Chapter 5

Retailing In Electronic Commerce:

Products/Services/Digital Products
Learning Objectives

 Describe electronic retailing (e-tailing) and its characteristics.

 Classify the primary e-tailing business models.
 Describe how online travel and tourism services operate and their
impact on the industry.
 Discuss the online employment market, including its participants,
benefits, and limitations.
 Describe online real estate services.
 Discuss online stock-trading services.
 Describe the delivery of digital products and online entertainment.
 Discuss various online consumer aids, including comparison-
shopping aids.
 Describe disintermediation and other B2C strategic issues.
Market forecast

Nguồn: Forrester Forecast View

Change in online purchasing in SEA

4
Nguồn: Google Temasek
Number of hours per day online

5
Change in different industries

6
Customer acquisition
Leading EC platform in China
Sourcing
Keyword analysis tools

 Keyword planner
 Answer the public
 Google trend
 Metric
 Helium 10 for keyword search on Amazon
 Shopify
 Storenvy
 Taphoammo.net
List of software supplier (in retailing
sector)
 Go Sell (Omni channel)
 Sapo, Haravan, One office, Base.vn
 Accesstrade (Affiliate Program)
 Misa
 SAP (ERP, SCM)
 Oracle (ERP, SCM)
 Getfly (CRM)
1
3

Technologies applied in Retailing

market
Retail trends
Technology

 Disruptive Technology
 Big data
 Augmented Reality/Virtual Reality (fashion industry)
 Solutions for supermarket (amazon, alibaba)
 Voice chat
 AI
 IoTs
Technology apply in retailing business
Automat
ionMKT

Big Mobile
Data/AI Apps

Technology
in Retail

Nonca
sh
Paym
ent
Chief mar Tech landscape
Automation sale trend

 Chatbot
 AI Chatbot
 Voicebot
The revolution of search technology

 Text search
 Local search
 Voice search (Alexa, Siri, Google Home)
 Visual Search
 Brainwaves search (5.0)
Consumer buying process in retail

Product Search

Compare, ranking, rating,

review, comment Pre – buying activity

Negotiation

Order confirmation

Payment acceptance shopping cart

Order receive

After sale service Post buying activity

22
Revenue model
B2C Business Models: Portal

 Search, content providers

 Revenue models
 Advertising, referral fees, transaction fees, subscriptions
 Example:
 Horizontal / General my.msn.com
 Vertical / Specialized (Vortal) www.motorcycle.com/
 Pure Search google.com, fb
B2C Models: Content Provider

 Digital contents
 News, music, video, e books, e magazines (elsiver,
springer, proquest)
 Revenue model:
 Subscription; pay per download ; download(micropayment);
advertising; affiliate referral fees
 Example:
 Content owners
 Syndication
 Web aggregators
 B2C Models: Transaction Broker

 Online transaction dealing for customer

• Primary value proposition—saving time and money

 Revenue Model
• Transaction fees
 Industries apply
• Financial services
• Travel services (Yield Management)
• Job placement services
B2C Models: Market Creator (exchange
market)

 Where seller – buyer can transact with each

other
 Ex
Priceline
eBay
 Revenue Model: Transaction fees
B2C Models: Service Provider

 Online content service

 e.g. Google: Google Maps, Gmail, etc.

 Value proposition
 Convinence, time saving, lower cost

 Mô hình doanh thu:

 Bán hàng (Sales of services), Phí đăng nhập
(subscription fees), Quảng cáo (advertising), Bán dữ
liệu điện tử (sales of marketing data)
B2C Models: Community

 Platform where sellers and buyers can create contents

 E.g. Facebook, MySpace, LinkedIn, Twitter, weibo, zalo, viber,
whatsapp

 Revenue models:
 Mix models: combination betwee advertising, subscription fee,
sale, transaction fees
B2C Models: Share economy

 Definition
 The sharing economy is an economic model defined as a peer-
to-peer (P2P) based activity of acquiring, providing, or sharing
access to goods and services that is often facilitated by a
community-based online platform.
• Ex: Facebook, Airbnb, RelayRides, TaskRabbit, KickStarter;
Car Pooling, uber, grab bike , grab car, luxstay
 Key points:
 The sharing economy involves short-term peer-to-peer
transactions to share use of idle assets and services or to
facilitate collaboration.
 The sharing economy often involves some type of online
platform that connects buyers and seller.
 The sharing economy is rapidly growing and evolving but faces
significant challenges in the form of regulatory uncertainty and
concerns about abuses.
OMNI Channel commerce
 OMNI channel

Website

Sàn TMĐT Thanh toán thẻ

Mạng xã hội
Máy chơi game

Người bán hàng

Ứng dụng
Di động

Cửa hàng
Pop-Up Shop

Máy tính
OMNI Channel Technology Stack
fff
Disintermediary - Reintermediary
New online B2B distribution
Sale administration from online to offline

Financial
management module
Offline Facebook
shop
Order
Delivery management Sale channel
manageme module
nt module

