The document discusses key operations considerations for an ecommerce company. It outlines that 80% of daily operations involve supporting customers, inventory control, delivery, and order fulfillment. An effective system is needed to track orders from purchase to delivery. Maintaining a high level of service quality across merchandise, delivery, and customer support is important for long-term success. Key performance indicators should be monitored, including sales metrics like conversion rates as well as service metrics like response times. Customer happiness should also be directly measured through surveys to calculate a "Customer Happy Index" that aims for a score of 100%.

1. ì
Operations
in
an
ecommerce
company
How
opera)ons
affect
your
service
quality?
Huynh
Ngoc
Hung
Current:
Managing
Director
of
Nava.vn
(a
child
company
of
NCT
Corp)
Past:
Managing
Director
of
Vinabook.com,
2011
E-­‐commerce
Director
of
PNC
Corp,
2010
C.I.O
of
Muaban.net,
2008
CEO
of
EPI
Vietnam,
2005
(sold)
linkedin.com/in/hunghn
July
2012
–
Ho
Chi
Minh
City,
Vietnam

2. What
can
you
find
in
this
slide?
Essen)als
of
Maintain
KPIs
that
Measure
ecommerce
your
service
you
must
your
happy
company
level
have
customers

3. So
you
think
opening
an
ecommerce
(B2C)
company
is
all
about
crea)ng
a
website
that
sells
stuffs
?
Think
again!

4. Define
of
ecommerce
Don’t
forget
e-­‐commerce
consist
of
electronic
and
Electronic
Commerce
commerce!
80%
of
daily
opera)on
of
Merchandise
an
ecommerce
company
Website
is
about
support
Inventory
customers,
inventory
Marke)ng
control,
delivery,
order
Logis)cs
fulfillment…
Online
channel
Order
fulfillment

5. Essentials
of
an
ecommerce
company
These
are
what
you
are
going
to
face
on
daily
basis.
Website
Marke)n Merchan
g
dise
B2C
Logis)cs
E-­‐commerce
Catalog
company
Customer
Inventory
support
Order
fulfillmen
t

6. System
that
works
Your
system
should
be
able
to
answer
on
simple
customer’s
ques)on:
Logis)cs
“Where
is
my
order
now
?”
Your
system
should
be
included:
Wareho
use
1. Storefront
(Point
of
sales)
2. Customer
rela)onship
Website
management
(POS,
CRM)
3. Warehouse
management
4. Logis)cs
management
5. Others:
Accoun)ng,
marke)ng
tools,
HRM…

7. Your
order
fulfillment
process
• Confirm
order
“How
long
does
it
take
from
Receive
• Collect
payment
placing
order
to
receiving
the
order
• Post-­‐process
order
package
?”
• Item
in
stock
Time
consump)on
Prepare
• Collect
item
from
package
suppliers
• Packaging
• Delivery
team
• 3rd
logis)c
Delivery
supplier
• Cash
on
delivery
• Refund
order
Ager-­‐sales
• Return
item
support
• Warranty

8. Service
level
in
ecommerce
Opening
an
ecommerce
is
easy.
Increase
and
maintain
your
service
Delivery
level
is
extremely
hard
and
always
maintain
in
Customer
the
long-­‐run.
Merchandise
support
Service
level

9. “Maintaining
service
level
should
be
your
strategy
in
the
long-­‐run
and
that’s
the
way
you
keep
the
company
opera)ons
staying
in
high
efficiency”

10. Maintain
your
service
level
• Does
your
merchandise
have
sufficient
descrip)on
?
• Is
your
merchandise
ready
in
stock
ready
when
Merchandise
customer
need
it?
• Does
your
merchandise
meet
market
demand?
• Is
your
package
delivered
on
)me
?
Delivery
• Does
your
package
remain
intact
when
arrive?
• How
suppor)ve
is
your
delivery
team
?
Customer
• Does
your
self-­‐help
support
system
useful
?
• How
fast,
accurate
and
friendly
is
your
CS
agent?
service
• How
is
your
return
and
refund
policy?

11. KPIs
in
ecommerce
Some
KPIs
that
an
ecommerce
company
must
have:
Sales
Service
KPIs
Sales
KPIs
KPIs
1. Visitors
per
day
2. Sales
conversion
rate
Custom
3. Average
order
value
KPIs
Service
KPIs
1. Average
response
)me
per
)cket
2. Average
delivery
)me
per
order
3. Rate
of
return/refund
order
Control
your
business
via
KPIs
Custom
KPIs
KPIs
depending
on
your
business

12. “If
you
know
the
percentage
of
sa)sfied
customers,
your
opera)on
management
is
good.
No
majer
what
it
is
low
or
high.
”
“If
KPIs
are
about
how
your
operate
the
company,
CHI
is
about
how
happy
customers
are”

13. Customer
Happy
Index
(CHI)
Introducing
Customer
Happy
Index
(CHI)
–
represents
for
percentages
Call
random
of
customers
who
are
happy
about
customers
your
service
Maintain
Service
level
is
keep
the
Ask
in
Send
email
CHI
as
close
to
100%
as
possible
every
self-­‐ ager
order
help
page
comple)on
Ask
simple
&
easy
to
answer
CHI
ques)on.
For
example:
measurement
Ask
in
Survey
ager
How
do
you
feel
about
our
service
?
every
placing
email
order
footer
Survey
on
first
page
Happy
Acceptable
Unhappy

14. Thank
you
for
your
ajen)on!
Are
you
happy
with
the
presenta)on?
Very
Happy
Happy
S)ll
Happy