Ecommerce Market Places

General Online Store

Functioning Mechanism Unlike conventional ecommerce websites, marketplaces transfer the burden of maintaining inventories, logistics, images, product descriptions, and pricing to the seller. There is more than one operational model for marketplaces, but the most common method involves marketplaces being merely an order booking mechanism.

Marketplaces display the seller's wares, collect orders and payments, forward orders to the seller, track delivery, and release payment to the seller after deducting a fee.

Why?

Many sellers on virtual marketplaces sell on their own websites as well the reason being:

• marketplaces are attractive to sellers

• they tend to have huge traffic

• For the small seller to attract even a fraction of

that traffic on her or his own website is

a humongous job.

• Selling on marketplaces does away with the

requirement of having your own website,

hosting, technology, payment gateway, accounting software which are costs which you might

not want to incur initially

Using existing resources to create E-Commerce Store and then converting that E-Commerce Store into Multi Vendor Marketplace. What do we really mean about using existing resources. By Existing Resources here we mean the Open Source E-Commerce Platforms which can be used to create E-Commerce Store. We have a wide range of Open Source E-Commerce Platforms which can be used to create a new E-Commerce Store for commercial purpose without any restrictions or limits. Apart from this, these Open Source platforms provides a great backend interface to add and manage products, orders and customers. Few of the very popular Open Source E-Commerce Platforms are shown in the next page:

WHAT YOU CAN DO?

EBAY

EBAY

Advantages

• sell a large number of SKUs

• no need to maintain inventory.

• Operational efficiencies improve as some overheads are transferred to the seller.

• Being a marketplace provider allows you to focus on developing ecommerce

technologies.

• Margins improve.

• Positive cash flow: the result of these various savings is clearly felt in the finances of the

company. Since E-Commerce websites have heavier initial investments to make to fire up

its activity, its treasury will take longer to break even.

Concerns Competition & Brand Visibility • competition in a marketplace tends to favor larger, more well-known brands. • all brands, regardless of their size, are stacked up against each other and the ability to stand out in a sea of competitors is limited.

Pricing

• small brands respond to the pressure of being compared against big competitors by cutting prices.

• greater disadvantage: larger brands can compete on the strength of their brand and the perceived

quality of their products; effectiveness of price reductions is further diminished as other brands enter

the marketplace and pursue a similar strategy.

• Devaluing product by competing aggressively on price is a scenario that no brand wants to optimize

for, but is often considered a necessary evil in the Marketplace model.

In 2015 responsive, mobile--‐friendly eCommerce websites will stop being a competitive advantage and start to become a necessity for doing business online. Web design trends: 1. Data science 2. Hidden menus (sometimes called hamburger menus)

• People don’t yet understand what the hamburger menu icon means. 3. Responsive design for large screens 4. Flexible and large typography 5. large photography 6. Video content and backgrounds

Some Upcoming Trends

• Social commerce is evolving to meet companies’ needs.

• Twitter joins other companies like Facebook in trying to prove that social commerce is

working.

• Facebook dominates as a source of social traffic and sales --‐ average of 85% of all

eCommerce orders from social media come from Facebook.

• Community style sites like Polyvore, Instagram can generate high average order value.

• Facebook has the highest conversion rate for all social media ecommerce traffic at

1.85%Social commerce workarounds like

Social Media

• Information security was one of the biggest stories of 2014. – Kmart , JPMorgan,

Snapchat, Apple iCloud, Sony, Xbox,

• 54% of the aVacks targeted eCommerce systems.

Point of sale (POS) attacks come next, making up 33%.

• Experts believe that these two types of breaches will dominate the landscape in the

upcoming years.

• Java, Adobe Flash, Adobe Reader and other third-party applications accounted for 85%

of the exploits used in the cyber attacks last year.

• Many organizations are still incapable of detecting data breaches themselves.

Security