Ali Reza Karbor
MA in e-Commerce,Shiraz University
Shiraz Chamber of Commerce,Industries, Mines and Agriculture
2. What is E-Commerce ?
• E-commerce is the activity of buying or selling of products on online services
or over the Internet.
3. A Brief History
• 1979: Michael Aldrich demonstrates the first online shopping system.
• 1989: In May 1989, Sequoia Data Corp. IntroducedCompumarket, the first internet
based system for e-commerce. Sellers and buyers could post items for sale and
buyers could search the database and make purchases with a credit card.
• 1992: Book Stacks Unlimited in Cleveland opens a commercial sales website
(www.books.com) selling books online with credit card processing.
• 1994: Netscape releases the Navigator browser in October under the code name
Mozilla. Netscape 1.0 is introduced in late 1994 with SSL encryption that made
• 1995: Jeff Bezos launchesAmazon.com and eBay is founded by computer
programmer Pierre Omidyar as AuctionWeb.
4. A Brief History
• 1999: Alibaba Group is established in China. Business.com sold for US $7.5
million to eCompanies, which was purchased in 1997 for US $149,000. ATG
Stores launches to sell decorative items for the home online.
• 1999: Global e-commerce reaches $150 billion
• 2000:The dot-com bust. (Watch e-Dreams and Startup.comTv Show )
The dot-com bubble was a historic economic bubble and period of excessive speculation that occurred roughly
from 1997 to 2001, a period of extreme growth in the usage and adaptation of the Internet.
When the bubble burst, some companies, such as Pets.com and Webvan, failed completely and shut down.
Others, such as Cisco, whose stock declined by 86%, and Qualcomm, lost a large portion of their market
capitalization but survived, and some companies, such as eBay and Amazon.com, declined in value but
• 2002: eBay acquires PayPal for $1.5 billion.
5. Ecommerce according to the Parties involved
• Business to consumer (B2C) –Transactions happen between businesses and
consumers. In B2C ecommerce, businesses are the ones selling products or
services to end-users (i.e. consumers).
Online retail typically works on a B2C model. Retailers with online stores such as
Walmart, Macy’s, and IKEA are all examples of businesses that engage in B2C
In Iran : Digikala.com, Bamilo.com, Modise.com , Zanbil.ir ,Tehrankala.com
6. Ecommerce according to the Parties involved
• Consumer to business (C2B) – Consumer to business ecommerce happens when a
consumer sells or contributes monetary value to a business. Many crowdsourcing
campaigns fall under C2B ecommerce. (Freelancer.com, getafreelancer.com)
In Iran : Ponisha.ir , ParsCoders.com ,…
7. Ecommerce according to the Parties involved
• Business to business (B2B) – As its name states, B2B ecommerce pertains to
transactions conducted between two businesses.Any company whose
customers are other businesses operate on a B2B model.
• Examples include Alibaba.com Biggest B2B website in china, ADP, a payroll
processing company, and Square, a payments solution for SMBs.
• In Iran : www.eranico.com
8. Ecommerce according to the Parties involved
• Consumer to consumer (C2C) – As you might have guessed, C2C ecommerce
happens when something is bought and sold between two consumers. C2C
commonly takes place on online marketplaces such as eBay, in which one
individual sells a product or service to another.
• In Iran : Divar.ir , Sheypoor.com
9. Ecommerce according to the Parties involved
• Government to business (G2B) – G2C transactions take place when a company
pays for government goods, services, or fees online. Examples could be a
business paying for taxes using the Internet.
• Business to government (B2G) – When a government entity uses the Internet to
purchases goods or services from a business, the transaction may fall under
• Consumer to government (G2C) – Consumers can also engage in B2C
ecommerce. People paying for traffic tickets or paying for their car registration
renewals online may fall under this category.
10. Ecommerce merchants according to what they’re selling
• Stores that sell physical goods :These are your typical online retailers.
• Service-based e-tailers :Services can also be bought and sold online. Online
consultants, educators, and freelancers are usually the ones engaging in
• Digital products :Ecommerce is, by nature, highly digital, so it’s no surprise that
many merchants sell “e-goods” online. Common types of digital products
include ebooks, online courses, software, graphics, and virtual goods.
