Ecommerce Statistics of India• India’s e-commerce market was worth about $2.5 billion in 2009.• About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.).• Online Retailing comprises about 12.5% ($300 Million as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30%References: Consumer Ecommerce India
Leveraging Internet to Help Expand Markets Fundamental Business Drivers Have Not Changed Retain ImproveCustomers Efficiencies 4
How Three-tier Architecture Operatesuser tier server tier database tier Fig 8-5 Three-Tier Architecture Fig 8-4 Three-Tier Architecture
The brand e-portalDell www.dell.com The company sells computers to other companies via the internet. The interaction can also be done via the phone.
The wholesale portalAlibaba www.alibaba.com Wholesale retailers get in touch with business buyers and bargain over the internet the products. They can also enter in contact via the phone.
The retailerAmazon www.amazon.com The portal proposes different articles from different brands offering the consumer a large choice of products.
The online hypermarketCarrefour www.ooshop.com The hypermarket proposes its products on line.
The rewards retailerCashstore www.cashstore.fr The portals gives rewards to the consumer each time he purchases on the site. The consumer will then be able to spend his rewards for further purchases on the website.
The hyper nichesSaveur Bière and Popcornopolis www.saveur-biere.com and www.popcornopolis.com Hyper specialised retailer portals. Very specific segment and very particular products.
The Content ProvidersiTunes and Harvard Business Review www.apple.com/itunes/store and www.hbsp.harvard.edu User pays to get the entertainment content provided by the site.
The E-commerce of servicesCarol www.carol.com The user can buy online medical prescriptions and get advice.
The e-auctions siteeBay www.ebay.com The user sells to the user by auctions.
The social shopping Highlights on a specific case of CtoC
Social ShoppingSocial Network + E-commerce !• Use of the user social network to sale product online• Social shopping is the next generation of e-commerce• The viral effect is broader in this model
The production based upon votes LaFraise www.lafraise.com The user votes for the design he prefers. The most popular design will then be created and the user can purchase the final product.
The social searchShopwiki www.shopwiki.com The search is made based on customers recommendations on products. Once you found the product, you have a list of recommended e-shops where you can find this product.
The rewarding recommendation site Zlio www.zlio.com The users can select products partering with Zlio. They create their own shop with these products and get % of the sales each time somebody buys a product through the user’s customized e-shop.
The widget commerceShopit and Cartfly www.shopit.com and www.cartfly.com The user creates his own e-shop with own products he has to sell. Then he can adverstise about his e-shop thanks to widgets.
NEW TRENDS IN E-Commerce
Viral MarketingWord-of-Mouth Communications Opinion Leaders: Influence consumer behavior through word-of-mouth communications. Market Mavens: Consumers who know about many kinds of products, places to shop, and other facts of the market, and they like to share this information with other consumers. A recent large-scale study from college students 44revealed that the influence of WMC ( % ), is twice asinfluential in new-product purchases than either PRICE 22 22 ( %) or ADVERTISING( %)
Viral Marketing with SNFig. 8-14 Traditional marketing at MRV 27
You, Your Friends, Their Friends, and so on Form a Relationship with MRV’s SN Fig 8-16: Viral Social Network Marketing Possibility 28
Sample Viral Social Network Marketing Outcome 29