Pillars and Electronic Store Development

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GROUP 1

Pillars and electronic store development

Banadora, Nescel
Briones, Andreline
Borres, Rhio Jhean
Caparas, Jara Joy
Cayabyab, Jedidiah
Calinisan, Geff
Castillo, Mary Jane
Moreno, John Andrei
Floranda, Mira
Sambrano, Leyra
Electronic Store and Platforms

Electronic Store
● It is a digital marketplace (website or application) that connects buyers and sellers.
● Online or virtual store of a retailer that sells goods or services over the Internet.
● online stores also offer a more personalized experience tailored for specific
groups

Ex. Bench, MANGO

Electronic Platforms
● encompasses a wider range of online environments that connect users to
facilitate various activities.
● They facilitate a wide range of transactions, transforming traditional business
models into more efficient and accessible formats.

Types of Electronic Platforms:


common examples of electronic platforms:
● E-commerce platforms: These are the giants of online shopping, allowing
consumers to purchase a vast array of goods directly from businesses or
individual sellers. (e.g., Amazon, Shopee)
● Social media platforms: While not exclusively focused on commerce, social
media platforms have evolved to include online shopping features, allowing
businesses to connect with customers and facilitate direct sales. (e.g., Facebook
Marketplace, Tiktok)
● Online learning platforms: These platforms provide educational resources and
courses, enabling individuals to learn new skills or pursue degrees entirely
online. (e.g., Coursera, Udemy)

PAYMENT CHANNELS
- is any way that a customer can make a payment, or anywhere that the merchant
might accept a payment.

FOUR WAYS:

1. In-Person Payment - are transactions that are completed with the customer
physically present at the point of sale (POS).
2. E-Commerce Payment - manage payment transactions online without the need
for a physical
3. Mobile Payment - pertains to transactions performed through mobile technology.
4. Contactless Payment - allow businesses to accept in-person payments without
the need for physical contact.
Logistics
It refers to the management and coordination of various activities involved in
fulfilling online orders. It is a crucial part of the e-commerce business model and is
often considered one of its pillars.

Here are some key aspects of e-commerce logistics:


1. Inventory Management: This involves keeping track of stock levels and ensuring
that products are available when customers place orders.
2. Order Processing: Once an order is placed, it needs to be processed. This
includes confirming the order, preparing the item for shipment, and updating the
order status.
3. Warehousing: Products need to be stored somewhere before they’re shipped to
customers. Warehousing involves the storage and organization of goods.
4. Packaging: Items need to be properly packaged to ensure they arrive at the
customer’s location in good condition.
5. Shipping: This involves the physical movement of goods from the warehouse to
the customer’s location. It includes selecting a shipping method, tracking the
shipment, and ensuring the package is delivered on time.

There are different types of e-commerce logistics, such as in-house logistics


where the e-commerce business manages its own supply chain, and third-party logistics
where an external company is hired to handle the logistics.

In the competitive e-commerce landscape, efficient and effective logistics can


provide a significant advantage. It not only ensures timely delivery of products but also
contributes to a positive customer experience.

Digital Marketing
- Digital marketing, also called online marketing, promotes brands to
connect with potential customers using the internet and other forms of
digital communication.

6 Types of Digital Marketing

1. Social Media Marketing - Social media marketing is one of the most


popular forms of digital marketing. Social media marketing means driving
traffic and brand awareness by engaging people in discussions online.
2. Search Engine Optimization (SEO) - Search engine optimization (SEO) is the
process of optimizing your online content to help it rank in search engine results
pages or SERPs.
3. Pay-per-click (PPC) Advertising - PPC Advertising is a form of advertising that
allows you to pay a fee to have your website on the search engine result page
(SERP) when someone types in specific keywords or phrases to the search
engine.
4. Email Marketing - Email marketing is a powerful marketing channel, a form of
direct marketing as well as digital marketing, that uses email to promote your
business’s products or services.
5. Mobile Marketing - Mobile marketing typically is conducted via text, also called
short message service (SMS). Text messaging is the most common way to
market via mobile devices, notifications from mobile apps and social channels
can also be received on smartphones.
6. Content Marketing - Content Marketing is a method of marketing that includes
creating and sharing online content that doesn't just promote a brand, but rather
is designed to encourage its audience to visit a brand's website

- Content marketing can take many forms, including blogs,


infographics, whitepapers, ebooks, videos, podcasts, quizzes, slide decks and
webinars.

