7. ELECTRONIC POINT OF SALE (EPOS),HOME SHOPPING,

7. ELECTRONIC POINT OF SALE (EPOS)

EPOS system is a device at the point of sale which has the capability to identify each item the retailer sells. It will also provide the price for the item and record the sale of the item. In addition it should be able to provide the retailer with information on sales and profitability of each item.

EPOS enables a retailer to find out the shopping habits of its customers - type of goods bought, quantity purchased so that the retailer can then make decisions about what to stock.

Advantages of EPOS

1. The prices charged are accurate - no under-ringing.

2. The retailers can give quick services to the customers.

3. The retailers do not have to price mark every item.

4. The retailer can identify any item which is under priced. The system can work out and apply margins for the retailer without a calculator.

5. The retailer can charge different prices for different types of customers without calculators, books, tables, or trained staff.

6. The retailers do not have to count stock to re-order.

7. EPOS system will increase the retailer’s margins, optimize the retailer’s stockholding and save the retailer’s time.

E-COMMERCE (ELECTRONIC COMMERCE)

E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a new term, "e-business," are often used interchangeably. For online retail selling, the term e-tailing is sometimes used.

HOME SHOPPING

1. MAIL ORDER FIRMS:

Features:

• Mail order business is run by manufacturers or specialist mail order warehouses.
• They sell goods to customers by sending expensive catalogues or by local part-time agents (housewives).
• Goods are ordered with the help of post or with the help of the part-time agents.
• Goods ordered are sent to the buyers by parcel post.
• The method of payment is cash on delivery (C.O.D.) or cash with order (C.W.O.).
• Payments can be made in installments if the part time agents are collecting the money.

Advantages:

·         The mail order firms buy goods in bulk directly from the manufacturers and sell at competitive prices.

• There is no need for expensive large buildings.
• There is no need to employ qualified sales staff.
• The catalogues and part-time agents act as a permanent advertisement.
• Customers can buy goods on credit and pay in installments.
• Customers can return unwanted goods, but they must do so within a time limit.
• There is no need for the customers to visit the shop as the goods are sent to the customers’ doorstep.

Disadvantages:

·         The high cost of catalogues and advertising increases the cost of sales per unit.

• There are high operational expenses in the form of commission to agents, cost of packaging and postal charges.
• There is a risk of bad debts as customers may default in their payments.
• There is a lack of personal contact between the mail order firm and the customer.
• The mail order firm has difficulty in selling goods that are returned by customers.
• Customers cannot inspect the goods if payment is by C.O.D or C.W.O.
• No after sales service is provided.
• Sometimes there may be a delay in the delivery of goods.
• The mail order firms take a long time to refund money for goods returned by customers.

2. SHOPPING BY PHONE

Telephone marketing is a convenient way to learn about and buy products and services without leaving the comfort of your home.

Some of the benefits of telephone shopping include:

• Shopping 24 hours per day, seven days a week;
• Buying goods and services with credit;
• Comparison shopping with a variety of merchants;
• Locating hard-to-find items — this can be especially convenient for those with unusual hobbies or interests;
• Getting help and information before and after a sale;

3. SHOPPING BY TELEVISION

TV has become nowadays an effective media not only for advertisement but also for effective sales through live product demonstration. Consumer durables, consumer goods, home appliances are demonstrated on TV. The consumers who watch the advertisements and the product demonstration can place orders by phone SMS, E-mail or by fax. The goods will be delivered by Post.

4. TELESALES

It is the recent development in large scale retailing trade. The large scale retailers send SMS to the customers’ mobile phones and advertise the product thereby sell the goods. It is the current trend that the expertised sales staff  talk over the phone to the customers, detail about the product, convince them, and make them to buy the product or service. Telesales deliver the goods to the door step of the customers. Telesales have become more popular with selling of electronic goods, electrical goods, home appliances, offering car loan, housing loan, credit cards etc.,

Advantages of telesales to the large scale retailers/manufacturers

·         Cost of advertising is very less.

·         Sales promotion over phone is very easy.

·         Expenditures to be incurred on salesmen are cut-off.

·         Expanding of market to regional or national will be so easy.

Advantages of telesales to the customers

• Shopping becomes so easy
• Customers get their goods/services at their door step.

Disadvantages of telesales to the large scale retailers/manufacturers

·         Persuading the customers will be so difficult since there can be no product demo or exhibit.

·         It is difficult to cover huge customers over a region or across the country.

Disadvantages of telesales to the customers

·         Telesale products or services are not subject to trustworthy since the retailer has no permanent selling place.

·         Customer satisfaction over product/service offered through telesales may not be 100% since the products may not be according to the specifications.

