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What is eCommerce


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Find out about eCommerce and your business

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What is eCommerce

  1. 1. What is eCommerce? Colin Lewis
  2. 2. What is eCommerce? eCommerce Definition: The buying and selling of products, services & information using digital channels, usually commerce businesses usually employing some or all of the following practices: • Provide Etail or virtual storefront on websites with online catalogues, • Buy or sell on websites or online marketplaces. • Provide secure business transactions Dave Chaffey: Internet Marketing, Strategy Implementation & Practice • Electronic Commerce refers to both financial and informational electronically mediated transactions between organisations and any third party it deals with. • eCommerce involves management not only sales transactions but also non-financial transactions such as inbound customer service enquiries and customer requests for further information are considered to be part of e-commerce.
  3. 3. Benefits of eCommerce • New / additional / solo sales channel that improves conversion • Lowers cost of sales through lower overhead (no 25 year leases) and increased automation/streamlining of business processes. • Removes geographic restrictions & Increase’s exposure to a wider audience • Internationalise very easily • Improve branding - > better customer experience. • Always open -operate 24/7 • Adoption continues to grow rapidly – matching broadband and mobile • Niche products/services can thrive online • Tracking allows you to learn from customer behaviour – IMMEDIATELY • Now very affordable -> low barriers to entry • You can do it yourself!
  4. 4. eCommerce Sales Growth Ireland • Estimated size of Irish eCommerce market €4 billion e-commerce market • Irish retailers are now investing in meeting the growing online demand for their products. • 2013 compared to 2012: Grew by 17% - Retail grew by 25% • Prior to 2013 - little if anything that could be bought online from iconic Irish retail brands • Spending up remarkable 51% in Q2 2014 when compared with the same time PY • Revenue growing 67% faster than traffic it is clear the Irish consumer has an insatiable appetite UK and Europe • In 2010 Europe overtook the USA. In 2012 European B2C e-commerce, including online retail goods and services grew by 19% to reach €311.6 bn. • UK: Now £13n++ could grow to £45bn by 2020 • eCommerce websites are still only 12% of the Internet
  5. 5. Building an eCommerce site
  6. 6. eCommerce Models • Clicks & Bricks/Mortar: A business model by which a company integrates both offline (bricks) and online (clicks) presences. e.g.,,, • Pure Play: Does business purely through the Internet; they have no physical store. E.g., • Mobile: e.g. Hot Hotels, Tinder, WhatsApp
  7. 7. Things to think about • Do you have an existing website? Will this integrate, replace or be a new website • Have you access to in-house technical (web development & design) resources? • Do you have offline stores? How will this integrate with them, their inventory etc... Or will this be a pure play ecommerce site • How many products will you have? • Who will manage order fulfilment, do you already have a warehouse, mail order division, will you need one • How much revenue do you expect to generate online, • How much do you expect the online to cannibalise the offline, what will be the consequences of this • Do you have somebody/ a team who will manage your e-commerce operation? • Do you need an agency to help build/maintain your store?
  8. 8. Choosing an eCommerce Platform Basic • Simple ‘Buy Now’ buttons integrated into an existing website • On-demand ecommerce solutions • Online marketplaces: third party websites such as eBay & Amazon which host the e-commerce presence of multiple sellers Comprehensive – dedicated eCommerce website • Custom-built/Bespoke eCommerce website • Packaged applications (paid or free/open source) – Enterprise Level Reflecting the difference between …. • Re-usable software (that can either be implemented by a third party or by in-house developers – i.e. a base platform) and • Using a solution provider, which may use a solution provider as a starting point in delivering a fully functional online store for a retailer.
  9. 9. On-demand/Hosted ecommerce solutions ‘Cloud’ based software • On-demand solutions are easy to set up • No investment required in technology • Most come with excellent and easily customizable designs • Marketing tools built in • Mobile device enabled, great apps available • Perfect for small to medium sized business with less than 500 products, 50,000 visitors per month and less than 1000 orders per month
  10. 10. Things to think about: getting paid • Two Payment Processing Options:  Payment Bureau  Payment Service Providers (PSP’s)
  11. 11. Payments online – Payment Bureau • Payment Bureau’s act as both Payment Processer and Acquiring bank • PayPal & Google Checkout are the main players Pros • The only option for many start up’s • Easy to set up • Helps increase conversion • Fraud Protection - Both checkouts offer a level of fraud protection to both buyers and sellers Cons • Higher fees – 2% - 3.5% • Revenue settled slower
  12. 12. Payment Service Providers (PSP’s) • Retailer must have an internet merchant account with an acquiring bank (a bank which provides internet merchant services). • They must also have an account with a payment service provider (PSP) also known as a payment gateway. A PSP is effectively an online credit card machine. • Merchant’s bank account’s - BOI – Elavon, AIB – AIBMS (Not all banks provide this service) • Payment Service Providers • - Realex, SagePay
  13. 13. New forms of processor E.G. Stripe • Payment forms • Processing and compliance • Integrated mobile payments for iOS & Android libraries to charge on the go. • Storing cards and processing subscriptions to powering marketplaces and everything in between.
  14. 14. Payment Service Providers (PSP’s) Pro’s • Lower fee’s - 2% for most cards / 49p for debit cards • Excellent site integration options • Works well if you are doing larger volumes • Funds settled within 1-2 days Con’s • Not really available for start ups • Time to set cost • Set up costs • More susceptible to fraud • Monthly fee’s in conjunction with transaction fee’s (20-30 Eur)
  15. 15. But wait How do I get traffic? (‘punters to my site’) And how do I get them to buy?
  16. 16. Back to the A C R
  17. 17. Digital Marketing For eCommerce Sites • Standard Channels • Additional DM Channels for eCommerce • SEO/Organic Search • Paid Search • Email Marketing • Display & Video Advertising • Mobile Marketing • Social Media Marketing • PR • Marketplaces: eBay & Amazon • Shopping price comparison engines • Google x 5 – Adwords for eCommerce, Product Search, Reviews, Google Checkout, Youtube • Product Videos • Review sites • Social Media & Commerce
  18. 18. Design is an acquisition tool
  19. 19. Copy is a conversion tool
  20. 20. Source WorldPay Why do they leave?