CENTRE OF DIPLOMA STUDIES

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Personal Details of Students

Assignment Details:
Name YUGENTHERAN NAIR KUMAR
Id 201805030006
Assignment Title SHOPEE B2C(INDIVIDUAL)
Course Code (e.g. FIDB 1014) DBCB 2033 E-COMMERCE DESIGN & DEVELOPMENT
Course Name DIPLOMA IN BUSINESS MANAGEMENT
Lecturer MS HUNG MUN SIEW
Date Submitted 28/2/2020
Declaration:
We certify the content of the assignment to be our own and original work, that all sources have been
accurately reported and acknowledged and that this document has not been previously submitted in its
entirety or in part to any educational establishment.

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TABLE OF CONTEN TS
1. INTRODUCTION…………………………………………………….3
2. COMPANY BACKGROUND………………………………………..4
3. CUSTOMER,COMPETITOR,PRODUCT&SERVICES………….5
4. STRENGTH&WEAKNESS………………………………………….6
5. KEY ELEMENTS OF THE COMPANY……………………………7
6. CUSTOMER VALUE PROPOSITION…………………………….. 9
7. 8 UNIQUE FEATURES OF E-COMMERCE………………………10
8. CONCLUSION………………………………………………………..11
9. REFERENCES………………………………………………………. 12

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INTRODUCTION
The term business-to-consumer (B2C) refers to the process of selling products and services
directly between a business and consumers who are the end-users of its products or services.
Most companies that sell directly to consumers can be referred to as B2C companies.B2C
became immensely popular during the dotcom boom of the late 1990s when it was mainly
used to refer to online retailers who sold products and services to consumers through the
Internet.As a business model, business-to-consumer differs significantly from the business-
to-business model, which refers to commerce between two or more businesses. Business-to-
consumer (B2C) is among the most popular and widely known of sales models. The idea of
B2C was first utilized by Michael Aldrich in 1979, who used television as the primary
medium to reach out to consumers.B2C traditionally referred to mall shopping, eating out at
restaurants, pay-per-view movies, and infomercials. However, the rise of the Internet created
a whole new B2C business channel in the form of e-commerce, or selling goods and services
over the Internet.Although many B2C companies fell victim to the subsequent dot-com bust
as investor interest in the sector dwindled and venture capital funding dried up, B2C leaders
such as Amazon and Priceline survived the shakeout and have since seen great success.Any
business that relies on B2C sales must maintain good relations with their customers to ensure
they return. Unlike business-to-business (B2B), whose marketing campaigns are geared to
demonstrate the value of a product or service, companies that rely on B2C must elicit an
emotional response to their marketing in their customers.

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THE COMPANY BACKGROUND

In 2015, Shopee launched in Singapore as a social-first, mobile-centric marketplace where

users can browse, shop and sell on the go. Integrated with logistical and payment support, the
asset-light platform aims to make online shopping easy and secure for both sellers and
buyers.

Soon after, the app-based platform launched a website to rival other fast growing e-commerce
websites in the region like Lazada, Tokopedia and AliExpress. To differentiate itself, Shopee
offers online shopping security through its own escrow service called "Shopee Guarantee",
where it withholds payment to sellers until buyers have received their orders.

On 3 September 2019, Shopee officially opened its new six-storey regional headquarters at
Singapore Science Park. The new building has 244,000 square feet (22,700 m2) of space,
which can accommodate 3,000 employees and is six times larger than the previous
headquarters at Ascent Building. By doing so, it strengthens its push into the digital
economy.

Shopee first started as primarily a consumer-to-consumer (C2C) marketplace but has since
moved into both a C2C and business-to-consumer (B2C) hybrid model.

Shopee partners with over 70 courier service providers across its markets to provide logistical
support for its users. In Singapore, it collaborated with logistics startup, NinjaVan, for item
pickup and delivery. Other delivery partners in the region include Pos Malaysia and Pos
Indonesia. In 2015, Shopee was awarded the Singapore Startup Of The Year in the second
edition of Vulcan Awards, presented by Singaporean digital publisher, Vulcan Post

In June 2019, #ShopeeScam trended on Twitter worldwide after Shopee (Philippines)

allegedly scammed Filipino fans of South Korean girl group Blackpink. Shopee (Philippines)
released a promotion that offered passes to a Meet and Greet event for the 568 Top Spenders
in their online store.However, several fans reported receiving notifications that they won
tickets but Shopee retracting them later on. Others posted screenshots that showed Shopee
changing their contest mechanics the day before the event. Shopee is now under investigation
by the Department of Trade and Industry.

