- INFOGRAPHIC 1 – AMAZON

1. Fulfillment is the process of getting orders to customers. It can involve the related
tasks of receiving inventory, storing and packing products, shipping orders, and
handling returns, as well as maintaining communication with the customer, along
the way. 
2. Explain what's the problem behind the rise of the fulfilment services : Many
businesses benefit from outsourcing ecommerce order fulfillment. Here are a few
signs it might be the right time to outsource the fulfillment process for your
business:

 Sales spikes: You experience a high volume of orders during a certain time of year.

 Growth: Your customer base is growing, and your present infrastructure can’t keep
up.

 Time: Fulfilling orders is consuming your time and limiting your ability to focus on
other aspects of your business.

Fulfillment is a vital process if your business relies on getting products to customers. It might
be cost-effective to handle fulfillment yourself. But how do you know when to invest in
storage space or a third-party fulfillment solution? Here are some cues:

 Orders are on the rise: As you scale, it might become difficult to keep up with
fulfillment demands.

 You don’t have the infrastructure to handle inventory: You might run out of room
to store and stage inventory between restocking and shipping to buyers.

 Fulfillment costs are eating into your margins: Fulfillment can consume valuable
time and resources, with costs adding up quickly.

If you’re experiencing challenges like these, a service like FBA might help free you up to
focus on other areas, such as strategy and growth.

3. Solution : The best fulfillment solution for your ecommerce business will depend
on several factors, including the nature of your business, the types of products you
sell, your location, and your approach to satisfying customer demands.

In-house fulfillment may be right for your business if you want to:

 Keep inventory on hand

 Use your own packaging or labels

  Stay profitable on products with tighter margins

A fulfillment service like FBA may be ideal if you want to:

 Decrease fulfillment headaches and get help scaling your business

 Outsource storage, shipping, customer service, and returns

If you sell in Amazon stores, FBA also offers several more advantages:

 Offer fast, FREE delivery to Prime members

 Display the Prime badge on eligible products

 Improve your chance of winning the Featured Offer spot on detail pages

If you sell across multiple sales channels, a shipping software like Veeqo may be ideal if you
want to:

 Eliminate your fulfillment headaches and get help scaling your business

 Get sales channel integrations, inventory management and reporting tools all in one
place

5 types of ecommerce fulfillment models

As a business grows, ecommerce brand owners often reach a crossroads: Should you scale up
in-house operations and find a way to store, manage, and ship more inventory, or enlist a
fulfillment service? Here are three potential solutions:

1. In-house fulfillment
Storing and shipping orders from your place of business is a common approach for smaller
brands. This option may limit the variety and quantity of products you can store and sell, and
it could increase your overhead expenses.

In-house fulfillment is worth considering if you:

 Sell a low volume of products

 Have a functioning logistics network

 Sell products with complicated packing and shipping requirements

Storing, packing, and shipping inventory quickly and efficiently to the customer’s front door
becomes even more critical as orders increase. You can scale to a bigger warehouse or
storage location or outsource fulfillment for some products to an outside party.

2. Third-party fulfillment
Many ecommerce service providers offer fulfillment solutions, including warehousing,
packing, shipping, and handling returns. For example, FBA provides all these services for
Amazon sellers. During 2021, more than 600,000 sellers in Amazon’s U.S. store used FBA to
provide free, two-day shipping to customers. (source)

How do you find the right fulfillment service? Here are some factors to consider when
looking for a third-party fulfillment service.

3. Multi-channel fulfillment
Multi-channel fulfillment is the process of managing and fulfilling orders across various
channels where customers can purchase products, such as from your website, in Amazon
stores, on social media, or elsewhere.

You don’t need an exclusive fulfillment option for each channel. Having a multi-channel
fulfillment solution can help you diversify your ecommerce marketing and sales channels
while keeping your order fulfillment process manageable. Amazon's Multi-Channel
Fulfillment program can provide fulfillment for all your sales channels.

4. Fulfillment by Amazon
Ecommerce customers expect reliable delivery and fast shipping timeframes. Many online
retail businesses use FBA to provide Amazon Prime shipping to meet customer expectations.

