Retailers, e-tailers and e-commerce
Many UK retailers sell online, and so it is important to recognise the differences between a retailerA store (or person) that sells products directly to customers., an e-tailerA business that sells goods and services using the internet. and e-commerceThe buying and selling of goods and services online..
Retailers
A retailer is a business that sells goods to the public, often in a physical shop. It is common to use a retailer within a distribution channel. The producer distributes its product to a retailer, which then offers the product for sale. Customers then visit the retailer鈥檚 shop to purchase the product.
Some retailers sell a wide range of products. Others concentrate on selling a particular type of product, such as electrical products or shoes and clothing. An advantage of selling in physical shops is that customers are able to see and feel the quality of the products that they are interested in, eg customers can try on shoes to check fit and comfort. Retailers that sell a particular type of product may also be able to offer specialist advice. A disadvantage of retailers is that they require premises, which are often located on high streets, and these are expensive to run.
Types of retailer include:
- small independent traders
- supermarkets
- department stores
E-tailers
An e-tailer is a retailer that sells products and services to customers using an online store. E-tailers do not need to own or rent physical shops, although some choose to do so.
A producer distributes a product to an e-tailer, which then offers it for sale to its customers on its website. Customers visit the e-tailer鈥檚 website in order to purchase the product, and the product is delivered to the customer.
Examples of e-tailers include Alibaba and Amazon. They have a number of advantages and disadvantages compared to retailers.
Advantages of e-tailers:
- they can offer a wide range of products as they are not limited by the size of a shop
- they may allow small producers to sell through their website for a fee
- their prices are often lower, as they do not have to pay for a physical shop
- customers can shop whenever and wherever they want, as e-tailers are open 24 hours a day, 7 days a week
Disadvantages of e-tailers:
- customers need to have internet access
- customers cannot pay by cash
- goods need to be delivered, so customers must be willing to wait
- items cannot be seen in person before purchasing them
E-commerce
E-commerce refers to the buying and selling of goods and services online. It includes any transactions between businesses carried out e-commerceE-commerce is any transaction that takes place through the internet. .