E commerce market research

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  • E-COMMERCE MARKETTheoretical Aspects andMarket Research
  • CONTENT:1. Theoretical Aspects of Ecommerce Market - 42. Market Research of US Ecommerce Market with Examples - 17 2
  • THEORETICAL ASPECTS OF ECOMMERCE MARKET Stages of B2C ecommerce; Competitive Advantage of ecommerce; Advantage of E-Commerce from Advertising costs perspective Drivers for E-Commerce; Drivers for E-Commerce from the Low risk Perspective; Mobile E-Commerce; E-Business as E- Commerce extension; Electronic Data Interchange (EDI); Integration of B2B systems. 4
  • STAGES OF B2C ECOMMERCEOrganisations experience of B2C eCommerce movesthrough a number of distinct stages.The stages are extensions of customer-facing IS include: Engaging in information-seeking and communication, via the search engines and community building; Establishing an online marketing presence. Creating an online catalogues. Conducting online ordering. Handling online payment. Offering online delivery. Performing customer profiling and referencing 5
  • COMPETITIVE ADVANTAGE OF ECOMMERCEAllows businesses to gain competitive advantage in anumber of ways: Price competitiveness: Reduced transaction costs in automated ordering and invoicing systems can lead to lower prices Timeliness: Faster ordering, delivery and invoicing can reduce the time to market for suppliers Knowledge of market: Trading electronically provides additional methods for companies to acquire knowledge of the market in which they operate Customer information and profiling can improve the trading relationship and lead to new marketing opportunities. 6
  • ECOMMERCE AS THE TOOL FOR ADVERTISINGCOSTS REDUCTION Traditional advertising is expensive - newspapers, magazines, television, radio, and advertising hoardings; Creating an online presence is comparatively cheap; Tablets, laptops allow fast access to any E- Business platform; Once running, a online profile provides 24/7 access to your company online presence, products across; The design of profile page could be customized for individual needs and adopted the creativity and quality of television advertising. 7
  • DRIVERS FOR ECOMMERCECost: For a business, the entry costs for participatingin eComrnerce are relatively low. Systems can bedesigned and implemented and a web presence canbe established relatively cheaply. The systemstherefore offer a potentially fast return on theinvestment.Flexibility: Organizations can select the appropriatelevel of participation from simple access to theInternet through the creation of a Web presence tofull-blown transaction-handling systems. The systemscan be developed incrementally to add this additionalfunctionality. 8
  • DRIVERS FOR ECOMMERCE FROM THE LOW RISKPERSPECTIVE Protecting investment: In the Internet world, many common and open standards are employed. The switching costs incurred when a business selects an alternative system are, as a result, relatively low. Connectivity and communications opportunities: Internet technology brings an accompanying range of opportunities, such as creating a local intranet or establishing video-conferencing links. Technology perspectives: A critical mass of e-commerce participants already exists, and the technology, although constantly developing. Government support: There are many government initiatives aimed at promoting e-commerce, and there is a significant level of activity in educational institutions to provide additional backup. Customer service: Improved customer service promotes relation- ships at a distance, the Internet does also provide opportunities for businesses to work more closely with customers. 9
  • MOBILE E-COMMERCEMobile e-commerce is a large opportunity for e-Commerce, but mobile browser sites and poor apps leave several unmet needs open Today, e-commerce is not a popular activity on tablets (even less on mobile phones), rated as one of the lowest use cases in surveys Tablet usage is still in early stages, and consumers are focusing on core use cases (e.g., reading, gaming) over other use cases more prevalent on PC E-commerce companies are not investing heavily in mobile, and so the experience on tablets is subject to poor browser experience or uninventive one-off apps, and the lack of a hard keyboard makes the check-out process cumbersomeIn the current app-heavy environment, the need to download multiple apps from each e-commerce retailer a user likes is cumbersomeTo help solve the problems in mobile e-commerce, a few companies have quietly released early-stage apps in 2011. They aggregate several retailers offline catalogs into one downloadable app, and users can peruse catalogs, click-through to buy on retailers sites, and bookmark favorite products 10Source: http://www.slideshare.net/joshyang/ecommerce-landscape-2012#btnNext
  • EBUSINESS Internet technology has fundamentally changed the environment and structure of business. The marketplace for all vendors has become potentially global; Execution and settlement of transactions can easily be automated for small as well as large organizations. The trading model has moved from normal business opening hours to a 24 hours a day, seven days a week trading model; The interconnections throughout the supply chain are being reconfigured. 11
  • EBUSINESS AS ECOMMERCE EXTENSIONOrganizational activity within electronichierarchies, markets or networks normally referred toas eBusiness or eCommerce. eBusiness can be seen as a Superset of eCommerce. eBusiness can be seen as the application of ICT in support of all activities undertaken by a commercial organization. eCommerce focuses on the use of ICT to enable the external activities and relationships with individuals, groups and other businesses. 12
  • ELECTRONIC DATA INTERCHANGE (EDI) Companies, in their regular dealings with other trading partners, such as suppliers and retail outlets, might establish electronic communications to process the volume of transactions carried out; EDI provides a standard protocol for encoding this data exchange; 13
  • INTEGRATION OF B2B SystemsB2B eCommerce is an extension of the informatics infrastructure of commercial organizations- Such information systems are supplier-facing Purchase order processing and payment processing systems handle the settlement and execution stages of the commerce cycle- These information systems are an established part of the IS infrastructure of most medium to large organizations, Could be established and standardized for all organizations. Such standardized system can enrich and simplify the majority of B2B interrelations. 14
  • INTEGRATION OF B2B SYSTEMS Pre-sale and after-sale stages of the commerce cycle have been the most open to innovation in B2B eCommerce Requisitioning, request for quote and vendor selection are part of a supplier relationship management information system Area in which most of the discussion of B2B eCommerce occurs. Procurement is the pre-sale activity of search, negotiate and order in the supply chain Sometimes the term is used to refer to all the activities involved in the supply chain It is an important business process in the value chain and involves the purchasing of goods and services from suppliers at an acceptable quality and price and with reliable delivery 15
  • CONTENTS: US E-Commerce Market; U.S. E-Commerce Market (2012-15) Chart; US E-Commerce Shopping Data (2011-13); Shift from physical stores to online stores; New Business Models; Planned purchases vs Impulse purchases business models; Survived eCommerce business models; New E-Commerce businesses; Not many new businesses are applied for Mass Market; UI features enrich customer experience and drive sales; Recent Trends in E-Commerce Business models Social Commerce; The Group buying / Couponing space; Flesh Sales;