International Marketing

Fundamentals of E-commerce, Digital Marketing and SMM

Session 4
Introduction to E-commerce
Outline
• Review of Session 3 – Global / International 4P
Article Examples

• Session 4 – Introduction to E-commerce

• Term Project
Outline
• Review of Session 3 – Global / International 4P
Article Examples

• Session 4 – Introduction to E-commerce

• Term Project
IDS&M Concept Map
 References: Fundamentals of E-commerce
Laudon, K. C., & Traver, C. G. (2023). E-commerce 2023: Business, Technology,
Society. Pearson Higher Ed

Camisasca, Charles (2022). How to Start and Grow an E-Commerce Business:

Answering the 5 Fundamental Questions of eCommerce and Taking the
Entrepreneurial Leap – January 17, 2022

Real Life (Article) Examples

 lnternal
Environment
Essentials of E-commerce Resources

I. Market Research → Identify the product  Make/Manufacture or Buy

→ Identify target market / customers
External
Environment
Competition
II. E-commerce Platform (B2B, B2C, …)
Revenue Model
Delivery Model

III. Marketing – Digital Marketing

IV. After-sales Service

Recall: E-commerce
• e-commerce, in full electronic commerce, maintaining relationships and conducting
business transactions that include selling information, services, and goods by
means of computer telecommunications networks
Source: Britannica
E-commerce
• Source: https://www.shopify.com/encyclopedia/what-is-ecommerce.

“Ecommerce, also known as electronic commerce or internet commerce, refers to

the buying and selling of goods or services using the internet, and the transfer of
money and data to execute these transactions. Ecommerce is often used to refer
to the sale of physical products online, but it can also describe any kind of
commercial transaction that is facilitated through the internet.“
E-commerce
• Source: Chaffey, D., Edmundson-Bird, D., & Hemphill, T. (2019). Digital business and
e-commerce management. Pearson UK.

“All electronically mediated information exchanges between an organization and

its external stakeholders“

- Buy-side e-commerce
- Sell-side e-commerce
E-commerce
• Source: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-e-commerce
“E-commerce is buying and selling of goods online“

• First online transaction?

1994: Friend – Friend; Sting CD for $12.48 + Shipping Expenses
E-commerce: Types of Markets
Source: https://www.indeed.com/career-advice/career-development/consumer-to-business
https://sell.amazon.com/learn/what-is-ecommerce

• Business-to-Business (e.g., Shopify, Amazon)

• Business-to-Consumer (e.g., Amazon, Netflix, …)
• Consumer-to-Consumer (e.g., eBay, Craigslist, Amazon MP)
• Consumer-to-Business (e.g., Referrals, Freelancers, …)
• …
The digital sales channel
• Source: Steenkamp, J. B. E. (2020). Global brand building and management in the
digital age. Journal of International Marketing, 28(1), 13-27

“The digital sales channel refers to sales of products and services through a variety
of internet-based platforms”
Why e-commerce?
• E-commerce as percentage of total retail sales worldwide from 2015 to 2020, with forecasts from
2021 to 2025
Source: https://www.statista.com/statistics/534123/e-commerce-share-of-retail-sales-worldwide/
Why e-commerce?
• Source: https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf
Why e-commerce? Disruptions…

• Covid-19 → Digitization of Customer Interactions

Source: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-
point-and-transformed-business-forever
Why e-commerce?
• Digital Around the World
Source: https://datareportal.com/reports/digital-2021-global-overview-report
https://datareportal.com/reports/digital-2022-global-overview-report
https://datareportal.com/reports/digital-2023-global-overview-report
Why e-commerce?
• Global Digital Growth
Source: https://datareportal.com/reports/digital-2021-global-overview-report
https://datareportal.com/reports/digital-2022-global-overview-report
https://datareportal.com/reports/digital-2023-global-overview-report
Why e-commerce?
• E-commerce Adoption by Country
Source: https://datareportal.com/reports/digital-2021-global-overview-report
In-class Discussion: E-commerce in Africa
• https://www.mckinsey.com/featured-insights/middle-east-and-africa/how-
ecommerce-supports-african-business-growth
Why e-commerce?
• Share of the population and internet users purchasing online in France from 2003 to 2022
Source: https://www.statista.com/statistics/411917/online-purchasing-penetration-france/
Why e-commerce?
• E-commerce Adoption by Age and Gender
Source: https://datareportal.com/reports/digital-2021-global-overview-report
Why e-commerce?
• Weekly Online Purchases
Source: https://datareportal.com/reports/digital-2022-global-overview-report
Why e-commerce?
• Weekly Online Grocery Purchases
Source: https://datareportal.com/reports/digital-2022-global-overview-report
Why e-commerce?
• E-commerce (Spent by) Consumer Goods Categories
Source: https://datareportal.com/reports/digital-2021-global-overview-report
https://datareportal.com/reports/digital-2022-global-overview-report
Why e-commerce?
• Overview of Consumer Goods E-commerce
Source: https://datareportal.com/reports/digital-2023-global-overview-report
Why e-commerce?
• Online Travel and Tourism
Source: https://datareportal.com/reports/digital-2022-global-overview-report
Why e-commerce?
• Research Products Online
Source: https://datareportal.com/reports/digital-2021-global-overview-report
Advantages of e-commerce?
• More reach
• Buying Process: Faster
• Response Time of Sellers: Faster (24/7 Availability…)
• Flexibility for Buyers and Sellers
• Cost effective: (Cost of investment-e.g. offices, stores, marketing, …)
• Access to Customer Data
• Ease of tracking deliveries
• …
 Pros and Cons of online shopping?
• https://www.forbes.com/advisor/in/credit-card/advantages-of-online-shopping/

