E-commerce business for clothing
The Internet has enabled consumers to research products widely and make comparison
of available items more easily and to have the option of purchasing goods online rather
than visit a store in person. Retail businesses are thus challenged to be go into e-
commerce and implement e-commerce strategies as a business model to be
competitive in online retail sales. They are constantly looking for strategies for more
effective marketing and providing of customer satisfaction.[1]
Three components comprise e-commerce programs. A catalog provides easy location
of products to customers, with photos, streaming videos and product information being
important in creating appealing catalogs. A shopping cart assists customers in product
selection and keeps track of multiple purchases. A method of payment, normally a credit
card system, facilitates the purchasing of customers.[2]
To increase online purchases of customers, three incentives can be provided by retail
businesses. Meaningful financial incentives by way of free shipping costs, dollar
discounts and free gifts entice customers. The incentive of 24/7 availability of service is
an important convenience for clients. Value-added incentives like instant advertising
banners or the offering of products not available in a print catalog are used to change
consumer purchasing habits in the long term.[3]
Effective communication is important in quality customer service, irrespective of the
type of online business. Based on studies, online customer service support is found to
be less than satisfactory by a fair number of customers. The long response time or lack
of acknowledgment after e-mails or complaints are sent by customers will impact
purchasing decisions in the future. Customers are found to prefer using the telephone
to contact an online business.[4]
The Muldoons Men’s Wear retail store went online to attract a different customer base
and broaden its market. As more customers became attracted to the site, more products
were offered, but according to them, they should have paid more attention to regular
business functions, including inventory management. The lead time for orders kept
rising because of the lack of on-hand inventory as the site expanded. However, an
effective customer centric e-commerce strategy, with a strong customer relationship
based on trust and service and an equally important working relationship on mutual
marketing with its suppliers, has allowed the company to expand its customer base.
It is recommended that Muldoons adopt an electronic data interchange system to
further reduce lead time with customer orders, increase order accuracy and lower labor
costs for company and suppliers.[5]
The DetailsDirect retail-clothing store went online and used its traditional catalog system
to broaden its customer base and process orders quickly. Their old customers were not
comfortable in placing orders under the new medium, which forced the company to
market higher quality and more expensive products online to a different and expanded
customer base. Details had to change its e-commerce strategy and move away from its
traditional catalog to establish a niche market and make online customers comfortable
with the product quality. The company approached the challenge by displaying a
welcome message, the owner’s picture and clients’ testimonials on the site, and
providing a personal touch to its excellent customer service. It is recommended that
Details hire a technical employee or train current employees to regularly update the site
on product and price changes.[6]
Retail businesses must consider what strategy to pursue before adopting an e-
commerce business model. A customer or business driven strategy, or a customer,
business and vendor integrated strategy each have their own qualities that contribute
to the success or failure of the business. Customers have varying views of business
models and the online business strategy must vary from the bricks and mortar model.[7]
[1] Dr. James E. LaBarre et al, “A Case Study Analysis of E-Commerce Strategies for Retail Businesses”,
PDF, 2001, <http://www.iacis.org/iis/2001_iis/pdf%20files/Labarre200.PDF> [accessed 16 May 2011]
[2] Kenneth E. Clow, Donald Baack, Integrated Advertising, Promotion, and Marketing Communications,
3rd edn., (Pearson Prentice Hall, 2007) pp.411-412
[3] ibid pp. 413-415
[4] ibid p. 426
[5] Dr. James E. LaBarre et al
[6] ibid
[7] ibid
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