Workshop Details : With benefits such as around-the-clock availability, the speed of access, a wider selection of goods and services, accessibility as well as international reach, E-commerce is typically business transactions that occur over an electronic network which operates in all four of the major market segments: business to business, business to consumer, consumer to consumer and consumer to business. MaGIC is organizing a workshop by Adrian Oh of webShaper . In this workshop, Adrian will present the general aspects of ecommerce . The focus will be on the types of e-commerce and the current state and challenges of e-commerce. We will explore the opportunities and benefits of moving to e-commerce. Website : www.mymagic.my Facebook : https://www.facebook.com/magic.cyberjaya Twitter : https://twitter.com/magiccyberjaya Youtube : http://goo.gl/cb1z2d SlideShare : http://slidesha.re/1BfSncP Email : enquiries@mymagic.my

1. How traditional retail can kickstart
ecommerce successfully?

2. abit about myself
• 1997 Jit Sin BM Boy
• 2002 UTM Comp Sci
• CNET Malaysia 1st Intern (also last)
• Join OYLM sell air cond online (crazy)
• Co-founded webShaper & eCommercemilo
I see myself as a builder, I like building things &
passion about Retail, eCommerce & Internet.

3. Table of Contents
1) The types of eCommerce
2) The current state of the market
3) The benefits of traditional retail kickstarting
ecommerce
4) The advantages of traditional retail
5) How to Start?
6) Avoid the common mistakes
7) The opportunity

4. 1.B2C
2.C2C
3.B2B2C
Types of eCommerce

5. Market Potential

6. 67.0%
38.1%
Source: World Bank
There are more than 20 million Internet Users in Malaysia
Internet penetration in Malaysia higher than
world average

7. 144.7%
92.6%
Source: World Bank
There are more than 43 million mobile subscriptions in Malaysia
Mobile penetration in Malaysia is also higher
than world average

8. Source: We Are Social
43% or 18.7 million
of mobile subscriptions are 3G connections
35% or 10.5 million
Smartphone penetration of total populations
42% or 4.4 million
Smartphone users have made a purchase via phone
It’s a mobile world

9. 44% or 13.2 million
of total populations use social media on mobile
Source: We Are
Social Media on the go

10. in circulation, 0.9 million of them are supplementary cards
Source: BNM, 2013
8.2 million credit cards

11. Local banks taking online more seriously

12. Opportunities Malaysians are used to making payment via online banking too
We have some 2.3 million
active users who performed
over 2.5 million shopping in
2012.
Maybank ex-President and CEO Datuk Seri Abdul Wahid Omar

13. Source: Nielsen & PayPal Analysis, 2011
1.40b 1.58b
1.24b
1.08b
0.94b
0.81b
Euromonitor
(products only)
Online Commerce Market Size: Malaysia

14. Source: Nielsen & PayPal Analysis, 2011
5.5%
% of whole
Online Commerce
59.6%
Mobile Commerce Market Size: Malaysia

15. Source: Nielsen & PayPal Analysis, 2011
Online Commerce Mobile Commerce
Top Categories for Online & Mobile Commerce

16. Source: ecommercemilo.com
Top 5 categories for online shoppers

18. Source: Euromonitor
36.2 37.4
43.1 46.7
26.325.7
Malaysia is a “Young” Country: Ideal for eCommerce

19. ~700 parcels daily
going into Taylor’s campus via online shopping
So, what’s happening on the real world?

20. Current State E-Commerce history & milestones in Malaysia
Source: ecommercemilo.com
Wave 1 Wave 2 Wave 3
Air ticket craze Deal sites clones Marketplace battle
E-Commerce 3.0

21. Current State More shopping sites launched in Malaysia in recent years
Source: ecommercemilo.com

22. Current State More leading retailers are offering online shopping services
Category Retailer Own Online Store Join Online Marketplace
Grocery /
Departmental Stores
Yes -
Gift-only -
Yes -
Apparel
-
Yes
Yes -
Electronics & Appliance
Yes
-
Health & Beauty
Yes -
-
Jewellers & Watch
-
Yes -
Others
Yes -
-
Yes -
Source: ecommercemilo.com
22 out of top 40 leading retailers (55%) are doing e-commerce

23. Current State What about SME?
70% of 1 million SMEs
in Malaysia do not have website
Account for up to 99.2% of total business establishments
Contribute up to 32% of Malaysia’s GDP
Employ 56% of total workforceSME
Source: The Edge, SME ICT Usage Survey

24. Source: ACCCIM 2012 SMEs Survey
48%
28%
24%
Opportunities!
72% Malaysia SME are not doing eCommerce, YET.

25. • One eCommerce store serve all
• No geography boundaries
• Reach nationwide, then worldwide
#1 easy expansion