p l e
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Pros: E-commerce in Exports?
• More international customers
- Less need for local offices
- Less marketing costs

• Ease of providing information to customers AND more customer data to firms

• …
Cons: E-commerce in Exports?
• General disadvantages apply
- Online environment: Online contacts may be less effective than face to face
- Logistics and return logistics
- Security in online environment
-…
Why E-commerce for Exports?
• How e-commerce can play a big role in boosting exports from India
Source: https://economictimes.indiatimes.com/small-biz/trade/exports/insights/how-e-commerce-can-play-a-big-role-in-
boosting-exports-from-india/articleshow/87753172.cms

• Understanding e-commerce exports:

Source: https://sell.amazon.in/grow-your-business/amazon-global-selling/blogs/advantages-of-exports-via-
ecommerce#:~:text=E%2Dcommerce%20exports%20assists%20sellers,physical%20setup%20to%20reach%20customers.

a m p l e s
t i c l e E x
Ar
Essentials of E-commerce
I. Market Research → Identify the product  Make/Manufacture or Buy
→ Identify target market / customers

II. E-commerce Platform (B2C, B2B, …)

Revenue Model
Delivery Model

III. Marketing – Digital Marketing

IV. After-sales Service

Objectives
• Describe and discuss how you identify the product you will sell
• Describe and discuss how you identify your target market
Recall: Essentials of E-commerce: Product & Market
• Market Research → Identify the product
→ Identify target market / customers

• Keep in mind that there are different type of markets:

• Business-to-Business (e.g., Shopify, Amazon)
• Business-to-Consumer (e.g., Amazon, Netflix, …)
• Consumer-to-Consumer (e.g., eBay, Craigslist, Amazon MP)
• Consumer-to-Business (e.g., Referrals, Freelancers, …)
e.g. https://www.indeed.com/career-advice/career-development/consumer-to-business
 Recall: Essentials of E-commerce: Product & Market
• Market Research → Identify the product
→ Identify target market / customers

• Market Research (Source: https://sell.amazon.com/learn/start-ecommerce-business)

How to start an ecommerce business from scratch in 5 steps

1. Market research for the business idea and what to sell

2. Sourcing your product

a m p l e s 3. Identify selling channels

t i c l e E x 4. List products …

Ar 5. Marketing
 Recall: Essentials of E-commerce: Product & Market
• Market Research → Identify the product
→ Identify target market / customers

• Market Research (Source: https://www.bigcommerce.com/articles/ecommerce/sell-online/)

How to Sell Online: The What, Where and How of Running an Ecommerce Business
How to start selling online?
1. Conduct market research
2. Choose what products to sell
3. Identify your target audience
4. Conduct e-commerce platform research

a m pl e s 5. Create product content

t i c l e E x 6. Build your online store

Ar 7. Promote and market your store

Keep in mind
• Make (Manufacture) or Buy?
Source: https://www.shopify.com/blog/13975985-how-to-find-a-manufacturer-or-supplier-for-your-product-idea

• How to source products to sell?

Source: https://www.shopify.com/blog/product-sourcing-apps
-

a m p l e s
t i c l e E x
Ar
Keep in mind: Volume and Profitability

• Exhibit 1: Channel profitability varies significantly across categories and is

correlated with each category’s e-commerce maturity
Source: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/high-growth-low-profit-the-e-commerce-dilemma-for-cpg-companies
Identify the product…
• Firm
Existing Firm → Existing Firm Products (Adaptations, developments, …)
Start-up → Idea Generation (Consider your areas of expertise…)

• What potential products? Which potential markets?

