Despite the many issues and problems that have been highlighted above, there do exit many advantages to online retail that attracts retail businesses to invest on online operations. Through online retail shopping portals, customers are provided with a wider choice of options and products that can be purchased at the simple click of a button. This leads to global market places where the target market for the e-tailer spans the boundaries of regions and countries. The web search ability of the search engines and navigation makes online shopping much feasible for the customers as they don’t have to spend money and time traversing through the rush hour traffic or standing in the long queues at the retail stores.
By investing in a CRM system to track the purchases of the customers and develop customer profiles the retailers can target market to the niche in their target segments of customers for better response rates. The product placement on the shopping portals along with the marketing of associated products and cross selling can be adopted by the retailer by tracking the historical purchases of the customers. The cost of operating an e-tail operation is much less than running a retail store which can be very attractive to online retailers. In fact e-tailing has reduced the barriers to entry into the retail sector on a global scale. Online retailers also face cost savings in terms of labor cost, and costs associated with document preparation, reconciliation, overtime with reduced time for operations and the reduction in the required human resource. When it comes to tax, income, tax can be saved by retailers in low-tax jurisdictions, while lower value added tax can be charged in certain countries of operation by the online retailers as well. (Helmer et al, 2001)
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