Professional Documents
Culture Documents
1. Introduction to e-commerce
Involve the use of Internet, Web (HTML, Deep Web Vs “surface” Web),
mobile apps ⇒ transact business
→ Roles:
E-COMMERCE 1
Ex: On-demand services: Uber, Airbnb
a) History
Technologies evolve
c) E-commerce Vs E-business
E- business
E-COMMERCE 2
Technology trends - Mobile platform has made mobile e-commerce reality
Ubiquity
Global reach
Universal standards
In4 richness
Interactivity
In4 density
Social technology
3. Types of E-commerce
B2B
C2C
Social e-commerce
Local e-commerce
4. A brief history
Precursors
1995-2000: Invention
E-COMMERCE 3
2001-2006: Consolidation
2007-present: Reinvention
What is Y-Combinator
a) Why do you think investors today are still interested in investing in startups?
E-COMMERCE 4
b) What are the benefits of investing in a company that is a graduate of a Y
Combinator boot camp?
Graduates of Y Combinator boot camp are goal oriented & ambitious. They
are trained in such a way that they can tackle business problems smartly &
legally. Graduates have collected various in4, ideas, views regarding start-
ups from many entrepreneurs who are motivated to achieve their goals &
targets.
→ price dispersion
→ in4 asymmetry
→ new intermediaries
E-COMMERCE 5
Other surprises
E-COMMERCE 6
Chapter 2: E-commerce Business Models & Concepts
E-commerce
- use/leverage unique qualities of Internet & Web
business model
→ personalize/customize
→ reduce product research, price discovery costs
E-COMMERCE 7
What is your niche?
Customer Avatar
E-COMMERCE 8
Ex:
E-COMMERCE 9
Ex: Slide
Shipping
→ Is my product lightweight?
→ Is my product difficult to break?
Regulations
Passion
E-COMMERCE 10
- Subscription revenue model (freemium strategy)
Ex:
Keyword research
E-COMMERCE 11
- find how many people are searching
Talk to audience
- follow up one-to-one
Magic questions
Influenced by:
→ competitors’ pricing
E-COMMERCE 12
SWOT Analysis?
Best sellers?
Pricing?
Product categories/structure?
Important concepts:
- asymmetries
- leverage
- perfect markets
Important concepts:
E-COMMERCE 13
describes how firm will organize work
3. Raising capital
seed capital
elevator pitch
E-COMMERCE 14
5. B2C Business Model
5.1 E-tailer
Variations:
→ virtual merchant
→ bricks-and-clicks
→ catalog merchant
→ manufacturer-direct
Dropshipping
E-COMMERCE 15
5.2 Community Provider
!!! CASE STUDY - Insight on Technology: Connected Cars and the Future of E-
commerce
5.4 Portal
Variations
Vertical/Specialized Sailnet
E-COMMERCE 16
process online transactions for consumers
Rev model = sales of services, subscription fees, ads, sales of mkt data
6.1 E-Distributor
E-COMMERCE 17
Ex: Grainger
6.2 E-Procurement
→ scale economies
Ex: Ariba
6.3 Exchanges
Ex: Go2Paper
6.4 Industry Consortia
Ex: SupplyOn
E-COMMERCE 18
rivalry among existing competitors
barriers to entry
strength of suppliers
mission statement
target audience
strategic analysis
mkt matrix
development timeline
preliminary budget
Business model
Revenue model
Target audience:
Characterize marketplace:
E-COMMERCE 19
Develop e-commerce presence map
E-COMMERCE 20
simple website: up to $5000
management
hardware architecture
software
design
telecommunications
human resources
5 major steps:
E-COMMERCE 21
3.1 System Analysis/Planning
E-COMMERCE 22
3.2 System Design - Hardware & Software platforms
E-COMMERCE 23
a) Web Server Software
Apache
windows-based
Shopify
BigCommerce
Magento
WooCommerce
Wix
Haravan
Selection criteria:
Low monthly
how much does shopping cart cost to run/monthly …
costs
E-COMMERCE 24
High level of
can new feature be easily added?
extensibility
3rd party support are there companies actively develop plugins for carts?
