Essay On E-Retailing

E-retailing can be described as information technology that have placed the processing and operations of retail business to computer networks, or the Internet. E-retailing had solved time—or more, than that, it has given businesses more time, better accessibility to their customers. With that solved, business can focus better on their core services such as distribution, marketing, networking, etc. One of the best features of e-retailing is the information exchanged between the business and their customers, which is critical in improving customer satisfaction and in product augmentation. Hence, in terms of information technology, e-retailing came in as advantageous in electronic business application driven at commercial transactions. But how do companies succeed at e-retailing? Therefore, in this paper, I would be highlighting the top ten factors to e-retailing success, starting with the identification of target markets as the first.

Identification of Target Market

Even businesses in the e-retailing industry needs a bit of history lesson; particularly, they have to learn the lessons from the dot.com crash in 2000-2001. Before such time, e-retailers banked on the technology platform as the solution to all their problems in point of sale. Yet too much reliance on the technology weakened the businesses’ vision on their real core competency. Core competency defines the best thing about the company—their competitive edge and their uniqueness. E-retailing platforms is just part of the bigger picture, but it still needs to bode perfectly with the company’s core competency and strategy. Michael Porter, a Harvard professor and world-renowned business advisor, referred to core competencies as three things: Cost Leadership, Differentiatio...

... middle of paper ...

... / Strategic Plan for E-Retailing Presence, Thinking about the Learning Curve Involved, The Determination of Internet Usage profiles, Efficient Deployment of Online Activities, Positioning, Building and Maintaining Customer Relationship, A Sound Business Model, and Security.

These factors are a rule of thumb for any e-retailer hoping to succeed. Perhaps, the recommendations were culled from the cleansing effects during the early 21st century. With this, the growth of e-commerce is still predicted to occur as multitudes of people come online every year. Therefore more and more people are expected to evolve into regular buyers by each succeeding year. To stay alive in the industry, though companies must be able to take advantage of and adapt to newer technologies, the tried and true factors of success should never be overlooked, because they lay its foundation.