Electronic Store Development

- Website based e-commerce


WEBSITE BASED E-COMMERCE
The term “e-commerce” simply means the sale of goods or
services on the internet. In its most basic form, e-commerce
involves electronically transferring funds and data between 2 or more
parties. This form of business has evolved quite a bit since its
beginnings in the electronic data interchange of the 1960s and the
inception of online shopping in the 1990s.
What is an e-commerce website?
- Much like a traditional physical retail store, e-commerce
websites allow consumers and businesses to buy and sell to one
another on a designated platform. The main difference between e-
commerce and physical commerce, however, is that e-commerce
transactions occur entirely over the internet rather than at a brick-
and-mortar location.

It’s tough to imagine daily life without e-commerce. We order


food, clothes, and furniture; we register for classes and other online
services; we download books, music, and movies; and so much more.
E-commerce has taken root and is here to stay.

In recent years, e-commerce has enjoyed a massive boost from the


rise of smartphones, which allow consumers to shop from nearly
anywhere.

Types of e-commerce sites


The scope of e-commerce is vast, but the types of sites that host
electronic transactions can be broken down according to the parties
involved.

Business-to-consumer (B2C): Probably the most familiar to the


average person, a B2C site enables an exchange of goods or services
between a business and a consumer, such as buying a T-shirt from
your favorite online shop.

Business-to-business (B2B): A B2B platform facilitates electronic


transactions between two businesses. If you own a company that sells
T-shirts, for example, you might buy those shirts from an online
wholesaler.

Business-to-administration (B2A): A B2A site facilitates electronic


exchanges between an organization and a public institution, like the
website of a company that designed your city’s web portal, for
instance.

Consumer-to-consumer (C2C): A C2C site, often known as a


marketplace, hosts an exchange of goods between 2 or more
consumers. Examples include websites like Etsy and eBay.

Consumer-to-business (C2B): On a C2B site, individuals offer goods


or services to businesses. This could be a freelance SEO expert who
works with companies in a certain industry or an influencer paid to
promote a company’s products.

Social Media-based E-commerce


Also known as “social commerce”, refers to the practice of buying and
selling products or services directly through social media platforms. It
involves using social media networks such as Facebook, Instagram,
Pinterest, TikTok, and others as channels for conducting commercial
transactions. It helps businesses in generating brand awareness,
increasing online recognition, growing a customer base and even
increasing sales.

Social Media E-commerce tactics that can be built into a


marketing strategy:

● Influencer marketing - social media influencers can help


businesses to promote their product and services through their
channels. The influencer following and stamp of approval acts as
a positive product recommendation and usually yields positive
results.
● Social media advertising - Ads on platform such as Facebook,
TikTok, and Instagram can be targeted potential customers and
can feature a buy now offer and personalized user experience.
● Content marketing - creating content such as blogs, articles,
videos, and other forms of multimedia can help build
relationships with new prospects and establish a brand as
thought leader in its respective industry. The content can be
integrated to social media platforms and act as a gateway for
social selling.
● User generated content- encouraging customers to share their
experiences using the product and services that they purchased.
It increases trust among current and prospective buyers.
● Live streaming - live streaming on different platforms will help to
let the customers or viewers to engage directly with sellers and
they can ask questions about the product or services that they
offer. Live selling can lead to higher sales if a purchase
opportunity is part of a Livestream.
● Shopping cart integration and native shopping features-
shopping carts can be integrated into existing social media
platforms such as TikTok so the users can purchase items
without leaving the platform. Shopping carts let customers create
their own in-app shopping experience.

What are the benefits of social media e-commerce?

