Ecommerce recapEcommerce recap

B2BB2B

Business to Business EDI Replacing paper documents

– Orders, LOC, invoices, Bills of lading, receipts, certificates etc

Many advantages– Just in time– Better information– Easier sales process

Banks act as trusted third party

Remote transactionRemote transaction

Customer Manufacturer

Customer’s Bank

1. Please issue LoC:

Here is deposi

t

2. LoC:

“Pay bearer

after 30 days if you have Bill of lading and Inspection Certificate

3. Order +LoC

Shipper

4. Goods

5. Bill of

Lading

Correspondent Bank

Inspector

6. Bill of Lading

7. Bill of

Lading

8 Money

9. Goods

6. Bill of Lading

Trust relationship and mutual accounts

B2BB2B

Slow progress International standards Many large players

– CHAPS (banking), CREST (shares)

M2MM2M

Machine to Machine Just beginning

– Washing machine • Maintenance• Ordering washing powder• Negotiating electricity• Communicating with users cellphone

B2CB2C Business to Consumer Like mail order Relies on trusted payment mechanism

– Credit card, paypal

Reputation is valuable and leads to oligarchy

Consumer Protection (Distance Selling) Regulations 2000

Many advantages– Potentially global market– Maybe 29% efficiency gains

• Disintermediation, customer order entry, stock control, instant feedback etc

More TopicsMore Topics

Network effect– Site visitors-> advertising->content-> site visitors– Liquidity

Business models (monetisation)– Landgrab, Merchant, Freemiun, Advertising ,

Lottery

Legals: online contracts– Authentication, record keeping/audit trail

Jurisdiction; relevant law and place

Driving Traffic– Search engine position– External advertising

Sales funnelSales funnel

Prospects Contact Demo/Trial Negotiate Close Satisfaction

AIDA model Awareness Interest Desire Action Satisfaction

Impression Click through Register Demo Purchase Satisfaction

Web site design should aid Web site design should aid purchase processpurchase process

Phase Typical message or action

1. Recognition of the problem Target likely customers

2. Information search Search engine positionPaper and Magazine articles

3. Evaluation Testimonials, accreditation4. Decision Special Offers and trial5. Purchase Easy purchase route;

payment options; trial +refund

6. Customer relationship management Bulletin board, satisfaction survey

AnalyticsAnalytics

Instrument your site– Understand customer behaviour

Separate landing pages– Google analytics;

http://www.google.com/onlinechallenge/

Typical behaviour Typical behaviour

100,000 impressions 1% - 1000 clicks/new visitors (CTR)

– About the same as mail shot– CPC costs maybe $0.5 – $5

5% - 50 register/trial– Depends how hard registration is.

2%- 1 Purchase CPA ~$500 - $5000 http://www.google.com/onlinechalleng

e/

Future battlesFuture battles Apps vs HTML5 Local vs Cloud

– Buy or rent software?

Fixed line vs mobile– Wifi vs LTE

Developing stuff– M2M– 3D – “augmented reality”– Clean and green– Search/filter

Issues and opportunitiesIssues and opportunities

Privacy, identity, control, civil liberty Infrastructure capacity Copyright overload and other IPR

issues Understanding social behaviour Junk and spam