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e-Commerce: The Pros
• Access to international market
• Lower barriers
• Lower cost of operations
• Speed to market
• Systematic & efficient management
• Automation
• 24x7 service
• Tools to reach customers direct
• Direct connection with customers
• Customer relation management
• Business & Market Analysis
Online Marketing
Offline Marketing
Online Business Cycle
• Online payment
• Online logistics arrangement
• Integration with real business
Shorten transaction time
Shorten business cycle
Improve cash flow
Change: Bypass the Middlemen
Customers Retailers Wholesalers Import
Organizations Export
Organizations Factory
Customers e-Commerce Factory
Traditional
Now
Increasing Margin from 5% to 54%
Advantage: Increased Margin
Logistics 10%
Net Profit 54%
Manufacturing Cost 12%
Online Payment 4%
Web Store 20%
Net Profit 5%
Manufacturing Cost 8%
Overseas Retail 25%
Overseas Channel 50%
Domestic Channel 12%
Traditionally e-Commerce
New Eco-System in Business
Margin Transaction Cost Business Cycle Global Market
Safe & Transparent Direct to Customers Analytics
Examples of E-Commerce Users
Sellers Buyers
SME suppliers
Traditional wholesaler exporters
Trading companies
Web merchant entrepreneurs
SME retailers
Wholesalers & distributors
Small business for own use
Part/time business owners Young
entrepreneurs
Forecast: US Online Retail Sales 2012-2017
Forecast by Forrester back in 2013 http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/
Forecast: Online Retail Growth in Other Countries
Forecast by Forrester back in 2013 http://mashable.com/2013/03/12/forrester-u-s-ecommerce-forecast-2017/
Buyer Sourcing via Multiple Channels
Supplier websites
Web searches
Industry press (print)
Word of mouth
Direct mail
Press advertising
Blogs
Other social media
Any traditional online — 88%
Any offline — 74%
Any new online/social media — 40%
*Source: A total of 1,017 European buyers took part in the BUYERSphere survey 2011
Near 90% buyers source via online channels (including sourcing websites, suppliers websites and search engines)
>70% continue to source via traditional mediums (trade fairs, magazines)
Common Issues in China Sellers
• Dishonesty – Product Description, Photo,
Color, Size, …
– Counterfeit
– Wrong Tracking No
• Language – English, Spanish, …
– Communication, Culture
• Copying – Products, photos,
descriptions
Buyers
• Dishonesty – Fault Payments
• Custom & Tax
• Consumer Culture
• Returns