INSTRUCTOR: Ms. DJ M.

Fernandez
Internet marketing is the fastest growing and most exciting branch of
marketing today. As the world becomes ever more connected,
keeping up with developments and trends is vital for marketers
trying to reach new audiences - who are more discerning,
fragmented and cynical than ever. technology and software are
changing at such a high rate that it seems almost impossible to keep
up with trends. Products and services are evolving and adapting to
the online sphere. The web is constantly shifting, growing and
changing - everything is fleeting.
Electronic commerce (e-commerce)
is the buying and selling of goods
and services over the internet or
other digital networks. It enables
businesses and consumers to
interact and transact without the
constraints of time and location
KEY TAKEAWAYS

•E-commerce is the buying and selling of goods and services over the internet.

•It is conducted over computers, tablets, smartphones, and other smart devices.

•Almost anything can be purchased through e-commerce today, which makes

e-commerce highly competitive.

•It can be a substitute for brick-and-mortar stores, though some businesses choose to
maintain both.

•E-commerce operates in several market segments including business-to-business,

business-to-consumer, consumer-to-consumer, and consumer-to-business.
Advantages and Disadvantages of E-commerce

E-commerce offers consumers the following advantages:

•Convenience: E-commerce can occur 24 hours a day, seven days a week. Although
eCommerce may take a lot of work, it is still possible to generate sales as you sleep or earn
revenue while you are away from your store.

•Increased Selection: Many stores offer a wider array of products online than they carry in their
brick-and-mortar counterparts. And many stores that solely exist online may offer consumers
exclusive inventory that is unavailable elsewhere.

•Potentially Lower Start-up Cost: E-commerce companies may require a warehouse or

manufacturing site, but they usually don't need a physical storefront. The cost to operate
digitally is often less expensive than needing to pay rent, insurance, building maintenance, and
property taxes.
•International Sales: As long as an e-commerce store can ship to the customer, an e-
commerce company can sell to anyone in the world and isn't limited by physical
geography.

•Easier to Retarget Customers: As customers browse a digital storefront, it is easier to

entice their attention towards placed advertisements, directed marketing campaigns, or
pop-ups specifically aimed at a purpose.
There are certain drawbacks that come with e-commerce sites, too. The disadvantages
include:

•Limited Customer Service: If you shop online for a computer, you cannot simply ask an
employee to demonstrate a particular model's features in person. And although some
websites let you chat online with a staff member, this is not a typical practice.

•Lack of Instant Gratification: When you buy an item online, you must wait for it to be
shipped to your home or office. However, e-tailers like Amazon make the waiting game a
little bit less painful by offering same-day delivery as a premium option for select products.
•Inability to Touch Products: Online images do not necessarily convey the whole story
about an item, and so e-commerce purchases can be unsatisfying when the products
received do not match consumer expectations. Case in point: an item of clothing may be
made from shoddier fabric than its online image indicates.

•Reliance on Technology: If your website crashes, garners an overwhelming amount of

traffic, or must be temporarily taken down for any reason, your business is effectively
closed until the e-commerce storefront is back.

•Higher Competition: Although the low barrier to entry regarding low cost is an advantage,
this means other competitors can easily enter the market. E-commerce companies must
have mindful marketing strategies and remain diligent on SEO optimization to ensure they
maintain a digital presence.
There are several popular business models within the realm of electronic
commerce:

Business-to-Consumer (B2C) - These e-marketplaces connect businesses

with individual consumers, allowing them to purchase products or services
directly from the business.

Example : Amazon: Amazon is a prime example of B2C e-commerce where

the company sells a wide range of products directly to individual consumers
through its online platform. Customers can browse, select, and purchase
products like electronics, books, and household items.
Business-to-Business (B2B) - Companies sell products or services to other
businesses, often acting as suppliers or vendors

Example: Alibaba: Alibaba operates as an online marketplace connecting

businesses for wholesale transactions. It allows businesses to source products in
bulk from suppliers at competitive prices.

Consumer-to-Consumer (C2C) - These e-marketplaces connect individual

consumers with each other, allowing them to buy and sell products or services
directly.

