E-Commerce PDF

Chapter 6 E-Commerce MNGT (2)322 – Information School of Business Sanoop Sadique Systems  eCommerce It is a broad term that encompasses the activities to market, sell, and buy goo...

Chapter 6 E-Commerce MNGT (2)322 – Information School of Business Sanoop Sadique Systems  eCommerce It is a broad term that encompasses the activities to market, sell, and buy goods and services online Began in 1995 and grew exponentially with the growth of internet. MNGT (2)322 – Information School of Business Sanoop Sadique Systems  Retail e-commerce revenue worldwide from 2019 to 2029, by segment (in trillion U.S. dollars) E-commerce revenue worldwide 2019-2029, by segment Food Fashion DIY & Hardware Store Media Furniture Consumer Electronics Beverages Beauty & Personal Care Household Appliances Tobacco Products Household Essentials Toys & Hobby OTC Pharmaceuticals Eyewear 7.0 6.0 Revenue in trillion U.S. dollars 5.0 4.0 3.0 2.0 1.0 0.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 3 MNGT (2)322 – Information Description: Over the forecast period until 2029, the revenue is forecast to exhibit fluctuations among the 14 segments. Overall, the indicator appears to follow a positive trend, as there are more increasing values than decreasing values expected in the individual segments until 2029. Among them, the segment Food achieves the relatively highest value throughout the entire period, reaching 1.23 trillion U.S. dollars. Read more Note(s): Worldwide; 2019 to 2029; estimates School of Business Source(s): Statista; Statista Digital Market Insights Sanoop Sadique Systems  Total retail e-commerce revenue worldwide in 2023, by region (in billion U.S. dollars) Global retail e-commerce revenue 2023, by region Revenue in billion U.S. dollars 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Asia 1,664 Americas 889.1 Europe 533 Australia & 36.79 Oceania Africa 31.18 4 MNGT (2)322 – Information Description: Asia leads the ranking of biggest e-commerce markets worldwide. The total revenue of online retail in Asian countries added up to nearly 1.7 trillion U.S. dollars in 2023. This was approximately 800 million U.S. dollars higher than the e-commerce revenue reached in the Americas. Australia, Oceania, and Africa achieved far lower e-commerce revenues in 2023, with values below 40 billion U.S. dollars. Asia’s leading position can mostly be ascribed to China, which achieved a revenue of over [...] Read more School of Business Note(s): Worldwide; 2024 Source(s): Statista; Statista Digital Market Insights Sanoop Sadique Systems  Top online stores worldwide in 2023, by e-commerce net sales (in billion U.S. dollar) Top online stores worldwide 2023, by net sales E-commerce revenue in billion U.S. dollar 0 20 40 60 80 100 120 140 160 amazon.com 138.94 jd.com 115.83 walmart.com 64.94 apple.com 47.2 shein.com 36.66 coupang.com 21.22 homedepot.com 19.38 target.com 19.36 amazon.de 17.45 amazon.co.uk 16.79 11 MNGT (2)322 – Information Description: Amazon.com leads the global e-commerce market, boasting a worldwide revenue of 138.9 billion U.S. dollars in 2023, closely followed by jd.com at 115.8 billion dollars. Walmart.com secures the third position with approximately 65 billion in revenue, while Apple's D2C channel ranks as the fourth-largest online store globally, achieving net sales of 47.2 billion that year. For an extended ranking as well as rankings in specific product categories or countries please visit ecommerceDB.com. The [...] Read more School of Business Note(s): 2023 Source(s): ecommerceDB.com Sanoop Sadique Systems  eBusiness vs eCommerce eBusiness refers to the use of internet technologies to conduct business processes, activities, and operations online. Encompasses a broader range of business functions. Buying and selling function of eBusiness is eCommerce role. MNGT (2)322 – Information School of Business Sanoop Sadique Systems  eCommerce Business Models Retail: sale of a product by a seller directly to a customer without any intermediary Wholesale: sale of products in bulk, often to a retailer, that then sells them directly to consumers. Marketplace: provides platform where multiple third-party sellers can list and sell their products or services to customers. Crowdfunding: collecting money to raise startup capital to bring a product to market MNGT (2)322 – Information School of Business Sanoop Sadique Systems  Types of eCommerce Receiving Party Business Consumer Government Business selling G/S to other A business selling G/S to Business selling G/S online to Governmen Consume Business business. Largest form of individual consumers government agencies and eCommerce Eg: Nike online store institutions. Seg: SalesForce, AWS, Alibaba Eg: US Federal Marketplace Originating Party Consumer providing G/S to Consumer providing G/S to No strictly an eCommerce businesses. consumers. model but has potential. Eg: freelance coders, content Eg: Etsy, Kijiji, FB Marketplace Eg: Online Voting, Tax