Presentation 2
Presentation 2
Presentation 2
LECTURE 2
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Essentials for opening an E-commerce shop
3. Means to Process payments in E-commerce
vWhat is e-commerce payment processing?
• E-commerce payment processing refers to the steps and systems involved in accepting
and processing payments for goods or services purchased online. It encompasses the
entire process of authorizing, capturing, and transferring funds from customers to
merchants in a secure and efficient manner.
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Players in an e-commerce transaction
vPayment processor
• A payment processor is a financial services provider, such as a credit card services
provider, that facilitates the entire ecommerce transaction chain. The payment processor
conveys all transaction data between the customer’s bank or credit card company and
the merchant’s account.
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Various means to process payments in e-commerce
1.Credit/Debit Cards: Accepting payments through credit or debit cards is a
popular method in e-commerce. Merchants can partner with payment
processors or payment gateways that securely handle card transactions.
Customers enter their card details during checkout, and the payment is
processed electronically.
2.Digital Wallets: Digital wallets like PayPal, Apple Pay, Google Pay, or Amazon
Pay provide a convenient and secure way for customers to make online
payments. These wallets store users' payment information, allowing for quick
and easy transactions. 5
Various means to process payments in e-commerce
4. Bank Transfers: Bank transfers involve customers transferring
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Various means to process payments in e-commerce
6. Mobile Payment Apps: With the rise of smartphones, mobile payment apps
have gained popularity. Apps like Venmo, Alipay, or WeChat Pay allow users to
link their bank accounts or cards and make payments through their mobile
devices.
7. Buy Now, Pay Later (BNPL): BNPL services, such as Afterpay or Klarna,
enable customers to make purchases and pay for them in installments over
time. This option can attract customers who prefer more flexible payment
terms. (For trusted customers) 7
Various means to process payments in e-commerce
7. Prepaid Cards or Vouchers: Prepaid cards or vouchers, such as gift cards
or virtual prepaid cards, provide an alternative payment method. Customers can
purchase these cards and use them to make payments on the e-commerce
platform.
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What to consider when choosing an ecommerce processing platform
Ø Security
• Ecommerce security is a set of guidelines that ensures safe online transactions. Just like
physical stores invest in security guards or cameras to prevent theft, online stores need to defend
against cyberattacks.
Three key terms that are essential to understanding ecommerce security protocols.
i. Privacy
-In the context of ecommerce security, privacy involves preventing unauthorized internal and external
threats from accessing customer data.
-Disrupting customer privacy is considered a breach of confidentiality and could have devastating
consequences for your customers’ privacy and your reputation as a retailer. Privacy measures include
antivirus software, firewalls, encryption, and other data protection measures.
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What to consider when choosing an ecommerce processing platform
(Security Cont’)
ii. Integrity
Integrity refers to how accurate a company’s customer data is. Maintaining a clean, curated customer
dataset is critical to running a successful ecommerce business. Using incorrect customer’s data such as
their phone number, address, or purchase history causes people to lose confidence in your ability to
protect their data and in your company as a whole.
iv. Authentication
Authentication proves that your business does what it claims and that customers are who they say
they are. Your site should have at least some proof that it sells what it says it does and delivers those
goods according to expectations. Customers should also be required to verify their identities before
processing their online transactions.
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Essentials for opening an E-commerce shop
4. Marketting Strategies to attract customers
vSocial media
vSEO (Search Engine Optimization): it refers to techniques that help your business to rank higher in search engine
pages.
-Makes your websites visible for people looking for solutions that your products and service can provide.
• Emails are one of the most popular means of digital communication, and that’s the
main reason why using them for marketing activities can be extremely effective.
• They help blow up user engagement, build customer loyalty, share useful
information, announce the hottest deals, and boost sales.
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Benefits of E-commerce
E-commerce offers numerous benefits to businesses, consumers, and the overall
economy. Here are some key advantages of E-commerce:
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Benefits of E-commerce
5.Seamless Cross-channel Integration: E-commerce facilitates omnichannel retailing,
allowing businesses to integrate online and offline channels for a seamless customer
experience. Customers can browse products online, make purchases in-store, or vice
versa, creating a cohesive shopping journey.
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Benefits of E-commerce
7. Efficient Inventory Management: E-commerce allows businesses to automate
inventory management processes, reducing the risk of overstocking or stockouts.