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CUSTOMER,COMPETITORS,PRODUCTS,AND SERVICES

The customer at shopee are normally all citizen around globe .Nowadays we are technology
era, so all in our fingertips. We just need to search what we want and the payment method
only, after that in a week or twice a week we can get the product that we wanted.

Competitors for shopee are lazada,lelongmy,11street,and so on.Shopee is created by SEA

group.All sell the same thing but different prices with different shipping fee or gives some
discounts.

Shopee normally sells various of products,home appliances,baby products,clothing and the

basic things that we using in our daily life.We can search anything we want in this online
platform.Normally if shop means its got their own time example like 8 to 5 or 8 to 10,but
shopee we can but at any time and there are response 24/7.

Finally,services that provide by shopee is awesome.We can communicate to them by

24/7,There are always ready to serve us.Shopee is in middle,seller sells their product via
using shopee platform and the customers that using their platform and buy the things,so the
money we bankin in is hold by shopee and after we received the products properly,then only
the will release the payment to the seller.

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STRENGTH AND WEAKNESS
STRENGTH

Boost high-traffic channel revenues.The main advantage of Shopee sales is the breadth of its
online presence. Such markets have built people's name and trust. Just Shopee Malaysia
drives about 52 million visitors every month, as described above. An overwhelming audience
to sell the products online. Though you open your own shop, you can never get these many
eyeballs easily. So if you choose to target any of these products, you get the audience
primed.Customers visiting Shopee would not first notice your specific shop. Acquire new
customers But they could look for the product you mentioned in your shop. Once you get a
customer with the aid of these huge online shops, the customer will obtain excellent service
and fulfillment as a repeater buyer.Logistics and shipping. Shopee's strong online presence
and strong and powerful logistics and shipping conditions as Malaysia's leading e-commerce
stores enable you to enjoy fast and secure shipping through these markets.

WEAKNESS

Marketplace Fee, Create a shop on Shopee or it may potentially raise, overload, or add any
restrictions in the form of a Marketplace fee. You must be well versed and have good sense in
the limits of your profit margin and the incentives you might have for helping these markets
to sell your goods. Shopee does not yet take on the sales commission, but they plan to add an
additional fee as long as they do not take up the fee.  Small power, There are no markets to
only support your company, but they help make business and expand too and you insure that
the attention of your customers is not on sellers,but on goods themselves.This could really be
a revolutionary aspect for a large number of sellers it could be limiting a lot of things to make
sure that there are no direct interactions between buyers and sellers.

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 Analysis on the key elements of the company’s business model based on
their website information.

Parent Company – Garena (now Sea)

Funding: Garena (now Sea)
Shopee CEO: Chris Feng (Rocket Internet, Zalora, Lazada, Sea [Shopee])
Web Traffic3: SG 1.3m, MY 6m, TH 8.5m, ID 18.5m, VN 12.5m, Ph 6.7m, TW, 30m,
TOTAL: 83.5m
What they do: Marketplace (?) for regional sellers and buyers

Shopee Business Model – Revenue Model

Shopee’s Possible Revenue Streams (possible, because they haven’t really done any of it yet,
apart from ads);Their own payment system
is the most important plays here. Search placement gets them initial revenues to sustain early
on. It is a significant Strategy because they forgo most other forms of revenues and have ads
as their main revenue source, something Google did to win all their competitors in the year
2000.Alibaba’s Taobao uses this exact business model (above)- which is where Shopee
probably got it from.Their own payment system occurs on every order, further sustaining the
overall Sea group (not likely to be recognised as Shopee’s revenues) cash flows.

Shopee Business Model vs Lazada Business Model – their traffic in Malaysia

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CUSTOMER VALUE PROPOSITION
Value Propositions are the reasons that a customer will want to shop at your online store,
instead of the competition. Free shipping, or a better selection of a niche product could be the
value propositions that keep customers coming back.If you put both of those terms together,
you’ve got ecommerce value propositions. So, let’s take a closer look at 12 ecommerce
value propositions that will help you win over online shoppers.

