E-Commerce: Expanding Business Online

Janette Toral http://e-commercephilippines.com

DigitalFilipino.com Club

•  http://www.e-commercephilippines.com •  Free research reports, marketing

assistance, referrals, and consulting. •  Have individual, SME, and corporate

membership •  Nearly 100 members.

http://www.searchprofileindex.com

http://www.adinteresting.com

http://www.homebasedelite.com

http://digientrepreneur.com

Internet Search emerges as the top online activity.

Activities showing significant increase at 95% confidence levels Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index 2010

April 2011

What is E-Commerce? •  E-Commerce is the exchange of information or

transactions using any form of electronic communication. •  Covers both commercial and non-commercial

transactions (Republic Act 8792, The E-Commerce Law) •  The Internet is the information highway or public network

where e-commerce and various forms of communication take place.

•  E-commerce that takes place over the Internet is often referred to as Internet Commerce.

•  Mobile Commerce - transaction takes place in mobile devices such as cellular phone and personal digital assistant (PDA).

Examples: Forms of e-commerce

•  Electronic data interchange •  Fax •  Internet bulletin board •  Email •  Electronic fund transfer •  Text messaging

E-Commerce Law •  It gives legal recognition of electronic data messages,

electronic documents, and electronic signatures. (Section 6 to 15)

•  Allows the formation of contracts in electronic form. (Section 16 to 23)

•  Makes banking transactions done through ATM switching networks absolute once consummated. (Section 16)

•  Parties are given the right to choose the type and level of security methods that suit their needs. (Section 24)

•  Provides the mandate for the electronic implementation of transport documents to facilitate carriage of goods. (Section 25 and 26)

E-Commerce Law •  Mandates the government to have the capability to do e-

commerce within 2 years or before June 19, 2002. (Section 27)

•  Mandates RPWeb to be implemented. RPWeb is a strategy that intends to connect all government offices to the Internet and provide universal access to the general public. (Section 28)

•  Made cable, broadcast, and wireless physical infrastructure within the activity of telecommunications. (Section 28)

•  Empowers the Department of Trade and Industry to supervise the development of e-commerce in the country. (Section 29)

E-Commerce Law •  Provided guidelines as to when a service provider can be liable.

(Section 30) •  Authorities and parties with the legal right can only gain access to

electronic documents, electronic data messages, and electronic signatures. For confidentiality purposes, it shall not share or convey to any other person. (Section 31 and 32)

•  Hacking or cracking, refers to unauthorized access including the introduction of computer viruses, is punishable by a fine from 100 thousand to maximum commensurate to the damage. This includes mandatory imprisonment from 6 months to 3 years. (Section 33a)

•  Piracy through the use of telecommunication networks, such as the Internet, that infringes intellectual property rights is punishable. The penalties are the same as hacking. (Section 33b)

•  All existing laws such as the Consumer Act of the Philippines also applies to e-commerce transactions. (Section 33c and 33d)

E-Commerce Law •  Tasks the DTI, DBM, and BSP to enforce this law and

issue implementing rules and regulations, in coordination with DOTC, NTC, NCC, ITECC, CoA, other concerned agencies and the private sector. (Section 34)

•  Create a Congressional Oversight Committee composed of the Committees on Trade and Industry/Commerce, Science and Technology, Finance and Appropriations of both the Senate and House of Representatives to oversee the law's implementation. (Section 35)

•  Funding for continued implementation of the E-Commerce Law shall be included in the annual General Appropriations Act. (Section 36)

IRR for ECA •  Authority of the Department of Trade and Industry in supervising

and directing the implementation of the law. (Section 2) •  Principles that shall govern the implementation of the E-Commerce

Law. Mechanisms for private sector input and involvement in policy-making by government agencies, in respect to the implementation of the law, shall be promoted and widely used. (Section 3a and b)

•  Equal tax treatment to both e-commerce and traditional transactions (Section 3d)

•  Mandates businesses to protect the privacy of users and give them control to protect such. (Section 3e)

•  Encourage small and medium enterprises in order to gain access to IT resources. (Section 3g)

•  Government to provide equal and transparent access to information. (Section 3l)

•  Private sector is encouraged to explore means of settling e-commerce disputes such as arbitration and mediation. (Section 3m)

E-Commerce Project Plan •  Workshop •  Align with strategic plan •  Market and competitive

research •  Competitive advantage •  Product or service plan •  Partners •  Marketing •  Success criteria •  Content plan

•  Technical specifications •  Legal •  Testing •  Security •  Customer service •  Logistics •  Payment •  Maintenance •  Budget

http://bit.ly/adwordstool

Find out competition through search engine.