Real-time inventory tracking helps optimize stock levels, improve order
fulfilment, and minimize costs.
9. Cost Efficiency: E-commerce eliminates the need for physical stores and the
associated costs, such as rent, utilities, and staffing. It allows businesses to operate with
lower overheads and potentially offer products at competitive prices.
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Benefits of E-commerce
11. Data Analytics and Insights: E-commerce platforms generate valuable data
on customer behaviour, sales trends, and marketing effectiveness.
Businesses can leverage data analytics to gain insights, make informed decisions,
and optimize their strategies for better outcomes.
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Challenges of E-commerce
1.Logistics and Fulfilment: Efficient logistics and order fulfilment processes are vital
for customer satisfaction. E-commerce businesses need to manage inventory,
packaging, shipping, and delivery to ensure timely and accurate order fulfilment. This
can be challenging, especially for businesses with high order volumes or
international shipping.
6.Digital Divide: While internet access has expanded globally, there are still regions
and populations with limited or no internet connectivity. This digital divide can
hinder the adoption and growth of E-commerce, particularly in underserved areas.
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Challenges of E-commerce
6. Online Marketing and Visibility: With the increasing number of online
businesses, standing out and gaining visibility amidst the noise can be a
challenge. Effective digital marketing strategies, search engine optimization
(SEO), and social media engagement are necessary to attract and retain
customers.
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Business models of e-commerce
vBusiness-to-Consumer (B2C) : In a Business-to-
Consumer E-commerce environment, companies sell
their online goods to consumers who are the end
users of their products or services.
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Business models of e-commerce
• Consumer-to-Business (C2B): In a
Consumer-to-Business E-commerce
environment, consumers usually post their
products or services online on which
companies can post their bids.
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Business models of e-commerce
• A website following the C2C business model
helps consumers to sell their assets like
residential property, cars, motorcycles, etc., or
rent a room by publishing their information on
the website.
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Business models of e-commerce
• E-Governance: E-governance is the application of information and
communication technology (ICT) for delivering government services,
exchange of information communication transactions, integration of various
stand-alone systems and services between government-to-customer
(G2C), government-to-business (G2B), Government-to-government
(G2G) as well as back office processes and interactions within the entire
government framework.
• Such websites are used by government to trade and exchange information with
various business organizations.
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Business models of e-commerce
• Government - to - Business (G2B) Government uses B2G model
website to approach business organizations.
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Business models of e-commerce
• Government - to - Citizen (G2C) Government uses G2C model website to approach
citizen in general. Such websites support auctions of vehicles, machinery or any other
material. Such website also provides services like registration for birth, marriage or
death certificates.
• Main objectives of G2C website are to reduce average time for fulfilling people
requests for various government services.
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E-commerce delivery models
2. Affiliate Marketing: Affiliate marketing involves promoting other companies' products or services on
your website or platform. When a user clicks on the affiliate link and makes a purchase, the affiliate
earns a commission.
It is a performance-based model where affiliates drive traffic and generate sales for the merchant.
Examples include Amazon Associates and ShareASale.
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E-commerce delivery models
3. Social Commerce: Social commerce combines E-commerce with social media
platforms. It involves selling products or services directly within social media platforms
or leveraging social media for marketing and sales purposes. Social media platforms
integrate shopping features, such as "Buy" buttons or shoppable posts, enabling
businesses to reach customers directly through social channels.
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E-commerce delivery models
5. Dropshipping: Dropshipping is a model where businesses act as intermediaries,
selling products to customers without handling inventory. When an order is received,
the business passes it to a third-party supplier who ships the product directly to the
customer. Dropshipping eliminates the need for inventory management and fulfilment,
making it an attractive option for online entrepreneurs.
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E-commerce delivery models
7. White Label or Reseller: Companies purchase products or services from manufacturers or
wholesalers, rebrand them as their own, and sell them under their own brand name. They act as
resellers, focusing on marketing, sales, and customer service. Examples include private-label
8. Private labelling: involves the creation of products manufactured by a third-party supplier but
marketed and sold under a specific retailer or brand's name. In private labelling, the retailer has
more control over the product's specifications, quality, design, and packaging.
The retailer collaborates closely with the manufacturer to create a product tailored to their
requirements and target market.
