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Creating an Experiential
E-Business
Session at
24 April 2015
We will talk about…
• What is ecommerce
• E-tailer / e-marketplace
• Key ingredients
• Accessibility
• Tools
Nuggets of interesting facts and stats along the way
2
So what is ecommerce anyway…
Buying and selling of products over the
internet
3
I would say…
Any transaction that is completed solely or
for the most part through electronic means
can be considered e-commerce
4
E-tailer vs e-marketplace
In simple terms:
E-tailer is your regular shop…
Can only work as a B2B or B2C platform
E-marketplace is like a shopping mall, multiple parties sell their goods
Works for B2B, B2C and C2C transactions
5
Examples
6
Ecommerce today
Some interesting facts and figures
Global B2C revenues
1,058
1,233
1,471
1,700
1,922
2,143
2,356
2012 2013 2014 2015* 2016* 2017* 2018*
Sales in billions of US Dollars
8
Mobile % of Global EcommerceTransactions
23%
30%
35%
40%
H1 2014 H2 2014 H1 2015* H2 2015*
Supported by growing number of mobile responsive websites and native apps
9
Ecommerce in Pakistan
• Suggested revenue of $35 million last year
• Investors suggest this can grow to more than $100 million in a few years
• More than 200 small to large ecommerce sites in Pakistan
• On an average day I would safely assume about 1,500 to 2,000 orders
fulfilled per day across the country
10
What does this say?
• Large population, most of it unserved
• Many business areas to be explored
• Different needs of people
• Ecommerce is more than just goods
11
Key ingredients
The things that make it all happen
Vision
The business objective
What do you want to do
Where do you want to be
No matter what you do… don’t change this
13
Strategy
How will you achieve the objective
This is your working plan, a step by step guide for your business
Serves as a guideline to all involved
It is flexible and adaptable
14
Product / offer
What
Why
How
When
15
Price
What is the right price?
It is the price the customer is willing to pay…
A price is a combination of
Value of the goods + value added
16
Payment
•While the world conveniently uses cards and the likes of
PayPal
•The Middle East and South Asian region prefers Cash on
Delivery
17
For the most part…
• Values
• Economic conditions
• Education
• Rules and regulations
18
Though the fact is…
• There are more innovative options being explored
• The un-banked being converted to banking customers
• Branchless banking
• Increasing Smartphone penetration
• Low cost 3G / 4G
19
Creating more opportunities
(and this is all without the Chinese investments)
Multiple companies involved in creating new payment platforms.
Find out and work with them.
20
Logistics
• Begins with your product and your business model
• E-tailers have to bulk purchase and storage
• E-marketplaces don’t store anything, source when needed
• Digital goods / services can be downloaded or accessed
21
Most important --- Experience!
User interface
Speed of the website
Product range
Correct pricing and offers
Simple communication
Help during purchase
Post sales assistance feedback
22
Experience
• Promise
• Value
• Quality
• Reward
• Service
23
Accessibility
Where and how to make your presence most effective
Data usage
• More than 25 million internet users
• More than 12 million 3G / 4G subscribers (GPRS / EDGE – 3-4 million)
• Data usage is now 25% of telco revenues
• 52% use mobile data on a regular basis
• 600% growth in data use compared with last year
25
Mobile phone imports
More than $465 million till February, in 2014-15
Approx. 6.7 million handsets at an average of PKR 7,000 per handset
13%
23%
31%
0%
5%
10%
15%
20%
25%
30%
35%
Jan-13 Jan-14 Jan-1526
SMARTPHONE
PENETRATION
Mobile segmentation
84% free apps vs 16% purchased apps
Free apps include:
• Absolutely free apps (no ads)
• Freemium apps
• Ad infested apps (spammy apps or no one wants to pay to use)
Android
68%
iOS
24%
Windows
8%
27
Weapon of choice
Responsive and compatible website
Mobile app for all 3 platforms (at least)
Integrated with 3rd party tools and services
28
Engagement
•Understand audience and preferences
•Speak in their tongue, make them feel at home
•Avoid spamming
29
30
31
Media
NoYouTube? no problem!
• Vimeo (Dailymotion is too ad infested)
• Periscope and Meerkat – live broadcast on iPhone
• Snapchat
• Blogs
• Cloud solutions – when your business grows
32
Communication
• Simplify the tone and language, alter
default styles
• Use simplified form structures … check
outTypeForm.com
• Simply worded emails
33
Tools
What to use and how
Search
• Speed up search results
• Suggestions and corrections
• Example: JadoPado.com
35
Content
• Keep it simple, most important info first
• Include user reviews and feedback
• Add or create review or promo videos
• Use easy loading for faster display
36
Location
• Serve ads and product information based on user’s location
• Tailor preferences
• Determine delivery times
• Determine best customer agent to support
37
Data
38
Collect
Analyze
InsightStrategy
Execute
Building an experience
• Customer feedback
• Response times
• Make things simple and efficient
• Reward and thank
• Celebrate
• Personal attention
39
Thank you
Any comments or thoughts?
Data source will be shared and updated to this presentation
Follow me…
• LinkedIn: www.linkedin.com/in/nawaz
• Twitter: @nwzm
41
Sources
• Phoneworld
• Grappetite
• Propakistani
• Moremag
• Statistica
• Criteo eCommerce Industry Outlook 2015 report
• DailyTimes
• Tribune
42

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Creating an Experiential E-business