26. • You own the trust
• Much easier to convert existing offline
customers - convenient
• O2O – online to offline, offline to online
#2 It complements you

27. • 5 - 20% of a new physical store investment
#3 Lower cost to sell more

28. • Utilize the off-peak time
• Adds more value and fun
#4 Make your staffs more productive

29. • Fire-sale for old / non-moving stocks
#5 Clear Stock

30. • No floor space limit
• Unlmited SKUs (literally)
• Virtual 2nd store concept
• Allow you to take pre-order, back order.
#6 Your most complete product catalogues

31. #7 Cross Selling & Up Selling

32. #8 Get your products discovered online

33. Marketing Know-how
Product Knowledge
High
High
None /
Low
Your own branded store
Open store in marketplaces
Find your niche
Open store in marketplaces
Find marketing experts
Should you start?
What business model to start with?
None /
Low

34. Source: tradegecko.com
PROFIT
RISK
What inventory model to start with?

35. Challenges Challenges faced by e-commerce businesses in Malaysia
Source: ecommercemilo.com
Traffic
Sales

36. Online Sales
($$$)
Unique Visitors
(UV)
Conversion
Rates
(CVR)
Avg Order
Volume
(AOV)
= X X
2.5x 1.2x 1.0x3x
3 times sales!
Universal Formula for eCommerce

37. • Customer Base
• Trust
• Traffic
• Stock
• Customers can see and touch
• In-store pickup for online purchase (when
you do ecommerce)
The advantages traditional retail got

38. • Understand your market
• Keep it simple
• Domain
• eStore platform (like webShaper: multi
channel)
• Sign up PayPal + Local payment gateways
• Upload 50 to 100 products
• Test, Promote, Launching Promo!
• Encourage review (WOM)
How to start?

39. • Stocks
• Easily pay for it
• Speedy delivery
• Surprises (good one only, please)
What online buyers want?

40. Deliver Happiness in a box

41. How zappos deliver happiness

42. • 阮的肉干
http://www.pcstore.com.tw/beefpro
How Taiwan DryMeat deliver happiness?

43. • Products must have USP
Product: 1 key to success ecommerce
juicy
Special
shape
Free wet tissue
No preservative
Nitrogen
packaging

44. • Delivery exactly what’s order (sell what’s in
stock)
• Surprise them
• Set expectation, exceed it
• Quality of goods
• Reasonable, customer oriented refund
policy
How you can deliver happiness

45. Metrics Month 1 Month 2 Month 3 …
Product # 100 120 144
Unique Visitors 5,000 6,000 7,200
CVR (%) 0.50 0.50 0.50
Order # 25 30 36
AOV (RM) 200 200 200
Total Sales (RM) 5,000 6,000 7,200
Total Margin (RM) 1,000 1,200 1,440
…
What is your target MoM, YoY growth?
+20% MoM +20% MoM +20% MoM
Start a biz plan with numbers, grow traffic
and sales

46. • Multiple View Images
• Sell Benefits
• Stock availability
• Top reasons to buy?
• Scarcity -> Desire
• Videos
• User comment?
• Reviews?
Great Contents is your top salesman

47. Focus on Building Customer Base
Zappos.com Top 10 Lessons
Lesson #1 – The e-commerce Business is built on
Repeat Customers
* Key Success = “Customer Repeat Purchase”.
a Grow your customer base
b Provide Excellent Customer Service
c Then your profits will follow.

48. More Tips to hit Online Success
* Don’t compete only on price.
* Provide Excellent Customer Service.
(WOM get you more business)
* Customer Service is an investment.
* Start Small, Stay Focused.
* Don’t worry about competitors.
* Don’t forget to have fun!

49. SEO & Multi Channel matters
Start with an All-in-one, Search Engine
Friendly and Multi Channel webStore
like webShaper
www.webshaper.com.my (SEA)
www.webShaper.net (International)

50. Common mistakes to avoid
• Build and Customers will come
• Try to be perfect
• Traffic is NOT Free
• Product Sourcing is not important
• No opening Promo, No values

51. Real Merchant
Real Sales
Real Success

52. Success stories of our customers
Rcsmart.com.my (Retailer)
Alhumairacontemporary.com (Blogshop)
Scrap-n-crop.com (Home-based)
Odonatabooks.com (Publisher)

53. Rcsmart.com.my

54. Alhumairacontemporary.com

55. Scrap-n-crop.com

56. Odonatabooks.com

57. eCommerce is only…

59. Q&A

60. Fb.com/adrianoh
adrian@webShaper.com