Entry 4

E-COMMERCE: 

This week we learnt about E-commerce and why people venture to the web to start businesses. E-commerce to begin, involves digitally enabled commercial transactions between and among organizations and individuals. These digitally enabled transactions include all transactions mediated by digital technology and commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services.

There are different types of E-commerce as well and are classified into 2 groups:
1. Nature of market relationship:

• Business - to - Consumer (B2C)
• Business - to - Business (B2B)
• Consumer - to - Consumer (C2C)

2. Classified by type of technology used:

• Peer - to - Peer (P2P)
• Mobile Commerce (M-commerce)

Though they are being categorized into specific groups, these businesses all have one thing in mind and that is to hope to gain success and recognition after setting up their businesses. There are many successful  E-commerce businesses in the market today and they have strived hard to be where they are at today. Want to know how exactly these businesses do it? Well, you are in luck if you want to find out the tricks of the trade that successful businesses utilize to gain success. I am going to present to you just 5 simple tips to become a global E-commerce success!

Adapted from Forbes , these were 5 steps that they adviced for E-commerce to pick up in order for their business to be successful not just locally, but GLOBALLY. As people venture into the web to start businesses, ideally it would be good to have a reputation locally but why people use the web? That is also because not only do they want to be successful locally, they would also want to uphold a reputation globally. To bring awareness to foreign investors and potential shareholders. Hence, without further a do, these are the 5 tips for global E-commerce success:

1. Flexible Pricing:

Note that we not only want to be successful locally, but the keyword in this is GLOBAL. Thus, the wider you sell your products, the wider the market is and you have to constantly be aware about changes. For example, if you were to sell your product at RM50 in Malaysia, converting that to Singapore dollar comes up to about $25 SGD. However, competitors in Singapore might price their product at $25, so even though you are priced in the local currency, you are not pricing it competitively and price conscious shoppers will abandon your site for a competitor's. 

2. Currencies Are Confusing!

Have you ever chance upon an item online but when you looked at the price it was in a total difference currency, having you to go through the hassle to convert it yourself? Having unfamiliar currencies on your E-commerce website can be rather confusing to a lot of people and can end up leaving abandonment of online shopping carts. In order to curb this situation from occurring, set prices in every relevant currencies to ease the hassle for your customers. 

3. Price Presentation:

If you are aware of the famous Japanese brand Daiso, you would probably understand that every single item be it big or small are all priced at just $2. Believe it or not, rounding numbers up can make a psychological difference to consumers and exchange rates can cause friendly-looking price figures to be less rounded, awkward-looking numbers. For example, if you were to tell a person the price of the item is $2387 rather than a more friendly-looking price of $2300, just by doing so, you are already increasing your E-commerce friction. In order to help your customers have ease of purchasing an item, always place prices in clean, round numbers to further simplify their purchase decision-making process.

4. Local Payment:

Allowing your customers to pay in a method that they are aware and familiar about increases revenue and decrease friction. This is because by asking your customers to pay in a way that they are not accustomed to will cause suspicion and draws them away from purchasing your products. You should always work in a way that you know works best for them. Remember, your customers always come first, they are your money makers!

5. Taxes:

By showing taxes on your website that is familiar with your customers, helps them create less suspicion about your business and helps increase credibility as well. However, because some countries vary in their taxes, it creates legal points. For example, in the U.S, sales tax is added to the marketed price and varies globally as well as within their individual states. However in Europe, the (VAT) also known as Value Added Tax, is a tax on the perceived value of a product, so it is marketed as a component of the final price. 

After reading through the 5 steps, it did not seem as complicated as it was initially wasn't it! These are ideally the top five important steps that Forbes recommended for all businesses that is thinking to about setting up E-commerce to pay attention to. With these five steps adhered to, the success of your business should be escalating in no time. 

Thus, in conclusion, I leave you my friends with a note to drive you and even myself to strive to succeed. If Steve Jobs can do it... SO CAN WE!!!