next generation ecommerce: prospect and challenges
TRANSCRIPT
Next Generation Ecommerce:Prospect and Challenges
Shaer Hassan
CEO, Nascenia
Content
• Background
• Prospect
• Missing parts to be filled
• Fear
• Practical tips for e-commerce business
Definition and Background
E-commerce
is trading products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as
– electronic fund transfer
– supply chain management
– Internet marketing
– online transaction processing,
Classification
Superstore
Amazon Biponee, Akhoni, iFerri
Niche Diapers.com Goponjinish, Carmudi, Lamudi
Service AirBnb, Shopify Bdjobs, Bdipo, dugdugi
B2B Alibaba, Amazon Supply
etunes
B2C Barnes & Noble Branoo, Rokomari, hungynaki
C2C ebay, Clickbd, Cellbazar, iOffer
Yet to Come
• Shareconomy: Uber, Airbnb
• Booking: Agoda.com, expedia.com (Shohoz)
• Streaming: Netflix, Spotify (Bongo)
Prospect
Promising numbers
• Internet penetration
– 11 to 40.8 million internet users
– Introduction to 3G
• Mobile penetration
– 75% of mobile phone penetration (11.43 million users)
• Payment through credit cards and mobile (bKash)
Growth is Exponential
Source: Technopak
India vs. Bangladesh vs. World
Bangladesh India World
Market Size$1.2
(estimated)$15 billion $1.5 trillion+
Growth 5% 30% 8-10%
Source: World data: emarketer.com, Indian data: Wikipedia, Bangladeshi Data: unverified
Growth
Source: Slideshare (original source not mentioned)
Missing Parts
Core E-commerce Value Chain
Access to e-commerce site
Customization and
recommendation
Pay and Purchase
Sourcing & managing inventory
Shipping, tracking &
delivery
Customer service
Missing Parts
• Courier system
– No tracking system
– Long delivery time
– Inconsistent
– Poor cash handling: is it scalable?
• Tax break
Missing Parts
• Payment gateway integrator (not bank)– Recurring payement
– Option of charge-back to the client
– Payment on hold so that
– Payment split - (so that, in a C2C platform payment can go to user + business owner)
• Other services: SEO, software service, call centers
• Human resource
• Large warehouse and inventory management system
• Investment
• Media support for PR
Missing Parts (to scale up)
Fear Factors
Facts
• Nobody is making profit
• Some don’t even introduced a revenue model
• Everyone is dissatisfied with delivery
– Some are taking up own delivery system e.g. hungrynaki, rokomari, iferi, chaldal etc.
• COD putting risk on business, courier service handling cash
– Not scalable
Fcommerce: 60% products are imported
Source: f-Commerce and e-Commerce (Current Scenario in Bangladesh) by Mahabubur Rahaman Arman, www.tzonebd.com
Fear Factors
• Foreign players
• Need a lot of investment
• Winner takes all
• Increasing cost of Marketing
• Disadvantage for a local player to advertise on global media e.g Google, FB
– Local media is even more expensive and fuzzy
Tips
Recipe by Amazon
• Lower price
• More options
• Better Delivery
Source: Delivering Happiness: A Path to Profit, Passion and Purpose
Recipe by Amazon
Gain market power
Retailer negotiates
with supplier for discount
Discount is passed to
the customers
Source: The Everything Store: Jeff Bezos and the Age of Amazon by Brad Stone
Ways to win customers
• Surprise Customers in a good way (freebies, quicker delivery - Zappos!)
• Under promise, over deliver
• Be clear and concise
• Anticipate customer needs
• Empathize and be sincere
• Shorten response time
Survival Tips
• Focus on retention
• Focus on a niche
• Spend on marketing now is cheaper than later
• Look for investors – big ones
• Look for sustainability
– surviving only on tax break, foreign products, continuous ad on international media is not sustainable
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