Online shopping portals: an option for traditional retailers?

Abstract

Purpose

The purpose of the paper is to examine the benefits delivered to traditional retailers from using shopping portals as their entry mechanism to the online trading environment. The paper also aims to highlight the possible drawbacks inherent in such an approach.

Design/methodology/approach

A case study approach was used with an online portal, combining documentary analysis and semi‐structured interviews, using a team‐based interviewing approach. This facilitated the development of a multi‐layered picture of the organisation.

Findings

Using a shopping portal delivers several benefits to traditional retailers in terms of marketing synergies, site traffic generation, access to web site management and fulfilment services, and the ability to offer customers a multi‐channel retailing experience. Drawbacks may include partner interdependence and turnover, restricted organisational learning and restricted delivery capabilities.

Practical implications

Highlighting the benefits and drawbacks of shopping portals generates guidelines that traditional retailers can consider to help them decide whether such portals are the right choice for their individual firm or not.

Originality/value

This paper expands the literature on the phenomenon of the online portal by demonstrating its potential as a mechanism for traditional retailers to engage in electronic retailing.

Citation

Kennedy, A. and Coughlan, J. (2006), "Online shopping portals: an option for traditional retailers?", International Journal of Retail & Distribution Management, Vol. 34 No. 7, pp. 516-528. https://doi.org/10.1108/09590550610673590