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What is E-Tailing??

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Kontributor:

Isna Kamillia


E-Tailing

Electronic Tailing (E-Tailing) is retailing done online through the internet for retail stores with third parties. Parties who conduct retail or e-tailing activities are called e-retailers. The e-tailing business is a business type of B2C (business to customer) that is an online transaction that takes place between the company and the individual consumer.

E-tailing is growing rapidly because it is inspired by the success story www.amazon.com. Since its founding in July 1995, Amazon was first established and operated by Jeffrey Bezos has become the largest virtual store in the world.

Based on a survey from IDC, the growth and development of e-tailings business in Indonesia is increasing from year to year. From 1996 to 1999, transactions in the e-tailing business were $ 20 million. In 2000 e-tailing transactions amounted to $ 100 million. In 2001 the transaction increased by $ 200 million. In 2003, e-tailing transactions reached $ 1.2 billion. And will continue to grow from year to year until now.

Every individual can perform E-Tailing activities wherever and whenever with a laptop or mobile phone that has been connected with the internet.


Basic Concept Business Model on E-Tailing

Business Model on E-tailing there are 4 basic concepts proposed by Calkins, namely:

  1. Chanel Support
    Efforts are made to increase additional sales by utilizing several retailers who use the Internet to support the distribution of merchandise available.

  2. Category Killer
    Completeness for the category offered by retailers although specialization of products offered only one kind only.

  3. Auctioner
    Models used by companies to conduct online auction transactions.

  4. Vertical Portal
    Merchants that have very strong capital, well-known brands, large business scale and credible credibility are involved in this business model.


The development of our E-Tailing business can be determined by some basic concepts

  1. Content
    Views that are in our business should be interesting if you have a separate site is expected that the site used can facilitate consumers who want to see the products we have.

  2. Community
    The E-Tailing Community on the Internet where e-tailing business people are expected to build a special community within their sites. The community is built on the same hobbies, shared interests, common experiences, regional equality of concern and regional equality in the residence of e-tailing parties.

  3. Commercialization
    The content contained in our business must be attractive and tailored to the needs that are being widely needed by the community so as to attract consumers to conduct transactions on the business we live.


Characteristics of E-Tailing business

  • · Use digital or online media

  • · Business to consumer

  • · Goodwill strives to attract consumers

  • · Consumers are warranted for service

  • · Prices of merchandise or services offered are relatively cheap or affordable

  • · Items offered can be paid on credit

  • · Goods offered have standard specifications

  • Understand how goods are packed


Business model on E-tailing:

  1. Booking and delivery of goods or services through the post office.

  2. Ordering online through manufacturing company:
    • Pure - play E-tailer: producers do sales without an intermediary or physical agent.

    • Click and mortar retailers: producers make sales in the presence of digital processes as well as physical agents


Items that offered in the e-tailing business

  1. Travel
    Consumers can find out various information about travel packages or vacation packages to a place you want to visit.

  2. Fashion
    Consumers can find and know the various fashion trends that are booming and can order them directly through online in accordance with the desired goods.

  3. Book and Music
    Consumers can find out information about the latest published books of various types: lessons, novels, comics or even cookbooks. And consumers can also find out information about the latest songs from various countries.

  4. Software
    Consumers can find out the sales of existing software and make purchases online or downloading.


Things to consider in running an e-tailing business


Currently e-tailing business is rampantly used by young businessmen. If we do not do things that are creative and innovative then our business can not compete with others and can lead to bankruptcy. Various things to note for e-tailing business can run well namely:

  1. By mastering business pressures
    The number of businessmen who are emerging later makes us have to be able to think creatively and responsively so that e-tailing business that we have been living did not go down or even go bankrupt. It can be overcome by getting around the business pressure that is by way of innovation of the goods we will sell so as not the same as the others.

  2. Analyze the cost of branding
    Can not be denied again that brand is an important thing in doing business activity or e-tailing. Brand that we have can attract consumers to buy the goods we sell, especially if the brand is already widely known people will certainly add value to our business. But it should also be thought, because making a brand can reduce the enormous cost, if we do not analyze it well then the cost we have to spend will be much larger than expected.

  3. Making the web interesting and interactive
    In the e-tailing business does not make the personal web actually okay. We only need to use other online media such as instagram in post merchandise that we have. It's just that web creation can be a positive value in the e-tailing business. Because some consumers want the purchase process does not require a long time. Because if only using instagram, consumers should wait for replies from the admin whether the goods they want are still available or not. If you use the website there is any item that is left, so it is easier for consumers if you want to buy the goods they want.

  4. Looking for potential relationships
    Relationships are indispensable when we do e-tailing business. Especially if we just pioneered this business then we really need to find a relationship, especially if the relationship is already widely known to consumers. It will be easier for us in advancing the business that we will live.

  5. Preparing cost for promotion.
    Promotion is indispensable when we will start doing e-tailing business. Promotion is needed to introduce our business to the wider community. But the promotion can not be done for free. We have to pay someone who is well known by the community or now they are referred to as a program. We pay the program to promote our business and what goods we offer in their accounts. The program is installing the tariffs with a wide range, there are also some cheap who put a fare with an expensive price depending on the number of followers they have. As a businessman we have to prepare a separate fund for promotion so that our business is better known to the public and can grow well.


Benefit of E-Tailing

Benefits of doing e-tailing business:

  1. Business e - tailing is a fast and effective way of selling products.

  2. Business e - tailing is physically safe

  3. Has a flexible value

  4. The e-tailing business can expand sales markets


The example of e – tailing business

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The purpose of the picture is in our e-retailing business activities as retailers buy products from major companies and sell them again to customers at the same price. So in the picture is shown when the main company to post a bag and there are customers who want to buy the item and then ask how to order the item in the comment column and then answer the customer is not from the main company but from the e-tailing businessman who tells where must order and price of the goods how much. And the customer contacted the retailer not the main company.


Conclusion


From the above article it can be concluded that with the passage of time, existing technology will grow and make various kinds of innovations to be commercialized. We as young people can choose to be an e - tailer in order to increase the income of pocket money and also can start learning to do business from this activity. E - tailing is great for us as students because we do not need much capital or even do not need capital if we do pre order system. So we just post photos of our merchandise then if there are customers who buy new we order the goods to the main company.

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