E-commerce – behind the scenes Paweł Preneta, Project Manager | InternetBeta 2013 | 12 IX 2013 What makes your store earn money? E-commerce – behind the scenes

24 billion zł „E-commerce is a great business” they said… „The easiest way to earn money” they said… 24 billion zł Estimated value of the eCommerce market in 2013

Data from Internet Standard’s eCommerce Report 2012 A few facts Data from Internet Standard’s eCommerce Report 2012 A questionnaire sent to 14,000 shops.

54,5% 53,7% 7,48% shops are operated by one or two people A few facts 54,5% shops are operated by one or two people 53,7% of shops offer 1000 and more products 7,48% of shops offer over 50 000 products eCommerce 2012. Internet Standard

A few facts 48,62% have 10 and more suppliers of their products 13,30% have more than 50 suppliers 91% own a warehouse in every other case, it is greater than 50 m2 eCommerce 2012. Internet Standard

No more than 12% of 66% auction portals 77% price comparison A few facts No more than 12% of respondents focus solely on e-commerce 66% auction portals 77% price comparison 41% ground points 13% group shopping eCommerce 2012. Internet Standard

A few facts 96% of stores accept returns of products purchased over the Internet 60% of stores use own or purchased software 30% of stores are planning transferring to a dedicated platform eCommerce 2012. Internet Standard

slow action 73% of The most common mistake of online stores was A few facts The most common mistake of online stores was slow action 73% of all reported irregularities in the operation of services eCommerce 2012. Internet Standard

Shops are very promoting Positioning 76% Price comparison websites 67% Sales promotion (sales, discounts, etc..) 60% Paid links 59% Presence in catalogs 53% E-mail marketing 43% Offline advertising 37% Social media 37% PR activities 28% You do not often hear about automation and optimization of internal processes happening „behind the scenes", which often offer great opportunities to reduce operating costs. eCommerce 2012. Internet Standard

Few people think of a problem before they notice it… Logistics Cash registers Handling returns Complaints service Bulk ordering from different suppliers…

"Good for everything" solutions are not always enough Dedicated platforms "Good for everything" solutions are not always enough

Managing and synchronizing multiple warehouses Problems in e-commerce Managing and synchronizing multiple warehouses What does one have to deal with? Many warehouses Different products Different companies Different accounting systems Different delivery times Different ways of settlement

Logistics and delivery time Problems in e-commerce Logistics and delivery time What does one have to deal with? Own warehouse vs. supplier’s warehouses Time needed for shipping from internal warehouse Delivery time from supplier Integration with couriers / suppliers Delivery tracking (because people like looking)

Document Management - Electronic Document Workflow Problems in e-commerce Document Management - Electronic Document Workflow What does one have to deal with? Sending invoices between branches Internal controls Verification and confirmation of orders Offers and discounts for customers

Managing complaints and returns Problems in e-commerce Managing complaints and returns What does one have to deal with? Efficient acceptance of the application Quick process of the matter Current status information Settlements of returns (especially annoying if there are several suppliers)

Reliable information for the customer Problems in e-commerce Reliable information for the customer What does one have to deal with? Current price (especially if there are several alternative suppliers) Delivery time / availability of replacements Thanks to a good management of vendors’ warehouses there is a chance to minimize the amount of "frozen" goods in our warehouse

Making offers the efficient way Problems in e-commerce Making offers the efficient way What does one have to deal with? Accepting an inquiry even when no one has time Quick return of the finished offer An offer includes individual discounts and terms of cooperation An offer that finds the best alternative to what client wants

What does one have to deal with? Problems in e-commerce Don’t try too hard What does one have to deal with? Thorough analysis of the problem Investigate all solutions (even "the most ludicrous ones”) Calmly making a decision

Think especially about what "will definitely not happen to you"

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