Non-Store Retailing
Encyclopedia
Non-store retailing is the selling of goods and services outside the confines of a retail facility. It is a generic term describing retailing
taking place outside of shops and stores (that is, off the premises of fixed retail locations and of markets stands). The non-store distribution channel can be divided into direct selling
(off-premises sales) and distance selling, the latter including all forms of electronic commerce
. Distance selling includes mail order, catalogue sales, telephone solicitations and automated vending. Electronic commerce includes online shopping, internet trading
platforms, travel portals
, global distribution systems and teleshopping. Direct selling includes party sales and all forms of selling in consumers’ homes and offices, including even garage sales.
Non-store retailing, sometimes also labelled ‘home shopping’, is consistently achieving double-digit growth, and slowly taking a bigger share of overall retailing. However, it still only represents six per cent of all retail sales in for instance the United Kingdom (http://rd.kpmg.co.uk/mediareleases/20981.htm). In some product markets, however, such as travel and books & media, the share is much higher. In Germany in 2009, 29 per cent of the population were already using the internet to book their holidays (http://www.v-i-r.de/cms/upload/bilder/df-2010/df-2010-web.pdf). According to Eurostat
, 38 per cent of European consumers consider the internet as the most important source of information about travel and 42 per cent of consumers purchased travel services over the internet in 2008 .
The non-store distribution channel is marked by low entry thresholds. Compared to store retailing that requires a retail outlet, inventory, cash flow to hire staff and advertising, non-store retail start-ups usually have to invest little to reach out to potential buyers of the goods and services they offer. Non-store retailing is therefore not only used by established brick and mortar business retailers who develop an online bricks and clicks business model presence, but also by the individual pure play
, often him- or herself a consumer, to create an EShop
or to run sales parties. The rise of social media
helps to connect sellers to potential buyers.
Under Community Law, non-store retailing is heavily regulated (http://ec.europa.eu/consumers/rights/gen rights en.htm). The Distance Selling Directive 97/7/EC (Consumer Protection (Distance Selling) Regulations 2000
, the Doorstep Selling Directive 85/577/EEC, the E-Commerce Directive 2000/31/EC (http://ec.europa.eu/internal market/e-commerce/directive en.htm and Electronic Commerce Regulations 2002
and the Audiovisual Services Directive 2010/13/EU (http://ec.europa.eu/avpolicy/reg/avms/index en.htm) are the principal regulatory tools to deal with the most technologically-intensive but also innovative distribution methods.
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
taking place outside of shops and stores (that is, off the premises of fixed retail locations and of markets stands). The non-store distribution channel can be divided into direct selling
Direct selling
Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as...
(off-premises sales) and distance selling, the latter including all forms of electronic commerce
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
. Distance selling includes mail order, catalogue sales, telephone solicitations and automated vending. Electronic commerce includes online shopping, internet trading
Online auction business model
The online auction business model is one in which participants bid for products and services over the Internet. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved.Several types of online auctions are...
platforms, travel portals
Travel website
A travel website is a website on the world wide web, that is dedicated to travel. The site may be focused on travel reviews, the booking of travel, or a combination of both. Approximately seventy million consumers researched travel plans online in July 2006...
, global distribution systems and teleshopping. Direct selling includes party sales and all forms of selling in consumers’ homes and offices, including even garage sales.
Non-store retailing, sometimes also labelled ‘home shopping’, is consistently achieving double-digit growth, and slowly taking a bigger share of overall retailing. However, it still only represents six per cent of all retail sales in for instance the United Kingdom (http://rd.kpmg.co.uk/mediareleases/20981.htm). In some product markets, however, such as travel and books & media, the share is much higher. In Germany in 2009, 29 per cent of the population were already using the internet to book their holidays (http://www.v-i-r.de/cms/upload/bilder/df-2010/df-2010-web.pdf). According to Eurostat
Eurostat
Eurostat is a Directorate-General of the European Commission located in Luxembourg. Its main responsibilities are to provide the European Union with statistical information at European level and to promote the integration of statistical methods across the Member States of the European Union,...
, 38 per cent of European consumers consider the internet as the most important source of information about travel and 42 per cent of consumers purchased travel services over the internet in 2008 .
The non-store distribution channel is marked by low entry thresholds. Compared to store retailing that requires a retail outlet, inventory, cash flow to hire staff and advertising, non-store retail start-ups usually have to invest little to reach out to potential buyers of the goods and services they offer. Non-store retailing is therefore not only used by established brick and mortar business retailers who develop an online bricks and clicks business model presence, but also by the individual pure play
Pure play
In financial management, a pure play is a company whose shares are publicly traded and that either has, or is very close to having, a single business focus. Coca-Cola is an example of a pure play in this context because it retails only beverages...
, often him- or herself a consumer, to create an EShop
EShop
eShop was a company founded in May, 1991. It was started as a software company to develop products for Go Corporation's PenPoint operation system. In later years, it developed software for the Windows for Pen Computing and Magic Cap platforms...
or to run sales parties. The rise of social media
Social media
The term Social Media refers to the use of web-based and mobile technologies to turn communication into an interactive dialogue. Andreas Kaplan and Michael Haenlein define social media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0,...
helps to connect sellers to potential buyers.
Under Community Law, non-store retailing is heavily regulated (http://ec.europa.eu/consumers/rights/gen rights en.htm). The Distance Selling Directive 97/7/EC (Consumer Protection (Distance Selling) Regulations 2000
Consumer Protection (Distance Selling) Regulations 2000
The Consumer Protection Regulations 2000, SI 2000/2334, incorporates Directive into law of the United Kingdom. They apply to contracts "concluded between a supplier and a consumer under an organised distance sales or services provision scheme run by the supplier who, for the purposes of the...
, the Doorstep Selling Directive 85/577/EEC, the E-Commerce Directive 2000/31/EC (http://ec.europa.eu/internal market/e-commerce/directive en.htm and Electronic Commerce Regulations 2002
Electronic Commerce Regulations 2002
The Electronic Commerce Regulations 2002, SI 2002/2013, incorporates the EU Electronic Commerce Directive 2000/31/EC into the law of the United Kingdom. They apply to contracts concluded by electronic means over distance whereby the buyer is a consumer...
and the Audiovisual Services Directive 2010/13/EU (http://ec.europa.eu/avpolicy/reg/avms/index en.htm) are the principal regulatory tools to deal with the most technologically-intensive but also innovative distribution methods.