1.1 Online retailing

Question 1

What is online retailing?

Answer 1

Also known as e-commerce -> buying + selling goods/ services over the internet

Question 2

What are some examples of online retailing?

Answer 2

Amazon or apps like Instagram or Tik Tok shop

Question 3

How does online retailing offer greater convenience to the consumer?

Answer 3

Don’t need to go to the shop to collect
Open 24/7
Have access to a wider range of products not limited to what’s in store
Not restricted by location
Buy from abroad

Question 4

How does online retailing offer opportunities to a business

Answer 4

Less need for physical stores reducing overheads
Greater access to customers
Can be run from anywhere
Can sell 24/7
Website can act as a marketing tool
Track buying behavior

Question 5

What is an omnichannel retail approach?

Answer 5

When a business uses and combines a wide range of distribution channels, including digital and physical stores.

Question 6

Why would a business use online retailing as part of an omnichannel retail approach?

Answer 6

Can target different groups of customers i.e. those who prefer online or those who prefer instore
Items not available instore could be available online

Question 7

What’s an example of a business that uses an omnichannel retail approach?

Answer 7

Morrisons, Next and most stores.

Question 8

What are some of the disadvantages to operating online?

Answer 8

high set up costs -> increase in demand, have to hire specialists, have to maintain website.
increased competion as more business operate online
Concerns around privacy and security -> data breaches and risk of hacking
Returns as you will need to sort them
Websites can crash halting sales