What resources does an International Internet retailer need other than merely a storefront on the Internet? Does it require fewer physical, financial, and human resources than a traditional retailer, or just as many? Explain.
Internet retailing requires far fewer human and capital resources. Many operate businesses just from EBay these days, with one person... the owner... doing most of the work.
Retailers that operate exclusivly in the old-fashioned way are call the "bricks and mortar" economy these days. They are consistently losing market share.
To effectively operate as an international internet retailer, there are several resources needed beyond just an online storefront. These additional resources are essential for managing the complexities of international operations and meeting customer expectations across different regions. Let's explore the key resources required:
1. Physical Resources: While an internet retailer doesn't require as many physical resources as a traditional brick-and-mortar retailer, there are still some important components. These include warehousing and logistics facilities to store, manage and distribute inventory effectively, particularly when shipping internationally. It may also require physical infrastructure to facilitate product returns and customer service centers.
2. Financial Resources: International operations involve additional financial requirements due to factors such as currency exchange rates, taxation, customs duties, and cross-border transactions. An internet retailer needs to allocate financial resources for these purposes, as well as for marketing and promotion, website maintenance and optimization, and payment processing platforms.
3. Human Resources: An international internet retailer needs a skilled workforce to manage various aspects of its operations. These include professionals who specialize in international logistics, supply chain management, customer service, website development, digital marketing, and data analytics. Additionally, multilingual customer support staff and cultural experts may be essential to cater to the diverse needs of customers in different countries.
4. Technological Resources: Internet retailers heavily rely on technological resources for website development and maintenance, online payment processing, inventory management, data analytics, cybersecurity, and customer relationship management. Investing in advanced technological tools and software solutions is crucial to efficiently run an international internet retail business.
In terms of the quantity of resources required, it can vary depending on the scale and scope of operations. While an international internet retailer may require fewer physical resources compared to a traditional retailer, it often demands significant financial resources to handle cross-border operations and compliance. Additionally, the need for a skilled workforce and robust technological infrastructure remains comparable to that of a traditional retailer.
In summary, an international internet retailer needs physical resources for warehousing and distribution, financial resources for managerial purposes, human resources for specialized roles, and technological resources to support online operations. While the specific quantities may differ, it generally requires a similar level of resources as a traditional retailer, albeit with certain differences due to the nature of the online business model.