The document provides an overview of e-commerce, including: - Defining e-commerce as commercial transactions of products/services between individuals and organizations that occur digitally over the internet. - Discussing unique features of e-commerce like ubiquity, global reach, interactivity, and personalization. - Outlining different business models for e-commerce, including internet-only businesses, offline businesses that transitioned online, and offline-only businesses. - Comparing "clicks" online commerce with "bricks" physical commerce and the advantages of each. - Describing different types of e-commerce like B2C (business to consumer), B2B (business to business

1. E-COMMERCE
Mauricio Gomez

2. CONTENTS
• Definition of e-commerce
• Unique features of e-commerce
• Business models (regarding e-commerce)
• Clicks VS Bricks
• Types of e-commerce
• Building online commerce

3. DEFINITION OF E-COMMERCE
Adapted from Laudon & Traver, 2011

4. DEFINITION OF E-COMMERCE
• Commercial transactions
• Products and services
• Individuals and organisations
Adapted from Laudon & Traver, 2011

5. DEFINITION OF E-COMMERCE
• Commercial transactions
• Products and services
• Individuals and organisations
...wait, isn’t that just commerce?
Adapted from Laudon & Traver, 2011

6. DEFINITION OF E-COMMERCE
• Commercial transactions
• Products and services
• Individuals and organisations
...wait, isn’t that just commerce?
• Digitally enabled
• Occur over the internet and the web
Adapted from Laudon & Traver, 2011

7. WHY IS E-COMMERCE
IMPORTANT?
• By 2014:
• Consumers will spend USD$358 billion
• Business will spend USD$5.2 trillion
• In 2020 is expected that e-commerce will be the 20% of ALL retail
sales

8. 8 UNIQUE FEATURES OF
E-COMMERCE
Adapted from Laudon & Traver, 2011

9. 1. UBIQUITY
• Internet technology is everywhere
• PCs, laptops, mobile devices, slates, cars, fridges
• Is your company ready to handle orders placed in Dec 25th at
11:00PM?

10. 2. GLOBAL REACH
• Everywhere
• Bills, invoices, deliveries, taxes...
• Is your supply chain ready to handle international deliveries? At
what cost?

11. 3. UNIVERSAL STANDARDS
• One set of standards
• Can be conveyed to all screens
• Truth or fiction?

12. 4. RICHNESS
• Video, audio, text messages...
• Tools to deliver more information to consumers
• Decreases search costs
• Increases sales promotion expenditures?

13. 5. INTERACTIVITY
• Technology works through interaction with the user
• Two-way communication
• Do you have CUSTOMER SERVICE?

14. 6. INFORMATION DENSITY
• Reduced information costs
• Prices and costs become more transparent
• Updated and accurate information
• Can you afford a price war?

15. 7. PERSONALIZATION/
CUSTOMIZATION
• Personalization of messages
• Customization of orders/products
• Is your supply chain ready?

16. 8. SOCIAL TECHNOLOGY
• User content generation
• Peer reviews and ratings
• Is your company ready to manage
improper messages?
• Can your company turn the situation
around?

17. 8 UNIQUE FEATURES
1. Ubiquity
2. Global reach
3. Universal standards
4. Richness
5. Interactivity
6. Information density
7. Personalization/Customization
8. Social technology

18. BUSINESS MODELS
(REGARDING E-COMMERCE)

19. 1. INTERNET ONLY
BUSINESSES

20. 1. INTERNET ONLY
BUSINESSES

21. 2. NON-PRESENT
TRANSACTIONS BUSINESSES

22. 2. NON-PRESENT
TRANSACTIONS BUSINESSES

23. 3. BUSINESSES THAT MADE THE
TRANSITION

24. 3. BUSINESSES THAT MADE THE
TRANSITION

25. 4. OFFLINE ONLY BUSINESSES

26. 4. OFFLINE ONLY BUSINESSES

27. BUSINESS MODELS
1.Internet only businesses
2.Non present transaction businesses
3.Businesses that made the transition
4.Offline only businesses

28. CLICKS VS BRICKS

29. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002

30. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002

31. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002

32. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002

33. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002

34. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002

35. COMPATIBILITY OF PRODUCTS
WITH ONLINE MARKETING
Category
Books Shoes Toothpaste DVD Player Flowers Food items
Acceptance 0.904 0.769 0.886 0.787 0.792 0.784
Adapted from Kacen, J., Hess, J., Chiang, W.K., 2002

36. ADVANTAGES OF DIGITAL
• Rich product information • Price comparison and special deals
• Broadest selection • Social engagement and two-way
dialogue
• Customer reviews and tips
• Convenience of anything, anytime,
• Convenient and fast checkout anywhere access
• Editorial content advice •
CLICKS
Source: Darrell, R. (2011) HBR

37. ADVANTAGES OF DIGITAL
• Rich product information • Price comparison and special deals
• Broadest selection • Social engagement and two-way
dialogue
• Customer reviews and tips
• Convenience of anything, anytime,
• Convenient and fast checkout anywhere access
• Editorial content advice •
CLICKS
Source: Darrell, R. (2011) HBR

38. ADVANTAGES OF PHYSICAL
• Edited assortment • Ability to test, try on, or experience products
• Convenient returns • Help with initial setup or ongoing repairs
• Shopping as an event and an experience • Personal help from caring associates
• Instant access to products • Instant gratification of all senses
BRICKS
Source: Darrell, R. (2011) HBR

39. ADVANTAGES OF PHYSICAL
• Edited assortment • Ability to test, try on, or experience products
• Convenient returns • Help with initial setup or ongoing repairs
• Shopping as an event and an experience • Personal help from caring associates
• Instant access to products • Instant gratification of all senses
BRICKS
Source: Darrell, R. (2011) HBR

