Strategies for E-Commerce,

Internet based Business Models

Unit-4
Topic-5
 Outline
• Strategies for E-Commerce
• Internet Based Business Models

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 Objectives
• To understand the Strategies for E-Commerce
• To gain insight about Internet Based Business
Models

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 Ecommerce Strategies to Optimize
Sales
1 Free Shipping
The most common reason visitors abandon a
purchase is shipping cost. Offer your customers free
shipping, and clearly state that benefit on your site.
39% of customers would purchase enough to get
free shipping.In addition, a study by Compete states
that:
93% of online buyers would be encouraged to buy
more products if free shipping were offer.
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 Continued……
2 Show Discounts and Specials Clearly
Discounts and coupons are powerful marketing
tools that allow you to:
Give your clients special offers on products or
categories.
Let wholesalers purchase at special rates.
Provide incentives through your offline advertising.
Help clear “difficult to sell” stock amongst many
other users

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 Continued……
3 Referral Discounts
Optimizely tested a call to action (CTA) for an outdoor gear retailer’s
refer-a-friend program and found that active outdoor enthusiasts are
significantly more motivated by “Earn Rewards” than “Get Rewards.”

4 Take Your Email Marketing Beyond the Inbox

Over the next few years, we’re likely to see a lot more ecommerce
companies combining their email marketing campaigns with related
social advertising.
In a study where a leading retailer in the US targeted 925,000 email
subscribers with both its regular emails and coordinated Facebook ads,
subscribers who received both ads were 22% more likely to make
purchases than those who only received emails.

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 Continued……
5 Use videos to draw attention to your company’s
website
Using video in the right way will have a direct effect on
user engagement.
Short explainer videos are an excellent way to help
visitors quickly understand your company, your products,
and your services.
Visually showing your product in action gives visitors a
better understanding of how your product works.
That helps soon-to-be customers get more comfortable
with making a purchase, thereby boosting both your
revenue and your conversion rate.

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 Continued……
6 Add Live Chat to your Conversion Rate Optimization
toolkit
Live chat has the potential to close the gap between the
online shoppers and retailers. You have the chance to connect
with your potential customers and build their trust.
Recent studies have shown that 68.5% of CompUSA customers
used live chat while browsing the website:
32% percent of them used live chat during the final phases of
the buying process
And out of the 32%, 10% percent converted into a sale. At this
point, it is still relatively early in live chat implementation;
however 28% of e-commerce websites now offer live chat

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 INTERNET BASED BUSINESS MODELS

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 Internet Based Business Models
1. Ecommerce/Shopping Cart Model
• With this type of model, your website takes over from your physical
store in shipping goods directly to your customers. Ecommerce sites
aren’t especially difficult to create, and there exist a cacophony of
software options – from the free/cheap to elaborate, custom design
carts with every type of bell & whistle you could want.
• Amazon are a pretty good example of this simple, yet ruthlessly
effective online business model. It uses cheap, out of town
warehouses which ship the goods directly to consumers. By
minimizing its cost base and maximizing economies of scale it can
offer prices that most offline only stores just cannot go toe to toe
with. For this reason, the more niche your product range and the
better your unique selling point, the greater your likely success
when using this model.

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 Continued…….
2 Digital Download Model
• Examples of this are ebooks, software, and music
and just about anything intangible that may be
downloaded instantly after purchase. A huge
feature with this model is that once set-up it
requires practically no manual intervention from
you or your staff. From product purchase to
delivery, it’s all handled by a virtual backroom of
wageless robots that exist within the software
system that you’re using.

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 Continued…….
3 Membership Site Model
• These are often touted as the holy grail of models
because they offer a recurring income element.
Typically, members pay a monthly fee to access
digital content that is hidden to non members.
The product could be just about anything, but
mostly will be some form of digital media such as
ebooks, videos or software. Normally, fresh new
content is added periodically to encourage the
member to stay as a paying subscriber.

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 Continued…….
4 Affiliate Model
• The site owner earns by placing a selection of
affiliate adverts on the site, normally closely
linked to the site theme. When a sale is made
via an affiliate link or banner, the site owner
earns a commission. This is among the most
commonly applied net business models for
bloggers, and for new entrants into the online
business arena.

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 Continued…….
5 Hybrid Model
• There is a good chance that the business model you
end up with could well be a pick n mix of two, or more
of the above. For example, your site’s core purpose
could be to sell subscriptions to new monthly business
products and tools, but it could equally offer affiliate
products to bolster earnings.
• These are just some of the more popular internet
business models that you can adopt. Keep in mind
though that the internet, evolving so ferociously as it
does, always throws up new opportunities and new
ways of doing business.

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 Summary
Internet based business models can offer the
best of both worlds – the epic earnings potential
that come with running a successful company,
only with far fewer of the bottlenecks that come
with traditional bricks and mortar setups. Like
suffocating cash demands, before so much as a
customer has ventured through the threshold or
a penny has been earned by way of revenue

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 Thank You

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