·         Telesales firms take a very long time to refund the amount to the customers when faulty/damaged/dissatisfied goods are returned.

 

 

5. ELECTRONIC SHOPPING

1. As the population of a country becomes more and more computer-literate, this form of shopping has the potential to become very popular in the future. In 1996, more than US$1 billion was transacted over the Internet, making it a good potential platform for electronic shopping. In 1998, this had tripled to more than US$3.5 billion.

2.    In electronic shopping over the Internet, or a local on-line network via the Internet, the customers can order goods direct to the on-line retailer in any part of the world via the Internet E-mail. On-line retailers or warehouses can develop their own websites to advertise their products to potential customers. Payment can be made by cash or by the use of credit cards. The goods will then be sent by post or courier direct to the customer's doorstep after confirmation of payment. Warranty claims, if any, may be made on the on-line retailer or the supplier of the product itself within a specified period.

Positive effects of electronic shopping

On the retailer

1.    The 'shop' can be open 24 hours a day to customers all over the world.

2.    It is not very expensive to set up. Only a personal computer, a web browser, a modem, an Internet account and a telephone line are needed to start.

3. It is convenient, time and cost saving because the e-mail system sent to any part of the world, including the home country, costs the same.

4. Since all information is processed electronically, there will be less room for error.

5. It allows for quick exchange of information and feedback from customers.

6. Small businesses can now compete as effectively as the larger ones in the larger marketplace.

7.    The Internet allows for the testing of new services and products in the media. Electronic shopping is very suitable to market information technology (IT) related products like banking, purchase of airline tickets, making hotel or travel arrangements, purchase of books, stocks, bonds, flowers and greeting cards.

8.    High overheads of maintaining a normal retail shop such as high rental in a good location, shop decoration and display need not be incurred. The location can be anywhere convenient and economical to the retailer. His customers normally do not visit him personally.

On the customer

1.    It is convenient, time and cost saving. The consumer does not need to face traffic jams and parking problems to go to the particular shop to buy the goods that he wants. He shops from the convenience of a computer that is connected to the Internet.

2.    Goods can be bought from any part of the world.

3.    He is able to 'shop' anytime at his own convenience.

Negative effects of electronic shopping

 On the retailer

1. There is only a small clientele since not every household in the country has a personal computer. According to Fortune Magazine (March 18 1996), about 12 per cent of American households own a computer. Moreover, the general public is still quite wary of electronic shopping which is something quite new.

2. At the time of writing, the Internet is still not really ready for the 'Home Shopping Network' for the average household. Electronic shopping is mainly engaged between businesses for the distribution of high-value information and IT-related products and software.

3. On-line retailers need to employ specialized personnel who are experts not only in marketing but also in computer technology in order to participate in this type of retailing.

4. It takes time for a potential on-line retailer to implement an Internet strategy properly. This sort of marketing over the Internet requires close coordination. Sales and customer service has to be involved 24 hours a day. Sales staff may feel overwhelmed at having to answer queries by e-mail and the fact that customers have direct access to information.

On the customer

1. The customer has no way to verify the authenticity and integrity of the on-line retailer. He actually does not get to see the retail outlet. Moreover, he has to give the retailer his credit card number and pay for the good before he even receives it.

2. There is a lack of privacy and lack of security since there is the possibility of someone 'intercepting' his credit card number.

3. There is likely to be no after-sales service.

ADVANTAGES OF LARGE SCALE RETAILING TO THE RETAILER

·         Retailers can get better trade and cash discounts when they buy from manufacturers in bulk quantities.

·         Large retailers can afford to employ specialists for each department. Hence goods and services are of better quality and standard.

·         Some large retailers are able to brand their goods using their own labels and thus are able to create brand loyalty among consumers.

·         Large retailers buy in bulk and so have their own fleet of transport vehicles.

·         Large retailers provide self-service and so are able to cut down expenses of hiring shop assistants.

·         As large retailers buy in bulk they are able to sell at competitive prices. This increases sales and the profit of the retailer.

·         Large retailers can afford to carry out sales promotions in order to increase their sales.

·         Large retailers are able to afford to use the latest sophisticated cash tills and computer terminals to making shopping convenient for the retailer and the customers.

ADVANTAGES OF LARGE SCALE RETAILING TO THE CUSTOMERS

·         Customers are able to get goods at competitive prices as the large retailers buy in bulk directly from the manufacturers.

·         Customers find it convenient to do their shopping under one roof as large retailers provide a great variety of goods.

·         Self service and the various amenities provided by large retailers makes it even more convenient for the customers to do their shopping.