11. Ecommerce platforms
• Online storefronts : Having an online storefront is one of the most
straightforward ways to conduct ecommerce.The merchant creates a website
and uses it to sell products and services using shopping carts and ecommerce
• Online marketplaces : Ecommerce transactions can also take place on online
marketplaces — sites that facilitate transactions between merchants and
customers. Many online marketplaces don’t own inventory; rather, they just
connect buyers and sellers and give them a platform on which to do business.
• Social media : Social media can pave the way for ecommerce in two ways: social
sites can facilitate a sale by directing shoppers to a merchant’s ecommerce site,
or they can allow users to buy something directly on the platform.
13. Ecommerce Business Models
• Drop Shipping :The simplest form of ecommerce, drop shipping lets you set up a
storefront and take the customers’ money.The rest is up to your supplier.This
frees you from managing inventory, warehousing stock, or dealing with
packaging, but there’s a major caveat.
If your sellers are slow, product quality is lower than expected, or there are
problems with the order, it’s on your head (and in your reviews). Bamilo (and these
days Digikala) is an example of an ecommerce site using drop shipping.
14. Ecommerce Business Models
• Wholesaling andWarehousing :Wholesaling and warehousing ecommerce
businesses require a lot of investment at the start – you need to manage
inventory and stock, keep track of customer orders and shipping information, and
invest in the warehouse space itself.
Digikala.com is greatest ecommerce website in Iran and
15. Ecommerce Business Models
• Private Labeling and Manufacturing : If you’ve got an idea for the perfect
product, but don’t have the cash or desire to build your own factory, this might be
the right ecommerce business model for you.
Companies that manufacture products offsite for sale send the plans or prototypes
to a contracted manufacturer who produces the product to meet customer
specifications and can either ship directly to the consumer, to a third party such as
Amazon, or to the company selling the final product.(Sourcify)
16. Ecommerce Business Models
• White Labeling :White labeling is similar.You choose a product that is already
successfully sold by another company, but offers white label options, design your
package and label, and sell the product.This is common in the beauty and
wellness industries, but more difficult to encounter in other niches.
17. Ecommerce Logistics
• Logistics is the process which involves obtainment, storage and shipment of
products. It includes warehousing, inventory management, billing, packaging,
labeling, shipping, product return and so on.
Some ecommerce companies have their own logistics companies whereas the others
look for reliable third party logistics providers to provide speed and accurate product
delivery thereby satisfying the customers.
Ecommerce players have started to implement same day delivery services and they also
offer free or low shipping options for attracting the customers.To handle customers
request on return and exchange of products, they have adopt a proper reverse logistics.
18. Product Models
• Single Product Model : Single-product ecommerce businesses focus on a single
product, potentially in varying levels, offered to businesses or consumers.This is a
good model if you know you have a solid product with high demand and limited
competition. Otherwise, tread carefully. Remember the adage about putting all
your eggs in one basket… :D
• Single Category : When you want to test the waters in an ecommerce niche, a
single category site can be a smart choice. By offering a small selection of
carefully chosen products, you can build your reputation and credibility without
overspending.This is a smart model for new business owners, and requires
minimal effort and investment to manage.The main drawback is that you’re only
likely to catch the interest of a very small portion of ecommerce shoppers.
19. Product Models
• Multiple Category : Retailers who have tried a single category site successfully
and are ready to expand their offerings might be ready for multiple category
Product selection is one of the most difficult parts of managing this type of site.
One bad product can ruin your reputation, and if you are sourcing from multiple
suppliers, the larger your store is, the more difficult logistics become.
• Affiliate : Often through blogs, but sometimes through dedicated ecommerce
stores, affiliate sales benefit the original seller by providing additional visibility
and the affiliate by providing an opportunity to monetize product reviews, a
personal blog, or other site.
Most affiliate sites aren’t big money makers, but they can provide an additional
income stream for sites that predominantly rely on other income streams.
• An ideal customer is someone who has a problem you are uniquely
equipped to solve, who is willing, able and happy to pay for that solution,
and who is delighted to have found you.
