"2012 is the year of e-Commerce"The story continues from my slide from Dec 2011 http://bit.ly/taitranvietecomdec2011 Full URL:http://www.taitran.vn/vietnam-e-commerce-2012- updated
ReflectionFrom buyers From merchants From e-commerce• Can I trust them? • Can I trust them? service provider• How to pay? • Revenue on e-commerce? • So few orders?• Who will response to my • Fraudulent orders? • What to sell? complaints? • How to collect money? • Quality control?• Buying online is more • My goods are assorted. I • Inventory? expensive than from the wont just mix my goods • How to talk to local mom-and-pop shop? with other low quality merchants? goods • Features are provided, • Exploit return policy? and not used? • Service charge is too high • How to raise capital?
Our premise Trust iseverything.
The trust of merchantsThe trust of buyers Business models KPI
Trust vs. Myth of Trust• Transaction• Quality of goods• Transparency• Consistency
Business Modelse-Commerce This is a vision $$$$ Scale? Bargain power? deep discount Retailer Retailer e-tailer $$$ $$$ $$$ Wholesaler Wholesaler $$ $$Manufacturer Manufacturer $ $
Business Models AdInventory Logistics Pricing policyMerchant Affiliate policy network
KPITechnicians view VisitorsNumber of storesMembers Show me the moneyTime on site Ad expense
KPI Salesmans view VisitorsNumber of storesMembers Show Transaction me the Value moneyTime on site Ad expense
Its been hard to measure transaction value• Lack of tool & methodology• Lack of formal research• Misrepresentation of information• Unwilling to disclose• Lack of payment method or asynchronous process• Havent felt the need to measure
Why transaction value is important• Effectiveness of the channel – Show me the money• Merchants care most about revenue – Show me the money• Merchants are willing to pay for revenue enhancement
To measure transaction value• Payment method ready and is used: problem considered solved – COD – NganLuong• Use third party – Cross check process• Offline transaction – How?
PriorityProcess MerchantsStandardized BuyersConsistent Support saleChoose the right Commit to Support to performbusiness model and revenue? transactionsKPI Consistency of Ensure buyers revenue acquire high quality products
More offlineoperations Data miningStandardize and lend logistics