Example: eBay: eBay is a well-known C2C e-commerce platform where individual

consumers can sell products directly to other consumers. Users can list items for
sale, auction them, or set fixed prices.
Consumer-to-Business (C2B) - Consumers provide products or services to
businesses, sometimes referred to as crowdsourcing or micro tasking.

Example 4: Influencer Networks: Influencer networks like those connecting

social media influencers with businesses for promotional purposes represent
C2B e-commerce. Influencers sell their services to companies for marketing
collaborations.

Each of these models offers specific opportunities and challenges for both
businesses and consumers. Understanding these models is crucial for
developing effective e-commerce strategies
Framework of E-commerce

The framework of e-commerce involves several steps, including:

- A business listing its products and services.

- A customer browsing the catalog and adding items to the cart.

- The customer proceeding to checkout and providing payment information

- The order being processed, with the customer's web browser communicating with the
server hosting the e-commerce website.

- The order being validated and the customer being notified of the successful transaction.

- The order being sent to the warehouse or fulfillment department for dispatch to the
customer
Major Types of E-commerce Transactions

Retail: The sale of products or services through an online store directly to a consumer
without an intermediary

•Example 1: Shopee:
Shopee is a major e-commerce platform in the Philippines, offering a wide range of
products directly to consumers. It has gained popularity for its user-friendly interface
and seamless shopping experience, attracting millions of buyers and sellers.

•Example 2: Lazada:
Lazada, founded in 2012, is another prominent retail marketplace in the Philippines
known for its extensive product offerings and commitment to delivering a smooth
online shopping experience. It has a significant presence in the country's e-commerce
market
Drop Shipping: The sale of products that are manufactured and shipped to
consumers via a third party.

•Example 1: BeautyMNL:
BeautyMNL operates on a drop-shipping model, providing beauty and personal
care products to customers in the Philippines. It offers a convenient way for
consumers to access a variety of beauty products without the need for holding
inventory.

•Example 2: Zalora:
Zalora is a popular e-commerce platform in the Philippines that utilizes drop-
shipping to offer fashion products to customers. It streamlines the process of selling
and delivering fashion items without the need for maintaining physical inventory
Affiliate Marketing: Earnings from promoting other people's or company's
products and earning a commission for each sale

•Example 1: Shopee Affiliate Program:

Shopee's affiliate marketing program allows individuals to earn commissions by
promoting products on their platforms. Affiliates can drive sales through
referral links and earn rewards based on successful transactions.
•Example 2: Lazada Affiliate Program:
Lazada offers an affiliate marketing program where individuals can promote
products from their platform and earn commissions on sales generated through
their referral links. This model enables individuals to monetize their online
presence through affiliate marketing strategies
Limitations of E-Commerce:

• Lack of Physical Experience: Customers cannot physically touch or try on

products before purchasing

• Security Concerns: There is a risk of fraud and data breaches when

conducting transactions online

• Shipping and Returns: Delivery times and return policies can be less flexible
than in-store shopping

• Technical Issues: Technical glitches or website downtime can disrupt the

shopping experience
• Warehousing Costs: E-commerce sellers need physical locations or
warehouses to store products, incurring additional operational costs

• Marketing Costs: Apart from advertising, marketing products online

involves additional expenses across various platforms like social media and
search engines
Impacts of E-Commerce:

• Business Growth: E-commerce enables businesses to advance their

operations, reach new customers, and create innovative business models,
fostering growth and expansion

• Job Creation: The growth of e-commerce leads to an increase in employment

opportunities, particularly in the technology sector, contributing to economic
development

• Customer Behavior Changes: E-commerce revolutionizes how modern

consumers shop, offering convenience, personalized experiences, and a wide
range of products accessible anytime, anywhere
Future of E-Commerce:

• E-commerce revenue is projected to grow annually by 14.56%, indicating a

continuous upward trend in the industry

• Digital wallets are expected to account for over half of total e-commerce
payment volumes by 2024, showcasing the increasing adoption of digital
payment methods

• The rise of omnichannel shopping experiences and trends like mobile

commerce and digital currencies will shape the future landscape of e-
commerce, offering endless opportunities for businesses and consumers alike
THANK YOU FOR
LISTENING!