Online Sales

Group 6
Riya Toteja (2021SMF6622)
Rishabh
Arun K S (2021SMF6540)
Mohanraj (2021SMF6541)
Online Sales
* In simple words, Online shopping is a unique
form of electronic commerce (known as
ecommerce) which connects customers and
sellers on all corners of the internet with the
use of a web browser.

* Invented by Micheal Aldrich in 1979 and

expanded with the development of WWW.
Later, came SSL protocol (Secure Sockets
Layer), with which the numbers rose.

* Few initial companies were Amazon.com,

ebay.com, PayPal and Alibaba.com
 Types of Online Sales
Search Based Browsing Based Online Interactive
- Search - Browse in multiple - Sellers showcases the
- Compare prices and sources product
reviews - Buyers make the - Buyers questions
- Buyers make the decision - Buyers make the
decision decision

Types of Business Models

B2C B2B C2C D2C

Business to Business to Consumer to Direct to consumer

consumer business consumer
 Ways to increase Online sales
Get more Ad Create a sense Reduce the
01 clicks with Ad 02 of urgency 03 friction in the
extensions checkout process

Provide many Provide quality Address

04 payment 05 images 06 questions and
options objections

Give away or Implement Grow online sales

07 freebies 08 Tiered Pricing 09 with mobile
optimisation

Follow up mails Use Offer money-

10 11 remarketing to 12 back guarantee
close deals
 Online Sales Metrics

Website traffic Conversion rates Total Sales

01 Number of visitors 02 whether or not 03 few months of sales
coming to website your visitors are data, broken down by
and from which converting to day to see trends and
sources customers optimize campaigns

Average order Customer lifetime Customer retention

value value rate 
04 average customer 05 average revenue 06 Percentage of
spends in a single generated from customers you
transaction depend customers over the maintain as
on product mix, entire lifetime of customers over a
discount strategy, their account. period of time
etc.
 Amazon bookstore

 Earlier, companies introduced products that were blockbuster hits

 Online merchants not only lower prices but also help consumers locate and
purchase a far wider variety of products than traditional brick and mortar
channels.
 Amazon.com sell more than 3 million books in print. A typical brick and
mortar store stocks between 40,000 and 100,000.
 30-40 % of sales are in books that wouldn’t normally be found in a brick-
and-mortar store and consumer surplus created by providing access to
these obscure book titles exceeds one billion dollars annually.
 Long Tail: sell low volumes of hard-to-find items to many customers.

What factors are driving this change and what are its implications for the
structure of markets? 
 Emergence of long tail from online selling
Supply-Side Drivers
• Brick-and-mortar retailers must allocate costly shelf space for each
new product but online this cost is much lower.
• Internet retailers can aggregate demand on a national or even global
scale. Even if you have one-in-a million tastes, there are still over a
thousand like-minded consumers who share your niche tastes but brick-
and-mortar retailers sell to consumers in their local geographic region. 
• Low production costs. Like for print-on-demand systems for books,
publishers don’t need to incur costs and risk from uncertain demand.

Demand-Side Causes
• Active search tools to locate products. Sampling tools, like Amazon’s
samples of book pages.
• Passive tools like recommender systems that use the consumer’s
preferences from past purchases or even page views.

Implications on market
• Consumers can cultivate deeper tastes for many niche products.
• Hit products “naturally monopolize” light consumers. Heavy users likely
to venture into the long tail but choose a mix of hit and obscure products.
When producing niche goods keep costs as low as possible. 
 •  Poor user engagement •  Tough competition​
Overview of the
key challenges •  Low conversion rates •  Customer retention​
and issues of •  High bounce rates •  Ineffective marketing campaigns​
eCommerce
•  Customers’ ever-increasing
expectations
What is it ?
• It is a simulated 3D
environment that enables
users to interact with a
virtual surrounding in a
way that approximates
reality as perceived
through our senses.

• The metaverse serves as

a platform that allows us
to play, work, study,
shop, and hang out with
others just like in real life.
 Impact on Online Sales
Personalized experience
• Brands will be able to provide hyper-
personalized experiences to their
customers in the Metaverse without having
to worry about many limitations that exist in
the physical world.
Better understand customer behavior​
• Brands will be able to test the penetration
of their products without having to
manufacture them in the Metaverse. If
customers enjoy the virtual world’s items,
brands will know how much to produce.
Lower Return Rates
• High return rates due to the difficulties in
determining a product’s suitability online. Shoppers
can have a better sense of the desired product.
They can examine its details in more depth, look at
it from different angles, rotate and zoom it in.
Increased Profitability
• Lesser returns, repeat purchase behaviour,
increased engagement etc., contribute to
an increase in the bottom line.
Enhanced Customer Experience
• It will help shoppers to feel confident and
satisfied about the fit & quality of a product,
as well as to have fun and make more
informed purchasing decisions.
Metaverse advertising
• Rent a building, billboards or buy
virtual lands in the metaverse and promote
brands there.
 Challenges of Metaverse
Privacy issues
• VR-headsets will include
eye-tracking technology,
so  advertisers could
potentially see from our
headset data where
exactly we are looking in
our immersive
experience, and for how
long.
Health concerns
• VR – Hangovers, When we
have experienced an
amazingly immersive world
and have to come back into
the real world, it can make
us depressed and sad.
Desensitization
• Many people will be playing
violent games in metaverse,
where one can touch and
feel what one is
doing. There is a real risk
that people will become
more likely to replicate that
behavior in the real world
due to desensitization.
Identity Hacking
• In the virtual world, we will
be using avatars – and it will
be possible for people to
hack our avatars and steal
our online identities.
Metaverse laws
• Can a virtual act be a
crime? The metaverse will
bring regulatory challenges
and will introduce new grey
areas in many laws.
Access Inequality
• In order to use metaverse,
we need the latest handset
technology, and VR
experiences require high-
tech, expensive headsets as
well as strong and reliable
connectivity.
Thank You