filing r creators Government providing G/S to Government providing G/S to Interactions between different business online. individuals online. government entities or Eg: Issue/renew business Eg: Issue/renew driving departments t license license Eg: Data sharing platforms. MNGT (2)322 – Information School of Business Sanoop Sadique Systems  Types of eCommerce based on Presence Pure-Play: has an online presence only and uses the capabilities of the internet to create a new business Brick-and-Click: combine a physical presence with an online presence MNGT (2)322 – Information School of Business Sanoop Sadique Systems  eCommerce Revenue Models Sales: Income comes from selling goods or services directly to customers. This is the most common eCommerce revenue model used by online retailers. Subscription: automatic recurring purchase of a product or service Advertising: Revenue is generated by displaying ads on a website or platform. Commonly used by content-driven websites and social media platforms. Free/Freemium: The basic version of a product or service is offered for free, while additional features are available for a fee. This is common in software and apps. Transaction Fee: Charges a fee for each transaction made through the platform. This model is used by payment gateways, online marketplaces. Affiliate: Companies earn commissions by promoting other businesses' products or services. Affiliates direct traffic or sales to third-party merchants and receive a commission for each successful referral. MNGT (2)322 – Information School of Business Sanoop Sadique Systems  eCommerce Delivery Models Direct Shipping: The seller directly sends the products to the customer. This method is typical in traditional retail and some online stores. Dropshipping: The seller does not maintain inventory. Instead, when an order is received, the seller buys the product from a third party, who ships it directly to the customer. Third-Party Fulfillment: The seller keeps their inventory in a third- party warehouse. Once an order is placed, the warehouse manages the packing and shipping of the items. Digital Delivery: For digital goods such as software, e-books, or online courses, the delivery is conducted electronically through download links or emails. Click and Collect: Customers buy products online and collect them MNGT (2)322 – Information from School a physical store or a designated of Business pickup point. Sanoop Sadique Systems  Evolution of eCommerce mCommerc eCommerce e eCommerc e Social Commerce MNGT (2)322 – Information School of Business Sanoop Sadique Systems  Mobile Commerce The buying and selling of goods through mobile devices. Growth Drivers: Increase in global mobile users Better technology Instant gratification. MNGT (2)322 – Information School of Business Sanoop Sadique Systems  Social Commerce The use of social media platforms to promote and sell goods and services (e.g., Facebook, Instagram Shopping). Benefits: Audience Growth: Social platforms reach millions of users globally. Customer Engagement: Direct interaction with customers. Analytics: Built-in tools to measure engagement and conversion.. MNGT (2)322 – Information School of Business Sanoop Sadique Systems  eCommerce Cycle 1. Customer visits website and peruses products 2. Chooses product and places order 3. Makes payment 4. Business fulfills and preps order 5. Order is shipped 6. Follow up with customer service if needed MNGT (2)322 – Information School of Business Sanoop Sadique Systems  Technologies Powering eCommerce eCommerce Platforms: Systems like Shopify, Magento, and WooCommerce. Payment Gateways: Secure online payments via PayPal, Stripe, Apple Pay. Hosting Solutions: Hosted vs. self-hosted platforms for website management. Search Engine Optimization (SEO): Techniques to rank higher in search engine results. MNGT (2)322 – Information School of Business Sanoop Sadique Systems  Strategies for Success in eCommerce Customer-Centric Approach: Personalization and excellent customer service. Omnichannel Strategy: Seamlessly blending physical and digital shopping experiences (e.g., buy online, pick up in- store). SEO and Marketing: Leveraging search engines, social media, and email marketing to attract and retain customers. MNGT (2)322 – Information School of Business Sanoop Sadique Systems  References 1. Slides are adapted from the relevant chapter slides created by Mr. Blake Kanewischer for the OER textbook Information Systems for Business and Beyond – First Canadian Edition under a Creative Commons Attribution-NonCommercial 4.0 International License unless otherwise noted. 2. Parul. (2024, August 1). 10 ecommerce business model. Retrieved October 6, 2024, from https://fathershops.com/ecommerce-business-model/ 3. Statistics obtained from Statista 4. Brand logos used in slide 7 are the IP of the respective owners, used in the slide for representative purposes only. MNGT (2)322 – Information School of Business Sanoop Sadique Systems