The Future Of e-Commerce In South Africa

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Information about The Future Of e-Commerce In South Africa

Published on August 26, 2007

Author: ramonthomas

Source: slideshare.net

Description

This is a presentation from a lecture I was invited to deliver to the students at Midrand Graduate Institute on the Future of eCommerce in South Africa

The Future of eCommerce in SA Ramon Thomas

The Future of eCommerce in SA

Ramon Thomas

Why People Shop on the Web Convenience and ease of use Shoppers only buy 5% of the time e-Commerce is International

Convenience and ease of use

Shoppers only buy 5% of the time

e-Commerce is International

eCommerce Examples Amazon.com eBay.com iTunes Yahoo! Google

Amazon.com

eBay.com

iTunes

Yahoo!

Google

 

Amazon Marketplace ( i.e:Third-party Marketplace ) is Amazon.com's fixed-price online marketplace that allows sellers to survey their goods alongside Amazon's offerings. Buyers can buy new and used items sold directly by a third party through Amazon.com using Amazon Marketplace. This concept is similar to eBay's successful half.com. This sales strategy and program has been very profitable for Amazon.com, with a commission rate of 6 to 15 percent of the sale price, a $0.99 per-transaction fee, as well as a variable closing fee. Users can leave feedback on transactions, similar to eBay's feedback system, except that Amazon uses a five star rating system instead of just positive, neutral, or negative. Any feedback less than four stars will negatively affect the seller's rating. It is important to note that this rating system is different from Amazon's regular book rating system - while their book rating system should be used to vote on the content of the book, the quality of the publication, the individual's opinion of the book, or any number of other factors, the Amazon Marketplace rating system should only be used to describe the quality of the transaction and whether the product meets the criteria in the seller's listing. Negative feedback, for instance, because a book is old and expensive, affects the seller's feedback rating negatively, and causes other buyers to be less likely to purchase from that seller. Another big difference in the Amazon vs. eBay feedback is reciprocity. Amazon has a one way street. The seller is always judged for the feedback left but the seller is powerless to effect the feedback of the buyer because the buyers feedback is not included in any metric Amazon uses. If a buyer on eBay has bad feedback you can block them but on Amazon you have to accept a sale from a bad feedback customer. Without this measure, customers who feel for any reason to leave a bad feedback can and do. Check it out for yourself. Take a Powerseller on eBay and see if they are selling on Amazon you will see similar items but feedback will be at least 5% off on Amazon what it is on eBay.

 

 

 

 

 

 

 

 

 

 

 

The Numbers 1.1 billion Internet users (4 million)‏ 2.5 billion Cellphone users (32 million)‏ 100 million websites

1.1 billion Internet users (4 million)‏

2.5 billion Cellphone users (32 million)‏

100 million websites

# Websites each year since the Web's founding.

Blogosphere

 

Cluetrain "A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter—and getting smarter faster than most companies." www.cluetrain.com

"A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter—and getting smarter faster than most companies."

www.cluetrain.com

 

Online Music Rise of Mp3 (1997)‏ Napster (1999)‏ Declining album sales (post 2000)‏ iTunes & iPod (2001)‏

Rise of Mp3 (1997)‏

Napster (1999)‏

Declining album sales (post 2000)‏

iTunes & iPod (2001)‏

 

eCommerce Growth Top Category: Video Game - 159% US $170.8 billion in 2006 ($102.1 billion)‏ Reach $200 billion by end of 2007

Top Category: Video Game - 159%

US $170.8 billion in 2006 ($102.1 billion)‏

Reach $200 billion by end of 2007

Online Retail in South Africa R514 million in 2005 Online Air Ticket Sales: R1.8 billion Kulula.com 1 st to reach R1 billion 826 online retail sites Experience Curve

R514 million in 2005

Online Air Ticket Sales: R1.8 billion

Kulula.com 1 st to reach R1 billion

826 online retail sites

Experience Curve

South African eCommerce Kulula.com MWEB Shopping Zone, Digital Mall Pick ‘n’ Pay, Woolworths Kalahari.net, Exclusive Books NetFlorist, Cybercellar Digital Planet, Ascot Direct

Kulula.com

MWEB Shopping Zone, Digital Mall

Pick ‘n’ Pay, Woolworths

Kalahari.net, Exclusive Books

NetFlorist, Cybercellar

Digital Planet, Ascot Direct

 

 

 

 

 

 

 

 

 

 

Components of eCommerce Shop Shopping Cart osCommerce Zen Cart ViArt Shop Payment Gateway Authorize.net Chase Paymentech (Orbital Gateway)‏ Cybersource LinkPoint (owned by First Data)‏ VeriSign Payflow (Owned by PayPal)‏

Shopping Cart

osCommerce

Zen Cart

ViArt Shop

Payment Gateway

Authorize.net

Chase Paymentech (Orbital Gateway)‏

Cybersource

LinkPoint (owned by First Data)‏

VeriSign Payflow (Owned by PayPal)‏

 

 

 

 

 

 

Resources www.emarketer.com www.clickz.com www.alertbox.com www.saarf.co.za www.theworx.biz

www.emarketer.com

www.clickz.com

www.alertbox.com

www.saarf.co.za

www.theworx.biz

Contact Details: Ramon Thomas [email_address] Tel. 011 4331034 or 082 9407137 www.netucation.co.za Connect with me on LinkedIn , Facebook & MySpace

[email_address]

Tel. 011 4331034 or 082 9407137

www.netucation.co.za

Connect with me on LinkedIn , Facebook & MySpace

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