Start

Dear mrs x, thank you for being present today. We are Brendis, Lorenzo and Milor. (Greeting)
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Let’s get the ball immediately rolling. In our presentation we will try to find an answer to the
question “How can an e-commerce evolve into an sustainable business model”. Our objective is to
inform you about a sustainable business model. Our presentation will last about 10 minutes. Please
L feel free to interrupt with questions at any time. (delimitation of topic)

We will start our analysis by explaining/ talking about the current situations of e-commerce’s. Are
they profitable? Is the market being dominated? How are the majority of business’s doing?
Secondly we will analyse how they manage the different aspects of their business, such as resources 2
and customers?
How is the future looking for such business’s?
Finishing our topic, we will give a good example of a sustainable e-commerce. (Talk outline)

Current situation of e-commerce

Some interesting facts that we can list are as the following. Surprisingly Brazil is at the top of the list 3
for the highest growing e-commerce growth, it has been measured by the CAGR methode. What is
the CAGR? Its is called the compound annual growth rate. This compound is one of the most
accurate ways of calculate en determine returns for anything that can rise or fall in value over time.
Investors can compare the CAGR of two alternatives to evaluate how well one stock performed 4
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against other stocks in a peer group or a market index. What can the CAGR not do? Well it does not
reflect investment risk.

The e-commerce business gradually growing. Its gaining about 2% market share of total global retail
sales. That means that it is growing at an higher rate than conventional commerce’s. If you can read 5
it well, you can see that is has more than doubled its market share in 6 years. Possibly with this year,
it will have 1/5th of the market share.
Are they profitable ?

In order to establish the company, it can be set up fairly quickly and easily. But it will have to go
through an intense structuring process. And it can take months before such a company can post a
decent turnover. A study shows that it can take an average of 12 to 18 months for an e-commerce
business to achieve decent sales. This is due to several factors. The most important is status. Building
a relationship and a reputation is not always easy. You also need to find the right partners to work
with. Another factor is that such a company will have a lot of costs in the first few months. Turnover
is still far too small to be able to immediately cover all costs and certainly not to make a profit.

We can agree that for most companies the path to success is not at all easy, but filled with struggles
and difficulties.

What is very important in this sector is that delivery must be quick and correct. It goes without saying
that a company should offer good and quality products to its customers. Also, what is very important
that many people do not think about is that there should be a very good customer service.

There is a saying that goes around: a satisfied customer passes it on to 3 people, a dissatisfied
customer passes it on to 8 people11. Mouth of mouth is and remains the best form of advertising.
Er is een gezegde dat rondgaat dat zegt: een tevreden klant geeft het door aan 3 mensen, een
ontevreden klant geeft het door aan 8 mensen. Door is en blijft mond tot mond reclame het beste
reclame.

Eventually the ecommerce industry is expected to grow by almost $11 trillion between 2021 and
2025. As businesses came online during the COVID-19 pandemic, the global trend toward digitization
surged ahead at lightning speed. Even as regions begin to reopen, ecommerce growth keeps
climbing.

This graph explains the rise of revenue in billions Brazilian reel. It has multiplied its revenue by a
number of 4.
How do they manage the different aspects of their business, such as resources and customers?

A company without a structure is already half lost. It will not be long before chaos breaks out. That is
why it is important that the company has a good structure, and that each individual is given a task
within the company. This keeps the business running at its most efficient and productive way.

To represent a structure in the company, we use an organisation chart. In the organisation chart,
each department is clearly divided.

Most companies use the following departments and their purpose:

Taking decisions
Satisfying stakeholders
Director board
Planning for the future
Steering the compony into the right direction
Payments (Invoices, …
Financial/Facturation/Accountancy/Countability
Keeping track on trade debtors
department
Accounting administration
Staff/Employee training
Employee satisfaction
Human resource department
Teambuilding, activities
Planning
Building relationship with suppliers
Purchase department
Booking great deals/contract
Marketing  Reclame
Sales department
Keeping a close watch on market developments
Customer service
Customer satisfaction
Customer department
Building and holding the loyalty
Attractiveness  New customers
Market development in the future
Research & Development department
Optimalisation work/structure
IT solutions/problems
Server maintenance/development
)Tech/IT department
Website development/updates
Designing
Staff/Employee department Hiring staff
Receives people at the reception
Reception
First contact with visitors
How will this evolve in the future?

E-commerce is an undiscovered place of the market. E-commerce had only the chance to get rolling
and growing in the 21st century. That means that we cannot precisely predict the path of e-
commerce based on past knowledge/ experience, if we don’t have such knowledge. Until know the
growth is not linear but exponentially. Wat WE can do is predicting the path based on facts, the facts
ARE that the world is digitalizing. Internet access is expanding to undiscovered places around the
world. So more people will discover e-commerce and that should directly result into more
purchases. With more purchases, businesses will grow financially and will be able to offer a broader
spectrum of goods for the consumers. Therefore they can spend more on their research and
development, that will result into evolution of their way of working. By that I mean, they can lower
their carbon footprint, improve customer relationship. IN SHORT they improve on every aspect of
their core-business.
Example e-commerce

We decided to use amazon as an example. Amazon is becoming Earth’s most customer-centric

company. They are growing at a good rate. They are making quite a lot of profits. Their company is
growing its value, stakeholders are becoming richer. While they are still running their day to day
business. For eco sustainability, they are targeting net-zero carbon by 2040. By 2025, they want to
power their operations by 100% renewable energy. They are also making 50% of all shipments net-
zero carbon by 2030. They will deploy around 100.000 custom vehicles by 2030. To close this part of
its mission. They investing 2 billion Dollars which supports the development of decarbonizing
technologies and services.

Switching to racial justice and equity, Amazon donated more than 27 million Dollars through an
employee match program to organizations working to bring about social justice and to improve lives
of Black and African lives.

By doing all of these things, amazon is working on the future while not impeding their current
business activities.