E-Commerce

Submitted to
Mam Amna Rashid
 Project Profile
Members:
Sadia Ahmed
Saliha Anum
Noureen Mushtaq
• Topic:
“E-Commerce”
 Definition
“E-commerce is
doing online
transaction on the
Internet.”
 Activities on Internet
• Information exchange
• Goods and services trading
• Online digital content delivery
• Electronic funds transfer & transaction
processing
• Electronic share trading
• Collaborative work orientation
• Manufacturing management
• Accounts settlement
• Online Sourcing
 E-commerce applications
• Supply chain management
• Video on demand
• Remote banking
• Procurement and purchasing
• Online marketing and advertisement
• Home shopping
• Auctions
Motivations for E-commerce
To meet customers’ demand
To increase sales
To reduce transaction costs
To react to pressure from competitors
To reduce customer support costs
To enter the global market place
To introduce new products and services
To take advantage of brand name
 Types of E-Commerce
• Basically there are following major types
of e-commerce:
1. B2B (Business to Business e-commerce)
2. B2C (Business to Consumer e-
commerce)
3. C 2C (Consumer to Consumer e-
commerce)
 Sub-types
• B2B2C
• G2B and G2C
• EDI
• E- Tailing
• E-mail
• Fax, Internet telephony
• M-Commerce (Mobile
commerce)
• C-Commerce
(Collaborative
Commerce)
 Business-to-business
 Corporate Procurements
 Customer Relationship Management
 Enhancing value chain (VCM)
 Supply Chain Management (SCM)
 Collaboration Services
 Transportation and Logistics
 Manufacturing and Distribution
 E-commerce Marketplaces
 Financial and Information Services
 Business-to-consumer
• Direct sales (online retailing)
• Marketing and advertising
• Customer services
• Financial services
• Product distribution
 Collaborative Commerce
Collaborative
commerce is the
fulfillment of
consumer order not
only by one
company or one
business but a
group of
businesses.
 Mobile Commerce
Mobile commerce is
the used of cellular
technologies such as
mobile phones
 E-
Commerce
Technology
 Scope of e-commerce
 Exchange of digitized
information
 Technology-enabled
transactions
 Technology-mediated
relationships
 Intra- & inter-
organizational
activities
 What Can We Sale On Internet?
1. Cost and frequency of purchase
2. Value proposition
3. Degree of differentiation
 Obstacles in Adopting E-
Commerce
 Difficulty in re-engineering the business
processes
 Difficulty in using complex electronic
information systems
 Lack of security on existing networks
 Successful Products
1- Flowers and Gifts
2- Paid Subscriptions
3- Financial Information
4- Online Video/ Music
5- Software
6- Consultancy Services
7- Loans and Insurance
How Honey Moves?
Essential Commerce Processes
B2B e-Commerce Web Portal
 Digital And Traditional
Differences
Key elements E-commerce Traditional commerce
Value Creation Information Product/Service
Payment Mode Credit card, EFT (Electronic Cash or Check (cheque)
Funds Transfer

Customer interface Screen-to-face Face-to-face

Communication Technology-mediated channels Personal

Accessibility 24 x 7 Limited time

Customer Self-service Seller influenced
interaction

Consumer behavior Personalization Standardization

One-to-one marketing Mass/one-way marketing

Promotion Word of mouth Merchandising

Product Virtual presence of commodity Feel & touch
 Comparison
Digital markets Traditional markets

Information asymmetry Asymmetry reduced Asymmetry high

Search costs Low High
Transaction costs Low (sometime virtually nothing) High (time, travel)

Delayed gratification High (or low in the case of a digital Lower: purchase now
good)
Menu cost Low High
Dynamic pricing Low cost, instant High cost, delayed
Price discrimination Low cost, instant High cost, delayed
Market segmentation Low cost, moderate precision High cost, less precision
Switching costs Higher/lower (depending on product High
characteristics)
Network effects Strong Weaker
Disintermediation More possible/likely Less possible/unlikely
 E-Commerce in Pakistan
In Comings Slides,
famous e-commerce
sites of Pakistan will
be presented in front
of you.
www.giftdukan.com
www.etaza.com
www.epakistan.com
www.hamarapakistan.com
www.libas4us.com
www.cdstore.com.pk
www.pakstore.com
www.pakistandutyfree.com
www.pakistangifthouse.com
www.dukandar.com
www.pakwheels.com
 Category Websites Description Type of ecommerce
Online Provides a digital C2C
Marketplace environment where
buyers and sellers
www.Pakwheels.com can meet, search for
products, display
products and
establish prices for
those products
Content provider Provides digital contents B2C
www.dukandar.com such as music,
photos, videos over
the web
Transaction Saves users money and B2B B2C
broker time by processing
www.etaza.com online sales
transactions and
gives information on
rates and terms.
Online service Provides online service to B2B2C
provider www.epakistan.com individuals and
services.
 Virtual Provides an online C2C
community meeting place where
people with similar
www.hamarapakistan.com interests can
communicate and find
useful information

Information Provides product pricing B2B2C

Broker and availability
www.pakistandutyfree.com information to individuals
and businesses.

