The ABC’s of
Selling Online
DEFINITION
E‐Commerce: Business done on and through
the web
FOREIGN LANGUAGE
QUICK HISTORY
• 1979: Michael Aldrich invented online shopping • 1984: CompuServe launches an electronic mall • 1994: First online bank, Pizza Hut has ordering online, flowers online and ….. • 1995: Amazon.com & eBay Launch • 1998: Google Launches • 1999: Zappos.com Founded • 2000: The Dot‐com Crash & Paypal Launches • 2003: Amazon.com Turns a Profit • 2010: Groupon Launches • 2011: Warby Parker Launches2014 REALIZATION
• E‐Commerce is continuing to evolve and grow • It has been around for over THREE decadesSTILL DON’T BELIEVE ME????
Time for a Reality Check!!
2013 REALIZATION
• 2012 Total Retail: 2.2 Trillion Dollars • E‐commerce: 218 Billion– 10%! – 9% CAGR
•
$4 423 per second via PayPal
•
$4,423 per second via PayPal
•
Cyber Monday 2013: $2.29 billion
TRENDING STATISTICS
TRENDING STATISTICS
TRENDING STATISTICS
TRENDING STATISTICS
3 CS OF E‐COMMERCE
•
Content
• Content Drives Growth • Beyond Brochures•
Community
•
Community
• Audience is a community by providing tangible value • Online Forums, Social Media Integration•
Commerce
• Provide Products & Services via a transaction web presenceBUSINESS MODELS: GENERAL
ADVANTAGES
• Catalog Flexibility • Search Capabilities • Easier to Compete (easily can compete on quality, price and availability) • Unlimited Marketplace (world wide sales) • 24 Hour Operation • Reduced Overhead (Brick & Mortar costs) • No Middleman • Detailed Data • Better Payment SystemsBUSINESS MODELS: B‐2‐C
• Online sale between businesses and consumers (end‐user) • Earliest Model • Product Driven Challenges: • Getting People to the Site • Getting People to Buy (cart abandonment rate 26%) • Building customer loyalty • Fulfillment issues • Large target market • If selling other products, brand identity issuesB‐2‐C: EXAMPLE WEBSITES
B‐2‐C: EXAMPLE WEBSITES
B‐2‐C: EXAMPLE WEBSITES
BUSINESS MODELS: B‐2‐B
• Online sale between businesses and businesses • Industry‐sponsored marketplaces • Suppliers vs. Customers • Remove Barriers • Reduced Costs • Reduced Costs Challenges: • Investment much higher • Delivery Risks • More barriers to entryB‐2‐B: EXAMPLE WEBSITES
BUSINESS MODELS: C‐2‐C
• Online sale between consumers and consumers • Intermediary Websites • Customers vs. Customers • Commission or Fee Charged • Reduction in Costs Challenges: • Customer Issues • Platform Investment • Quality of Products • Liability (Craigslist.org Killer)C‐2‐C: EXAMPLE WEBSITES
C‐2‐C: EXAMPLE WEBSITES
OTHER BUSINESS MODELS
• Deal of the Day Websites • Time Limited Discounts of Specific Items/Services • Usually Certificates • Daily Deal Remorse • Living Social, Groupon, Woot • Flash Sale Websites • Time Limited Sales of Branded Goods • Moving Unwanted Inventory • Advertising Costs, Customer Satisfaction • MyHabit, Rue La La, Giltcity.com • Subscription Models • Shoedazzle.com, jewelmint.com, birchbox.com • ExamplesBUSINESS MODELS: SOCIAL
COMMERCE
• Subset of e‐commerce that involves social media, and user contributions to assist in online buying/selling of products/services • “coined” in 2005• Facebook & Twitter Commerce • Facebook & Twitter Commerce • Pinterest
• State of Online Advertising
TRENDING STATISTICS
WHAT’S IN IT FOR US?
• As the increase in popularity of social networking is on a constant rise, new uses for the technology are constantly being observed. • Making New Friends • Seeking answers • Spending time (Facebook apps) • Knowledge Sharing • Recruiting • Job Search • Marketing • Sales Lead Generation • Company IntranetNOT 3….6 CS OF E‐COMMERCE
(SOCIAL)
• Content • Community • Commerce • Context • Online world is able to track real‐world events • Connection • Defining and documenting the relationships between people • Conversation • All conversations are markets….or an opportunitySOCIAL MEDIA: MARKETING
• SOCIAL WORD‐OF‐MOUTH • Consumers generate and tap into the opinions of an exponentially larger universe • scope was previously limited to the people you knew and interacted with on a daily basis. Social media has removed that limitation and given new power to consumers.SOCIAL MEDIA: MARKETING
• HYPER‐INFORMED CONSUMERS• Social media is transformingthe way that consumers across the globe make purchase decisions. • Consumers around the world are using social media to learn about other consumers’ experiences, find more information about brands, products and services, and to find deals and purchase incentives.
