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E-Commerce - Features & Forecasts

An Overview of E-Commerce with its future forecast and current technology stack.
by

Hemanand Thanikachalam

on 11 September 2015

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Transcript of E-Commerce - Features & Forecasts

What is
E-Commerce?
• Electronic commerce, commonly known as e-commerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks.

• It allows consumers to electronically exchange goods and services with no barriers of time or distance.

• Electronic commerce has expanded rapidly over the past five years and is predicted to continue at this rate, or even accelerate.
Various Forms of
E-Commerce
Unique Features of
E-Commerce
UBIQUITY
Internet/Web technology available everywhere: work, home, etc., anytime.
Effects:
• Marketplace removed from temporal, geographic locations to become “Market-space”

• Enhanced customer convenience and reduced shopping costs

GLOBAL REACH
The technology reaches across national boundaries, around world.

Effects:
• Commerce enabled across cultural and national boundaries seamlessly and without modification

• Marketspace includes, potentially, billions of consumers and millions of businesses worldwide

UNIVERSAL STANDARDS
One set of technology standards: Internet standards


Effects:
Disparate computer systems easily communicate with each other

Lower market entry costs—costs merchants must pay to bring goods to market

Lower consumers’ search costs—effort required to find suitable products


PERSONALIZATION
Technology permits modification of messages, goods.

Effects:
Personalized messages can be sent to individuals as well as groups

Products and services can be customized to individual preferences


Traditional Business Vs
E-Commerce
Traditional Business Flow
E-Commerce Flow
Supplier
Importer
Wholesaler
Retailer
Consumer
Supplier
Consumer

E-Commerce
Market Space
Profitability with
E-Commerce
* Consumer Transactions are not included

Source - E-Commerce Times, 2013 (www.ecommercetimes.com/article/electronic-markets-and-virtual-value-chains-on-the-information-superhighway/
Below example illustrate a simple Value Chain process with a Retail Product.
E-Commerce
- Global Forecast
E-Commerce
- Global Forecast
Forecast of Top 10 Countries B2C E-Commerce Sales Growth in 2014
Advantages of
E-Commerce
• Conduct Business 24 x 7 x 365

• Access to Global Marketplace & Global Customers

• Reduce Cost – Real Estate, Cutting Intermediaries

• Speed to Market

• Increase Brand Awareness

• Greater Customer Insights

• Limitless Real Estate for Product Selection
Advantages of E-Commerce
E-Commerce - Global Forecast
Source
: EMARKETER (www.emarketer.com/Article/Global-B2C-Ecommerce)
Features of E-Commerce
Traditional Business Vs E-Commerce
Economic Benefit - E-Commerce
E-Commerce
- Technology Market Shares
This chart shows the global market share of technologies in the category E-Commerce. The current market leader is
MAGENTO.

E-Commerce
- Technology Market Shares
Most used technologies in the E-Commerce category.

Source: Silicon India, 2014

Source: Wappalyzer (Numbers are based on websites visited by Wappalyzer users in the last six months)

Leading E-Commerce Platforms
Next Gen E-commerce
Next gen
E-commerce
- Focus on
Mobile
Mobile devices surpass PCs in online retail - 55% of time spent with e-retail in 2013 occurred on a mobile device. Specifically, smartphones accounted for 44% of retail Internet minutes while tablets accounted for 11% (comScore, 2014).

US retail m-commerce sales shot up 81% to nearly $39 billion last year (2013), propelled by rapid adoption of tablets and smartphones as shopping devices and estimated to have $53 billion by 2014, according to new estimates from eMarketer (2014).

Source - eMarketer, 2014
E-Commerce - Features and Forecasts
E-Commerce - Building Blocks
Building Blocks of
E-Commerce
Technology
Custom Developed
Platforms
Payment Gateway
Shipping & Logistics
E-Commerce
Marketing & SEO
Affiliate Networks
Search Engine Optimization
Search Engine Paid
Marketing Media
Email Marketing
Source : eMarkerter, 2014
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