BUSINESS
● Increased visibility and reach
● Targeted advertising
● Customer engagement
● Increased brand awareness
● Cost effectively

CUSTOMERS
● Convenience
● Personalized recommendations
● 24/7 access
● Market insights
● Exclusive deals and offers

COMMON MISTAKES TO AVOID IN SOCIAL MEDIA E-COMMERCE


These pitfalls can hinder your success, but with awareness and strategic adjustments,
you can steer clear of them:

1. Over-Promotion:
○ Mistake: Treating social media solely as an advertising platform.
○ Solution: Remember that social media is an opportunity to engage, build
relationships, and create desire. Sales will follow from genuine
interactions.
2. Insufficient Time Investment:
○ Mistake: Not dedicating enough time to social media.
○ Solution: A strong e-commerce social media strategy demands consistent
effort. Allocate at least an hour per day for engagement and brand
building.
3. Platform Overload:
○ Mistake: Trying to be everywhere at once.
○ Solution: Choose platforms where your target audience is most active.
Focus on quality over quantity. Be awesome on a few platforms rather
than average on many.
4. Ignoring User-Generated Content (UGC):
○ Mistake: Not leveraging content created by your customers.
○ Solution: Encourage UGC, showcase it, and engage with those who post
about your brand. Trust in user-generated content builds credibility.
5. Failing to Listen and Respond:
○ Mistake: Ignoring customer conversations.
○ Solution: Set up listening dashboards to monitor mentions of your brand.
Engage with comments and be part of relevant conversations.
6. Inconsistent Brand Voice and Aesthetics:
○ Mistake: Lack of consistency in tone, style, and visuals.
○ Solution: Maintain a cohesive brand voice and aesthetic across all social
channels. Consistency builds recognition and trust.
7. Ignoring Analytics and Metrics:
○ Mistake: Not tracking performance.
○ Solution: Regularly analyze metrics like engagement rates, click-throughs,
and conversions. Adjust your strategy based on data insights.
Remember, social media is a dynamic landscape. Adapt, learn from mistakes, and keep
refining your approach to thrive in the e-commerce space!

SUCCESSFUL EXAMPLES OF SOCIAL MEDIA E-COMMERCE


These brands have effectively leveraged social platforms to boost their sales and
connect with customers:
1. Dove: Challenging Beauty Standards:
○ While Dove itself is not an e-commerce business, its products are widely
available through various e-commerce platforms and retail outlets.
○ Dove’s impactful campaigns challenge conventional beauty standards,
emphasizing real beauty and self-acceptance. Their social media
presence focuses on empowering messages and body positivity.
2. Airbnb: Live Like a Local:
○ Airbnb, known for its unique travel experiences, has mastered social
media marketing.
○ They showcase local hosts and their properties, creating an aspirational
lifestyle for travelers. Their Instagram content highlights picturesque
destinations and encourages users to explore like locals.
3. Burberry: A Modern Approach from a Legacy Brand:
○ Burberry, a luxury fashion brand, successfully blends tradition with
modernity.
○ Their social media strategy includes live streaming fashion shows, behind-
the-scenes glimpses, and collaborations with influencers. They’ve adapted
to the digital age while preserving their brand heritage.
These examples demonstrate how social media can be a powerful tool for e-
commerce, allowing brands to connect with consumers, showcase creativity, and
drive sales directly from users’ feeds.

- Marketplace platform-based E-
commerce

What does an online marketplace do?

An online marketplace is an e-commerce site that connects sellers with buyers. It's often known
as an electronic marketplace and all transactions are managed by the website owner.
The marketplace owner is responsible for attracting customers and the processed transactions,
while the third party vendors deal with the manufacturing and shipping.

What's the history of online marketplaces?

Online marketplaces have been around since 1995, when eBay and Craigslist were founded.
eBay launched and became a place that brought sellers and buyers together in an auction
setup. Nowadays, there are countless online marketplaces from sites like Amazon, Etsy,
Alibaba, and bol.com.

Examples of marketplace-based e-commerce

● Ebay
Commission Structure
- Ranging from 8% to 10% on the total transaction value.
Shipping
- eBay Philippines does not have a specific shipping type or carrier that sellers are
required to use. Instead, sellers are free to choose the shipping method that
works best for them and their buyers.
Monthly Web Visitors
- Around 28 million
Top Selling Categories
- Consumer electronics and gadgets, Fashion and clothing, and Health and beauty
products

● Lazada
Commission Structure
- Ranging from 1% to 5%, depending on the product category
Shipping
- Fulfillment by Lazada (FBL). Lazada's courier partners include Ninja Van,
Entrego, Ximex Delivery Express, JRMT, and QDX.
Monthly Web Visitors
- Around 37 million
Top Selling Categories
- Electronics, fashion, home and living

