E-Commerce & Textiles Supported By By  Zulf Choudhary of
<ul><li>Content </li></ul><ul><li>About Us </li></ul><ul><li>The Global Challenge </li></ul><ul><li>The Payments Market </...
<ul><li>Founded in 2005 University of Manchester </li></ul><ul><li>7 key staff for project and IT development in UK </li><...
The Global Challenge <ul><ul><li>US$1 trillion worldwide buying clothes. Around one third of     sales were in Western Eur...
The Payments Market The internet has changed consumer buying behaviour; what, when and how they pay. Merchants must react ...
The Solution-Behaviour & ecommerce The fact buyers do not purchase apparel online as they do music or DVD etc does not mea...
Solutions To Suit You Textiles sector is both retail facing (B2C) and wholesale (B2C) B2C   B2B <ul><li>Shops </li></ul><u...
ERP <ul><li>MRP/CRP ( Material requirements planning & Customer relationship planning) </li></ul><ul><li>Sales and Marketi...
Example: ARGOS <ul><li>Brand value  </li></ul><ul><li>Merchant account </li></ul><ul><li>Drive to stores </li></ul><ul><li...
Example: M&S <ul><li>How </li></ul><ul><li>Brand value </li></ul><ul><li>Returns Policy </li></ul><ul><li>Past user Experi...
Small Firms-Getting Started <ul><li>Apply for a  merchant account.  This is an account set up with a bank to process credi...
Example: Vintage Fabrics <ul><li>How? </li></ul><ul><li>Indirect merchant account </li></ul><ul><li>PayPal & EBay </li></u...
How Ecommerce Works
Building Blocks For Success! Buyers Bank-the issuer Merchants Bank-the acquirer Internet Order forms & Shopping cart Secur...
Financial Risk <ul><li>A bank looks at their exposure to risks to you and your customers before agreeing to give you  a on...
Setting Up Ecommerce Systems  <ul><li>Channels to market </li></ul><ul><li>Website </li></ul><ul><li>Store </li></ul><ul><...
mCommerce <ul><li>Collecting Payments via mobiles-just a summary </li></ul><ul><li>Has its own risks </li></ul><ul><li>Mob...
Types Of Providers-Examples Credit & Debit Bureau Provide Extras Bucks Net Payment Gateway Shopping cart, reports etc Worl...
Actual Costs <ul><li>Main costs are listed below but are not relevant to all products </li></ul><ul><li>Setup Cost : range...
Other Factors <ul><li>Website design-make it mobile compatible-clear and direct guide to buying page! </li></ul><ul><li>Us...
Conclusion Electronic commerce is about online selling, taking users to a place they feel secure and happy to buy goods or...
Thank you for listening If you have any questions please contact me Zulf Choudhary Telephone: 0161 306 5848 Email: [email_...
Appendix-List of Services Providers This is not  an exclusive list-please search the web for more providers Name Address A...
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E commerce textiles 2011 nth man feb 11

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Choosing the right payment system can determine your online success, but with so many options how do you decide?

This workshop will show you the different ways to accept payments and how to choose the right one for your business & customers.

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E commerce textiles 2011 nth man feb 11

  1. 1. E-Commerce & Textiles Supported By By Zulf Choudhary of
  2. 2. <ul><li>Content </li></ul><ul><li>About Us </li></ul><ul><li>The Global Challenge </li></ul><ul><li>The Payments Market </li></ul><ul><li>The Solution- Ecommerce </li></ul><ul><li>ERP </li></ul><ul><li>Examples </li></ul><ul><li>Getting Started </li></ul><ul><li>Building Blocks Of Success </li></ul><ul><li>The Key Factors </li></ul><ul><li>Financial Risks </li></ul><ul><li>Risk Calculations </li></ul><ul><li>mCommerce </li></ul><ul><li>Types Of Payment Providers </li></ul><ul><li>Actual Costs </li></ul><ul><li>Other Factors </li></ul><ul><li>Conclusion </li></ul><ul><li>Appendix List </li></ul>