EC system to support
business
Customer Warehouse
management management
module

Support the sale operation from online to offline

“Consumer touch point "
Segmentation (S)

- Viewers: website cần thật sự ấn tượng để thu hút

được những khách hàng này, bằng từ ngữ và hình
ảnh đặc biệt để tạo dấu ấn.
- Seekers: website cần có công cụ để so sánh các sản
phẩm, dịch vụ, nhận xét của khách hàng, gợi ý, tư
vấn.
- Shoppers: website cần được tổ chức và thiết kế sao
cho việc mua hàng thuận tiện nhất.
Segmentation (S)

Theo McKinsey & Company (survey with 50.000 internet

user), 06 groups of customers:

- Group 1, Simplifier-convenience
- Group 2, Surfers
- Group 3, Bargainers
- Group 4, Connectors
- Group 5, Rountiners
- Group 6, Sporters
Segmentation criteria
Segmentation by Age

 Gen Alpha (2013 – 2025)

 iGen/Gen Z (1995 – 2012)
 Millennials/Generation Y, Gen Next (1980 –
1994)
 Xennials (1975-1985)
 Baby Boomer (1965-1979)
Some companies

 …..
E-Tailing Business Models

 Classification of models by distribution channel

 Direct marketing by mail-order retailers that go online
 Direct marketing by manufacturers
 Pure-play e-tailers
 Click-and-mortar retailers
 multichannel business model
A business model where a company sells in multiple marketing
channels simultaneously (e.g., both physical and online stores)
 Internet (online) malls
 direct marketing
Broadly, marketing that takes place without intermediaries
between manufacturers and buyers; in the context of this book,
marketing done online between any seller and buyer
E-Tailing Business Models
 Direct Sales by Manufacturers
virtual (pure-play) e-tailers
Firms that sell directly to consumers over the Internet without
maintaining a physical sales channel
 click-and-mortar retailers
Brick-and-mortar retailers that offer a transactional website
from which to conduct business
 brick-and-mortar retailers
Retailers who do business in the non-Internet, physical world
in traditional brick-and-mortar stores
 Retailing in Online Malls
 Referring Directories
 Malls with Shared Services
E-Tailing Business Models

 Mobile commerce

 Location-based e-commerce (l-commerce)

Delivery of e-commerce transactions to individuals
in a specific location, at a specific time
(App: Đi chợ hộ, cleaning…)
Travel And Tourism
(Hospitality) Services Online

 Tripadvisor, ivivu, mytour, priceline, travelport,

expedia, traveloka, worldspan, Airbnb, luxstay,
booking, agoda, skyscanner
 Transportation: Vexere, Dichungtaxi.com
 Ticketbox.vn
 Tablenow, Pasgo
 Skyscanner
 Sino.net
Employment Placement and the Job
Market Online

 Parties who use the internet job market

 Job seekers
 Employers seeking employees
 Classified ads
 Job agencies
 Government agencies and institutions
 Online Job Markets on Social Networks
 Global Online Portals for Job Placement
 Virtual Job Fairs
 Carrier builder, Vietnamwork, Linkin
Real Estate, Insurance,
and Stock Trading Online

 https://online.vinhomes.vn/

 Insurance online
 Online Stock Trading
 The Risk of Trading in an Online Stock Account
Banking and
Personal Finance Online

 Electronic (online) banking or e-banking

Various banking activities conducted from home or the road using
an Internet connection; also known as cyberbanking, virtual
banking, online banking, and home banking
 Smart banking
 Home banking
 Digital banking
On-Demand Delivery of Products,
Digital Items, Entertainment, and Gaming

 On – demand delivery of products

• e-grocer
• A grocer that takes orders online and provides deliveries
on a daily or other regular schedule or within a very short
period of time
• on-demand delivery service
Express delivery made fairly quickly after an online order is received

 Online entertainment
• Adult Entertainment
• Internet Gaming
• Online Dating Services
Online Purchasing-Decision Aids

 shopping portals
Gateways to webstores and e-malls; may be
comprehensive or niche oriented
 Helping Communities
Online Purchasing-Decision Aids

 Price & Quality comparison by Shopbot

software
 shopping robots (shopping agents or shopbots)
Tools that scout the Web on behalf of consumers
who specify search criteria
 Google Commerce Search 2.0
 “Spy” Services
 Wireless Shopping Comparisons
Issues In E-Tailing and Lessons
Learned
 disintermediation
The removal of organizations or business
process layers responsible for certain
intermediary steps in a given supply chain
 reintermediation
The process whereby intermediaries (either
new ones or those that had been
disintermediated) take on new intermediary
roles
Issues In E-Tailing and Lessons
Learned
• Channel conflict
Situation in which an online marketing channel upsets the
traditional channels due to real or perceived damage from
competition
• Possibility of Price conflict
• Product/Service customization
• Online competition
• Fraud & illegal activities
6
5

Building trust