
E-retailing also commonly known as E-tailing is
basically shopping using Internet as a medium. There are multiple similarities
and differences between Retail store shopping and E-tail shopping. Both have
the process of billing their customers and have to maintain relationships with
their suppliers. The most common difference is the time frame; the customer can
avail the retailer’s services only between specified working hours, but
E-tailing services are available 24/7.
The barriers to E-tailing in India are:-

- Payment options: Indian customers are generally not comfortable making online payments thou in the recent past there is a change in this behavior. Online retailers like Flipkart and others have adapted their services to suit the Indian customers. Flipkart offers services like cash-on- delivery and card-on-delivery to build trust among its customers, who still rely on touch and feel before making purchases.Thou this method increases the handling cost of these retailers but it also increases the sales volume
- Handling returns: The problem of returning a product is very much prominent in Indian e-tailing businesses. The customers can return defective or unwanted merchandise which he receives. E-commerce retailers, with their emphasis on convenience and customization, must match this standard of service. At present there is a huge scope of improvement in this aspect.
- Discount rates: The E-retailer has less operating cost compared to conventional retailers. Online retailers do not have to invest huge amounts on real estates and advertising. A trickle-down effect takes place here, the amount saved by these online retailers are passed on to the customers. With the increase in the number of competitors in this space the customers seeks for more and more discounts making it difficult for the retailers to keep up with the price war.
- Communication barrier: There are 30 significant languages spoken across different states in India, thou the official language is Hindi and English majority of the Indian population is not comprehensive with English. The online retailers use English as their mode of communication. Thus making it difficult to tap the rural masses.
- Other online websites: With the outburst of multiple online retailers, there are more and more websites offering comparison between different E-retailers. These websites compare products on various dimensions and offer the customers the best price across all available E-retailers. Makemytrip.com is a perfect example; a customer seeking air-tickets between two destinations can compare offers made by various airlines. The duration of the flight and prices are the common factors that determine the purchase decision in this case