● Shopee
Commission Structure
- Ranging from 2.5% to 4%
Shipping
- Fulfillment by Shopee (FBS). Shopee courier partnerships include J&T Express,
XDE, and 2GO. They also offer free shipping promotions to incentivize
customers.
Monthly Web Visitors
- Around 72 million
Top Selling Categories
- Electronics, fashion, and beauty. Local brands such as Cherry Mobile and
Human Nature are popular in electronics and beauty, respectively

● Facebook marketplace
Commission Structure
- Unlike other e-commerce platforms, Facebook Marketplace does not charge fees
for listing or selling products.
Shipping
- The seller ships the item directly to the buyer.
Monthly Web Visitors
- Around 79.6 million
Top Selling Categories
- Fashion apparel, furniture, home decor, and electronics

- Omni Channel E-
commerce
Omni Channel
- is a retail strategy that integrates various shopping channels—
desktop and mobile ecommerce sites, online marketplaces,
mobile apps, email, social media, and brick-and-mortar stores—
to create a unified customer experience. The goal is to make it
easy for your customers by meeting them wherever they are,
however they shop—by integrating your various sales and
marketing touchpoints.
- gives customers a unified experience across all channels,
whether it’s from in-store kiosks or other digital channels.
- emphasizes the integration of all channels. Retailers that use an
omnichannel ecommerce strategy are present on multiple
platforms, and they ensure these platforms work together to
provide a consistent and unified customer experience. The
company’s messaging, branding, shopping experience, and
pricing are harmonized across all platforms, and customer
details are retained across interactions. This way, when a
customer switches from one platform to another (like from mobile
device to a desktop device), or makes additional purchases, the
experience feels consistent.

Multi channel
- is a strategy where a business sells its products on multiple
platforms or channels, but these channels largely operate
independently of each other. For instance, each channel may
have marketing strategies and customer experiences. The focus
of multichannel ecommerce is to maximize your reach by being
present on as many channels as possible—but without
necessarily creating a consistent experience across these
channels.

What are the benefits of omnichannel e-commerce?


Cohesive message
- One of the main benefits of having omnichannel e-commerce is
that you provide your customers with cohesive messaging about
your brand. No matter where a customer encounters your brand,
the messaging is always the same.

Understanding your customer journey


- Omnichannel e-commerce allows your company to collect and
merge customer data from multiple channels. Combined, this
data gives you a full picture of what types of customers are
interested in your brand and their behavior, which gives you the
power to personalize your customer journey.

Personalizing the customer experience


- Only by understanding the customer journey can you personalize
your customers’ experience. Omnichannel e-commerce allows
you to create a personalized experience. Creating a
personalized experience is essential to omnichannel customers
as they have a 30% higher lifetime value over shoppers who only
purchase using one channel.

Improved customer experience


- Whether customers are shopping on a mobile app or through
Instagram ecommerce, they receive a consistent omnichannel
brand experience. The ability to switch between channels—and
have their order history, payment information, cart, and recently
viewed items remain consistent—makes shopping more
convenient, improving the ecommerce customer experience.

Increased sales
- A consistent omnichannel shopping experience across all
channels allows customers to easily pick up where they left off.
For instance, if a customer tries on a clothing item in-store but
can’t find their size, they can use their phone to add the item to
their cart on the brand’s website; then, once they’re home, they
can hop on their laptop to review the product—already in their
cart—and make the purchase. One study found omnichannel
shoppers spend 4% more when they shop in-store and 10%
more when they shop online (compared to their counterparts
who shop either only in-store or only online).

Enhanced brand loyalty


- The easier it is to shop, the more likely a customer will return.
Delivering a personalized omnichannel customer experience
across all touchpoints helps build stronger relationships with
customers. The convenience and familiarity of a unified brand
experience foster customer loyalty, leading to repeat shopping
trips and a higher customer lifetime value. The same study found
omnichannel shoppers were more likely to make repeat
shopping trips and more likely to tell their friends and family
about the brand.

Better insights
- An omnichannel approach allows you to gather data from all
touchpoints and gives you valuable insights into customer
behavior, preferences, and trends. This holistic view of the
customer can inform more effective marketing strategies,
personalized interactions, and product development decisions.

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