  3. 3. <ul><li>Founded in 2005 University of Manchester </li></ul><ul><li>7 key staff for project and IT development in UK </li></ul><ul><li>Public sector & technology delivery partners </li></ul><ul><li>FSA regulated to issue e-money </li></ul><ul><li>Custom and Excise Licensed Money Transfer Agent </li></ul><ul><li>Key Strategic Partners </li></ul><ul><li>Software outsourcing offices in China 45 staff </li></ul>About SpartaPay BSC Finalist 2008 In 2 Categories Best EEC Project Winner 2007 Finalist 2005 Orange Finalist 2009 In 2 Categories
  4. 4. The Global Challenge <ul><ul><li>US$1 trillion worldwide buying clothes. Around one third of sales were in Western Europe, one third in North America and one quarter in Asia. </li></ul></ul><ul><ul><li>The UK exports 1.15 million tonnes of clothing and textiles each </li></ul></ul><ul><ul><li>year, comprising fibres, fabric and some completed products – </li></ul></ul><ul><ul><li>mainly clothing and carpets. </li></ul></ul><ul><ul><li>UK Consumers spend about £780 per head per year, purchasing </li></ul></ul><ul><ul><li>around 2.15 million tonnes (35kg per person) </li></ul></ul><ul><ul><li>Very fast changing market place, styles, fashions & technologies </li></ul></ul><ul><ul><li>High goods return risk such as 28% (from. N Brown) </li></ul></ul><ul><li>*Source http://www.ifm.eng.cam.ac.uk/sustainability/projects/mass/uk_textiles.pdf </li></ul>
  5. 5. The Payments Market The internet has changed consumer buying behaviour; what, when and how they pay. Merchants must react to these changes or fail. Some Facts: <ul><li>£89.6bn was spent online during 2010 (IMRG, January 2011) </li></ul><ul><li>21.3m people now shop online in the UK, spending an average of </li></ul><ul><li>£661 each in the last six months (BMRB, August 2008) </li></ul><ul><li>By 2011 32m UK consumers will be shopping online. The value of </li></ul><ul><li>goods they buy online in 2011 will add up to almost £52bn. </li></ul><ul><li>(Forrester, UK eCommerce Forecast 2006-2011, March 2007) </li></ul><ul><li>Over 3.5 million people bought online on Christmas day in 2009! </li></ul><ul><li>BMRB, Feb 2009 </li></ul><ul><li>App sales-firm Gartner, mobile app sales topped $5.2bn last year, but this year </li></ul><ul><li>that number will leap to $15.1bn. </li></ul><ul><li>Gartner sees that figure growing exponentially to £185bn by 2014 </li></ul>Source: http://www.iabuk.net/en/1/iabknowledgebankaudiencefactsandfigures.html *http://www.atelier.net/articles/juniper-mobile-application-market-worth-25b-2014 So online and mobile is where the money is.
  6. 6. The Solution-Behaviour & ecommerce The fact buyers do not purchase apparel online as they do music or DVD etc does not mean they cannot be driven to the shops, retail outlets and venues where you can sell directly to them! Technologies Strategy <ul><li>Website </li></ul><ul><li>Apps </li></ul><ul><li>Mobile apps </li></ul><ul><li>Social networks </li></ul><ul><li>Traditional marketing </li></ul><ul><li>Digital </li></ul><ul><li>Offline </li></ul><ul><li>Branding value </li></ul><ul><li>PR & creating loyalty </li></ul>Driving Consumers to where they will buy
  7. 7. Solutions To Suit You Textiles sector is both retail facing (B2C) and wholesale (B2C) B2C B2B <ul><li>Shops </li></ul><ul><li>Website </li></ul><ul><li>Mail Order </li></ul><ul><li>Apps </li></ul><ul><li>Mobile apps </li></ul><ul><li>Social networks </li></ul><ul><li>Trade shows etc </li></ul><ul><li>Cloth Manufacturing </li></ul><ul><li>Garment assembling/making </li></ul><ul><li>Transport </li></ul><ul><li>Wholesales </li></ul><ul><li>Technology- nano and smart textiles </li></ul><ul><li>Import & export </li></ul><ul><li>Quality Controls etc </li></ul><ul><li>Drive e-processes </li></ul><ul><li>Administration </li></ul><ul><li>product reservations </li></ul><ul><li>Stock management </li></ul><ul><li>Fast and efficient purchase </li></ul><ul><li>Transactional platforms </li></ul>Enterprise resource planning - Wikipedia, the free encyclopedia Enterprise resource planning - Wikipedia, the free encyclopedia Enterprise resource planning - Wikipedia, the free encyclopedia <ul><li>Ecommerce takes two forms </li></ul><ul><li>ERP- Enterprise resource </li></ul><ul><li>planning-large firms </li></ul><ul><li>CRM systems-small firms </li></ul>
