Online retailing, also known as “e-tailing,” online retailing has grown nearly 25% per year for most of the early 2000s. Even though growth slowed to 1.6% in 2009 due to the recession, it bounced back in 2010 to 14.8%. Bigger name brands, such as Amazon and Best Buy, seem poised to benefit most from this growth due to cautious customers being very familiar with these companies. Furthermore, online retailers are realizing the value of great customer service and how it affects sales. Despite all of the advantages to shopping online, retailers face two major hurdles: delivery of products and lack of security on the web.
Direct response retailing includes catalogs, telemarketing, and advertising meant to elicit direct consumer sales. Catalogs continue to thrive even though many catalog retailers have successful websites. Infomercials are another form of direct response retailing. Another example is the Home Shopping Network, or HSN, which sells everything from collectables to cooking ware. Even telemarketing has survived in spite of the National Do Not Call list established in 2003.
Direct selling includes all methods of selling directly to customers in their homes or workplaces. Direct selling has actually increased due to multilevel marketing. Multilevel marketing, or MLM, involves hiring independent contractors to sell products to their personal network of friends and colleagues and to recruit new salespeople in return for a percentage of their