40. OMNICHANNEL

41. TYPES OF E-COMMERCE

42. B2C
BUSINESS-TO-CONSUMER

43. 1. PORTAL
• Content and social network services
• Search engines
• Seeks to be a user’s home base
REVENUE MODEL:
Advertising
Subscription fees
Transaction fees
Adapted from Laudon & Traver, 2011

44. 2. E-TAILER
• Distribution channel
• Web version of a mail catalog
• Complement to physical stores
REVENUE MODEL:
Sales of goods
Adapted from Laudon & Traver, 2011

45. 3. CONTENT PROVIDER
• Specialised content
• Special interest
• News/Sports/Economics/Business
information
REVENUE MODEL:
Advertising
Subscription fees
Affiliate referral fees
Adapted from Laudon & Traver, 2011

46. 4. TRANSACTION BROKER
• Processors of online sales transaction
• Brokers and travel agents (middlemen)
• Aim to increase customers’ productivity
REVENUE MODEL:
Transaction fees
Adapted from Laudon & Traver, 2011

47. 5. MARKET CREATOR
• Bring buyers and sellers together
• Creation of markets
REVENUE MODEL:
Transaction fees
Adapted from Laudon & Traver, 2011

48. 6. SERVICE PROVIDER
• Sales of services
• Cloud computing, sharing services, Saas
REVENUE MODEL:
Sales of services
Adapted from Laudon & Traver, 2011

49. B2B BUSINESS-TO-BUSINESS
• E-distributor
• Sales of goods
• E-procurement
• Sellers and buyers meet
• Industry consortium
• Industry-owned vertical digital market for select suppliers
• Private Industrial Network
• Supply chain coordination

50. OTHER BUSINESS MODELS
• Consumer-to-consumer
• Helps consumers to connect with other consumers
• Peer-to-peer
• Share files, services and content via web
• No use of a common server
• M-commerce
• Through mobile devices
• Sandboxed commerce
• Within platforms
• AppStores, Facebook pages

51. TYPES OF E-COMMERCE
2. B2B
1. E-distributor
1. B2C
2. E-procurement
1. Portal
3. Industry consortium
2. E-tailer
4. Private industrial network
3. Content provider
3. Other business model
4. Transaction broker
1. Consumer to consumer
5. Market creator
2. Peer to peer
6. Service provider
3. M-commerce
4. Sandboxed commerce

52. BUILDING ONLINE
COMMERCE

53. HOW TO BUILD A WEB SHOP
Online Payment Order
Website Checkout
catalog systems tracking

54. PAYMENT SYSTEMS
Credit Cards Debit Online Stored Value Offline payment
Money transfer
Invoice
Cash on delivery

55. TRAFFIC SOURCES
Marketing Communications Plan
Offline advertising
Online advertising Onlin
Website
catalo
Social Media
Referrals

56. TRAFFIC SOURCES
Marketing Communications Plan
Offline advertising
Online advertising Onlin
Website
catalo
Social Media
Referrals
How to crack it? CONVERSIONS

57. CONVERSIONS
$1.000 campaign budget
Payment
Mktg Landing Product Shopping
confirmat
Comms Page Selection Cart
ion

58. CONVERSIONS
$1.000 campaign budget
1.000
$1 Payment
Mktg Landing Product Shopping
confirmat
Comms Page Selection Cart
100% ion

59. CONVERSIONS
$1.000 campaign budget
1.000 200
$1
$1 Payment
Mktg Landing Product Shopping
20% confirmat
Comms Page Selection Cart
100% ion
$5
20%

60. CONVERSIONS
$1.000 campaign budget
1.000 200 50
$1 $1
$1 Payment
Mktg Landing Product Shopping
20% 25% confirmat
Comms Page Selection Cart
100% ion
$5 $20
20% 0.5%

61. CONVERSIONS
$1.000 campaign budget
1.000 200 50 10
$1 $1 $1
$1 Payment
Mktg Landing Product Shopping
20% 25% 20% confirmat
Comms Page Selection Cart
100% ion
$5 $20 $100
20% 0.5% 0.1%

62. CONVERSIONS
$1.000 campaign budget
1.000 200 50 10 5
$1 $1 $1 $1
$1 Payment
Mktg Landing Product Shopping
20% 25% 20% confirmat 50%
Comms Page Selection Cart
100% ion
$5 $20 $100 $200
20% 0.5% 0.1% 0.05%

63. CONVERSIONS
$1.000 campaign budget
1.000 200 50 10 5
$1 $1 $1 $1
$1 Payment
Mktg Landing Product Shopping
20% 25% 20% confirmat 50%
Comms Page Selection Cart
100% ion
$5 $20 $100 $200
20% 0.5% 0.1% 0.05%
$200 each sale?

64. CONVERSIONS
$1.000 campaign budget
1.000 500 125 25 12.5
$1 $1 $1 $1
$1 Payment
Mktg Landing Product Shopping
50% 25% 20% confirmat 50%
Comms Page Selection Cart
100% ion
$2 $8 $40 $80
20% 12.5% 0.25% 0.12%
$80 each sale?

65. WRAPPING UP...

66. • Having a web-shop is not “different” to having a physical shop
• E-commerce has different metrics than physical retail
• In e-commerce everything can be measured and tracked. Thus, there
is no excuse for not having on-going improvement
• E-commerce implies challenges in logistics, customer service,
accounting, marketing...

67. THANK YOU
http://nl.linkedin.com/in/mauriciogq