The Future of eCommerce in SA Ramon Thomas

1

The Complete Independent Movie Marketing Handbook

The Future of eCommerce in

SARamon Thomas

2


Why People Shop on the Web

Convenience and ease of use Shoppers only buy 5% of the time e-Commerce is International

3


eCommerce Examples

Amazon.com eBay.com iTunes Yahoo! Google

4


5


Amazon Marketplace ( i.e:Third-party Marketplace ) is Amazon.com's fixed-price online marketplace that allows sellers to survey their goods alongside Amazon's offerings. Buyers can buy new and used items sold directly by a third party through Amazon.com using Amazon Marketplace. This concept is similar to eBay's successful half.com.

This sales strategy and program has been very profitable for Amazon.com, with a commission rate of 6 to 15 percent of the sale price, a $0.99 per-transaction fee, as well as a variable closing fee.

Users can leave feedback on transactions, similar to eBay's feedback system, except that Amazon uses a five star rating system instead of just positive, neutral, or negative. Any feedback less than four stars will negatively affect the seller's rating. It is important to note that this rating system is different from Amazon's regular book rating system - while their book rating system should be used to vote on the content of the book, the quality of the publication, the individual's opinion of the book, or any number of other factors, the Amazon Marketplace rating system should only be used to describe the quality of the transaction and whether the product meets the criteria in the seller's listing. Negative feedback, for instance, because a book is old and expensive, affects the seller's feedback rating negatively, and causes other buyers to be less likely to purchase from that seller.

Another big difference in the Amazon vs. eBay feedback is reciprocity. Amazon has a one way street. The seller is always judged for the feedback left but the seller is powerless to effect the feedback of the buyer because the buyers feedback is not included in any metric Amazon uses. If a buyer on eBay has bad feedback you can block them but on Amazon you have to accept a sale from a bad feedback customer. Without this measure, customers who feel for any reason to leave a bad feedback can and do. Check it out for yourself. Take a Powerseller on eBay and see if they are selling on Amazon you will see similar items but feedback will be at least 5% off on Amazon what it is on eBay.

6


7


8


9


10


11


12


13


14


15


16


17


The Numbers

1.1 billion Internet users (4 million) 2.5 billion Cellphone users (32 million) 100 million websites

18


# Websites each year since the Web's founding.

19


Blogosphere

20


21


Cluetrain

"A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter—and getting smarter faster

than most companies."

www.cluetrain.com

22


23


Online Music

Rise of Mp3 (1997) Napster (1999) Declining album sales (post 2000) iTunes & iPod (2001)

24


25


eCommerce Growth

Top Category: Video Game - 159% US $170.8 billion in 2006 ($102.1 billion) Reach $200 billion by end of 2007

26


Online Retail in South Africa

R514 million in 2005 Online Air Ticket Sales: R1.8 billion Kulula.com 1st to reach R1 billion 826 online retail sites Experience Curve

27


South African eCommerce

Kulula.com MWEB Shopping Zone, Digital Mall Pick ‘n’ Pay, Woolworths Kalahari.net, Exclusive Books NetFlorist, Cybercellar Digital Planet, Ascot Direct

28


29


30


31


32


33


34


35


36


37


38


Components of eCommerce Shop Shopping Cart

osCommerce Zen Cart ViArt Shop

Payment Gateway Authorize.net Chase Paymentech (Orbital Gateway) Cybersource LinkPoint (owned by First Data) VeriSign Payflow (Owned by PayPal)

39


40


41


42


43


44


45


Resources

www.emarketer.com www.clickz.com www.alertbox.com www.saarf.co.za www.theworx.biz

46


Contact Details: Ramon Thomas

[email protected] Tel. 011 4331034 or 082 9407137 www.netucation.co.za Connect with me on LinkedIn, Facebook &

MySpace

The Future of eCommerce in SA Ramon Thomas

Documents

Transcript of The Future of eCommerce in SA Ramon Thomas