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E-commerce delivery models
9. Marketplace: Marketplace models bring together multiple sellers and buyers on a single
platform. The marketplace operator facilitates transactions and provides a platform for
sellers to list and sell their products or services. They may earn revenue through
commissions, listing fees, or advertising. Examples include Amazon Marketplace, eBay, and
Alibaba's Taobao.
10. Peer-to-Peer (P2P): P2P connect individuals directly to conduct transactions, often in
C2C (consumer-to-consumer) scenarios.
The platform facilitates the exchange of goods or services between individuals, enabling
them to buy, sell, or rent items directly from one another. Examples include classified ad
1.Amazon: Amazon is the world's largest online retailer and a dominant force in E-commerce. It
offers a wide range of products, including electronics, books, household goods, and more.
Its platforms, such as Alibaba.com, Taobao, and Tmall, cater to different segments of the E-
commerce ecosystem. Alibaba facilitates trade between businesses globally and operates as a
marketplace connecting consumers with sellers.
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Key players in the E-commerce industry
3. eBay: eBay is one of the pioneers of online auctions and C2C E-commerce. It
allows individuals and businesses to buy and sell products through auction-style
listings or fixed-price formats. eBay has a global reach and offers a wide range of
products, including collectibles, electronics, fashion, and more.
4. Walmart: Walmart is a retail giant that has made significant strides in E-commerce.
It operates both physical stores and an online marketplace, providing customers with
a seamless omnichannel shopping experience.
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Key players in the E-commerce industry
5. JD.com: JD.com is one of the largest E-commerce companies in China and a
formidable competitor to Alibaba. It operates as a B2C online retailer, focusing on
electronics, home appliances, fashion, and other product categories. JD.com has built
a strong logistics network, ensuring fast and reliable delivery across China.
categories, and provides services such as e-books, digital content, travel bookings,
and financial services. Rakuten is known for its loyalty program, offering Rakuten
Group. It primarily serves as a platform for Chinese sellers to reach global consumers,
offering a wide range of products at competitive prices. AliExpress is known for its
buyer protection policies and has gained popularity among shoppers worldwide. 40
Key players in the E-commerce industry
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key players in the e-commerce industry in Ghana
1. Jumia: Jumia is one of the largest online marketplaces in Ghana, offering a wide range
of products across various categories such as electronics, fashion, beauty, home
appliances, and more. Jumia operates both a website and a mobile app, providing
customers with a convenient shopping experience and nationwide delivery services.
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Key players in the E-commerce industry in Ghana
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Key players in the E-commerce industry Ghana
5. Shopnaw: Shopnaw is an E-commerce platform that focuses on fashion and
accessories. It offers a wide range of trendy clothing, footwear, bags, and jewellery
for men, women, and children. Shopnaw aims to provide fashion-forward options to
Ghanaian consumers.
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Key players in the E-commerce industry in Ghana
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Traditional brick-and-mortar ( Traditional commerce)
Traditional brick-and-mortar refers to businesses that primarily operate through physical retail
locations.
Advantages:
2.Personal Interaction: In physical stores, customers can interact directly with sales staff,
receiving personalized assistance, recommendations, and immediate responses to their
queries. This human touch can create a positive shopping experience and foster customer
loyalty.
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Traditional brick-and-mortar ( Traditional commerce)
2. Geographical Limitations: Physical stores are limited by their location, which can
restrict the customer base to a specific geographic area. Expanding into new markets
requires opening new stores, which can be costly and time-consuming.
3. Limited Operating Hours: Traditional stores are typically open during specific hours,
which may not align with the convenience and flexibility that customers desire. This
limitation can result in missed sales opportunities or inconvenience for customers.
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Class discussion
Difference between E-commerce and Traditional commerce based on the following
Point of Difference E-commerce Traditional Commerce
1. Cost Effective
2. Time
3. Accessibility
4. Convenience
5. Introduction to new products
6. Profit
7. Physical inspection of products
8. Fraud
9. Method of communication
10. Process
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Functions of E-Commerce Websites
The following are five functions you should be doing daily in your e-commerce business.
It refers to the practice of optimizing a website to rank higher in search engine results
pages (SERPs) for specific keywords or phrases.
By optimizing a website for search engines, businesses can ensure that their products
and services are visible to potential customers when they search for relevant keywords.