FBA may be the right fulfillment option for your business if you:

 Are looking for a way to save time and scale your business

 Need an end-to-end solution for inventory storage, shipping, and returns

 Want to attract customers with fast, free shipping

FBA allows you to ship inventory to an Amazon warehouse at a competitive cost. When an
order comes in, Amazon delivers the product to the customer. You can take advantage of
Amazon’s distribution network, infrastructure, world-class delivery service, returns system,
and customer service process.
FBA supports multi-channel fulfillment. This means you can sell products on your own
website, then process and send orders through Amazon fulfillment centers.

5. Dropshipping

Dropshipping involves outsourcing all or most of the supply chain process—from product

sourcing or production through delivery and returns. You can use dropshipping to work with
a manufacturer or third party to send orders directly to customers.

This option appeals to some sellers, since it can reduce overhead. You handle marketing
products and other business operations, while the fulfillment service manages the physical
goods, including the fulfillment process.
Is dropshipping allowed in Amazon stores?
Yes, as long as the business meets Amazon criteria, you can use dropshipping for your
business in Amazon stores.

To use dropshipping in Amazon stores, your business must:

 Be the seller of record of the products;

 Identify
yourself as the seller of the products on all packing slips, invoices, external
packaging, and other information included or provided in connection with them;

 Remove any packing slips, invoices, external packaging, or other information

identifying a third-party dropshipper before shipping the order;

 Be responsible for accepting and processing customer returns of the products; and

 Comply with all other terms of your seller agreement and applicable Amazon policies.

(https://sell.amazon.com/learn/ecommerce-fulfillment?ref_=sdus_fba_ecommf_what_h1)

- 5 MEASUREMENT IN E-
COMMERCE
- Average order value (AOV) is tracks the average dollar amount spent each time a
customer places an order on a website or mobile app. To calculate your company's
average order value, simply divide total revenue by the number of orders. And we
should track the metrics of Average order value (AOV) because is an important
metric for any ecommerce business because it measures the average amount of money
spent by each customer. A higher average order value suggests that a business is
driving sales by promoting more expensive products or cross-selling.
- Average Order Value (AOV) formula & Example
- Calculations can be done with the formula: “AOV = Revenue generated on website /
Number of orders”
- How to calculate Average Order Value (AOV) for example:  
- An online store that sells products earns 130 million for 1 month, and there are 121
orders placed. Then the Average Order Value (AOV) is 130 million / 121 = IDR
1,074,380.
- GMV or Gross merchandises value is the total value of merchandise sold over a given
period of time through a customer-to-customer (C2C) exchange site. It is a measure of
the growth of the business or use of the site to sell merchandise owned by others. 
- EXAMPLE:
- Example of GMV on an e-commerce platform: 
 - An e-commerce platform sold $10 million worth of products during the month of
March. This value will be calculated as the monthly GMV for the platform.
- Customer lifetime value is the total worth to a business of a customer over the whole
period of their relationship. It’s an important metric as it costs less to keep existing
customers than it does to acquire new ones, so increasing the value of your existing
customers is a great way to drive growth. CLV was one of the key stats to track as
part of a customer experience program. CLV is a measurement of how valuable a
customer is to your company, not just on a purchase-by-purchase basis but across the
whole relationship.

Measuring CLV and its related metrics is important for understanding and improving
your customer management performance and strategy. CLV can help you evaluate the
effectiveness of customer acquisition, retention, and loyalty programs, as well as
allocate resources and budget more wisely

Example : Grocery Shop

Grocery stores inspire loyalty among residents within the vicinity. Let’s say a shopper
frequents a grocery in New York every week. He spends around $100 per visit. He
returned every week, 52 weeks a year, for an average of three years. 

$100 (purchase per visit) × 52 (visits per year) × 3 (years) = $15,600 (CLV)

1. Net Promoter Score : NPS is a widely used market research metric that is based on a
single survey question asking respondents to rate the likelihood that they would
recommend a company, product, or a service to a friend or colleague. 

Measuring NPS is important to measures customer experience and predicts

business growth, because NPS gives insights about customer loyalty by measuring
customers' willingness to recommend a business to a friend or acquaintance. 
Example : The classic NPS question is simple: “On a scale of 0 to 10, how likely are
you to recommend our business to a friend or colleague?”

1. Sales conversion rate is the percentage of visitors leads or opportunities that achieve a
goal such as a sale.

We should track the metrics for calculate our sales conversion rate by dividing the
number of leads that are converted into sales by the number of qualified leads your
team has received. Then simply multiply this figure by 100 to get a percentage result.