  8. 8. ERP <ul><li>MRP/CRP ( Material requirements planning & Customer relationship planning) </li></ul><ul><li>Sales and Marketing </li></ul><ul><li>Master Scheduling </li></ul><ul><li>Bill of Material (BOM) </li></ul><ul><li>Purchase </li></ul><ul><li>Accounts Payable </li></ul><ul><li>Shop Floor Control </li></ul><ul><li>Human resources (HR) </li></ul><ul><li>etc </li></ul><ul><li>Options-and costs </li></ul>Total Process control Small ERP Large ERP Low Cost/less control High Cost/ Total control
  9. 9. Example: ARGOS <ul><li>Brand value </li></ul><ul><li>Merchant account </li></ul><ul><li>Drive to stores </li></ul><ul><li>Up sales </li></ul><ul><li>Check items </li></ul><ul><li>Post code checks </li></ul><ul><li>Stock checks </li></ul>http://www.argos.co.uk/
  10. 10. Example: M&S <ul><li>How </li></ul><ul><li>Brand value </li></ul><ul><li>Returns Policy </li></ul><ul><li>Past user Experience </li></ul><ul><li>Direct merchant account </li></ul>http://www.marksandspencer.com /
  11. 11. Small Firms-Getting Started <ul><li>Apply for a merchant account. This is an account set up with a bank to process credit card orders from customers (or via Payment Service Provider -PSP). </li></ul><ul><li>Negotiate the costs with bank or PSP. </li></ul><ul><li>Receive access to secure software (PDQ machine-(Payment Documents Quickly) or codes to put your website to process cards. </li></ul><ul><li>Done! </li></ul><ul><li>DIY or get someone to do it for you? </li></ul><ul><li>What channel to you –website, mobile, store or all. </li></ul><ul><li>Options-and costs </li></ul><ul><li>Apply Directly- Fees, contracts, shopping trolley, secure transactions area etc. </li></ul><ul><li>Apply via PSP-They will provide this for you- Buck Net, PayPal, WorldPay etc </li></ul><ul><li>Joining a shopping mall. eBay, iTunes, OVI, etc </li></ul>Merchant Accounts Direct Merchant Indirect Merchant Low Cost/Flexible High Cost/ Inflexible
  12. 12. Example: Vintage Fabrics <ul><li>How? </li></ul><ul><li>Indirect merchant account </li></ul><ul><li>PayPal & EBay </li></ul>http://www.vintagefabricmarket.co.uk /
  13. 13. How Ecommerce Works
  14. 14. Building Blocks For Success! Buyers Bank-the issuer Merchants Bank-the acquirer Internet Order forms & Shopping cart Secure Area for cards data SSL EPos Fulfilment & Logistics Accounts and management of e-commerce SECURE DATA EXCHANGE by VISA or MasterCard Terms & Conditions Website/Mobile App/ Retail
  15. 15. Financial Risk <ul><li>A bank looks at their exposure to risks to you and your customers before agreeing to give you a online account. Why? </li></ul><ul><li>Fraud and charge backs = cost of doing online business with you. </li></ul><ul><li>A look at charge-backs – when a customer demands a refund from </li></ul><ul><li>their credit card company. </li></ul><ul><li>Banks protect themselves against charge-backs by retaining </li></ul><ul><li>customer payments for around a month before crediting your </li></ul><ul><li>account </li></ul><ul><li>Internet transactions can be prone to fraud. </li></ul><ul><li>You may need to lodge a bond to cover yourself against fraud. </li></ul><ul><li>Good terms and conditions on your website will help. </li></ul>In perspective: Fraud represents only 15 to 30 minutes of loss in a full year of trading for many banks. So why concerned?- Brand Reputations
  16. 16. Setting Up Ecommerce Systems <ul><li>Channels to market </li></ul><ul><li>Website </li></ul><ul><li>Store </li></ul><ul><li>SMS Mobile </li></ul><ul><li>Social Websites </li></ul><ul><li>Poster and PR campaigns </li></ul><ul><li>App stores </li></ul><ul><li>Costs </li></ul><ul><li>Each channel above has a cost </li></ul><ul><li>Software off the shelf or bespoke? </li></ul><ul><li>Can you pay for all or just one channel? </li></ul><ul><li>Costs vary from a £250 to £10,000,000! (Facebook cost £6m) </li></ul><ul><li>In house or outsourced expertise? </li></ul><ul><li>Who manages the complexity </li></ul><ul><li>Risks of system failure or parts </li></ul>Before starting consider how will you drive traffic (buyers) to your site?