• First, you need to admit a hard truth :Your product isn’t for everyone.
• Second find 4 Answer for : ( about first happy customers )
• The ideal outcome : is what the customer wants most from your product. If I’m buying
a sweater, my ideal outcome would to be warm (but not too warm)
• Worst fears :What is the worst thing that could happen if your customer doesn’t have
your product? What do they stand to lose?
• Greatest pain points : are key to understanding how much your ideal client really needs
• biggest benefits : question not only tells you what people love about your product, but
also gives you deeper insight into your customers’ ideal outcomes — especially the ideal
outcomes they’re really achieving.
21. Types of Customers
• A New-to-Internet Newbie :They don't have any expectations, but they may avoid
complicated pages and click buttons. Such customers usually begin their first-time
online purchase with small, low-budget, and safe products.
Perfect descriptions of the products, easy to find 'BUY' buttons, easy-to-use shopping
cart, and fuss-free checkout pages may help the new users gain confidence in making
another purchase at your online store.
• A Smart Shopping Geek :They know who is new to the business and who is
experienced. From shipping charges to payment gateways, they know every detail the
online store uses. In short, smart shoppers are way ahead of the trend.
Add engaging tools to make use of their shopping experience. Direct them to a customer
feedback page, to know their views and suggestions. Giving them a chance to
recommend products, register their feedback, and discuss their shopping experience in a
forum, is a good idea.They are the guiding force to better improvement of your business;
they walk you to the road to the future of e-commerce.
22. Types of Customers
• A Deal Hunter : Deal seekers always look forward to receiving newsletters from
every website they subscribed to and are a dab hand at discount deals. Deal
hunters are not as common as we think.They are consumers who look for the
best value for the product they purchase, certainly not the best price all the
Why not try selling multiple products in a bundle for best prices?Value package is
another idea to attract the deal hunters. Add detailed descriptions about the
product features to make them look at the benefits they are going to enjoy.This is
a way to turn them away from looking at the price.
23. Types of Customers
• A Brand Buff :They look for premium quality products that are branded by
famous company names.They are just like smart shoppers who set a trend in
online shopping.They look for only the best products.You may call them Best
These shoppers are not price sensitive really. Filter those brand buffs to send
them e-mail notifications whenever there is a new brand being introduced.
While they shop, display the best products that are recently stocked. As they
reach the checkout button, throw them a small offer to encourage them to
raise their order value.
Don't forget, brand buffs, like smart shoppers, are going to bring you more
references as and when they make other people go green after seeing their
best purchases from your store.
24. Types of Customers
• A Save-it-for-Later shopper :They don't do real shopping on here.They keep
adding the products they like to their wishlist.They fantasize about buying a
product they like, but they postpone making a buy for various other reasons.
They are fun shoppers who would love to see the total price of the products
they added to the shopping cart and keep moving them to their wishlist
without performing any desired action.
To move them from the fantasy world to the real world, keep displaying daily
deals and sales related to the products they added to their wishlist. Send an email
notification every time the price falls on a product they added to their wishlist.
That could make a sales conversion.
25. Types of Customers
• A Reward Points Lover :They are your loyal customers.They may not move on to
another online store for any small reasons unless they experience an awful shopping
time on your shop. All they want is to build up their reward points to cash the points
later for something big they look for.
Nothing excites them more than 'more reward points'.They are more enthralled to the
points they are going to enjoy than the real price of the product. Add more points to the
products you wish to clear and they would love that. Run a special club or programs for
such reward-point lovers and show them that you value their loyalty.
• Finally...A Customer is a Customer:A successful business needs only very little work
to retain their existing customers compared to acquiring the new customers. If a
company understands the different traits of the consumer behaviour and how to
nurture them, then they have already had a blueprint for success.
No one knows about your customers better than you.
26. Legal Issues
• Incorporation : Incorporation means that your company is a separate legal and
financial entity from yourself. It even has its own social security number for tax
• Trademark : A trademark is a word, phrase, symbol or design, or combination of words, phrases,
symbols or designs, which identifies and distinguishes the source of particular goods.
• Copyright : Copyright can be important when you obtain content for your site, and in the
protection of your site’s content.
