E-Commerce & The B2B Marketplace

JBIMS MIM Third Year
(2015 - 2018)
SEM V
NAME ROLL NO
MUFADDAL NULLWALA 15-I-131
2
• Definitions
• Market Scope
• Manager Applications
• Case Study: Alibaba.com
• Case Study: Rentacoder.com
• Best Practice
“Electronic commerce is the paperless exchange of
business information using electronic data
interchange (EDI), e-mail, electronic bulletin
boards, fax transmissions, and electronic funds
transfer. It refers to Internet shopping, online stock
and bond transactions, the downloading and
selling of ‘soft merchandise’ (software, documents,
graphics, music, etc.), and business-to-business
transactions.”
3
.
Think beyond the basic buying and selling
goods online
Complete Transaction
Marketplace
Selection
Payment
Delivery/Receipt
4
• B2B is a relationship
between 2 businesses
interacting through
digital/on-line channels
• More regular and in larger
quantities than a business
to consumer interaction.
• Think of it as selling
wholesale – because it is.
5
1. Customer Groups
2. Price Levels
3. Bulk Discounts
4. Restricted Access
5. Minimum Order
6. Tax Exemption
7. Quick Order
8. One-Click Reorder
9. Flexible Payments
6
1. IndiaMART.com
2. TradeIndia.com
3 India.Alibaba.com
4. Made-From-India.com
5. B2B.Sulekha.com
6. India.TradeFord.com
7. ExportersIndia.com
8. JimTrade.com
9. IndiaTradeZone.com
10. IndianExporters.com
7
8
• Definitions
• Market Scope
• Manager Applications
• Case Study: Alibaba.com
• Case Study: Rentacoder.com
B • Best Practices
9
• 15.25% of the National Total comes from E-Commerce
• 92.5% of E-commerce comes from Business to Business
transactions
Description
Value of Shipments, Sales, or Revenue
2015 2014
Total E-commerce Total E-commerce
Total $21,847 $3,333 $20,797 $2,972
B2B $11,088 $3,082 $10,542 $2,761
B2C $10,759 $251 $10,255 $211
E-commerce & B2B in U.S. 2015
10
• Definitions
• Market Scope
• Manager Applications
• Case Study: Alibaba.com
• Case Study: Rentacoder.com
• Best Practices
11
 The E-environment is here and
it is changing the business
world
 Business models and hierarchies
are changing
 Social interaction has changed to
include technology
 Technology is integrated into
everyday life and every decision
 E-sourcing & navigating the
e-environment
 E-commerce marketplaces
 E-transactions
12
 Quality online presentation determines your
success
 Decrease the perceived customer risk
 Increase prior customer retention
 Make it effective to work with your suppliers
 Clear transaction format
 Incentive to remain with partners who understand the e-
world
 As an employee with e-commerce skills
 High demand low supply
 Better benefits offered to increase retention
13
14
• Definitions
• Market Scope
• Manager Applications
• Case Study: Alibaba.com
• Case Study: Rentacoder.com
• Best Practices
15
69 million members
240 countries and territories
2 million retailers
4.2 million suppliers
4.8 million trade leads, company postings,
and product listings
2012 forecasts increase to 100 million
members
16
 shoes and accessories
 sports and entertainment
 telecommunications
 health and beauty
 home appliances
 home supplies
 industrial supplies
 lights and lighting
 luggage, bags and cases
 minerals, metals and materials
 office supplies
 packaging and paper
 printing and publishing
 security and protection
 textile and leather products
 timepieces
 jewelry and eyewear
 toys
 transportation
17
Range of product in various industries
 Customers:
 Focus on USA
 Aliblog started in 2008
 Asia/India
 Europe
 Australia
 Suppliers:
 Small to Medium firms
 Focused on international
trade
 Looking for additional
communications
channels
18
 Jack Ma
 Supporter of China’s Internet
 1995
 Commercialized China’s
internet
 1997
 Explored International trade
online
 1999
 Hangzhou, China
 Online marketplace
 Global enterprise community
 Part of the Alibaba Group
 Revenue Generated
by:
 Marketing & Promotion
 Fees charged to member
companies
 Revenue sharing with
third party service
providers
 Premium member
services offered at a fee
19
•Competition and market overlap
Vertical competition with Industry Portals
Horizontal competition with Supply Chain
Marketplaces
•Differentiated by:
Strength of search technology
Established brand name
Detailed product information
20
21
• Definitions
• Market Scope
• Manager Applications
• Case Study: Alibaba.com
• Case Study: Rentacoder.com
22
 2006
 10,000 projects
completed monthly
 91% of clients are repeat
clients
 May 2001 – July 2004
 20,202 projects for bid
from 7,907 clients
 Clients from 59 countries
 263,572 bids from
31,024 providers
 Providers from 70
countries
 Average bid ~$130
 Median bid ~$50
 Average number of bids
per project ~13
 95% of winning bids
under $500
23
24
Software
 Ian Ippolito
 CEO
 Bachelors in Computer
Science
 1998
 Offices in Tampa
Florida
 Revenue Generated
by:
 Percentage commission
of each completed
project
 15% taken from the coder
 Pays transaction fees
 Balance is company profit
25
•Differentiators:
Client has control over bidding and
acceptance process
3 Payment options
Regular mail-in check
Western Union
PayPal
Rentacoder.com does not charge quarterly
service fees based on coder specialty
26
Elance
Suppliers:
1) Receive bid
requests
2) Make a bid
3) Do the work
 File weekly status
reports
 Send product to
buyer
4) Receive payment
5) Rate the buyer
27
 Customers:
