Management challenges in on-line retailing

Management challenges in on-line retailing


While changes in retailing may b e driven by technology ,managerial vision is required for successful implementation. Traditionally,retailing has been a low-tech environment in which retailing executives often relegated technology issues to back-room operators.These managers are most at risk as they do not have a clue that a major revolution has begun.The winner will be the players who understand how to leverage the unique capabilities of the online medium to effectively meet the changing needs of the consumers.

While technology required to implement online retailing is maturing,many management issues remain unanswered.No one really knows yet how to build and run a successful,mass market online mall.The sales medium is new,and retailers have a lot to learn about tricky technology,customer behaviour and management issues.

Some immediate strategic  questions that need to be addressed include:

  • How can the company generate “pull” forces that attract people to the online store?
  • How can the company leverage on established brand names?
  • How can the company utilize features of a product or services to signal value or quality to an online customer?

Key management issues in online Retailing

1. Retail advertising and marketing issues

  • Advertising and segmentation
  • Product display and positioning
  • Brand and category management(establishing and sustaining an image)
  • Pricing promotion and Incentives

2. Retail Operations Issues

  • Merchandising and inventory management(buying and handling merchandise)
  • Retail management information systems collection(POS)
  • Retail SKU decision support
  • Customer service quality

3. Retail Management Issues

  • Location (trade area) analysis and decision making(site selection)
  • Retail organization and human resource management.
  • Retailing policies,practices,procedures and planning
  • Financial dimensions of managing operations

Scroll to top
You cannot copy content of this page. The content on this website is NOT for redistribution