• Transaction Issues : If your business fails to provide clear and complete description of the
product, cost and purchase details, information about delivery i.e. when the customer will
receive products and other information related to exchange and refunds, Government can
impose penalties on your business.
• Privacy Issues : Consumers share information with businesses online and they expect the sellers
to keep their information confidential. By just one minor mistake and leakage of valuable
information of a customer, you’ll not only lose your potential customer but your image and
reputation will become a question mark. Moreover, you’ll be subjected to serious legal
27. E-commerce payment system
• An e-commerce payment system facilitates the acceptance of electronic payment for
• Bank payments :This is a system that does not involve any sort of physical card. It is used
by customers who have accounts enabled with Internet banking. Instead of entering card
details on the purchaser's site, in this system the payment gateway allows one to specify
which bank they wish to pay from.Then the user is redirected to the bank's website, where
one can authenticate oneself and then approve the payment.
• PayPal : PayPal is a global e-commerce business allowing payments and money transfers to
be made through the Internet. Online money transfers serve as electronic alternatives to
paying with traditional paper methods, such as cheques and money orders. It is subject to
the US economic sanction list and other rules and interventions required by US laws or
government. Paypal is owned by eBay from 2003.
28. E-commerce payment system
• GoogleWallet : GoogleWallet was launched in 2011, serving a similar function as PayPal to
facilitate payments and transfer money online. It also features a security that has not been
cracked until now, and the ability to send payments as attachments via email.
• Mobile Money Wallets :Telecom operators, in some countries, have started offering mobile
money wallets which allow adding funds easily through their existing mobile subscription
number, by visiting physical recharge points close to their homes and offices and
converting their cash into mobile wallet currency.This can be used for online transaction
and eCommerce purchases.
• Alipay : Alipay is a third-party mobile and online payment platform, established in
Hangzhou,China in February 2004 by Alibaba Group and its founder Jack Ma
29. E-commerce payment system
• Credit/Debit/Prepaid card payments: Cards represent the most popular worldwide payment
method in the United States, Canada, Mexico, China, Korea, and most ofWestern Europe.
• Cryptocurrencies: Cryptocurrencies are rapidly gaining interest as a payment method for
online transactions, particularly among young, moneyed professionals with IT expertise.
30. Digital Marketing
The marketing of products or services using digital channels to reach
consumers.The key objective is to promote brands through various
forms of digital media.
31. • Search Engine Optimization (SEO) :The process of optimizing your website to
‘rank’ higher in search engine results pages, therefore increasing the amount of
organic (or free) traffic that your website receives.
• Content Marketing :The creation and promotion of content assets for the
purpose of generating brand awareness, traffic growth, lead generation, or
Digital Marketing Channels
32. • Inbound Marketing : Inbound marketing refers to the ‘full-funnel’ approach to
attracting, converting, closing, and delighting customers using online content.
• Social Media Marketing :The practice of promoting your brand and your
content on social media channels to increase brand awareness, drive traffic,
and generate leads for your business.
• Pay-Per-Click (PPC): A method of driving traffic to your website by paying a
publisher every time your ad is clicked. One of the most common types of PPC
is Google AdWords.
• Affiliate Marketing : A type of performance-based advertising where you
receive commission for promoting someone else’s products or services on your
• Native Advertising : Native advertising refers to advertisements that are
primarily content-led and featured on a platform alongside other, non-paid
content. BuzzFeed sponsored posts are a good example, but many people also
consider social media advertising to be ‘native’ -- for example, Facebook
advertising and Instagram advertising.
Digital Marketing Channels
33. • Marketing Automation : Marketing automation refers to the software that
exists with the goal of automating marketing actions. Many marketing
departments have to automate repetitive tasks such as emails, social media,
and other website actions.
• Email Marketing: Companies use email marketing as a way of communicating
with their audiences. Email is often used to promote content, discounts and
events, as well as to direct people towards the business’ website.
• Online PR : Online PR is the practice of securing earned online coverage with
digital publications, blogs, and other content-based websites. It’s much like
traditional PR, but in the online space.
Digital Marketing Channels