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What is eCommerce? Colin Lewis
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Page 1: What is eCommerce

What is eCommerce?

Colin Lewis

Page 2: What is eCommerce

eCommerce Definition:

The buying and selling of products, services & information using digital channels, usually commerce businesses usually employing some or all of the following practices:

• Provide Etail or virtual storefront on websites with online catalogues,

• Buy or sell on websites or online marketplaces.

• Provide secure business transactions

Dave Chaffey: Internet Marketing, Strategy Implementation & Practice

• Electronic Commerce refers to both financial and informational electronically mediated transactions between organisations and any third party it deals with.

• eCommerce involves management not only sales transactions but also non-financial transactions such as inbound customer service enquiries and customer requests for further information are considered to be part of e-commerce.

What is eCommerce?

Page 3: What is eCommerce

• New / additional / solo sales channel that improves conversion

• Lowers cost of sales through lower overhead (no 25 year leases) and increased automation/streamlining of business processes.

• Removes geographic restrictions & Increase’s exposure to a wider audience

• Internationalise very easily

• Improve branding - > better customer experience.

• Always open -operate 24/7

• Adoption continues to grow rapidly – matching broadband and mobile

• Niche products/services can thrive online

• Tracking allows you to learn from customer behaviour – IMMEDIATELY

• Now very affordable -> low barriers to entry

• You can do it yourself!

Benefits of eCommerce

Page 4: What is eCommerce

Ireland

• Estimated size of Irish eCommerce market €4 billion e-commerce market

• Irish retailers are now investing in meeting the growing online demand for their products.

• 2013 compared to 2012: Grew by 17% - Retail grew by 25%

• Prior to 2013 - little if anything that could be bought online from iconic Irish retail brands

• Spending up remarkable 51% in Q2 2014 when compared with the same time PY

• Revenue growing 67% faster than traffic it is clear the Irish consumer has an insatiable appetite

UK and Europe

• In 2010 Europe overtook the USA. In 2012 European B2C e-commerce, including online retail goods and services grew by 19% to reach €311.6 bn.

• UK: Now £13n++ could grow to £45bn by 2020

• eCommerce websites are still only 12% of the Internet

eCommerce Sales Growth

Page 5: What is eCommerce

Building

an

eCommerce site

Page 6: What is eCommerce

• Clicks & Bricks/Mortar:

A business model by which a company integrates both offline (bricks) and online (clicks) presences. e.g. Tesco.com, Topshop.com, PaddyPower.com, argos.ie

• Pure Play:

Does business purely through the Internet; they have no physical store. E.g. Asos.com, ebay.com.

• Mobile:

e.g. Hot Hotels, Tinder, WhatsApp

eCommerce Models

Page 7: What is eCommerce

• Do you have an existing website? Will this integrate, replace or be a new website

• Have you access to in-house technical (web development & design) resources?

• Do you have offline stores? How will this integrate with them, their inventory etc... Or will this be a pure play ecommerce site

• How many products will you have?

• Who will manage order fulfilment, do you already have a warehouse, mail order division, will you need one

• How much revenue do you expect to generate online,

• How much do you expect the online to cannibalise the offline, what will be the consequences of this

• Do you have somebody/ a team who will manage your e-commerce operation?

• Do you need an agency to help build/maintain your store?

Things to think about

Page 8: What is eCommerce

Basic

• Simple ‘Buy Now’ buttons integrated into an existing website

• On-demand ecommerce solutions

• Online marketplaces: third party websites such as eBay & Amazon which host the e-commerce presence of multiple sellers

Comprehensive – dedicated eCommerce website

• Custom-built/Bespoke eCommerce website

• Packaged applications (paid or free/open source) – Enterprise Level

Reflecting the difference between ….

• Re-usable software (that can either be implemented by a third party or by in-house developers – i.e. a base platform)

and

• Using a solution provider, which may use a solution provider as a starting point in delivering a fully functional online store for a retailer.

Choosing an eCommerce Platform

Page 9: What is eCommerce

‘Cloud’ based software

• On-demand solutions are easy to set up

• No investment required in technology

• Most come with excellent and easily customizable designs

• Marketing tools built in

• Mobile device enabled, great apps available

• Perfect for small to medium sized business with less than 500 products, 50,000 visitors per month and less than 1000 orders per month

On-demand/Hosted ecommerce solutions

Page 10: What is eCommerce

• Two Payment Processing Options:

Payment Bureau

Payment Service Providers (PSP’s)

Things to think about: getting paid

Page 11: What is eCommerce

• Payment Bureau’s act as both Payment Processer and Acquiring bank

• PayPal & Google Checkout are the main players

Pros

• The only option for many start up’s

• Easy to set up

• Helps increase conversion

• Fraud Protection - Both checkouts offer a level of fraud protection to both buyers and sellers

Cons

• Higher fees – 2% - 3.5%

• Revenue settled slower

Payments online – Payment Bureau

Page 12: What is eCommerce

• Retailer must have an internet merchant account with an acquiring bank (a bank which provides internet merchant services).

• They must also have an account with a payment service provider (PSP) also known as a payment gateway. A PSP is effectively an online credit card machine.

• Merchant’s bank account’s - BOI – Elavon, AIB – AIBMS (Not all banks provide this service)

• Payment Service Providers

• - Realex, SagePay

Payment Service Providers (PSP’s)

Page 13: What is eCommerce

E.G. Stripe

• Payment forms

• Processing and compliance

• Integrated mobile payments for iOS & Android libraries to charge on the go.

• Storing cards and processing subscriptions to powering marketplaces and everything in between.

New forms of processor

Page 14: What is eCommerce

Pro’s

• Lower fee’s - 2% for most cards / 49p for debit cards

• Excellent site integration options

• Works well if you are doing larger volumes

• Funds settled within 1-2 days

Con’s

• Not really available for start ups

• Time to set cost

• Set up costs

• More susceptible to fraud

• Monthly fee’s in conjunction with transaction fee’s (20-30 Eur)

Payment Service Providers (PSP’s)

Page 15: What is eCommerce

But wait

How do I get traffic?(‘punters to my site’)

And how do I get them to buy?

Page 16: What is eCommerce

Back to the A C R

Page 17: What is eCommerce

Digital Marketing For eCommerce Sites

• SEO/Organic Search

• Paid Search

• Email Marketing

• Display & Video Advertising

• Mobile Marketing

• Social Media Marketing

• PR

• Marketplaces: eBay & Amazon

• Shopping price comparison engines

• Google x 5 – Adwords for eCommerce, Product Search, Reviews, Google Checkout, Youtube

• Product Videos

• Review sites

• Social Media & Commerce

• Standard Channels • Additional DM Channels for eCommerce

Page 18: What is eCommerce

Design is an acquisition tool

Page 19: What is eCommerce

Copy is a conversion tool

Page 20: What is eCommerce

Source

WorldPay

Why do they leave?