1) Post a bid request
2) Receive bids from coders
3) Choose and accept a bid
4) Receive and approve
work
5) Rate the coder
1. Are these exchanges even successful?
2. What is the promised value to
customers?
3. What is the promised value to suppliers?
28
163-fold return on
transaction
Fast & Reliable market
information
Links to decision tools
Choice of over 270,000
coders
Global access in real time
29
Preferential treatment for highly
rated suppliers
Niche marketplace access
Access to industry decision
makers
Fees variable to amount of work
and skill level
Control over jobs bid and work to
be done
Global access to clients
30
31
• Definitions
• Market Scope
• Manager Applications
• Case Study: Alibaba.com
• Case Study: Farms.com
• Case Study: Rentacoder.com
• Best Practices
32
Name one feature all 3 of
these B2B marketplaces
had in common…
Reduce customer risk in the marketplace
and on your supplier sites by providing:
Multiple searchable terms
Product images and pictures
Clear, concise descriptions
User feedback and ratings
When outsourcing remember that B2B
marketplaces provide connections to
global suppliers
33
Buffer – subscribe to the marketplace
Customize your dashboard for greater control
Avoid being bombarded by non-related offers
Rate your experiences with marketplaces,
suppliers, and clients
Test the site (the output) to see how effective your
marketplace is
Make sure the design of the marketplace is useful
to the buyers and suppliers who are using it
34
35
THANK YOU.
1 von 35

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E-Commerce & The B2B Marketplace

  • 1. JBIMS MIM Third Year (2015 - 2018) SEM V NAME ROLL NO MUFADDAL NULLWALA 15-I-131
  • 2. 2 • Definitions • Market Scope • Manager Applications • Case Study: Alibaba.com • Case Study: Rentacoder.com • Best Practice
  • 3. “Electronic commerce is the paperless exchange of business information using electronic data interchange (EDI), e-mail, electronic bulletin boards, fax transmissions, and electronic funds transfer. It refers to Internet shopping, online stock and bond transactions, the downloading and selling of ‘soft merchandise’ (software, documents, graphics, music, etc.), and business-to-business transactions.” 3 .
  • 4. Think beyond the basic buying and selling goods online Complete Transaction Marketplace Selection Payment Delivery/Receipt 4
  • 5. • B2B is a relationship between 2 businesses interacting through digital/on-line channels • More regular and in larger quantities than a business to consumer interaction. • Think of it as selling wholesale – because it is. 5
  • 6. 1. Customer Groups 2. Price Levels 3. Bulk Discounts 4. Restricted Access 5. Minimum Order 6. Tax Exemption 7. Quick Order 8. One-Click Reorder 9. Flexible Payments 6
  • 7. 1. IndiaMART.com 2. TradeIndia.com 3 India.Alibaba.com 4. Made-From-India.com 5. B2B.Sulekha.com 6. India.TradeFord.com 7. ExportersIndia.com 8. JimTrade.com 9. IndiaTradeZone.com 10. IndianExporters.com 7
  • 8. 8 • Definitions • Market Scope • Manager Applications • Case Study: Alibaba.com • Case Study: Rentacoder.com B • Best Practices
  • 9. 9 • 15.25% of the National Total comes from E-Commerce • 92.5% of E-commerce comes from Business to Business transactions Description Value of Shipments, Sales, or Revenue 2015 2014 Total E-commerce Total E-commerce Total $21,847 $3,333 $20,797 $2,972 B2B $11,088 $3,082 $10,542 $2,761 B2C $10,759 $251 $10,255 $211 E-commerce & B2B in U.S. 2015
  • 10. 10 • Definitions • Market Scope • Manager Applications • Case Study: Alibaba.com • Case Study: Rentacoder.com • Best Practices
  • 11. 11
  • 12.  The E-environment is here and it is changing the business world  Business models and hierarchies are changing  Social interaction has changed to include technology  Technology is integrated into everyday life and every decision  E-sourcing & navigating the e-environment  E-commerce marketplaces  E-transactions 12
  • 13.  Quality online presentation determines your success  Decrease the perceived customer risk  Increase prior customer retention  Make it effective to work with your suppliers  Clear transaction format  Incentive to remain with partners who understand the e- world  As an employee with e-commerce skills  High demand low supply  Better benefits offered to increase retention 13
