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Click here to read SME-Part B-Lecture 8-Sub Lecture 8A
Click here to read SME-Part B-Lecture 8-Sub Lecture 8B
Let us gear our engine to a new chapter.
E-commerce and the Entrepreneur
The Internet: Changing the Face of Business
A major shift is being observed from offline (physical) to online in businesses.
Business ideas are still being applied online.
In the world of e-commerce technology, company size matters less than speed and flexibility.
Speed means responsiveness and flexibility means preference, supply chain, and the ability of adaptation rate with a new trend.
By 2021, the internet will influence more than in off-line sales.
Business scope in e-commerce:
In developed countries, 86% of the world's businesses are online.
The benefit of selling on the web is a 24/7 opening.
Web's interactive nature facilitates two-way communication. It is possible to know customers' opinions through the web's interactive nature. Thus, it is possible to provide better customer service.
Power of educating and informing
The online platform gives the ability to lower the cost of doing business.
The online platform ensures the perfect market by providing information to all buyers and sellers.
1. Convenient: The online platform gives the cost-convenient space.
2. Storage is not required at all times. When storage is needed, a storage facility can be given.
3. No significant marketing cost
4. Reaching to a huge number of customers
Developing and maintaining e-platform is hard. One has to bear fixed costs of one's business once in an e-platform.
5. E-platform is required to achieve segmentation.
The product of the Dhaka-based market can reach hill tract customers through an online platform. One can deliver one's product to remote customers through a delivery system. E-platform gives the ability to spot new business opportunities. E-platform gives the ability to grow one's business faster.
6. E-platform gives the power to track sales results
Customer preference shifting, product size, the trend of product amount, etc are known through e-platform. It gives the facility the strategy maker to make a strategy in the future.
Conversion rate refers to the ratio of purchasing through the e-platform to browser surfing (viewer) in the e-platform. For instance, the number of browsers surfing in the e-platform is 100 and the number of purchasing through the e-platform is 10. So the conversion rate will be 10:100.
57.3% of small business owners in the U.S. have a website.
The barrier to offline business ( 2 barriers)
1. Business owners cannot understand or know the e-platform business.
2. E-platform business requires cost and time.
Factors to consider before launching into E-commerce (Those who want to go to an online business they have to consider the following factors)
The success of an e-platform business depends on defining relations in the e-platform.
E-commerce strategy is to be integrated with the overall strategy.
Unsatisfied customers do not have the interest to inform others in the aspect of offline business.
Unsatisfied customers tend to inform others in the aspect of online business.
Building up a website is not enough, one has to invest time and money on the website.
The success rate of an e-commerce business depends on understanding demand shift, relevant result, need, taste, preferences, the necessity of bringing change in policy, etc.
Assessing a Company's Online Business (One has to check if one can do an online business)
1. Niche marketing does not need to go online. Niche marketing does not require to create a broad appeal to customers.
2. One has to check if one wants to sell outside one's pre-defined geographical areas and can do it
3. One has to check if going to online businesses is economical
4. One has to check if one is getting a cost advantage due to online business
5. One has to check if one has search optimization capability, sponsors and customers attraction ability to the website
10 Myths of E-commerce
Myth 1: It is easy to please customers in e-commerce.
Myth 2: Customers will create a crowd in e-commerce.
Myth 3: Making money in e-commerce is easy.
Myth 4: Privacy in e-commerce is not important. (Privacy is an ethical issue in e-commerce.)
Myth 5: Technology is the most dominant part of e-commerce. ( Product or service is the most dominant part of e-commerce.)
Myth 6: No strategy is required in e-commerce. ( Online-related strategy is required in e-commerce.)
Myth 7: Afte- sales-service does not require in e-commerce. (Ater sales-service is important in e-commerce. Customers share the after-sales-service experience with others.)
30-35% of customers share their positive experiences.
80-85% of customers share their negative experiences.
Myth 8: All information on the website is not necessary (Smoothness of accessing, searching, ordering on the website, etc are necessary for e-commerce.)
Myth 9: Writing on the website will not be counted in e-commerce.
Myth 10: Thinking that how "one's doing online business" look as one has been doing offline business for one's lifetime
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1 Comments
se ve un buen material, yo que trabajo en este medio son herramientas muy buenas
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