Friendly URLs with related phrases. E.g. When talking about Zobrist’s eZcommerce
solution, the URL looks like this: http://www.zobristinc.com
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Functions of E-Commerce Websites Cont’
2. User-Friendly Navigation
• The key to helping customers find the products they need quickly is to offer a user
friendly navigation system.
• Products should be logically categorized, with the most popular categories listed
first.
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Functions of E-Commerce Websites Cont’
3. Site Search
• In addition to user-friendly navigation, site search is a feature
found on most of the top ecommerce sites.
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Functions of E-Commerce Websites Cont.’
4. Product Videos
• Adding video to your product pages can increase conversions.
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Functions of E-Commerce Websites Cont.’
5. FAQ For Products
• Reduce the amount of time your customer service has to spend on answering
questions about products, before and after the purchase.
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Functions of E-Commerce Websites Cont.’
6. Order Tracking
• Once your customer places an order, the top question
on their mind is when will my order arrive.
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Functions of E-Commerce Websites Cont.’
7. Chatbots
revenue, 24 hours a day, 7 days a week, throughout the year. That also means
providing support to your customers during those hours as well.
the use of chatbots nearly doubled between 2020 and 2021, from 31% to 61%
• Many ecommerce stores use chatbots to assist online shoppers with basic
• Mobile apps allow you to keep your brand on your customer’s minds, placing your
app icon/brand logo on the smart devices customers use most.
• You don’t have to wait for customers to open up a browser or another app for social
media or email to get your latest sales messages.
• You can push those promotional updates through your app to any customers that
have notifications turned on.
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Functions of E-Commerce Websites Cont.’
9. Multilingual Support
• If your ecommerce store caters to customers in a specific region, you
have two options to support the top languages spoken in their region:
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Functions of E-Commerce Websites Cont.’
10. Local Store Information
• If your ecommerce brand also has physical store locations, you can
boost offline sales by adding details for the nearest store to your
website’s header.
• This would allow customers to shop online, reserve for in-store pick
up, or browse their local store inventory before going to make an in-
store purchase.
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Functions of E-Commerce Websites Cont.’
11. Product Reviews
• The most popular form of user-generated content found on
ecommerce sites is product reviews and ratings.
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Functions of E-Commerce
12. Selecting New Products
Sell what the customer wants to buy, not what you want to sell! This is a common
mistake, especially when merchandisers are given a great price to sell a
particular product.
If nobody wants to buy that product, it doesn’t matter what price you set it at.
Find out what customers want. What is your value proposition on products you
sell?
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Functions of E-Commerce
13.Customer Service:
• Make your customers happy.
• Don’t try to save every penny on an order. You may need to take a loss to
make a customer happy in order to retain their loyalty to you.
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Functions of E-Commerce
14. Monitoring your KPIs / Analytics:
• Monitor your analytics reports. View what items are selling and
bubble them to the top of product listings so customers can find
them easier.
• Once a shopper selects an item they want to purchase, they can add it to their
virtual shopping cart. The shopping cart software will keep track of the items added
to the cart, and provide a running total of the cost of the items.
• The customer can view the contents of their cart, make changes or remove items
before proceeding to the checkout process to complete the purchase.
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Types of shopping carts
1.Hosted shopping carts: These are fully managed solutions where the e-commerce platform
provides a shopping cart as part of their service. The shopping cart is hosted on the
platform's servers, and the merchant uses the platform's interface to customize the look and
feel of their online store.
2.Self-hosted shopping carts: These are software solutions that merchants download and install
on their own web servers. The merchant has more control over the customization and
functionality of the shopping cart, but is also responsible for maintenance and security.
3.Licensed shopping carts: These are shopping carts that merchants purchase a license to use
on their own web servers. The merchant has complete control over the customization and
functionality of the shopping cart, but is also responsible for maintenance and security.
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Types of shopping carts
4. Open source shopping carts: These are software solutions that are freely
available for merchants to download, use, and modify. The merchant has
complete control over the customization and functionality of the shopping
cart, but is also responsible for maintenance and security.
5. API-based shopping carts: These are shopping carts that use an Application
Programming Interface (API) to connect to a payment gateway or merchant
account provider. The merchant builds their own shopping cart using the
API, giving them complete control over the customization and functionality of
the shopping cart.
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Shopping cart abandonment
vShopping cart abandonment refers to the situation where a customer
adds items to their online shopping cart but then leaves the website
or app without completing the purchase.
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THANK YOU!!
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