  • 2. We will talk about… • What is ecommerce • E-tailer / e-marketplace • Key ingredients • Accessibility • Tools Nuggets of interesting facts and stats along the way 2
  • 3. So what is ecommerce anyway… Buying and selling of products over the internet 3
  • 4. I would say… Any transaction that is completed solely or for the most part through electronic means can be considered e-commerce 4
  • 5. E-tailer vs e-marketplace In simple terms: E-tailer is your regular shop… Can only work as a B2B or B2C platform E-marketplace is like a shopping mall, multiple parties sell their goods Works for B2B, B2C and C2C transactions 5
  • 8. Global B2C revenues 1,058 1,233 1,471 1,700 1,922 2,143 2,356 2012 2013 2014 2015* 2016* 2017* 2018* Sales in billions of US Dollars 8
  • 9. Mobile % of Global EcommerceTransactions 23% 30% 35% 40% H1 2014 H2 2014 H1 2015* H2 2015* Supported by growing number of mobile responsive websites and native apps 9
  • 10. Ecommerce in Pakistan • Suggested revenue of $35 million last year • Investors suggest this can grow to more than $100 million in a few years • More than 200 small to large ecommerce sites in Pakistan • On an average day I would safely assume about 1,500 to 2,000 orders fulfilled per day across the country 10
  • 11. What does this say? • Large population, most of it unserved • Many business areas to be explored • Different needs of people • Ecommerce is more than just goods 11
  • 12. Key ingredients The things that make it all happen
  • 13. Vision The business objective What do you want to do Where do you want to be No matter what you do… don’t change this 13
  • 14. Strategy How will you achieve the objective This is your working plan, a step by step guide for your business Serves as a guideline to all involved It is flexible and adaptable 14
  • 16. Price What is the right price? It is the price the customer is willing to pay… A price is a combination of Value of the goods + value added 16
  • 17. Payment •While the world conveniently uses cards and the likes of PayPal •The Middle East and South Asian region prefers Cash on Delivery 17
  • 18. For the most part… • Values • Economic conditions • Education • Rules and regulations 18
  • 19. Though the fact is… • There are more innovative options being explored • The un-banked being converted to banking customers • Branchless banking • Increasing Smartphone penetration • Low cost 3G / 4G 19
  • 20. Creating more opportunities (and this is all without the Chinese investments) Multiple companies involved in creating new payment platforms. Find out and work with them. 20
  • 21. Logistics • Begins with your product and your business model • E-tailers have to bulk purchase and storage • E-marketplaces don’t store anything, source when needed • Digital goods / services can be downloaded or accessed 21
  • 22. Most important --- Experience! User interface Speed of the website Product range Correct pricing and offers Simple communication Help during purchase Post sales assistance feedback 22
  • 23. Experience • Promise • Value • Quality • Reward • Service 23
  • 24. Accessibility Where and how to make your presence most effective
  • 25. Data usage • More than 25 million internet users • More than 12 million 3G / 4G subscribers (GPRS / EDGE – 3-4 million) • Data usage is now 25% of telco revenues • 52% use mobile data on a regular basis • 600% growth in data use compared with last year 25
  • 26. Mobile phone imports More than $465 million till February, in 2014-15 Approx. 6.7 million handsets at an average of PKR 7,000 per handset 13% 23% 31% 0% 5% 10% 15% 20% 25% 30% 35% Jan-13 Jan-14 Jan-1526 SMARTPHONE PENETRATION
  • 27. Mobile segmentation 84% free apps vs 16% purchased apps Free apps include: • Absolutely free apps (no ads) • Freemium apps • Ad infested apps (spammy apps or no one wants to pay to use) Android 68% iOS 24% Windows 8% 27
  • 28. Weapon of choice Responsive and compatible website Mobile app for all 3 platforms (at least) Integrated with 3rd party tools and services 28
  • 29. Engagement •Understand audience and preferences •Speak in their tongue, make them feel at home •Avoid spamming 29
  • 30. 30
  • 31. 31
  • 32. Media NoYouTube? no problem! • Vimeo (Dailymotion is too ad infested) • Periscope and Meerkat – live broadcast on iPhone • Snapchat • Blogs • Cloud solutions – when your business grows 32
  • 33. Communication • Simplify the tone and language, alter default styles • Use simplified form structures … check outTypeForm.com • Simply worded emails 33
  • 34. Tools What to use and how
  • 35. Search • Speed up search results • Suggestions and corrections • Example: JadoPado.com 35
  • 36. Content • Keep it simple, most important info first • Include user reviews and feedback • Add or create review or promo videos • Use easy loading for faster display 36
  • 37. Location • Serve ads and product information based on user’s location • Tailor preferences • Determine delivery times • Determine best customer agent to support 37
  • 39. Building an experience • Customer feedback • Response times • Make things simple and efficient • Reward and thank • Celebrate • Personal attention 39
  • 40. Thank you Any comments or thoughts? Data source will be shared and updated to this presentation
  • 41. Follow me… • LinkedIn: www.linkedin.com/in/nawaz • Twitter: @nwzm 41
  • 42. Sources • Phoneworld • Grappetite • Propakistani • Moremag • Statistica • Criteo eCommerce Industry Outlook 2015 report • DailyTimes • Tribune 42

Editor's Notes

  1. Daraz 1,000… HomeShopping 500
  2. High prices and high value combination sells, as much as high / low mix. Low prices across the board doesn’t always work.
  3. That means around 2 million smartphones imported within the year.