cs28310 ecommerce an introduction background web –growing sector email –successful method edi...
TRANSCRIPT
CS28310
Ecommerce
An Introduction
Background
• Web– Growing sector
• Email– Successful method
• EDI– Early but well established non Internet system
Web-based Ecommerce
• Types of Business– Retail
• Marks and Spencer
– Digital Content• iTunes
– Auctions• ebay
– Travel• Expedia
– Financial• Moneysupermarket.com
Unique Features
• Ubiquity – available most places
• Universal Standards
• Richness – audio and video
• Interactivity – user interaction
• Information Density – costs drop, quality rises
• Personalisation
Types
• Business to Business B2B– Airbus
• Business to Consumer B2C– Debenhams
• Consumer to Consumer C2C– eBay
New markets
• Ebay – on line auctions
• Friends Reunited – text based database system
• Google – search engine (Advertising Giant)
• Youtube - video
• Facebook – image based database system
• Affiliate marketing/contextual advertising
New problems
• Internet Security
• Distribution
• Support of products
Processes
• Purchaser gives credit card
• Merchant passes on to gateway
• Gateway passes to issuing bank
• Issuing bank authorises and passes money to merchants bank
• Merchant ships goods
UK market
• Estimates put online consumer sales to £10.3 billion (excluding travel and finance)
• Retailing increasing by 25-30% per annum• 42,000 cars on Ebay UK• Amazon to ship average of 500,000 parcels
per day over festive season• Amazon to take on 1000 students over same
period
Problems
• After sales service
• High rate of product return
• Pressure to make web site visit more exciting
• Internet sales rising leading to closure of shops
• Could cap Internet retail at 10% of total retail trade
Opportunities
• Online retailing is accelerating
• Broadband allows a better online experience
• More people spending more time online
• Growth in online advertising
• Consumers more confident about purchasing online
Latest phase of growth
• High street retailers winning on web
• PC World sells 50% online
• Tesco sold over £1bn in groceries over the net in 2005
• 2012 Tesco £2.5bn
• 2017 Tesco £5.0bn
Internet only companies
• Fighting out their corner– Amazon has just moved into clothes and has
moved into jewellery – Lovefilm has over 60,000 titles with 450,000
subscribers.
Issues
• Customer not in– Tell customer when delivery is to take place
• Customer returns– Size– Texture– Misleading advertising etc– Ask customer reasons
Customer Service
• IKEA stayed away from online shopping
• Concerns about customer service
• Starting slowly and now nationwide
Some facts
• eBay UK has more people fully employed earning on ebay that employees at M&S (68,000 v 65,000)
• eBay has sales of $8.7 billion last financial year