Example :  if an ecommerce site receives 200 visitors in a month and has 50 sales, the
conversion rate would be 50 divided by 200, or 25%.

(https://docs.google.com/presentation/d/
1rNIazHbLkBVPNVoux7RjYrCTCsjdjUv8RGLO9yzYLws/
edit#slide=id.g22d0d2cf4a0_0_20)

- NORTH STAR METRICS

 - North Star Framework is a model that is strongly associated with performance
measurement and Key Performance Indicators. It helps companies to manage their
products by finding one important metric (North Star Metric) that best describes the
core value that their product is giving to customers (Busch 2020).
-  North Star Framework consists of North Star Metric, business results and customer
value, inputs and the work. Inputs are number of impressive factors which affect the
NSM. (Bauer et al. 2020, p. 10-13) 
- North Star Framework can be used to help in many different things: 
- 1. Prioritize and increase informed and decentralized decision-making 
- 2. Team communication 
- 3. Enable teams to concentrate on impact and resistant, product-led growth

(https://docs.google.com/presentation/d/
1RcYadwtQe8QC8GzrfT5t4BAGOtbSOmhwjjAiEbOIFS4/
edit#slide=id.g1230a27de60_0_112)

- Buy -side and Sell-side E-Commerce

 - For most commercial and not-for-profit organisations we can distinguish between
upstream supply chain activities which are equivalent to buy-side e-commerce and
down- stream supply chain activities which correspond to sell-side e-commerce. 
- Upstream supply chain: Transactions between
an organisation and its suppliers and intermediaries 
- Downstream supply chain: Transactions between an organisation and its customers
and intermediaries

(https://docs.google.com/presentation/d/1kqCAiocyktbZo29Pf4FyS2p2-
yCmo2A2qwKau-DUq_8/edit#slide=id.g124f4fec6ac_0_39)

- Social Media and Social Commerce

Social commerce (s-commerce) has risen in popularity primarily owing to social media
development. With the development of Web 2.0 and social media technologies in marketing
contexts, social commerce, as a new mode of e-commerce, has risen in popularity (Mikalef et
al., 2017). In the social commerce (scommerce) environment, commercial activities are
conducted on social media sites, such as WeChat and Weibo. In the social commerce
(scommerce) environment, commercial activities are conducted on social media sites, In
China, for example, by June 2020, the number of Internet users had reached 940 million,
including 749 million users of online shopping sites (China Internet Network Information
Center, 2020). The growth in s-commerce indicates that e-commerce is evolving from
traditional business exchange to relationship-based exchange (Kozlenkova et al., 2017).

Researchers have also paid attention to social support in the s-commerce context (Liang et al.,
2011). Social support refers to an individual’s experience of being cared for, responded to,
and helped by others in a social group (Liang et al., 2011). In s-commerce, it consists of two
dimensions: informational and emotional (Hajli, 2014). Informational support provides
consumers with information needed for purchasing and helps them solve problems, and
emotional support brings feelings of warmth to consumers, which can promote a relationship
between consumers and sellers (Tajvidi et al., 2017), and enhance consumers’ purchase
intention. Hajli (2014) examined the effect of social support on relationship quality in the s-
commerce setting by conducting a survey on Facebook, and found that social support had a
positive effect on relationship quality. Wang et al. (2020) found that both social support
subdimensions were positively related to consumer involvement, together promoting
consumers’ engagement in the s-commerce community. However, few researchers (see, e.g.,
Sheikh et al., 2019) have examined the influence mechanism of social support on s-
commerce purchase intention, particularly in China, which has a large scommerce market and
where guanxi plays an important role in the context of the country’s collectivistic culture.
Therefore, we explored this topic along with the mediating role of social trust in this
relationship, to fill a gap in the literature.

The term social commerce describes a subset of electronic commerce (e-commerce) which
involves the use of social media, online media supporting social relations and user input to
help the online purchase and sale of products and services (Mardsen, 2010).

Founded in 2015 and listed on Nasdaq three years later, Pinduoduo’s colourful history of
unprecedented growth to become the second largest s-commerce platform in China in terms
of number of users had attracted global attention.
(https://docs.google.com/presentation/d/
1DMyoaFs2eH3ImEzbJR1xZcRqwdWFsjsaGar9j_LIPqQ/
edit#slide=id.g11e96c2502c_0_31)