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e-Commerce
PART I
Author: Justyna Skorupska
Lecturer: Justyna Skorupska
September 2014, Warsaw
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Agenda
1. Definition & introduction to the market
environment - Key trends
2. Online sales in relation to company’s key
business processes
Understanding changes in buying process
Introducing online in offline company
3. Operational Techniques of selling in
e-commerce
Understanding the customer
Online merchandising
Customer service
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Definition & introduction to the
market environment - Key trends
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1. What is e-commerce?
• E-commerce – all activities and
procedures that use electronic means
and devices, using computer networks
in order to conclude remote transaction / close remote sale
E-commerce
≠
e-marketing
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1.1 E-commerce is not only about
sales channel
It is about all the environment company marketing perspective:
Offline marketing – Point of Sale (POS)
Online marketing
Tomasz Mazur, Wybrane aspekty działań marketingowych producenta wspierające sprzedaż online , Polish eCommerce Summit 2014
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1.2.1. E-Commerce:
macro/micro-environment
• Marketing agencies • E-commerce agencies • E-commerce platforms
suppliers • Software houses • Payment systems • Hosting agencies • Logistics companies • Warehousing
companies
• Market associations
• Market experts
• Consulting agencies
• Media
• Country Legislators
• EU Commision
• Many other...
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1.2.2. E-commerce
macro/micro-environment
• Manufacturers • Distributors • Wholesalers • Offline trade (TT+MT) • Online shops
• STAKEHOLDERS (business parnters)
• COMPETITORS
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1.3.1. E-commerce
Europe
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Author: Justyna Skorupska
1.3.1. E-commerce
Europe
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1.3.2 E-commerce
Southern Europe
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1.3.3 E-commerce
Central Europe
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1.3.4. Poland compared to Europe
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% of PL internet users buy online
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Source: Garapich A., E-commerce w polsce. Rynek, nabywcy, trendy, PBI
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Purchased products
For each category of products listed on the chart, select if you ever bought them by the Internet and if you are going to buy them in the future.
% for answer „I bought in the past”
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22%
24%
26%
29%
38%
39%
40%
41%
44%
45%
45%
51%
53%
55%
57%
57%
58%
59%
66%
77%
80%
insurance
groceries
articles for collectors
pharmaceutical products
computer software
multimedia (applications, e-books, etc.)
jewellery
furniture and interior design
computer games
cars and automotive components
travel, reservation
articles for children / toys
sportswear
cosmetics / perfumes
computer equipment
footwear
tickets to the cinema / theater
phones, smartphones, tablets, GSM accessories
electronics and household appliances
books, CDs, movies
clothing, accessories
http://www.ecommerce.gemius.pl/raport-e-commerce.html
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Most recognize e-commerce
services in PL
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Factors affecting on the choice of
particular service
What makes you decide for first purchase at the particular website instead some other, offering similar products / services?
16
http://www.ecommerce.gemius.pl/raport-e-commerce.html
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Źródło: Megapanel PBI/Gemius, luty 2013
1.3.3.TOP 4 e-shops categories in PL e-
commerce
Jewellery
69,8%
Clothing
68,6%
General eshops 58,9%
Toys & small children
60,8%
Flowers 68,4%
Weapons & military 81,8%
Automotive 66,6%
Erotics 66,1%
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1.4 E-commerce
Obstacles of internationalization
1. Insuficient offering of legal services on the
cross-border level
2. Lack of infromation for companies wanting
to sell online and lack of clear customer
rights regulation
3. Unproper payment systems and logistics
4. Many malpactices and disputes that are
impossible to solve
5. Insuficient cover of fast broadband and
technological solutions EU Commision, Główne przeszkody w funkcjonowaniu
jednolitego rynku cyfrowego
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The eTail International Delivery Report 2014
1.4.1
Obstacles - logistics example
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The eTail International Delivery Report 2014
1.4.1
Obstacles - logistics example
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1.5 E-commerce
How to sell internationally?
1. Online strategy
2. Niche products gives the possibility to
think about the cross-border
perspective
3. Knowledge – on e-commerce and
about the markets
4. Sufficient funding
5. Managing the cost of logistics
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5. Payment methods popular in target countries
6. Trust of the local customers – prefering country
entrepreneurs
7. Accepting the local customer rights
8. Knowledge or advisory on legal issues (TAX,
intelectual property, administrative law, regulation
on transport cost, customer contracts law)
9. Knowing or hiring employees with the knowledge
of local languages
1.5 E-commerce
How to sell internationally?
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1.6.1. E-commerce
market trends
Ongoing growth in e-commerce sales and profesionalization
Growing sector of e-commerce operational processes
outsourcing
EU Consumer Rights directive – changes in procedures and
shop regulations
New „self pick-up points” – using existing infrastructure
Expansion and internationalization of companies across
Europe
outsourcing logistics and distribution points in low-cost areas
Consolidation of smaller e-businesses against big competitors
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1.6.2. E-commerce
market trends Any device any platform customers will use multiple device to find and buy the products what will
affect company’s strategy and technological approach to e-commerce
ROPO effect Research Online Purchase Offline – the way the customer search, find and
buy the product. It is more about which channel does the customer use and
how structure the sales processes in companies in order to generare the
biggest revenue.
The Super Consumer... Super Consumers are a segment of Heavy Users that are highly engaged with
a category and a brand beyond their high purchasing levels. Super
Consumers might have a special connection or association with a brand, or
they may value certain aspects of a product’s usage more than other buyers.
Super Consumers to purchase your product more often than the average
Heavy User. The company’s role is to retain and offer the best possible
customer service/customer excellence.
1.Cube Research 2. Key trends for e-commerce, Global Ecommerce Summit 2014, Wijnand Jongen
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2. Online sales in relation to
company’s key business processes
Understanding changes in buying
process
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Online sales in relation to
company’s key business
processes
The New Shopper. Today’s Purchase Path and the Media that Influences It. Online surveys among those aged 16 or older were completed in 17 countries by Microsoft Advertising & Carat US,, 2013
The proces of buying
is no more linear!
Nowadays customer having a mobile device can be in one local store and in many online shops
New structure of buying decision proces:
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Online & offline
Recomendations
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Do you trust recomendations and opinions posted in the web?
Trust recomendations and
opinions posted in the web
Yes totally Yes No Partially
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Let’s discuss
Fundamental needs of shoper stays the same. It is all about new available
sources of information. Before choosing a product customer needs
mainly: info about product, opinions/recomendations, price.
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THANK YOU!
Justyna Skorupska CEO
M: 781 580 484
www.symcore.net
eBusiness Consulting Sp. z o.o.
Ul. Londyńska 25
03-921 Warszawa
NIP: 113-286-66-59
KRS: 469349