Recall: Identify the product… Consider which country?
• E-commerce Adoption by Country
Source: https://datareportal.com/reports/digital-2021-global-overview-report
Recall: Identify the product… Consider which Industry?
• E-commerce (Spent by) Consumer Goods Categories
Source: https://datareportal.com/reports/digital-2021-global-overview-report
https://datareportal.com/reports/digital-2022-global-overview-report
Recall: Identify the product…
• Firm
Existing Firm → Existing Firm Products (Adaptations, developments, …)
Start-up → Idea Generation (Consider your areas of expertise…)

• What potential products? Which potential markets?

• Physical Product
• Service
• Digital Product
Identify the product…

• Idea Generation (e.g. https://www.shopify.com/blog/product-opportunities)

How to find a Product to sell Online

1. Solve customer pain points

2. …
3. Go with personal passion
4. Consider professional experience
5. Capitalize on trends early
6. …
Identify the product…

• Idea Generation

What are the possible improvements?  Customer pain points!

What is the possible added value?

• Value Proposition
https://www.linkedin.com/advice/3/whats-your-e-commerce-value-proposition-skills-e-
commerce#:~:text=A%20good%20e%2Dcommerce%20value%20proposition%20is%20clear%2C%20concise%2C,features%2C%20advantages%2C%20or%20benefits.
Identify the product…

• Idea Generation (Source: https://www.shopify.com/blog/product-ideas)

17 place to find product ideas
Identify the product… B2C
• Idea Generation (Source: https://sell.amazon.com/learn/start-ecommerce-business)
B2C ecommerce examples
Identify the product… B2C
• Idea Generation (Source: https://www.forbes.com/advisor/business/e-commerce-business-ideas/)
13 Profitable E-commerce Business Ideas for 2023 - Forbes
Identify the product… B2C
• Idea Generation (Source: https://business.adobe.com/blog/basics/ecommerce-business-ideas)
Unique ecommerce business ideas for 2023
Identify the product… B2C
• B2C Statistics (Source: https://www.statista.com/markets/413/topic/457/b2c-e-commerce/#overview)
B2C Ecommerce

Average Rate of Revenue Growth

Identify the product… B2C
• B2C Statistics (Source: https://www.statista.com/markets/413/topic/457/b2c-e-commerce/#reports)
Asia is the biggest e-commerce market
Identify the product… B2C
• B2C Statistics (Source: https://www.statista.com/markets/413/topic/457/b2c-e-commerce/#statistic2)
Fashion's love affair with e-commerce
Identify the product… B2B
• Idea Generation (Source: https://sell.amazon.com/learn/start-ecommerce-business)
B2B ecommerce examples
Identify the product… B2B
• Idea Generation (Source: )
https://seller.alibaba.com/businessblogs/px0023gwi-top-10-trending-products-to-sell-online-in-2023

B2B firms looking for a digital selling niche will also benefit from this list
Identify the product… B2B
• Idea Generation (Source: https://www.shopify.com/plus/solutions/b2b-
ecommerce?_bt=641993318096&_bk=b2b%20ecommerce%20platform&_bm=b&_bn=g&_bg=99080585960&&&&&gclsrc=aw.ds&gclid=EAIaI

QobChMI34jWicLCgQMVXDgGAB1eUwy8EAAYAiAAEgKbEvD_BwE )
Which industries use Shopify’s B2B ecommerce platform?
Identify the product… B2B
• B2B Statistics (Source: https://www.statista.com/markets/413/topic/458/b2b-e-commerce/#overview)
B2B E-commerce

Gross Merchandise Value

Identify the product… B2B
• B2B Statistics (Source: https://www.statista.com/forecasts/1300515/business-to-business-online-market-value-forecast-europe)
Business-to-business (B2B) e-commerce Gross Merchandise Value (GMV) forecast
in Europe from 2022 to 2025 (in billion U.S. dollars)
E-commerce:

• Driving B2B growth with AI

Source: https://www.accenture.com/us-en/services/applied-intelligence/solutions-ai-b2b-growth
Identify the product… C2C
• Idea Generation (Source: https://www.indeed.com/career-advice/career-development/meaning-of-c2c)
Understanding the C2C Market: Benefits, Types and Challenges

1. Online Auctions (can be 3rd Party Sites)

2. Ecommerce sites
Candles on ETSY
3. Money Transfer Platforms
Money transfer by Venmo
4. Social Media Sites
Identify the product… C2C
• Idea Generation (Source:
https://www.forbes.com/sites/bernhardschroeder/2019/04/29/entrepreneurs-forget-b2c-and-b2b-build-a-c2c-

ecommerce-platform-and-disrupt-or-grow-an-industry/)
Entrepreneurs, Forget B2C and B2B. Build a C2C Ecommerce Platform And Disrupt Or Grow An Industry.

