Non-Store Retailing: Classifications and Real-Life Examples

In today's digital age, the landscape of retail has undergone a significant transformation. Websites have emerged as a prominent platform for direct marketing, with companies like Amazon, eBay, and Alibaba leading the charge in selling products online without the need for physical stores. This shift towards non-store retailing is not only convenient for customers but also offers businesses a more cost-effective and scalable approach compared to traditional retail.

Non-Store Retailing, as it's called, refers to sales happening directly to the end customer without the use of a traditional retail space. The costs associated with non-store retailing are variable and subject to change, unlike the fixed costs of traditional retail. This flexibility makes scaling up a non-store retailing business easier.

Direct Marketing, initially using direct mail services, has grown significantly since the adoption of the internet and is expected to continue growing. Email marketing has been a successful method of direct marketing, with companies spending large amounts on email design and distribution. Buying services, where a seller has a contract with a government agency to sell products at a given price, is another form of non-store retailing.

Direct Sales, a type of Non-Store Retailing, requires manual involvement and personal selling skills. It is used for selling a variety of products, from technical equipment and religious books to everyday items like tea, coffee, cold drinks, newspapers, beer, chewing gums, chocolates, and even pizza, which are now sold through automatic vending machines. Multi-level marketing firms like Amway and Tupperware use Direct Selling effectively, with chains of distributors and end sellers selling to the end customers.

However, Direct Sales is falling in usage due to market noise and growing customer irritation from continuous advertisement, as well as a growing need for privacy. On the other hand, Mobile Commerce is expected to account for 72.9% of all e-commerce sales by the end of 2023.

Small businesses are also adopting non-store retailing, selling products through their own websites and social media. Companies that use the direct selling system for their products and thus belong to the category of non-store retailers include those engaged in direct selling through personal sales, network marketing, or home sales, such as Avon, Tupperware, Vorwerk, and Mary Kay. These companies do not rely on traditional retail stores but sell products directly to consumers outside of stores.

Amazon is an example of a Non-Store Retailer, as it sells directly from its website without a physical retail space. The cost of establishing a website is generally less than starting a traditional retail outlet, making non-store retailing an attractive option for businesses of all sizes.

As global e-commerce sales are projected to reach $6.3 trillion in 2023, the future of retail seems to be firmly planted in the digital realm. Non-Store Retailing, with its flexibility, cost-effectiveness, and convenience, is poised to play a significant role in this digital revolution.