E commerce ( 1-20)
- 1. Topic: E-commerce By Muzammil Ahmed
- 2. E-Business • E-business or electronic business is converting manual data into electronic data . • It means converting hard data and signature into soft data and signature .
- 3. Evolution of Internet • Batch computing 1950-1970 • Online computing 1970-1980 • IT Dark age 1980-1990 • Client Server 1990-1995 • E-Business 1995-2005 • Technical Debt Staff 2005-2010 • Mobile Cloud Computing 2010
- 4. E-Commerce • E-commerce or electronic commerce is the work done online . • E.g online banking payment or credit card payment .
- 5. Types of E-Commerce • B2B • B2C • To be discuss below
- 6. Difference between E-Business and E- Commerce E-Business E-Commerce It is the superset of E- business It is the subset of E-Business Hard data is converted into soft data Payment is through online It is use for B2C context It use for B2B transaction Buying of PenDrive from Amazon.com E.G using laptop by dell
- 7. Motivational E-Commerce • Total retail sale in U.S.A is 10% • Online business in 2012, 1058 million • Online business in 2013, 1233 million • Online business in 2014, 1471 million • Online business in 2015, 1700 million • Online business in 2016, 1922 million • Online business in 2017, 2143 million • Online business in 2018, 2356 million
- 8. Online Shoppers • Eurpoe 63% • Asia 57.9% • Africa 55.5% • Latin America 54.6% • North America 45.5%
- 9. Transactional E-Commerce • Selling and purchasing can also be offline • Attraction of customers through promoting websites. • Actually website is a way to sell a product . • Transactional e-commerce is to attract customer to do transaction .
- 10. Service Oriented Websites • Service oriented websites actually connects Supplier , service provider and user together . • To reach customers they use email , newsletter, message or blog via lead . • When you click on add in the website , your information is given to the website owner of the link which you have clicked . • All the sales on internet are done by lead .
- 11. continue • Service oriented tasks not only attract existing consumers but also new consumers . • Service oriented tasks also send update regarding new products through email .
- 12. Brand Building Website • Brand Building website is to promote the product via website . • Brand can be any like K&N’s chicken , Dairy milk chocolate, Pepsi etc . • Three ways to promote brand World Wide Web Television Social Media Brand maintain image through website .
- 13. Publisher or Media Sites • E.g cnn.com, dawn.com jhang.pk etc • Need to maintain full infrastructure . • When you click on link of website , the traffic generates . • Traffic mark out number of clicks . • The more traffic website will be the more chances of selling it quickly . • More clicks will create more revenue .
- 14. Social Networking Sites • Social media sites such are Face book, Instagram, Messenger and Whats app. • Actually Instagram, Messenger and Whats app are part of facebook . • Facebook monthly active users in 2018 were 2.1 billion • Whats app monthly active users in 2018 were 1.5 billion • Messenger monthly active users in 2018 were 1.3 billion • Instagram monthly active users in 2018 were 800 million • Social media sites sell their knowledge to earn revenue . • E.g Shirts of different countries
- 16. B2C E-Commerce • There is no 3rd party in B2C E-Commerce . Total Population 7.593 billion Internet users 4.021 billion Active Social Members 3.196 billion Unique Mobile users 5.135 billion Active mobile social users 2.958 billion
- 17. B2C E-Commerce • All internet users are Business to Consumer customers . • 80% of the payment is done by (COD) Cash on Delivery . • E.g. daraz.pk , aliexpress.com etc. • Online payment is non-refundable . • B2C key enabler is technology .
- 18. B2C Success Story ( Daraz.pk) • It was launched in 2012 • Rocket Internet was daraz.pk biggest investment . • Now operating in 5 different countries . • Daraz launched operation in Bangladesh and Myanmmar . • In September 2015 funding raised to $55 million. • In November 2015 Daraz hosted 1st Black Friday • In April 2016, 1st shoppable fashion week • In June 2016, Same day delivery started
- 19. Continued • July 2016, Started operation in Srilanka and Nepal. • August 2016, International delivery standard. • In September 2016, introduced Bachat bazar. • In November 2016, celebrated 2nd Black Friday. • In January 2017 , daraz launched 100% purchase protection. • Monthly bases installment introduced in February 2017. • Daraz have own warehouse and inventories . • 8.1 million vistors in a day on daraz.pk website . • 80% people use cash on delivery .