1. Expert skills or education acquisition

2. Book publishing services
3. Explore a potential hobby
Identify the product… C2C
• C2C Statistics (Source: https://www.statista.com/markets/413/topic/983/c2c-e-commerce/#overview)
C2C Ecommerce
Identify the product… C2C
• C2C Statistics (Source: https://www.statista.com/markets/413/topic/983/c2c-e-commerce/#overview)
C2C Ecommerce: Smaller segment in e-commerce
Identify the product… C2C
• C2C Statistics (Source: https://www.mckinsey.com/industries/technology-media-and-
telecommunications/our-insights/c2c-ecommerce-could-a-new-business-model-sell-more-old-goods)

The growth of online C2C platforms during the COVID-19 pandemic has been significant
Identify the product… C2C
• C2C Statistics (Source: https://www.mckinsey.com/industries/technology-media-and-
telecommunications/our-insights/c2c-ecommerce-could-a-new-business-model-sell-more-old-goods)

Fashion and family items top online C2C transactions for

second hand goods
Identify the product… C2C
• C2C Statistics (Source: https://www.mckinsey.com/industries/technology-media-and-
telecommunications/our-insights/c2c-ecommerce-could-a-new-business-model-sell-more-old-goods)

People are buying more secondhand goods online primarily to save money, but creating
less waste is also driving the change in behaviour
What we discussed ?
Question: Why we need market research?

• Understand and evaluate the opportunities

• Evaluate the potential sales volume and profitability → Cash Flow
-…
-…

o u r t
i f y y r ke
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J u and m a
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Target Market and Customers

• Refer to Sessions 1 - 3 as well

o u r t
i f y y r ke
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J u and m a
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In-class Exercise: Identify your product

• List two potential product ideas and justify your product choice based on your class
notes.
Prepare four REASONS
o Potential product from business experience / personal expertise / market research
E.g. Personal passion… → Possible improvements/added value
o Pain points → Possible improvements/added value
o E-commerce in the country (Opportunities, trends)
o E-commerce in the industry (Opportunities, trends, volume, profitability, …)
o …
1.1. Product: Make/Manufacture or Buy/Resell?
• A matter of research and analyses (including financial analysis)
• Assume that you are not a manufacturer firm

o If Resell; Local vs. Import product? (Consider having a backup supplier)

• How To Find a Manufacturer or Supplier for a Product (2024)

Source: https://www.shopify.com/blog/13975985-how-to-find-a-manufacturer-or-supplier-for-your-product-idea

• Sourcing Products For Ecommerce 101: How to Get Unique and Marketable Stock
Source: https://www.bigcommerce.com/blog/source-products-online-business/

• How to start an ecommerce business from scratch in 5 steps

Source: https://sell.amazon.com/learn/start-ecommerce-business
1.1. Product: Buy/Resell
• Market research
• Choice of supplier/manufacturer (Vendor analysis)
• Sample approval
• Contract
• Order
End of Session 4…

\
 Term Project
How to increase social media engagement?
Step 1: How to increase social media engagement?
• How to improve your social media engagement?
https://sproutsocial.com/insights/social-media-engagement/

• How to Increase Social Media Engagement: A Guide for Marketers

https://blog.hootsuite.com/social-media-engagement/

de
• The Science of Making Things Go Viral S li
: 1
https://www.visualcapitalist.com/science-making-things-go-viral/
s
Cl
• Why Certain Things Go Viral?
as
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e
https://hbr.org/video/4698519638001/why-certain-things-go-viral
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Step 1: How to increase social media engagement?
• How to increase social media engagement? – General
i d e
Any steps, procedure or process ? S l
Operational Examples s : 1
la s
C
Important Web Metrics & Why? xt
Ne
• How to increase social media engagement? – Facebook, Instagram, Twitter, TikTok
Each team will take 2

• How to increase social media engagement? – Any specific points for our objectives?
SLIDES SHOULD BE EXPLANATORY!
Someone should understand the content without the need for a presentation
 Guide
How to increase social media engagement?
Analysis of the current engagement:
The Firm and the Benchmarks
Recommendations

1. ……

2. ……

3. ……

…………
Our Goal and Target Audience

• Our goal

• Our target audience? Why?

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Our Strategy
Suggested Operational Visuals 1

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Suggested Operational Visuals 2

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Suggested Operational Visuals 3

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The Posting Schedule

•…

•…
Other Recommendations