With prominent changes in the marketplace due to technological advancement and digitalization, it is imperative these changes influence businesses too. The online market is ever-expanding and ever-growing. The online platform helps businesses and brands to communicate with their target audience and approach them seamlessly.
On the other hand, This online marketplace involves different industry types- eCommerce and online retailing are two of the major parts of this. Both of these markets entail buying and selling products and services both digitally and physically. They both have many similarities for both eCommerce and online retail, the ultimate goal is to boost sales and revenue.
What is E-Commerce Business?
E-Commerce businesses include online purchasing and selling of goods and services usually through a website or e-store. It is a broader aspect of the online business market and is a more sophisticated way of conducting business.
E-Commerce business websites have an expanded set of operations other than just the sale of goods/services. It also includes management of inventory, supply chain, marketing, products/services, payments, data analysis, and recruitment.
The eCommerce website has an entire range of work process that needs to be up to par for seamless operation. It also needs myriad tools and features to support its website and improve its overall functionality. The eCommerce business industry faces global marketing competition even in the digital realm.
What is Online Retailing?
Online retailing or e-tail includes trading goods and services on the internet with the presence of a physical store. It is a part of the eCommerce marketplace with its own differentiating identity. It includes traditional brick-and-mortar business operations where it delivers prompt face-to-face service to all its customers.
The online retailing business offers the physical experience (touch and feel) to all retail store visitors. Such an e-tail website lists all its products/services to inform its customers. You will see that though online retail stores have traditional stores, the website acts as a pre-organized shopping store, where you can first check out what you require and later buy them from a store. This will save a lot of time and effort for all customers. The retail business both online and physical stores face local marketing competition limited to that radius or region.
8 Critical Differences Between E-Commerce & Online Retailing
The eCommerce business websites and online retailing stores have a huge disparity that sets them apart. Though both are a part of the digital market space there are some major differences that you need to know about them.
Scope Of The Products & Purchase Decision
E-commerce business websites have a global reach and a larger customer focus than compared to retail marketing. The scope of the products/services are global and is limited to any geographical boundaries. On eCommerce business websites, any customer cannot avail of the products and services immediately. It takes some time to finish all the purchasing steps or sometimes it remains saved in the shopping cart before they make a purchasing decision.
On the other hand, retail marketing including the digital platform does not have a huge reach and customer focus. The scope of the retail stores is limited to its particular region. In the case of retail stores, any visitor or customer can purchase the product immediately from the physical stores. Availing of the products/services from retail stores is hassle-free and easy.
E-Commerce websites do not have any physical interaction, and there cannot touch or feel the products. Your audience and customers can only check the product images, videos, and product descriptions and make a purchase decision.
Whereas for retail stores, the customer can check out what they want, physically visit the retail stores and purchase the desired products/services. The visitors or customers can touch, feel and see the products/services and then make the final purchase decision.
Commercial activities, which include, the trading of goods and services, payment transactions, deliveries, and other related activities, are carried out on eCommerce websites. All such activities are done in the digital realm with the help of the internet.
Additionally, a device like a smartphone, tablet, laptop, or desktop with internet connectivity is needed to perform such commercial marketing activities.
Whereas, the commercial activities for online retailing stores are carried out by individuals in brick-and-mortar stores. Such activities are usually conducted in departmental stores, shopping malls, supermarts, and so on in a small quality (more like person to person).
Additionally, for online retail marketing, having a digital device with internet connectivity is not mandatory to perform these above-mentioned commercial marketing activities.
E-Commerce business websites make it possible for customers and visitors to search for products and services in the comfort of their homes. There is no need to travel to the store physically at all, you can just look it up online.
On the other hand, online retail stores can only give you a list of the products. In most cases, you need to travel to the retail store physically to avail the products/services.
E-Commerce websites are such a platform where any visitor or potential customer can compare the prices of the chosen products/services with other vendors. This helps the audience to choose what suits them best and then make a purchase decision after considering all the offered prices.
On the other hand, in online retail stores, you do not have the option where you can compare the prices of the different products/services offered
For an e-Commerce business website, customer support services are available 24×7. If any customer or visitor faces any kind of problem or has any doubt, they can speak to customer service during service hours.
Whereas, in the case of retail stores, the customer support service is limited to the store timings. You can only speak to the employees, retailers, or the manager during store hours.
If any customer wants to avail of any product and purchase them online through eCommerce websites, they usually have to pay some additional delivery charges. The shipping charges are not always fixed but in most cases, it is included along with the product cost.
On the other hand, in online retail marketing, the customer does not need to pay any additional shipping charges. The customer only needs to pay for the product.
E-Commerce websites often build their website on different platforms like Shopify, Magento, WordPress, and so on. This process skips a lot of hindrance and hassle that comes when setting up a physical shop to visit. The website-building platforms will help you to create your shopping site with themes and templates. Additionally, you can personalize your eCommerce business websites as you want, including plugins.
Whereas in the case of online retailing, the work does not stop after the retail website is done. You must also set up your brick-and-mortar stores and maintain them from tip to toe.
You must understand that both of these marketing industries are evolving day by day. You need to be at your best and professional assistance from eCommerce website development services can refine your business strategy and marketing. Just be focused on your goals and showcase to the audience your best.