- 20. B2C Success story (Amazon) • Jeff Bezos started Amazon incorporated company in 1994. • Before starting Amazon he use to run online book shop. • In 2018, Amazon have millions of products . • Worth of Amazon in 2018 was $460 billion. • In 2017, Amazon sale was $178 billion. • Total products Amazon have in 2018 were 606 million.
- 21. Time Line • Jeff Bezor launched online book store. • In 1994, Jeff Bezore launched Amazon • In 2005, Amazon publishing was started • In 2006, Amazon web services started • In 2007, Amazon launched Amazon Kindle • In 2011, Amazon launched Amazon Fresh • In 2012, Amazon launched Game studio • In 2013, Amazon launched Amazon Art • In 2014, Amazon launched Amazon prime
- 22. Continue • In 2015, Amazon home services were launched • In 2017, Jeff crake a deal of $13.7 billion with Whole Foods market
- 23. What is Kindle • For example I read a book and I wanted to rate it. • As a result Kindle is a rating platform.
- 24. B2C success story (booking.com) • Booking.com was started by Dutch in 1995. • It is world largest B2C travelling platform. • According to Stats of booking.com in 2018, there are more than 2 million properties available on website . • 150 destinations available on booking.com • Booking.com has 100 offices in the world. • Everyday more than1.5 million rooms are reserved .
- 25. Agent model • E.g I went to booking.com, I put my information and booking.com will give me the best plan .
- 26. How booking.com earns ? • Payment of rent through booking.com • Booking.com also earn through commission.
- 27. B2B E-Commerce • Business conducting over the internet is called business to business. • E.g. I made my laptop , it is useless until someone doesn’t buy it . • Actually there multiple buyers in B2B 1. Any person 2. Shopkeeper 3. Wholesaler
- 28. Continued • Most companies are customer centric products. • Third party can come in in B2B but not in B2C. • B2B most promotes small businesses . • E.g. Amazon • Actually B2b is sale and purchase between business .
- 29. International Success story (Alibaba.com) • Owner Alibaba.com is Jack Ma. • Founded Alibaba.com in 1999 • Alibaba is B2B not B2C because it deal with business to business. • Basically fact is Seller is also vendor and buyer is also vendor. • More than 500 millions shops available in alibaba.com who do transactions. • Active Alibaba shop users are more than580 million. • Worth of Alibaba.com is more than $470 million.
- 30. Continued • In 2014, Alibaba.com went to IPO. • From 1999 AliBaba raised from$3.7 billion to $21.8 billion in 2014. • In business, Alibaba has made Rs2600 billion.
- 31. C2B E-Commerce • Media is unidirectional . This myth was broken by internet. • Internet introduced feedback incorporation. • E.g. Ekomi • Ekomi runs core business run on simple model i.e feedback. • Ekomi capture 80% of market in Europe. • Internet provides feedback to the service provider . • E.g. Elance , Upwork ,freelance etc.
- 32. C2B E-Commerce Success Story (Surveymonkey.com) • Surveymonkey.com was founded in 1999 by Ryan Finlay. • This company helps other companies to generate surveys. Questions Products Answers Categories
- 33. Continue • Surveymonkey.com make analysis automatically for you ( means Automation ). • Surveymonkey.com is dealing with cloud computing as it has resolved many issues. • 3,000,000 users generate surveys daily. • Almost 500 companies in the world are surveymonkey.com’s client. • It’s estimated evolution is around $2 billion.
- 34. Online Marketplace Analysis • Online market place is different from physical market place. • Key components is: Potential Customers • Need to study customer needs and wants before starting the company . • Customer Retention: Customer retention refers to the ability of a company or product to retain its customers over some specified period. • Competitors: Competition arises whenever at least two parties strive for a goal which cannot be shared.
- 35. continue • When someone analysis the marketplace , his target is micro-environment and macro-environment ( how society is giving feedback). • When someone do marketplace analysis look into the language to launch the product.
- 37. What is click ecosystem • Click Ecosystem is the bread and butter of an e- commerce management. • In online business, your customer starts with a click on product offered by online store. • Click ecosystem is actually flow of a client starting from searching a product, visiting the website, buying the product and feedback to the online store.
- 38. Continue • For us this is click only but for online stores, this is the behavior of consumer behaving online. • It is the online store where revenue starts. • Click ecosystem is the journey of understanding the behavior of unique clients.
- 39. Example of Eco-system(Facebook API) • API is use to exchange data. • Means I send conductional to facebook but sitting on facebook but send the data using my app through API. • E.g. I log in my app via facebook through API giving to data to facebook in order to share data to login . • In order to promote app, we link it with facebook , twitter etc. • API stands for Application Programming Interface