  • 14. 14 • Definitions • Market Scope • Manager Applications • Case Study: Alibaba.com • Case Study: Rentacoder.com • Best Practices
  • 15. 15
  • 16. 69 million members 240 countries and territories 2 million retailers 4.2 million suppliers 4.8 million trade leads, company postings, and product listings 2012 forecasts increase to 100 million members 16
  • 17.  shoes and accessories  sports and entertainment  telecommunications  health and beauty  home appliances  home supplies  industrial supplies  lights and lighting  luggage, bags and cases  minerals, metals and materials  office supplies  packaging and paper  printing and publishing  security and protection  textile and leather products  timepieces  jewelry and eyewear  toys  transportation 17 Range of product in various industries
  • 18.  Customers:  Focus on USA  Aliblog started in 2008  Asia/India  Europe  Australia  Suppliers:  Small to Medium firms  Focused on international trade  Looking for additional communications channels 18
  • 19.  Jack Ma  Supporter of China’s Internet  1995  Commercialized China’s internet  1997  Explored International trade online  1999  Hangzhou, China  Online marketplace  Global enterprise community  Part of the Alibaba Group  Revenue Generated by:  Marketing & Promotion  Fees charged to member companies  Revenue sharing with third party service providers  Premium member services offered at a fee 19
  • 20. •Competition and market overlap Vertical competition with Industry Portals Horizontal competition with Supply Chain Marketplaces •Differentiated by: Strength of search technology Established brand name Detailed product information 20
  • 21. 21 • Definitions • Market Scope • Manager Applications • Case Study: Alibaba.com • Case Study: Rentacoder.com
  • 22. 22
  • 23.  2006  10,000 projects completed monthly  91% of clients are repeat clients  May 2001 – July 2004  20,202 projects for bid from 7,907 clients  Clients from 59 countries  263,572 bids from 31,024 providers  Providers from 70 countries  Average bid ~$130  Median bid ~$50  Average number of bids per project ~13  95% of winning bids under $500 23
  • 25.  Ian Ippolito  CEO  Bachelors in Computer Science  1998  Offices in Tampa Florida  Revenue Generated by:  Percentage commission of each completed project  15% taken from the coder  Pays transaction fees  Balance is company profit 25
  • 26. •Differentiators: Client has control over bidding and acceptance process 3 Payment options Regular mail-in check Western Union PayPal Rentacoder.com does not charge quarterly service fees based on coder specialty 26 Elance
  • 27. Suppliers: 1) Receive bid requests 2) Make a bid 3) Do the work  File weekly status reports  Send product to buyer 4) Receive payment 5) Rate the buyer 27  Customers: 1) Post a bid request 2) Receive bids from coders 3) Choose and accept a bid 4) Receive and approve work 5) Rate the coder
  • 28. 1. Are these exchanges even successful? 2. What is the promised value to customers? 3. What is the promised value to suppliers? 28
  • 29. 163-fold return on transaction Fast & Reliable market information Links to decision tools Choice of over 270,000 coders Global access in real time 29
  • 30. Preferential treatment for highly rated suppliers Niche marketplace access Access to industry decision makers Fees variable to amount of work and skill level Control over jobs bid and work to be done Global access to clients 30
  • 31. 31 • Definitions • Market Scope • Manager Applications • Case Study: Alibaba.com • Case Study: Farms.com • Case Study: Rentacoder.com • Best Practices
  • 32. 32 Name one feature all 3 of these B2B marketplaces had in common…
  • 33. Reduce customer risk in the marketplace and on your supplier sites by providing: Multiple searchable terms Product images and pictures Clear, concise descriptions User feedback and ratings When outsourcing remember that B2B marketplaces provide connections to global suppliers 33
  • 34. Buffer – subscribe to the marketplace Customize your dashboard for greater control Avoid being bombarded by non-related offers Rate your experiences with marketplaces, suppliers, and clients Test the site (the output) to see how effective your marketplace is Make sure the design of the marketplace is useful to the buyers and suppliers who are using it 34