Virtual storefront Sells physical products B2B2C

www.pakistangifthouse.com directly to consumers or
to individual businesses
eBay
in
Focus!
 Background
• To get the business off the ground,
Omidyar and cofounder Jeff Skoll enlisted
the help of Meg Whitman, branding guru
and Harvard Business graduate. Whitman,
who formed her management team with
senior level executives from industry
leaders like Pepsico and Disney, helped
create a strong mission for eBay
 eBay Mission
eBay describes their purpose as to ‘pioneer
new communities around the world built on
commerce, sustained by trust, and
inspired by opportunity’
 eBay Company Culture
Our business model is a little unusual. We don't build
cars. Or computers. Or yo-yos. But we build something
just as important. Communities. We've created a place
where people can come together. Exchange ideas.
Share experiences. And expand their own businesses.
It makes our users feel like they're part of the family.
And that feeling goes double for our employees. That's
what's so great about eBay—we're literally changing
the face of commerce every day. Do we have it down
to a science? Of course not. We're learning as we go.
Succeeding together and challenging each other to
constantly refine and improve our way of working.
 Products
• The Types of Goods
• There are four major categories of goods that
are the most viable foundations for eBay
businesses:
1. Limited-life goods
2. General goods
3. Seasonal items
4. Investment or collectible items.
• Each of these has its own demand
characteristics and is suited to a particular size,
type, and temperament of seller.
fashion
Motors
 Home
Outdoor
Decor
Movie
Music
Games
Books
Electronics And
Technology
Collecti
bles
and Art
Daily
Deals
eBay Mobile
eBay
Buy With eBay
Registration
procedure
Payment
Procedure
 Payment
Modes
Offered by
eBay
Pay Pal
eBay in Approach!
For Public
Convenience
eBay Community
 Pricing and Charges
 Browsing and bidding on auctions is free, but
sellers are charged transaction fees for the right
to sell their goods on eBay. There are two kinds
of transaction fees:
 When an item is listed on eBay, a
nonrefundable insertion fee is charged based on
the seller's opening bid on the item.
 Once the auction is completed, a final value
fee is charged. This fee generally ranges from
1.25 percent to 5 percent of the final sale price.
 eBay Revenue model
 The vast majority of eBay’s revenue is for the listing and
commission on completed sales. For Paypal purchases
an additional commission fee is charged. Margin on each
transaction is phenomenal since once the infrastructure
is built, incremental costs on each transactions are tiny –
all eBay is doing is transmitting bits and bytes between
buyers and sellers.
 Advertising and other non-transaction net revenues
represent a relatively small proportion of total net
revenues and the strategy is that this should remain the
case Advertising and other net revenues totalled $94.3
million in 2004 (just 3% of net revenue).
 eBay Proposition
• According to the SEC filing, eBay summarizes the core
messages to define its proposition as follows:
 For buyers:
• Selection
• Value
• Convenience
• Entertainment
 For sellers:
• Access to broad markets
• Efficient marketing and distribution costs
• Ability to maximize prices
• Opportunity to increase sales
 eBay Competition
• Although there are now few direct competitors of online
auction services in many countries, there are many
indirect competitors. eBay (2005) describes competing
channels as including, online and offline retailers,
distributors, liquidators, import and export companies,
auctioneers, catalog and mail-order companies,
classifieds, directories, search engines, products of
search engines, virtually all online and offline commerce
participants (consumer-to-consumer, business-to-
consumer and business-to-business) and online and
offline shopping channels and networks.
eBay Objectives and strategy
• The overall eBay aims are to increase the gross
merchandise volume and net revenues from the eBay
Marketplace. More detailed objectives are defined to
achieve these aims, with strategies focusing on:
 Acquisition — increasing the number of newly registered
users on the eBay Marketplace.
 Activation — increasing the number of registered users
that become active bidders, buyers or sellers on the
eBay Marketplace.
 Activity — increasing the volume and value of
transactions that are conducted by each active user on
our eBay Marketplace.
 Localized eBay marketplaces
• Australia •Switzerland
• India •China
• South Korea •The Netherlands
•Taiwan
• Austria
•France
• Ireland
•New Zealand
• Spain •United Kingdom
• Belgium •Germany
• Italy •The Philippines
• Sweden •United States
• Canada •Hong Kong
• Malaysia •Singapore
 Users Linked with eBay
• eBay had approximately 83 million active
users at the end of 2007, compared to
approximately 82 million at the end of
2006. An active user is defined as any
user who bid on, bought, or listed an item
during the most recent 12-month period.
 eBay Results
• eBay’s community of confirmed registered users,
has grown from around two million at the end of
1998 to more than 94 million at the end of 2003
and to more than 135 million at December 31,
2004. It is also useful to identify active users
who contribute revenue to the business as a
buyer or seller. eBay had 56 million active users
at the end of 2004who they define an as any
user who has bid, bought, or listed an item
during a prior 12-month period.
Sources: BBC (2005), SEC (2005)
 Conclusion
• eBay’s strategy of providing a safe trading place
on the internet, the eBay community has
flourished, by not only providing an efficient
medium for people to buy or sell items directly
from or to a large member of people, it’s a forum
where buyers and sellers, develop reputations
and in some cases, it can change people’s lives.
This case study was of interest to the authors
because it was intended to analyze the case
from a strategic viewpoint.
 Suggestion
• For the improvement in e-commerce in
Pakistan, internet attempt requires more
advancement, information and data, which
could provide ground to understand its
usage and opportunities in a better way
and also to let Pakistani business enter in
the global market. And for it initially we
should make e0commerce as a common
trend for all
We will be pleased by your
Questions!