  17. 17. mCommerce <ul><li>Collecting Payments via mobiles-just a summary </li></ul><ul><li>Has its own risks </li></ul><ul><li>Mobile provider gateways and shopping malls -iTunes, OVI etc </li></ul><ul><li>Reverse Billing-cost to your mobile account-BT </li></ul><ul><li>Mobile banking-Banks </li></ul><ul><li>eticketing via SMS, concerts, travel etc. </li></ul><ul><li>Premium rate lines- adults , gambling- all telecom companies </li></ul><ul><li>Mobile Payments fees 15% to 30% per transaction </li></ul><ul><li>Why? </li></ul><ul><li>Because of: </li></ul><ul><li>Convenience </li></ul><ul><li>Simplicity </li></ul><ul><li>Direct into hand-SMS </li></ul>
  18. 18. Types Of Providers-Examples Credit & Debit Bureau Provide Extras Bucks Net Payment Gateway Shopping cart, reports etc WorldPay Payment Gateway Shopping cart, reports etc PayPal Payment Gateway Shopping cart, reports etc Netbanx Payment Gateway Shopping cart, reports etc Merchant account providers - Streamline Merchant ID - Major Banks Merchant ID Mobile - Apple Inc Mobile bureau service - Ovi Store Nokia devices - Pay2Go Mobile design for e-commerce Postal Orders Banks/Post Off Cheques and postal orders Cash - PayPoint Cash collection for bills - PayZone Cash collection for bills Shopping carts etc Web design and shopping cart providers (Actinic etc, OS Commerce) etc
  19. 19. Actual Costs <ul><li>Main costs are listed below but are not relevant to all products </li></ul><ul><li>Setup Cost : ranges between £50 and £250, i£120 is the average. </li></ul><ul><li>Annual Cost : normally around £150 but often not applicable. </li></ul><ul><li>Monthly : The most standard charge especially from acquiring banks, around £10-25 pm. </li></ul><ul><li>PSP : Can be a commission of as little as 1% but often about £10 per month or 3-4%. </li></ul><ul><li>Transaction Charge : 2.79% for an established business but up to 4-7% otherwise. </li></ul><ul><li>Bond : dependant on exposure level but is often negotiated down. </li></ul><ul><li>Charge back £7 to £29 for each item </li></ul><ul><li>Mobile Payments fees 5% to 30% per transaction </li></ul>Example of costs Set-up Recurring Costs Charges Bank Acquiring £200 £10 2% - 3.35% per credit card transaction £0.25 - £0.35 per debit card transaction NetBanx PSP £75 £10 from 1% to 4% per transaction Worldpay £200 £360 (annual) 4.5% credit cards, £0.50 debit cards
  20. 20. Other Factors <ul><li>Website design-make it mobile compatible-clear and direct guide to buying page! </li></ul><ul><li>User experience-MAKE IT SIMPLE STUPID! </li></ul><ul><li>Users convenience-make it easy </li></ul><ul><li>Marketing and PR </li></ul><ul><li>Quality of Service </li></ul><ul><li>Mobile design-simple to use and well designed-guide users to buying area! </li></ul>What sets you apart from others? What is your unique selling point in the view of your customers? How do you stand out! Examples: Call of Duty Game, iPhone, Amazon, Tesco, Micro Direct etc. Look at how others have done it. Its all about good design and user experience- remember a good ecommerce business is an orchestra of many parts!
  21. 21. Conclusion Electronic commerce is about online selling, taking users to a place they feel secure and happy to buy goods or service. <ul><li>Many issues and challenges can trip the unwary but if you think rationally and positively you could make millions. </li></ul><ul><li>Consider the following: </li></ul><ul><li>Your fast changing market place </li></ul><ul><li>Your customers buying behaviour </li></ul><ul><li>Online and mobile channels ( do not forget that TV, radio and newspapers all depend on e- </li></ul><ul><li>commerce of one type or another!) </li></ul><ul><li>Look at your budget. </li></ul><ul><li>Look at all the risks. </li></ul><ul><li>Decide on payment method ideal for you. </li></ul><ul><li>Look at the at total user experience with you. </li></ul><ul><li>Negotiate the best deal from your payment provider. </li></ul><ul><li>The set-up costs may been high and the work daunting but its worth it. </li></ul><ul><li>The retail market is worth over £15 billion now and £185 billion in 2014! </li></ul>Good Luck in 2011
  22. 22. Thank you for listening If you have any questions please contact me Zulf Choudhary Telephone: 0161 306 5848 Email: [email_address] Address: SpartaSoft University of Manchester Arch 29, PO Box 88 Sackville Street www.spartasoft.co.uk
  23. 23. Appendix-List of Services Providers This is not an exclusive list-please search the web for more providers Name Address Allopass http://www.allopass.com/uk Buck.net http://bucks.net/ ChronoPay Bureau http://www.chronopay.com/ DataCash http://www.datacash.com/ ePDQ Barclays bank http://www.barclaycard.co.uk/business/ Moneybookers LTD http://www.moneybookers.com/app/ Netbanx http://www1.netbanx.com/ NoChex http://www.nochex.com/ PayPal http://www.paypal.co.uk/uk PayPoint http://www.paypoint.co.uk/ PO MoneyGram http://www.postoffice.co.uk/ Splash plastic card http://www.splashplastic.com/ Streamline http://www.streamline.com/ SecureTrading Merchant Account http://www.securetrading.com/ SecPay-owned by PayPoint http://www.paypoint.net/secpay-payment-gateway/ RBS WorldPay http://www.rbsworldpay.com/ Apple-mobile http://www.apple.com Ovi Store-mobile https://store.ovi.com/ Icon-mobile Guide sector guide http://www.iconmobile.com / sector_guidetextile___clothing_2010 Source http://www.electronic-payments.co.uk/solutions/

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