The Sales Process (OCR GCSE Business)

Methods of Selling

• The sales process is the method a business uses to make its products available to customers

Face-to-face selling

• This often takes place in retail outlets such as:

  • Independent shops

  • Markets

  • Supermarkets

  • Showrooms

  • Department stores

• Face-to-face selling involves direct interaction between the consumer and a business representative

  • Customers can be greeted and questions answered

  • Products can be packaged in a consistent way

  • Demonstrations of products can be offered, or customers can try them out

    • E.g. Fashion retail stores such as Fatface provide fitting rooms for customers to try on clothing items

• Some businesses use a direct selling approach

  • E.g. Hillary's Blinds agents visit customer homes to discuss and take orders and provide a full fitting service for products

An Evaluation of Face-to-face Selling

Telesales

• This involves completing sales transactions over the phone

  • E.g. Holiday company Trailfinders sells luxury travel packages over the phone, as detailed explanations can be given to the customer in person

• Sales representatives are often located in call centres

An Evaluation of Telesales

E-Commerce

• This involves completing transactions online, via an electronic device such as a computer, phone or tablet

  • Businesses can trade through their own websites or apps

  • Alternatively, platforms such as Amazon, Ebay and Etsy offer the chance for small businesses to sell their products online

• The rise of e-commerce means customers increasingly pay online using credit/debit cards 

  • Consequently, contactless payment systems (such as Apple Pay and Paypal) are growing in popularity

• E-commerce can make life more convenient for customers and is a source of competitive advantage

  • It also provides the potential for small businesses to reach large audiences

An Evaluation of E-commerce for Businesses and Consumers

The Impact of E-Commerce on the Sales Process

• The proportion of retail sales made using e-commerce has been increasing steadily since the mid-2010s

  • Its growth accelerated during the COVID-19 pandemic, as consumers were unable to access most of their favourite high street stores

Diagram: UK E-Commerce Revenue (£bn) 2015 to 2021

Source: Office for National Statistics

• This growth has led to a range of significant changes to business activity and processes, including:

  • The need to set up specific departments for e-commerce sales

    • Businesses that sell face-to-face and through e-commerce, such as John Lewis, Tesco and River Island have established large online divisions

      • They operate large warehouses that are served by complex logistics operations, as well as customer service and technical services

  • The provision of a range of delivery or collection options

    • Customers expect to be able to access products purchased online quickly

      • Some products can be delivered digitally through streaming or downloads

      • Facilities such as click-and-collect or next-day delivery can provide an important competitive advantage

      • E.g. Online retailer Argos is able to offer same day delivery in some UK locations

  • Different types of workers

    • Existing workers may need training to be redeployed in online sales positions

    • New workers with technical skills and experience may need to be recruited

    • Some workers who lack transferable skills may be made redundant

  • Location implications

    • Online operations can be located in less expensive locations, such as business parks

    • Proximity to transport networks such as motorways is often preferred to aid rapid distribution

      • E.g. Next's distribution centres are located next to major motorways, including the M1, M6 and M25