The other day I had a conversation about eTail with a friend who is also in the retail app development business. He insisted that eTail and eCommerce were the same. He argued that the former is not something on its own, but just a different way to refer to the latter.
His comments surprised me because I’m the type of person who thinks that if a word exists, it probably refers to something specific. I’ve always thought that eTail is a concept on its own. As a result, I decided to search for the underlying characteristics of eTail. I found out that, although the lines are in fact pretty blurry between eTail and eCommerce, there do seem to be some important differences.
For anyone who works with apps, understanding these differences is essential. They can dictate your type of user as well as your digital marketing strategy. That’s why this post addresses what eTail is and discusses some of its differences in relation to eCommerce. Unlike traditional retail, which relies on brick-and-mortar stores, eTail operates entirely online. If you are thinking about developing a sales app, clarifying these concepts can help your online retail business in one way or another.
eTail and eCommerce Definitions
eTail solutions, also known as electronic retailing, refer to specific activities related to selling of retail products and services, via the Internet. This might sound like a pretty narrow definition, and in fact, it is. eTail is something very specific. eTailing does not involve other activities commonly and erroneously associated with eCommerce.
eCommerce refers to a broader set of activities that include but are not limited to selling retail products on the internet (eTail), electronic financial services like online transfers or transactions, management of online supply chains, mobile commerce (mCommerce), digital marketing, and data collection systems.
Unlike traditional retail, which relies on physical stores, eTail focuses on online activities, offering greater convenience and cost savings.
It would be accurate to say that eTail solutions focus specifically on the B2C segment. Meanwhile, eCommerce, being broader, encompasses business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), and consumer-to-business (C2B) markets. However, both are often associated with online retailers.
Learn the Differences Between eTail Solutions and eCommerce
As you might have noticed by now, there are reasons to assume that eTail and eCommerce are the same business model, even though we now know they aren’t. They are both often thought of as just being online retailers.
This can most likely be explained because the first is a subset of the second. In other words, eTail belongs to the broader set of activities referred to as eCommerce, but the opposite is not always valid. That is, not all eCommerce activities are restricted to selling goods via the internet as eTailing does. Although we use both terms interchangeably, it is not accurate.
eTail | eCommerce |
Selling products or services online, also known as eTaling. | Online activities like selling products or services, transfers and transactions, supply chain management, inventory management, mobile commerce (mCommerce), digital marketing, and data collection systems. |
Serves B2C markets. | Serves B2C, B2B, C2C, and C2B markets. |
Specific concept. | Broad concept. |
Simple | Complex |
A couple of examples are useful to understand these differences better. One could say that the U.S. has the world’s biggest eTail market players. Just think of companies like Amazon or Walmart. They are some of the world’s biggest retailers that sell their products online. However, these companies are not specifically known for being in the eCommerce segment; although this label is sometimes erroneously used.
In the case of China, we could say that it has one of the world’s biggest eCommerce companies. Think of WeChat. It might not be as important for the eTail industry as Amazon, but it has a deeper penetration of other non-retail-related activities that fall under the category of business digital platform. Online financial services, sales transactions, and payment methods, which belong to the eCommerce category, are deeply embedded in it.
Why eTailing Matters for Customer Experience
A practical way to think about why eTailing matters is the following. Imagine that you are developing an app for your company, but you don’t have the resources to implement all the functionalities you’d like. You contact your development partner and share your concerns. Your development partner tells you there is nothing to be worried about.
Thanks to the Agile development process that will most likely be used to develop your app, like the one we use at Koombea, you can develop a less ambitious initial product. This allows you to add functionalities to your app as you go along. By doing that, you will be able to easily go from eTailing to eCommerce.
Customer feedback is crucial in developing and improving eTail apps. Gathering customer opinions can inform improvements in customer service, product offerings, and overall business strategies. This feedback helps ensure that the app evolves in a way that meets customer needs and expectations, ultimately contributing to the success of the eTail business.
If you follow this path, you will first need to develop an initial product, known as a Minimum Viable Product (MVP). This will include only the necessary and most basic functionalities for your online retail business. The best MVPs do market research to validate business hypotheses. A great development partner for your retail app should have experience in designing and scaling your MVP.
In a strict sense, your MVP would still be an eCommerce app, but the label ‘eTail app’ would describe it better. Once you start adding other functionalities and your app starts becoming more complex, then you can accurately refer to it as an eCommerce app. The chart below portrays how we at Koombea see the evolution of an eComm app from its initial eTail stage.
eTail Trends and Statistics
The rise of mobile commerce and social media shopping.
In recent years, mobile commerce (m-commerce) has surged, becoming a cornerstone of the eTail industry. More consumers are turning to their smartphones for online shopping, making it imperative for eTailers to optimize their mobile platforms. According to a recent study, mCommerce sales are projected to hit $3.56 trillion by 2025, representing a staggering 73% of total e-commerce sales. This shift underscores the importance of a mobile-friendly online store.
Social media platforms like Instagram and Facebook have also revolutionized the way consumers shop online. These platforms have become vital channels for eTailers to engage with their target audience and drive sales. 71% of consumers are more likely to recommend a brand with a positive social media presence. Leveraging social media for online marketing can significantly enhance brand visibility and customer engagement.
Growing demand for fast and secure shipping options.
In the fast-paced world of eTail, shipping speed, and security have become critical factors influencing consumer purchasing decisions. A recent survey revealed that 80% of consumers consider shipping speed and cost when making an online purchase. To meet these expectations, eTailers are increasingly offering same-day or next-day shipping options. Partnering with reliable logistics providers ensures that deliveries are not only fast but also secure, enhancing the overall customer experience.
The increasing importance of customer reviews and ratings.
Customer reviews and ratings have emerged as a pivotal element in the eTail industry. Modern consumers heavily rely on these reviews to make informed purchasing decisions. A recent study found that 85% of consumers trust online reviews as much as personal recommendations. eTailers are capitalizing on this trend by encouraging customers to leave reviews and ratings. This feedback is invaluable, as it helps businesses improve their products and services, ultimately leading to higher customer satisfaction and loyalty.
Building a Successful eTail Business
Choosing the right eCommerce platform for your business.
Selecting the right eCommerce platform is a crucial step for any eTail business. With a plethora of options available, it’s essential to consider factors such as scalability, customization, payment gateways, and customer support. Popular eCommerce platforms like Shopify, Magento, and WooCommerce offer various features tailored to different business needs.
When choosing a platform, it’s important to align it with your business model, target audience, and product offerings. For instance, a business focused on selling retail products might prioritize a platform with robust inventory management and customer data analytics capabilities. Ensuring that the platform can scale with your business growth and adapt to changing market demands is key to long-term success.
By carefully selecting an eCommerce platform that meets your specific needs, you can create a seamless and efficient online store that enhances the customer experience and drives business growth.
eTail Apps
As you might have seen by now, eTail is a very important component of eCommerce. However, it is not all there is to it. Other important services and features are what transform a simple eTail app into a powerful eCommerce app.
In terms of business, they both have some of the same requirements: they need a clearly defined digital marketing strategy, optimize for search engines, and they continuously need to bring in new customers. eTail apps offer advantages over traditional retail, which relies on brick-and-mortar stores, by providing greater convenience and cost savings.
Having a simple eTail app is not bad at all. It ultimately depends on the needs of your business and on your capabilities to develop it any further. It is alright to play it safe and start with an eTail MVP and then escalate towards more complex functionalities.
If you are thinking about developing an eTail app to sell products, or if you already have one and are considering turning it into a full eCommerce solution, make sure to build it with someone who has the right experience. Contact a development company with the right qualifications and start your journey as an online retailer.
