For now, the most popular kind of E-commerce is ‘Business to Consumer’ or B2C online shopping. There are several kinds of B2C online shopping.
Retailer to Consumer
For a retailer, selling online is just another channel. The functions of buying and merchandising and pricing and marketing can all be repurposed for Ecommerce.
Retailers who have a history as a ‘brick and mortar’ merchant, like Wojooh have advantages in Ecommerce – like brand trust. Consumers in emerging markets like the GCC can be reluctant to trust new brands that are ‘Internet only’ or pureplay. Brands that customers have bought from for a long time can establish trust more quickly, however, traditional retailers may be slower to react to new ways of doing business.
Traditional merchants with stores can also provide benefits associated with Omnichannel retail. Consumers can order goods online and pick them up in store. This can be more convenient for the customer as well as providing an opportunity to collect more data about them or upsell them at the checkout.
Nevertheless, some of the most successful Retailer to Consumer sites have no stores, reducing costs and making the most of new supply chain techniques like drop-shipping.
Direct Sales
E-commerce provides the means for manufacturers to sell directly to consumers. Depending on the channel strategy, this can be attractive for companies with very strong brands who can make more margin by cutting out agents, wholesalers or distributors. Physical goods manufacturers like Nike are selling directly to customers, allowing for things like personalisation of products.
Travel is an industry where suppliers would like to sell more directly to customers. Often Hotels can pass on savings to customers if they don’t have to pay commissions to agents or travel aggregator sites. Dealing directly with customers also helps to obtain better data about habits and spending patterns and can help create a better customer experience.
Distributor to Consumer
Some distributors are not allowed to sell to customers via stores, instead, they have to sell to retailers who in turn sell to consumers. Depending on the reseller agreement, though, some distributors may be able to sell online to customers under a different brand. From mobile phones to sunglasses, many distributors in the Middle East are following this strategy.
Coming up – Business to Business (B2B) e-commerce.
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