1. Definition & introduction to the PL market environment - Key trends 2. Online sales in relation to company’s key business processes - Understanding changes in buying process - Introducing online in offline company 3. Operational Techniques of selling in e-commerce - Understanding the customer - Online merchandising - Customer service

1. e-Commerce PART I
Author: Justyna Skorupska
Lecturer: Justyna Skorupska
September 2014, Warsaw

2. Agenda
1.Definition & introduction to the market environment - Key trends
2.Online sales in relation to company’s key business processes
 Understanding changes in buying process
 Introducing online in offline company
3.Operational Techniques of selling in e-commerce
Understanding the customer
Online merchandising
Customer service

3. Definition & introduction to the market environment - Key trends

4. 1. What is e-commerce?
•E-commerce – all activities and procedures that use electronic means and devices, using computer networks in order to conclude remote transaction / close remote sale
E-commerce
≠
e-marketing

5. 1.1 E-commerce is not only about sales channel
It is about all the environment company marketing perspective:
Offline marketing – Point of Sale (POS)
Online marketing
Tomasz Mazur, Wybrane aspekty działań marketingowych producenta wspierające sprzedaż online , Polish eCommerce Summit 2014

6. 1.2.1. E-Commerce: macro/micro-environment
•Marketing agencies
•E-commerce agencies
•E-commerce platforms suppliers
•Software houses
•Payment systems
•Hosting agencies
•Logistics companies
•Warehousing companies
•Market associations
•Market experts
•Consulting agencies
•Media
•Country Legislators
•EU Commision
•Many other...

7. 1.2.2. E-commerce macro/micro-environment
•Manufacturers
•Distributors
•Wholesalers
•Offline trade (TT+MT)
•Online shops
•STAKEHOLDERS (business parnters)
•COMPETITORS

8. 1.3.1. E-commerce Europe

9. Author: Justyna Skorupska
1.3.1. E-commerce Europe

10. 1.3.2 E-commerce Southern Europe

11. 1.3.3 E-commerce Central Europe

12. 1.3.4. Poland compared to Europe

13. % of PL internet users buy online
13
Source: Garapich A., E-commerce w polsce. Rynek, nabywcy, trendy, PBI

14. Purchased products
 For each category of products listed on the chart, select if you ever bought them by the Internet and if you are going to buy them in the future.
% for answer „I bought in the past”
14
22%
24%
26%
29%
38%
39%
40%
41%
44%
45%
45%
51%
53%
55%
57%
57%
58%
59%
66%
77%
80%
insurance
groceries
articles for collectors
pharmaceutical products
computer software
multimedia (applications, e-books, etc.)
jewellery
furniture and interior design
computer games
cars and automotive components
travel, reservation
articles for children / toys
sportswear
cosmetics / perfumes
computer equipment
footwear
tickets to the cinema / theater
phones, smartphones, tablets, GSM accessories
electronics and household appliances
books, CDs, movies
clothing, accessories
http://www.ecommerce.gemius.pl/raport-e-commerce.html

15. Most recognize e-commerce services in PL
15

16. Factors affecting on the choice of particular service
What makes you decide for first purchase at the particular website instead some other, offering similar products / services?
16
http://www.ecommerce.gemius.pl/raport-e-commerce.html

17. Źródło: Megapanel PBI/Gemius, luty 2013
1.3.3.TOP 4 e-shops categories in PL e-commerce
Jewellery
69,8%
Clothing
68,6%
General eshops
58,9%
Toys &
small children
60,8%
Flowers
68,4%
Weapons &
military
81,8%
Automotive
66,6%
Erotics
66,1%

18. 1.4 E-commerce Obstacles of internationalization
1. Insuficient offering of legal services on the cross-border level
2. Lack of infromation for companies wanting to sell online and lack of clear customer rights regulation
3. Unproper payment systems and logistics
4. Many malpactices and disputes that are impossible to solve
5. Insuficient cover of fast broadband and technological solutions
EU Commision, Główne przeszkody w funkcjonowaniu jednolitego rynku cyfrowego

19. The eTail International Delivery Report 2014
1.4.1 Obstacles - logistics example

20. The eTail International Delivery Report 2014
1.4.1 Obstacles - logistics example

21. 1.5 E-commerce How to sell internationally?
1.Online strategy
2.Niche products gives the possibility to think about the cross-border perspective
3.Knowledge – on e-commerce and about the markets
4.Sufficient funding
5.Managing the cost of logistics

22. 5.Payment methods popular in target countries
6.Trust of the local customers – prefering country entrepreneurs
7.Accepting the local customer rights
8.Knowledge or advisory on legal issues (TAX, intelectual property, administrative law, regulation on transport cost, customer contracts law)
9.Knowing or hiring employees with the knowledge of local languages
1.5 E-commerce How to sell internationally?

23. 1.6.1. E-commerce market trends
Ongoing growth in e-commerce sales and profesionalization
Growing sector of e-commerce operational processes outsourcing
EU Consumer Rights directive – changes in procedures and shop regulations
New „self pick-up points” – using existing infrastructure
Expansion and internationalization of companies across Europe
outsourcing logistics and distribution points in low-cost areas
Consolidation of smaller e-businesses against big competitors

24. 1.6.2. E-commerce market trends
Any device any platform
customers will use multiple device to find and buy the products what will affect company’s strategy and technological approach to e-commerce
ROPO effect
Research Online Purchase Offline – the way the customer search, find and buy the product. It is more about which channel does the customer use and how structure the sales processes in companies in order to generare the biggest revenue.
The Super Consumer...
Super Consumers are a segment of Heavy Users that are highly engaged with a category and a brand beyond their high purchasing levels. Super Consumers might have a special connection or association with a brand, or they may value certain aspects of a product’s usage more than other buyers. Super Consumers to purchase your product more often than the average Heavy User. The company’s role is to retain and offer the best possible customer service/customer excellence.
1.Cube Research 2. Key trends for e-commerce, Global Ecommerce Summit 2014, Wijnand Jongen

25. 2. Online sales in relation to company’s key business processes Understanding changes in buying process

26. Online sales in relation to company’s key business processes
The New Shopper. Today’s Purchase Path and the Media that Influences It. Online surveys among those aged 16 or older were completed in 17 countries by Microsoft Advertising & Carat US,, 2013
The proces of buying is no more linear!
Nowadays customer having a mobile device can be in one local store and in many online shops
New structure of buying decision proces:

27. Online & offline Recomendations
27
Do you trust recomendations and opinions posted in the web?
Trust recomendations and opinions posted in the web
Yes totally
Yes
No
Partially

28. Let’s discuss
Fundamental needs of shoper stays the same. It is all about new available sources of information. Before choosing a product customer needs mainly: info about product, opinions/recomendations, price.

29. THANK YOU!
Justyna Skorupska
CEO
justyna.skorupska@symcore.net
M: 781 580 484
www.symcore.net
eBusiness Consulting Sp. z o.o.
Ul. Londyńska 25
03-921 Warszawa
NIP: 113-286-66-59
KRS: 469349