E-tailing Market: Rising Penetration of Internet and Growing Preference For Online Shopping By Consumers

E-tailing is the process of selling retail goods electronically over the internet. In e-tailing, business to consumer transactions are often take place for selling of goods. E-tailing include sale of products through website, or through advertisement. E-tailing offers a wide range of products and services to consumers without requiring them to be physically present in a store. With growing adoption of e-tailing, companies are providing enhanced and effective solutions such as products or service comparisons for purchase. In addition, e-tailing companies are integrating software tools with their websites to generate online catalogs, and manage the business through internet. Furthermore, with rising importance of e-tailing, many brick and mortar retailers are adopting e-tailing platform to capture online sales.

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The demand for e-tailing is swelling due to rising penetration of internet and growing preference for online shopping by consumers. The e-tailing market is primarily driven by increasing consumer spending over internet to purchase the products or services. Moreover, e-tailing enables brick and mortar retailers to increase the presence of their products and services across the world without any land cost. The evolution of unique business models such as online payment, cash on delivery, and online wallet is supplementing the growth of e-tailing adoption worldwide. Furthermore, the value added services such as product or service comparison, and any time accessibility offered by e-tailing companies are paving way for the adoption of e-tailing platform by consumers. In addition, the rising competition among the online shopping websites with discounts and cheap rates has increased the consumer demand for online shopping. However, increasing shipping costs and long delivery time of products are major challenges for e-tailing market. The unavailability of physical presence of products might result in a cognitive dissonance due to destitute product quality after purchase. Moreover, complex return policies and poor handling of return services adversely affects the buyers’ decision which would lead them to tradition brick and mortar shopping. The increasing demand for multichannel transactions such as browsing, buying, return, and post-sale services by consumers are anticipated to provide prominent opportunities for e-tailing market.

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The high penetration of online shopping has led to the strong competition in global as well as domestic e-tailing market.

Global e-tailing market is categorized by business model, by business type, by end-use sector, and by geography. By business model, e-tailing market has been classified into business to business (B2B), business to consumer (B2C), consumer to business (C2B), and consumer to consumer (C2C). Based on the business type, e-tailing market is segmented into click, click & brick, and brick & Mortar. By end-use sector, e-tailing market is segmented into apparels & clothing, consumer electronics, grocery, integrated (all products) and others (office stationary). On the basis of geography, e-tailing market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The strong growth of e-tailing market in North America and Europe is primarily due to increased consumer spending over online shopping, and increased adoption of e-tailing platform by brick and mortar retailers. Moreover, Asia Pacific and Middle East & Africa are anticipated to see significant growth due to rising penetration of broadband network across the regions.

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