eCommerce Strategies

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Questions and Answers

What conflict can arise when a brand begins selling directly to consumers online?

  • Improved SEO rankings from increased website traffic.
  • Channel conflict with existing distributors who may feel bypassed. (correct)
  • Reduced logistics costs due to streamlined processes.
  • Enhanced customer data collection for personalized marketing.

What is a primary advantage of utilizing online marketplaces for international ecommerce expansion?

  • Absence of competitive presence, ensuring exclusivity.
  • Elimination of the need for detailed product descriptions.
  • Complete and unfettered control over branding and customer experience.
  • Lower upfront investment coupled with rapid access to established customer bases. (correct)

What is a significant limitation of relying solely on marketplaces for ecommerce sales?

  • Lack of customer service infrastructure.
  • Limited ability to cultivate direct relationships with customers. (correct)
  • Absence of advertising features to promote products.
  • Absence of structured product categories for organization.

In the context of ecommerce, what does a “multichannel strategy” involve?

<p>Integrating a brand's own website with marketplaces and offline retail channels. (D)</p> Signup and view all the answers

Which of these functionalities is typically NOT offered by online marketplaces?

<p>Offering personalized product development tools for sellers. (C)</p> Signup and view all the answers

What is a primary logistical challenge in cross-border ecommerce?

<p>Dealing with elevated shipping expenses and intricate customs procedures. (C)</p> Signup and view all the answers

Which tool is best suited for analyzing keyword trends across different countries to inform your ecommerce strategy?

<p>Google Trends (A)</p> Signup and view all the answers

For what reason might a company decide to create a distinct 'second brand' specifically for ecommerce operations?

<p>To minimize potential conflicts with established offline retail partners. (D)</p> Signup and view all the answers

What is a key advantage of integrating an ERP (Enterprise Resource Planning) system with an online store?

<p>Automatic synchronization of inventory levels and order information. (B)</p> Signup and view all the answers

In a B2B ecommerce environment, what expectation do clients typically have?

<p>Negotiated prices and deferred payment options. (A)</p> Signup and view all the answers

Which of the following tools offers the most insight into a competitor's website traffic and performance?

<p>Similarweb (A)</p> Signup and view all the answers

What does Amazon FBA entail for sellers?

<p>A comprehensive fulfillment service including warehousing and order delivery. (A)</p> Signup and view all the answers

Within the Alibaba ecosystem, what primary function does Alipay serve?

<p>Provision of secure online payment processing solutions. (C)</p> Signup and view all the answers

Which of the following is typically NOT a primary driver for localizing an online store for international markets?

<p>Optimizing layout of the domestic warehouse for efficiency. (C)</p> Signup and view all the answers

Why is search engine optimization (SEO) particularly crucial in B2B ecommerce strategies?

<p>B2B buyers commonly use search engines and directories to find suppliers. (C)</p> Signup and view all the answers

What element is LEAST likely to be part of an internal analysis before a company expands internationally?

<p>Precise measurement of the company's social media follower count. (A)</p> Signup and view all the answers

Why might a company first test a new international market through a marketplace?

<p>To minimize initial investment and validate actual market demand. (A)</p> Signup and view all the answers

What attribute makes vertical marketplaces particularly appealing for sellers?

<p>Concentration on specific, well-defined niches and industries. (A)</p> Signup and view all the answers

Which platform centers around professional networking and B2B lead acquisition?

<p>LinkedIn (A)</p> Signup and view all the answers

What central benefit does Google Market Finder provide to ecommerce businesses?

<p>Identification of international market demand based on keyword analysis. (D)</p> Signup and view all the answers

Flashcards

Channel Conflict

Conflict arising when a brand's direct online sales compete with its existing distributors.

Advantages of Marketplaces

Lower initial costs and quick access to a large customer base.

Drawback of Marketplaces

Reduced control over the customer relationship, as the marketplace mediates interactions.

Multichannel Strategy

Integrating your own website with marketplaces and offline sales avenues.

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Marketplace Functionality

Personalized product development tools is NOT a common functionality.

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Challenge: Cross-Border Logistics

High shipping costs and navigating complex customs procedures.

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Google Trends

Analyzes keyword trends across different countries to identify opportunities.

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Creating a 'Second Brand'

To avoid conflict with established offline retail partners.

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ERP System Integration Benefit

Automatic synchronization of inventory and order information.

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B2B Ecommerce Client Expectations

Expect negotiated pricing and the option for deferred payments.

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Similarweb

Analyzes the traffic and engagement metrics of competitor websites.

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Amazon FBA

A service where Amazon handles warehousing, shipping, and customer service for sellers.

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Alipay

Provides secure online payment processing within the Alibaba ecosystem.

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NOT a reason to localize

To improve warehouse layout.

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SEO Importance in B2B

B2B buyers often use search engines and directories to find suppliers.

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NOT a key aspect of internal analysis

The number of followers on social media.

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Test Market Via Marketplace

To validate demand and minimize initial financial exposure.

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Vertical Marketplaces

They cater to specialized niches and industries.

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LinkedIn

Professional networking and B2B lead generation.

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Google Market Finder

Identifying international market demand based on keyword research.

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Study Notes

  • A potential conflict when a brand sells directly to consumers online is channel conflict with existing distributors.
  • One of the main advantages of using marketplaces in international ecommerce is lower initial investment and fast access to customers.
  • A drawback of using marketplaces exclusively is limited control over the customer relationship.
  • A "multichannel strategy" refers to combining your own website with marketplaces and offline channels in ecommerce.
  • Personalized product development tools are NOT a functionality commonly provided by marketplaces.
  • A major challenge in cross-border ecommerce logistics is high shipping costs and customs complexity.
  • To analyze keyword trends in different countries, use Google Trends.
  • A company might create a "second brand" for ecommerce to avoid conflict with offline retail partners.
  • A benefit of integrating an ERP system with your online store is automatic synchronization of inventory and orders.
  • In a B2B ecommerce strategy, clients typically expect negotiated prices and deferred payments.
  • Similarweb is the best tool for analyzing competitor website traffic.
  • Amazon FBA is a fulfillment service where Amazon handles warehousing and delivery.
  • Alipay provides secure online payments in the Alibaba ecosystem.
  • Improving domestic warehouse layout is NOT typically a reason to localize your online store.
  • SEO is especially important in B2B ecommerce because B2B buyers often search for suppliers through Google and directories.
  • Social media follower count is NOT a key aspect of internal analysis before going international.
  • A company might choose to test a new market through a marketplace first to reduce upfront investment and validate demand.
  • Vertical marketplaces are attractive because they target specific niches and industries.
  • LinkedIn is primarily used for professional networking and B2B lead generation.
  • The key advantage of Google Market Finder is identifying international market demand by keyword.
  • Returns, language support, and local regulations increases the complexity of B2C international ecommerce.
  • The role of the “RFQ” function on Alibaba.com is allowing buyers to request quotes from suppliers.
  • Paid traffic from Instagram is NOT typically included in Amazon Seller Central services.
  • One way to reduce channel conflict when selling online and offline is to offer different product lines in each channel.
  • Marketing and HR typically require the largest investment in international ecommerce.
  • A low-priced, heavy item is least suited for cross-border ecommerce.
  • Klarna is an example of a deferred payment method popular in B2C ecommerce.

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