2018 SITEC EC CLASS - Introduction to E-Commerce 101: The E-Tail Process by Adrian Oh

Introduction to eCommerce

Hi, I’m Adrian Oh

* 1997 Jit Sin BM Boy* 2002 UTM Comp Sci* CNET Malaysia 1st Intern (also last)* Join OYLM sell air cond online (crazy)* Co-founder of webShaper, eCInsider (previously known as ecommercemilo)* Founder of Zetpy, MECA

I see myself as a builder, I like building things & passion about Retail, eCommerce & Internet.

Hi, I’m Adrian Oh

Hosted, SEO Friendly eCommerce Platform empower you to

Build your own branded store + Sell Multichannel

webShaper – The Best of both worldsEmpower You to Build Own Branded Store, Get Sales from Marketplaces, and Sell Offline too.

Zetpy - Sync to Malaysia Top 4 Marketplaces

Types of eCommerce

1.B2C2.C2C3.B2B2C4.O2O5.Mobile 1st

New retail

ONLINE OFFLINE LOGISTIC

C2B

NEW RETAIL

Wal-Mart Stores Inc -> Walmart Inc(effective February 2018)

Walmart CEO Doug McMillon said in a statement that he felt the name change was needed to be “consistent with the idea that you can shop us however you like as a customer.”

Marc Lore (CEO, Walmart eCommerce) views retail as increasingly channel agnostic and Walmart, with its many points of distribution, is experimenting with a variety of methods to get product to the customer.

E-Commerce Current State in

Malaysia

~700 parcels dailygoing into Taylor’s campus via online shopping

What’s happening on the real world?

Current State E-Commerce history & milestones in Malaysia

Source: ecommercemilo.com

Wave 1 Wave 2 Wave 3

Air ticket craze Deal sites clones Marketplace battle

E-Commerce 3.0

Current State New e-commerce ventures (marketplace) in 2015 / 2016

New Marketplace New Venture / Joint-Venture by…

Sin Chew(#1 Chinese Newspaper)

Astro(#1 Satellite TV)

GS Home Shopping(Korea)

Celcom(Top 2 Mobile Carrier)

SK Planet(Korea)

Hong Leong Bank(#4 Bank)

New Marketplace /TV Shopping / Mobile in

2015 / 2016

Category Retailer Own Online Store

Grocery

Giant No

Tesco Yes

AEON Big No

Convenience Store

7-Eleven No

KK Super Mart No

99 Speedmart No

Departmental Store

AEON Hampers only

Parkson Yes

The Store No

Apparel & Footwear

Padini Yes

Bata Yes

Kamdar Yes

Electronics & Appliance

Senheng Yes

Harvey Norman Yes

Best Denki No

Health & Beauty

Guardian Yes

Watsons Yes

Caring Pharmacy Yes

Beauty Specialist

The Body Shop Yes

Sa Sa Yes

L'Occitane Yes

Home & Garden

IKEA No

Courts Yes

ACE Yes

Jewellery & Watch

Poh Kong No

Tomei Yes

City Chain No

Bookstore

Popular Yes

MPH Yes

Borders Yes

Pet

PetsMore.com Yes

Pets Wonderland No

Pets Lover Centre No

Sports

Al Ikhsan Sports Yes

Takasima Yes

Royal Sporting House No

Current State More leading retailers are offering online shopping services

More than 60% of top retailers in Malaysia are doing e-commerce

(own online store or join marketplace)

Current State A closer look on Marketplaces & E-Tailers

Platform (Marketplace)

B2B2C

Deal Sites Foreign

C2C Mobile Classified

E-Tailers (B2C / Specialty Store)

Electronics Grocer

Fashion Beauty

Others

Ticketing

Airline Movie

Travel

2015 Shopping Trends in Lazada…

#1 - 81% of Lazada customers are outside of KL


#2 - Category shift from Electronics to others


#3 - >50% of Lazada customers are >30 years old


#4 - Mobile first and brand savvy shoppers

11.11 Day 2017 LAZADA SEA

• $123 Million Lazada SEA• 6.5 Million items• 70% orders placed on mobile• 3x 2016 results• 1400 orders per minute (peaked)

Lazada Malaysia - Did ~RM111 Million (real numbers)

Top 3 categories: Groceries, Baby & Toys, Electronics

Top 3 Products: Petronas Fuel CardMilo 2.2KgPineng Powerbanks

In 24 hours34,000 smartphones & tablets sold32,000 baby diapers sold

Lowest Price item: 81 sen (Tiger Biscuits, 60g)

Highest Price item: Samsung 75” UHD TV

Sell on marketplace or own branded

store?

Marketing Know-how

Product KnowledgeHigh

High

None / Low

Your own branded storeOpen store in marketplaces

Find your niche

Open store in marketplacesFind marketing experts

Should you start?