Search engine is a reputation engine.

http://bit.ly/pinoydelikasi

From family delicacy gifts to full-blown export business.

Sulit.com.ph

http://bit.ly/ayannah

Provide solution and collaboration opportunity.

http://bit.ly/jamflores

Educate the market, show potential.

2011 will be year of Mobile Content and Mobile Marketing

http://bit.ly/chitjuan

Use social media to engage, generate results, proactively connect.

http://www.architerra.org

http://digientrepreneur.com

E-Commerce Project Plan •  Workshop •  Align with strategic plan •  Market and competitive

research •  Competitive advantage •  Product or service plan •  Partners •  Marketing •  Success criteria •  Content plan

•  Technical specifications •  Legal •  Testing •  Security •  Customer service •  Logistics •  Payment •  Maintenance •  Budget

Book reference: Brains on Fire

Improve

•  Products •  Marketing •  Content •  Sales •  Customer Service

Photo credit: PinayAds.com

Content

Community

Capacity building

Commitment

Continuous Research

Cost-effective

http://digitalfilipinocom.ning.com

http://digitalfilipino.podomatic.com

http://slideshare.net/janettetoral

Winner of DigitalFilipino Social Networking Awards 2010 (Social Network category)

Engages the audience

http://www.coffeeboard.com.ph/

Brand Background Real Leaf green tea is the newest ready-to-drink (RTD) tea in the market launched mid-2009.

Real Leaf is brewed from 100% whole green tea leaves, naturally packed with Theanine, with a delicious hint of fruit and honey.

Real Leaf Green Tea won the blog category in DigitalFilipino Social Networking Awards 2010

Key Learnings •  Incentivized consumer engagement with the blogger community

around a strong concept can drive rich RESPONSE and online brand presence.

   “What’s  in  it  for  me?”    

iPod  Nanos,  cash  &  products  

 Big  Idea  

 Real  Leaf  Paparazzi  

Medium  

Key  Blogs  &      Blog  Networks  

=  150+  product-­‐related  photos  

400+  blog  posts  

40+  related  search  results  

1st place: Mommy Talks by Precious Bahinting http://www.mommytalks.net/2010/01/real-leaf-paparazzi.html

Search Results for: “Real Leaf” Google Top 10 results

Before:  1  video,  1  employee  post   AJer:  8  on  the  Top  10    search  results  

BACKGROUND Apl de Ap + MTV Asia + PH DOT

were in search for the next unsigned PINOY ARTIST

MTV Emerge won the media voting category in DigitalFilipino Social Networking Awards 2010

http://bit.ly/bradgeiser

Proactively care about people.

plug

hide

tag

http://foursquare.com

#3 Be relevant to your audience.

Be Useful

TV PRINT POS CRM

digital

social

game

digital

social

game

digital

social

game

digital

social

game

mobile mobile mobile mobile

Ways to accept payment

•  Cash – person to person •  Bank deposit •  Remittance service •  Credit card •  SMS

Card Network

Life Cycle of a Transaction - Authorization

1. Consumer Selects goods to purchase

2. Website redirects Consumer to Payment Gateway

3. Gateway accepts payment details from Consumer

4. Gateway encrypts transaction and transmits to Acquirer.

5. Acquirer sends transaction to Card Network

6. Card Network routes transaction to Issuer of Credit Card

7. Issuer check for sufficient funds and provides Authorization

8. Acquirer passes transaction result to Gateway.

Card Network

Life Cycle of a Transaction - Settlement

1. Gateway closes off Batch and transmits to Acquirer

2. Acquirer sends Batch to Card Network

3. Card Network settles transaction by paying Acquirer and debiting Issuer Account

4. Issuer Debits Card Holder’s Account

5. Acquirer Makes Deposit to Merchant’s Account

Charge Backs and Refunds

Website

Card Network

Acquirer

Issuer

Be prepared

•  IPV4 to IPV6 •  Cheaper bandwidth •  Powerful mobile devices •  Tools-empowered generation •  Knowledge society

– Thinking – Discerning – Vocal

See you online

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