1.   Your Products Are Easy to Find Online

Yes, I know. You’ve had terms like SEO and SEM jammed down your throat. But showing
up in Google search results is just one of many battles you need to fight in order to ensure it’s
easy for customers to find your products online. Do you know what search engine is most
popular with online shoppers? Amazon. Yeah, it’s not just a store or a platform. It is the
preferred destination for customers when they search for a product for the first time. Google
is working hard to catch-up, but Amazon is dominating the online shopper search market.If
you’re looking for an easy way to list your products on both Amazon and your own online
store, Shopify is hard to ignore. In this Shopify review, Darren DeMatas highlights all of the
ways that Shopify works to empower both first time online business owners and Fortune 500
ecommerce giants. It isn’t a perfect platform, but the ability to synchronize product listings
between your own site (the stuff you should send Google users to) and Amazon’s platform is
a great tool for ensuring that your products are easy to find, no matter where shoppers start
their search.

2. Free, Fast Shipping is Now an Expectation

Unless you’re offering an unbelievable deal, slow shipping is a deal breaker. Amazon
dominated the market by finding a way to make 2 day shipping virtually free. Walmart is
aggressively trying to follow-suit. The battle lines have been drawn. If a shopper ends up on
your site, or finds your product on a popular ecommerce platform, slow or expensive
shipping is a great way to lose them.

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3. The Ability to Browse, Compare and Buy from Anywhere

2015 was the year when smartphones caught up to desktops in terms of online traffic. Small,
mobile screens continue to dominate online traffic. And in 2018, online shoppers are
following suit. This year more than 80% of shoppers will use a smartphone to compare
products while browsing at a brick and mortar retail location. In the past year, more than 60%
of smartphone users have made at least one ecommerce purchase using their phone. (Source)

If online shoppers have a hard time interacting with your online store from their smartphone,
you’re in trouble. Phenomenal user experience (UX) across platforms is beyond important.

4. Sharing Your Customer’s Values and Passions

This ecommerce value proposition is really important for niche brands. In other words, if
you’re trying to serve a relatively small market with unique needs, you’re a niche brand. And
niche brands live and die on their ability to get inside of their target customer’s head. Yes,
large companies care about what their customers like / dislike, but niche brands have to take
this to an extreme.

Tony DiCostanzo wrote a piece on Forbes called Niche Brands Are the New Kings of
Retail. He highlights the role niche brands are taking in the ecommerce revolution. You don’t
need a massive sales team. All you need is the ability to identify an under-served, growing
market and dedicate yourself to serving their unique need. These are the slices of the pie that
are being ignored by larger brands – meaning you have a real shot at breaking through.

5. Help is Easy to Find and Communicate With

How many times have you wanted to throw your phone across the room after dealing with a
customer service agent that barely speaks the same language as you? As Bill Burr says in the
sketch below, “…Nobody can help, but everybody

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Assess their website in terms of the eight unique features of e-commerce
technology. In your opinion, which of the features does the site implement
well, and which features poorly.

Firstly,Ubiquity.Shopee access this,their platform are we need to using internet to browse it

and nowadays web tech is available everywhere.Shopee are globally reach too.It is in various
country that we can buy via shopee,example as Singapore,Vietnam,Taiwan and so on.It is
universally standard too and its background looking also like reach,and we didn’t get bored
when we are log in to their platform.There are well in interactions also,they will be reply
something if we ask any query and there is a place for communication between buyer and
seller.These all are they are doing well in this eight unique features of e-commerce
technology.While the poorly features are their information density,some of the seller
information are not appropriate and some of them not have any information regard to the
product.Personalization or custamization is similar to other online shopping platform,it don’t
have their own customisation.

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CONCLUSION

In conclusion, we are in techno era,so all in our fingertips.We are no more using
traditional format to buy the products we want.Now we can buy anything at anytime
while all can sell or buy product via using social medias and online platform like
shopee,lazada,amazon and so on.There are selling in reasonable prices and we can
get our product by our door.In future it is to easy for buy anything.B2c like shopee is
really useful for everyone as its shipping fee are free and still we can get our
products by door.

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REFERENCES
1.  http://www.businessinsider.com/amazon-ad-business-to-reach-5-billion-in-
2018-no-threat-to-google-2017-4/?IR=T

2, "Garena Rebrands as Sea After Raising $550 Million in New Funding".

Bloomberg. 8 May 2017. Retrieved 21 March 2018

3.^ Jump up to:a b [2], "Garena’s Shopee could be on its way to beating

Carousell in Asia". Tech In Asia. 24 November 2015. Retrieved 10 December
2017

4.^ [3], "Shopee launches online store in Brazil". Tech In Asia. 30 October

2019. Retrieved 17 December 2019

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