What business model to start with?

None / Low

Universal Formula for eCommerce

Online Sales($$$)

Unique Visitors (UV)

Conversion Rates (CVR)

Avg Order Volume(AOV)

= X X

2.5x 1.2x 1.0x3x

3 times sales!

Universal Formula for eCommerce

Metrics Month 1 Month 2 Month 3 …

Product # 100 120 144

Unique Visitors 5,000 6,000 7,200

CVR (%) 0.50 0.50 0.50

Order # 25 30 36

AOV (RM) 200 200 200

Total Sales (RM) 5,000 6,000 7,200

Total Margin (RM) 1,000 1,200 1,440

…

What is your target MoM, YoY growth?

+20% MoM +20% MoM +20% MoM

Start a biz plan with numbers, grow traffic and sales

Payment Gateways

What is Payment Gateway?

a Payment Gateway is what allows ashop or seller to accept credit cardsand other forms of electronicpayments online.

CPT vs CNPT

CPT•Chip + PIN•Chip + Signature•Contactless (NFC)•Magnetic

CNPT•@Internet•Mail Order •Telephone Order

How to pick your payment gateways?

Selling Online is all about Building Trust.

Some Considerations– Who am I selling to? What's the targeted market

(Country)? – Is the payment gateway service provider well known

and perceived as trustworthy in my targeted market? – Currency my targeted market use? Multi currencies?– Card Type?– How soon can I get the money in my bank account and

would it affect my cash flow? – Limit per accounts?– Settlement Currency?

Quick Tips

1) International? Pick a renown international payment gateway

2) Locally (Malaysia)? Pick one that can process RM and have it bank-in to your account fast!

3) Sell to both? Apply multi-currencies account.

Basic Features

The basic feature supported:– Currency Type– Card Type

– Reporting– Merchant Account– API (Application Programming Interface)

Extra– Recurring– Email Payment

Established Malaysia Players

• Pick your niche• Keep it simple• Domain• eStore platform (like webShaper: multi

channel)• Sign up PayPal + Local payment gateways• Upload 50 to 100 products• Test, Promote, Launching Promo!• Encourage review (WOM)

How to start?

Either you are BIG, or you are small (focus) !!!

(Don’t stuck in between!)

Pick your niche

Big: What $1Billion a year look like

An overview of what is big…really damn big

Even have robots…

NOT R2D2, but Kiva Bots

The Long Tail

• Go VERTICAL, Go DEEP. Do it better than anyone else. Even small can thrive big time.

• Eg Clothing > Mens Clothing > Underwear > G-string > 2000 designs available.

Find your niche, tell your story

But you have 1,000 different type ofcoffee beans selections on your eStore…

Or if you just selling coffee beans

Tips to hit Online Success

* Don’t compete on price.

* Provide Excellent Customer Service. (Then word of mouth get you more business)

* Customer Service is an investment.

* Start Small, Stay Focused.

* Don’t worry about competitors.

* Don’t forget to have fun!

6. Focus on Building Customer Base

Zappos.com Top 10 Lessons“Lesson #1 – The e-commerce Business is built on

Repeat Customers “

* Key Success = “Customer Repeat Purchase”.

a Grow your customer base

b Provide Excellent Customer Service

c Then your profits will follow.

Build your customer base

More Tips…What’s your values?A list of possible values

Always Low Price Everyday reliability

Hard-to-get No-fuss return

Widest Selection Best Customer Service

Exclusivity Customization

Expertise Free Shipping

Design Safety

Fast Shipping etc

Genuine Products

• Just do it, learn and think while you are doing it.

• For low cost setup, start with marketplace for traffic and trial run.

• Then, consider building your own branded webstore.

• You should own your domain - that's your brand.

• Once you find the right model - grow it, and must aim for size (volume).

How to start? By pchome CEO

• Stocks• Easily pay for it• Speedy delivery • Surprises (good one

only, please)• Good Customers

Service…

What online buyers want?

What is Good Customer Service?

• Products must have USP

Product: 1 key to success ecommerce

juicy

Special shape

Free wet tissue

No preservative

Nitrogenpackaging

• Multiple View Images

• Sell Benefits

• Stock availability

• Top reasons to buy?

• Scarcity -> Desire

• Videos

• User comment?

• Reviews?

Great Contents is your Top Salesman

Common mistakes to avoid

• Build and Customers will come

• Try to be perfect

• Traffic is NOT Free

• Product Sourcing is not important

• No opening Promo, No values

“F” our page now!

Facebook.com/webShaper

Facebook.com/ecInsider

Facebook.com/Zetpy

2018 SITEC EC CLASS - Introduction to E-Commerce 101: The E-Tail Process by Adrian Oh

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Transcript of 2018 SITEC EC CLASS - Introduction to E-Commerce 101: The E-Tail Process by Adrian Oh