Question

4. What advantages and disadvantages does the online channel enjoy in the sale of shoes and diapers relative to a retail store?

Answer 1

Advantages:

> Wide reach of customers . Can access customers across geographies

> Shopping online is less time consuming. People who are generally busy at work would prefer shopping online. Also, there might be people who cannot visit the retail shop owing to their age. They also would prefer online. Online shopping has come as a solution to those who cannot visit retail stores. Online channels are able to capture huge share among such customers.

>Online channels have access to huge customer data. They can analyse this data and attract more orders from customers through recommendations and can attract more customers to their website

> Online channels can just tie up with sellers. They can eliminate inventory management costs with this and also can offer wide range of products to customers

Disadvantages:

> Major issue with the items such as shoes is the size and comfort. People prefer to try them before they use.

> The issue with diapers is moms generally buy them on need basis. An online order takes time to get delivered and in such cases retail is at an advantage.

> The chances of selling fake products is high online