience from the e-retailers.
 Another business principle followed by them is the cost leadership. According to the
Porter generic strategies, cost leadership is one of the key sources of gaining competitive
advantages (Teeratansirikool et al., 2013). As discussed earlier, the less cost incurred by

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the e-retailers in their operation enable them to offer products at discounted rates, which
further cementing their position in the market.
 Another key business principle considered by the e-retailers is the effective identification
of the need in the market. This is due to the reason that, e-retailers gain competitive
advantages in the market by offering products according to the latest trend in the market
(Chan & Yazdanifard, 2014). Thus, they have the effective mechanism of identifying the
need in the market and offering products accordingly.
Factors to be considered in starting e-retailing
 One of the key factors to consider in starting the e-retailing is the market penetration of
the internet in the target segment. This is due to the reason that, the basic criterion for the
e-retailing is the internet. Thus, prior to the starting of the e-business, it is important to
determine and identify whether the target market is having internet connectivity or not.
 Identification of the need is also an important factor. This is due to the reason that, in the
earlier section, it is discussed that, one of the key competitive advantages for e-retailing is
offering products according to the market trend. Thus, it is important to first identify the
need in the market and then starting the E-retailing in the particular sector.
 Determination of the competition in the market is also important due to the reason that,
the current online shopping scenario is having multiple players catering to similar set of
customers (Markarian, 2014). Thus, prior to the starting of the E-retailing, it is important
to determine the intensity of the competition in the market. In accordance to the
competition, sector with having less competition should be chosen or offer distinctive
products in the market.

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Current trend in the E-retailing business
 One of the key trends being identified is the popularity of the mobile marketing. With the
boom in the internet and sales of smartphone, majority of the global population is having
the access to the internet in their mobile device (Watson, McCarthy & Rowley, 2013).
Thus, all the major e-retailers are opting for mobile friendly user interface. This helps
them to target more number of potential customers.
 Another important trend is the combo and suggestive selling by the e-retailers. Leading e-
commerce retailers such as Amazon offers the option of suggesting the products to the
customers according to their search pattern (Soderlund, 2013). Moreover, they also offer
combo products, which enable them to cross selling other products also.
 Popularity of the e-retailing in the entertainment sector is also trending. Traditionally, E-
retailing is based on the fast moving consumer goods. However, in the recent times the
popularity for the e-business in entertainment sector is rapidly growing. Market for online
streaming of movies and songs is increasing at good pace.
 In terms of the delivery also, various new trends are being introduced in the market in
order to initiate fast delivery (Morganti et al., 2014). For instance, Amazon has initiated
the use of the drone to deliver their products in less time. Other leading e-retailing majors
are also initiating different options to transport the products to the customers in less
amount time. The less time will be taken by the e-retailers, the more will be the customer
preferences. Thus, one of the recent trends in the e-business sector is more concentration
on the delivery options over others.
 Another identified trend in the recent time is the social selling. The current e-commerce
sector is highly competitive in nature and thus more e-retailers are adopting latest

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technologies to target the customers. One of the key trends is the selling of the products
through the means of the social media. This will help the customers to have the shopping
experience from the social media itself. On the other hand, it helps the e-retailers to
enhance the exposure of their products with the help of the social media.
Potential e-businesses
In the current business scenario, a huge variety of products and services are being sold
through the e-businesses. Thus, for the new startups to start their business in the e-business
sector there are various categories being available. However, some of the categories are having
potentiality over others. One of the e-business categories that are having potential in the recent
time is the service providers. This includes the online movie streaming and others services such
as insurance (Nguyen, Dejean & Moreau, 2014). Providing services through the help of e-
business is a new trend and having huge market potentiality. This sector will be successful due to
the reason that, e-retailing business is highly competitive in nature and in addition, current
customer segments are having less time to avail different services in conventional way.
For instance, customers in the current social scenario are having less time to visit the
insurance broker and discuss with them regarding the ideal insurance policy. Thus, providing
these customers online services, where they can avail from their convenience will be more
beneficial. This is the reason behind the fact that, this business is witnessing rapid growth in the
recent time.
Another business category that will also be successful is the e-retailing of the FMCG and
fashion products. Traditionally, this business category is the major contributor in the entire
online business market with having the highest number of competitors. However, entering in this

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business will have huge potential for the new startups due to the reason that, FMCG and
consumer goods are having huge varieties and assortments along with having highest market
penetration. Thus, entering in this sector will have competition but it will also provide huge
market opportunities.
Conclusion
Thus, from the above discussion, it can be concluded that e-retailing has evolved
extensively in the recent years and changed entirely from the state it was started. This report
discussed about the strengths and the advantages of e-retailing over the traditional retailing.
Moreover, the business principles being followed by them in gaining competitive advantages
over the traditional retailers are also being discussed in this report. Recent trends in this sector
are also being discussed in this report along with identifying the potential sector that will have
more opportunity in the market.

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Reference
Burns, E. (2018). Study: Consumer Satisfaction in E-Commerce Slips - ClickZ. ClickZ. Retrieved
24 January 2018, from https://www.clickz.com/study-consumer-satisfaction-in-e-
commerce-slips/62894/
Chan, J. M., & Yazdanifard, R. (2014). How social media marketing can influence the
profitability of an online company from a consumer point of view. Journal of Research in
Marketing, 2(2), 157-160.
Digital Commerce 360. (2018). Digital Commerce 360. Retrieved 24 January 2018, from
https://www.digitalcommerce360.com/2015/02/19/e-retailers-beat-stores-customer-
satisfaction-study/
Elbeltagi, I., & 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), 288-310.
Kang, J. (2013). The relationship between corporate diversification and corporate social
performance. Strategic Management Journal, 34(1), 94-109.
Lu, Q., & Liu, N. (2013). Pricing games of mixed conventional and e-commerce distribution
channels. Computers & Industrial Engineering, 64(1), 122-132.
Markarian, G. (2014). Product market competition, information and earnings
management. Journal of Business Finance & Accounting, 41(5-6), 572-599.

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Morganti, E., Seidel, S., Blanquart, C., Dablanc, L., & Lenz, B. (2014). The impact of e-
commerce on final deliveries: alternative parcel delivery services in France and
Germany. Transportation Research Procedia, 4, 178-190.
Nguyen, G. D., Dejean, S., & Moreau, F. (2014). On the complementarity between online and
offline music consumption: the case of free streaming. Journal of Cultural
Economics, 38(4), 315-330.
Sardar, S., & Lee, Y. H. (2015). Analysis of product complexity considering disruption cost in
fast fashion supply chain. Mathematical Problems in Engineering, 2015.
Söderlund, M. (2013). Positive social behaviors and suggestive selling in the same service
encounter. Managing Service Quality: An International Journal, 23(4), 305-320.
Teeratansirikool, L., Siengthai, S., Badir, Y. and Charoenngam, C., 2013. Competitive strategies
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Watson, C., McCarthy, J., & Rowley, J. (2013). Consumer attitudes towards mobile marketing in
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