High level of
free to change shopping cart & tailor to your needs?
control
b.1 Wix
PROS CONS
- tons of theme
- attractive price
Unwanted ads
Limited storage
Limited Bandwidth
b.2 WooCommerce
PROS CONS
b.3 Shopify
PROS CONS
- scalable
E-COMMERCE 25
PROS CONS
- customer support
b.4 BigCommerce
PROS CONS
b.5 Magento
PROS CONS
- limitless flexibility with store design - high price for premium member (≥20,000/year)
Shopping cart
Credit card processing - in conjunction with shopping cart, verify card, put
through credit to company’s account at checkout
E-COMMERCE 26
Website design - basic, enable customers to find & buy
Ex: Yoast
offer expertise
links
buy ads
local e-commerce
Build own - require team with diverse skill set, software tools
Host own
Hosting company responsible for ensuring 24/7 access for monthly fee
E-COMMERCE 27
!!! Annoying features
links error
no contact in4
typo error
unit testing
system testing
acceptance testing
E-COMMERCE 28
A/B testing (split testing)
multivariate testing
Maintenance is ongoing
Benchmarking
Choice:
E-COMMERCE 29
Platform constraints graphics, file sizes
→ Objective C, Java
→ Low cost, open-source alternatives
Mobile 1st
most efficient
design
Mobile website resize existing web for mobile access is least expensive
1. Idea
E-COMMERCE 30
1.1 Purpose of website
-communication -capturing -conversion
How potential client interact with website? → buy → fill contact form → join
email list → subsribe podcast → follow on social media
2. Content
Business message
Ex:
E-COMMERCE 31
Key webpage: homepage, about us, product categories, product pages,
blog, check-out page, operational pages (return policy, shipping in4, FAQ,
Contact us)
2.1 Homepage
Clear description
Credibility
Testimonial
Intro of company
Pictures of team
Keyword research
3. Design
E-COMMERCE 32
3.1 Logo
3.2 Tagline
5-6 colors - 1 accent color, 2 dominant (use most), 2 neutral (text &
background)\
Color psychology
cheerful, optimist,
YELLOW
creative, energy
b) Font combination
E-COMMERCE 33
choose 2 main fonts that balance & contrast
d) Voice
4. Organization
Website Infrastructure:
Select a name
E-COMMERCE 34
Register your name with a domain register: GoDaddy, NameCheap, Wix,
Inet, PA Vietnam,…
Community effects
a) General model
E-COMMERCE 35
b) Online consumer model
c) AISAS model
Consumers buy online: Big ticket items (≥$1000), Small ticket items (≤$100),
Bulky goods, furniture,…
search engines
E-COMMERCE 36
marketplaces (Amazon, eBay)
awareness of need
evaluate alternatives
E-COMMERCE 37
3. Multi-Channel Marketing
Goals
E-COMMERCE 38
Paid, owned & earned media
E-COMMERCE 39
4. Traditional Online Marketing & Advertising tools
Create Magnet
E-COMMERCE 40
GG search engine
algorithms
Social search use social contacts → fewer & more relevant results
!!! Keywords
E-COMMERCE 41
Banner ads - Content mkt
***
→ inexpensive, 3-4% clicks, measure & track responses, personalize & target
Email sequences:
E-COMMERCE 42
paid fee for other websites for sending customers to their site
6. Pricing Strategies
E-COMMERCE 43
Traditional pricing based on fixed costs, variable costs, demand curve,
marginal costs, marginal revenue
Dynamic pricing (auction, yield mana, surge pricing, flash mkt) - Bundling
Long tail mkt - Iinternet allows sales of obscure products with little demand
provide much mkt data , combined with registration forms, shopping cart
database
answaer questions such as: ‘What are major patterns of interest &
purchase?’, ‘After homepage, where do users go 1st?’
