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Future Trend – Online Shopping

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Learning objectives The chapter will discuss the following concepts:  What is social ecommerce  How do firms get benefits out of it  Value addition from social commerce  Strategy for social commerce

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Introduction          

Ecommerce termed as innovative, expansive, immature, FAD’ In spite of dot com burst e-commerce was revived Today customers have become tech savvy and are willing to spend time online Customers willing to purchase through online even if they are illiterate ubiquitous internet changing behavioural pattern Online Indian social life has taken the lead Ecommerce with online social life is called socio-commerce Socio commerce uses potent technologies and harness social media to organize the business strategies managers use social power and reframe their policies and strategies This approach shows authenticity, fairness, transparency and good faith to its stakeholders 3


Understanding Social Commerce         

electronic commerce with social networking network sites subset of electronic commerce Also involves social networking sites (online) social interaction and user contributions a set of online collaborative shopping tools Also available - information on different products and services as experienced by these users user-generated reviews, comments contents that can act as ‘free advertisements’ for different products Using these comments prospective buyers can buy these products and services 4


Understanding Social Commerce..contd..        

these online marketing sites can be accessed from the social networking site collaborative e-commerce tools Prospects use these tools to get advice from trusted individuals, find goods and services and then purchase them Using these collaborative tools manufacturers have tried to improve their product features Service providers use these tools to improve service levels in their supply chain Examples of these tools - customer ratings and reviews, user recommendations and referrals social commerce is a collaborative networks of online participants such as vendors, users etc. social shopping as collaborative activity of online shoppers 5


Evolution of social commerce 

Started with social networking sites such as facebook

Facebook commerce (f-commerce) has become popular

Collaboration amongst customers, suppliers and retailers

Retailers are looking at having their own Facebook page

consumers can take buying and purchase decisions

Creation of virtual marketplace with social shopping websites

Social Commerce important dates (please refer to the chapter)

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Features of Social Commerce 

Ratings and reviews for the products and services by users

recommendation technology features

get product recommendations based on their own interests, preferences

Customers likely to check online for reviews prior to making a purchase

networked users generate new ideas, advertise, and create added value at virtually no cost

increasing efficiency by understanding customer needs, identifying potential customers & building customer loyalty  Ex: Volkswagen launched an ad campaign using YouTube, focusing on ecological concerns  Volkswagon utilizes these ideas and incorporates it

Facebook ‘Like’ Button on the product’s web page

Better Understanding of the Consumer’s behavior

Instant Personalization of the user experience

Brand Growth 7


Advantages of Social Commerce        

ensures a personalized shopping experience access to the customer’s social graph and interests retailers can develop promotional strategies and plans that suit to the customer’s preferences and interests Creates communities Manintains direct contact with ‘Communities’ The community can exchange reviews about the products they have purchased Social commerce also creates a trusted environment makes the experience seamless for a customer right from providing the content, product reviews, payment options to final purchase 8


Trends and the challenges of social commerce            

Moving Away from the Traditional Media Offering a United Shopping Experience Privacy Customer Engagement integrate the payment gateway inside the Social Media networks Facebook’s security issue Tools for social commerce change rapidly hidden soft costs Building a strong relationship with the customer takes time Customers can express their disappointment and negatively impact a brand’s reputation Usability testing is complex and requires advance skills Need domain knowledge to have effective data analytics 9


To address these challenges During portal design, the following steps need to be followed  Facilitation of planning and control  Minimization of information redundancy  Integration of processes  Efficient metrics  Personalization/Customization  Feedback

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Future of social commerce         

Sometimes known to be effective only for impulse purchases a balance between data privacy policies (EU fight against google) More B2B transactions in future B2C transactions increasing at faster rate Regulatory and privacy policy to be tightened Maintaining trust with transparency 3-D effect on products to be sold Huge user base and hence ability to make meaningful data analysis New marketing techniques such as Cash On Delivery (COD) will help induce more purchases 11


Case: Halfmantr, Traveltriangle and Lenskart For each case 

Discuss traditional supply vs online purchase  Issues such as mindset  Face to face consultation vs online chat  Feel vs 2D online display  Element of doubt regarding customer satisfaction  Promotion policy  Less margin initially

Funding issues with such firms

Achieving break even

Retaining customer – customer loyalty

Risk involved in this models

Privacy issues

Financial data security

Integration of social network with the sites  Using feedback to improve quality of deliverables  Using social platforms for promotion

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Summary  

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Socio-commerce is the way to make e-commerce a sustainable model customers who will enjoy discounts, free shipping, cash on delivery, and experience of a product without touching it Venture Capitalists, including Tiger Global, has been increasing their investment exposure in internet business security risks that can put the individual or a company in a compromising position or at serious risk best practices can be standardized and updated

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