Types of tracking files: cookies, flasd cookies, web beacons (bugs), tracking
headers (supercookies)
E-COMMERCE 44
7.4 Databases
enable profiling
Relational database
Big data: petabyte, exabyte range, web traffic, email, social media, content >
< traditional DBMS unable to process increasing volume of data
CRM systems - manage rela with customers once purchase is made, create
customer profile
Customer data used to - develop & sell addtional products, identify profitable
customers, optimize service delivery,…
E-COMMERCE 45
7.8 Online mkt metrics: Lexicon
Pricing models: Barter, cost per thousand (CPM), cost per click (CPC), cost
per action (CPA), hybid, sponsorship
E-COMMERCE 46
Online mkt is more expensive on CPM basis, but more effective in producing
sales
Help managers
2. Social Marketing
E-COMMERCE 47
Dark social - sharing outside major social network (email, IM, texts,…)
Content Buckets
Description
Frequency
2.2 Facebook
E-COMMERCE 48
a) Fb Mkt
Fb Mkt Tools
FB Exchange (FBX)
Basic metrics
- amplification (reach)
Fb analytics tools
E-COMMERCE 49
Create business manager - a central space to manage ur business separate
from personal FB profile
2.3 Twitter
a) Twitter Mkt
Mkt tools
E-COMMERCE 50
2.4 Pinterest
- create Pinterest brand page & multiple themes ⇒ quality photos, URL links,
keywords
3. Mobile marketing
the use of mobile devices (phones, tablets) → display banner, rich media,…
E-COMMERCE 51
Challenges - motivate consumers to click
Features
- multimedia
- personal communicator & organizer - web browser
capable
- ultraportable &
- GPS location
personnal
Mobile mkt formats - search ads, display ads, video, text/video messaging,
email, classifieds, generation
Mobile website
ad networks
E-COMMERCE 52
- mkt of location-based services
Location-based services
2 TYPES OF TECHNIQUES
a) GPS signals
c) Wi-Fi locations
free internet access → determined user based on the wifi they visit
E-COMMERCE 53
Mobile-local social network mkt
Location-based SMS
Considerations
1. B2B E-commerce
E-COMMERCE 54
1.1 Trends
Cloud computing
Internet of Things
1.2 Definition
Supply chain - org, people, processes, tech, in4 -> produce product efficiently
net marketplaces
E-COMMERCE 55
*** EDI - Communications protocol for exchanging documents among computers
- Each industry has own standards
!!! NOTE
→ utilization of EDI
→ large investment in IT & Internet infrastructure
→ market concentrated on purchasing/selling
E-COMMERCE 56
1.4 Potential Challenges & Benefits of E-commerce
Benfits
- increase visibility
2. Procurement Process
E-COMMERCE 57
2.2 Types of Procurement
Contract
long-term written agreement, agreed-upon terms & quality
purchasing
Procurement - highly in4 intensive & labor intensive ⇒ require mana in4
among corporate system
Challenges
- production scheduling
E-COMMERCE 58
Legacy computer system = older mainframe, minicomputer systems used to
mange key business processes within firm
Enterprise systems
1, Corporate-wide
2, Support/Control all aspects of production, including procurement, finance, HR
2.5 Trends in SCM
Lean Production - eliminate waste throughout customer value chain, not just
inventory
b) SC Simplification
d) Accountable SC
E-COMMERCE 59
- child labor - harrassment, abuse, sexual exploitation
Consider social & ecological interests (Ex: water usage, air pollution,…)
Hewlett Packard’s SCM system - Elapsed time from order entry → shipping
= 48h
E-COMMERCE 60
!!! Blockchain & SCM
-secure
-reliable
-resilient
-inexpensive
4. Collaborative Commerce
E-COMMERCE 61
5. Social Network & B2B
Spot purchase markets for MRO - similar to B2C mkt tactics (mobile ads,
predictive analytics, sales enablement systems)
By business functionality
E-COMMERCE 62
a) E-distributors
E-COMMERCE 63
Offer value chain mana (VCM) services
many-to-many market
Ex: Ariba
c) Exchanges
single industry
d) Industry condortia
E-COMMERCE 64
revenue from transaction & subscription fees
Ex: P&G
Objective:
E-COMMERCE 65
→ efficient purchasing & selling industry-wide
→ increase SC visibility
→ closer buyer-supplier rela
→ global scale operations
Forms of collaboration
Implementation Barriers
E-COMMERCE 66