E-commerce - Shein

What is E-commerce?

E-commerce is the trading of goods

and services via the internet, electronic
systems and computer networks.

The internet has become an

increasingly important method of
business activity as e-commerce allows
businesses to operate 24 hours a day,
with an international reach.
Examples of E-commerce:

Financial services: Banking, foreign

exchange and share trading

Gaming: Sale of online gaming

Retailing: Groceries, clothing, books,

toys, etc
Features of E-commerce
Global Reach
E-commerce breaks geographical
barriers, hence allowing
businesses to sell products at a
wide customer base, reaching
consumers all over the world.
Access to information
Businesses use the Internet to
+ added convenience.
obtain and provide detailed and
specific product information to
make consumers more
knowledgeable about the products
before purchasing it.
24/7 Accessibility
E-commerce is accessible at all
times, hence consumers can
purchase products from any place
at any time, hence providing
Consumer Reviews
Consumers are able to post online
consumer reviews, which other
consumers can refer to before
making the decision of whether or
not to buy the product.
Features of E-commerce
Consumer Reviews
Negative reviews can discourage
potential consumers from buying
the products. Moreover, some
consumer reviews may be fake
hence is misleading.
Barriers to Entry
Technology helps overcome entry
+ business, unlike retailers.
barriers, in which selling to
different countries through e-
commerce, has less costs than
setting up physical stores
overseas.
Impersonal interaction
Relying on e-commerce
technologies to reach consumers
creates an impersonal relationship
between customers and the
Barriers to Entry
However, cultural differences are
still existent, in which some
countries are more resilient to
trusting the use of online
payments to e-tailers.
POSITIVE REVIEWS

NEGATIVE REVIEWS
E-commerce and the Marketing Mix

Place Promoti
Price Product on
 EXAMPLE: SHEIN vs ZAFUL
PRICE

PRICE TRANSPARENCY:
-E-commerce increases price
transparency hence allowing
consumers to immediately
compare prices.
-This increases competitiveness of
businesses to use different pricing
stragtegies to attract consumers, to
maintain market share.
 EXAMPLE: SHEIN VS F21

PRICE

PRICE DIFFERENCES:
-The elimination of the need for
wholesalers and retailers allows
businesses to reduce costs which
may reduce prices. EXAMPLE: SHEIN SHIPPING
-However, the need for charging
additional costs, such as shipping
and postage, may increase their
prices, making it less competitive
PRICE
Oligopolistic or monopolistic firms:
-Firms selling products with little or no substitutes enjoy limited amount of price
competition. These businesses face a threat with the growth of e-commerce, as there
is a decrease in the amount of autonomy the business possesses to set high prices.

Aggregators:
- These are price-comparison websites which show the prices of products from a
number of different online vendors. This helps consumers identify the best deal.

NOTE:
- Price is not often looked in isolation, rather consumers are attracted to products with
the best value for money.
PLACE
Distribution:
-E-commerce allows businesses to reach a global
audience at low costs, despite the logistics involved.
-This not only benefits businesses itself, however it
also benefits courier companies such as FedEX and
Royal Mail.
E-commerce offers a further advantage as a
distribution channel with websites that are able to be
translated into different languages hence capturing
an even larger audience.

Example:
SHEIN now ships to over 220 countries and regions
worldwide. With websites supporting the United
States, Spain, France, Russia, Germany, Italy, Australia
and the Middle East, SHEIN ships from one of its
many globally positioned warehouses.
PLACE
Convenience for consumers:
-E-commerce eliminates the need to visit retail
outlets
-Customers can shop at any time, irrespective
of time.
-Non-for-profit organizations can also benefit:
presence of online library, in the form of e-
books, for university students to access at any
time
Disadvantage for consumers:
-Consumers may not be willing to freely
purchase a product without examining it first.
-Without a retail store, consumers are not able
to personally ask questions regarding the
product to, for instance, a clothes’ shop staff.

EXAMPLE:
SHEIN is an online store in which
consumers can purchase any goods
without having to go to an actual store.
SHEIN’s consumers simply need to choose
the product they desire, input their home
address details, followed by payment
information.
 PRODUCT
• The products being sold by SHEIN can be
promoted online, hence is more
convenient for customers due to the very
accessible information
• The need for a premise or space is
eliminated as there is no need to display
products, thereby reducing costs as land
is only needed for the warehouse and
production.

• Websites allow companies to showcase their

products through modelled pictures to allow
consumers to visualize before purchasing
• E-commerce creates a wide customer base
which creates high demand hence allowing
businesses like SHEIN to have the confidence
provide a high variety of products
 PRODUCT
PACKAGING:
-It becomes less of an issue as packaging is not an important aspect in attracting online consumers to purchase the
products.
-This may reduce costs used for packaging, hence may reduce prices, which may increase sales which is transformed
into higher profit margins.

PRODUCT SPECIFICATION:
- All details regarding the product can be published on the firms websites. This is more cheap and efficient in
comparison to physical retail stores which often provide product specification in printed forms, whether through
brochures, or on the product’s packaging.

EXAMPLE:
SHEIN
ONLINE ADVERTISING
- Businesses can market their
products online, which can reach a
global audience
- Marketers can use embedded
video clips, audio and photos in
different websites to promote their
Promotion
goods
- Businesses can cut costs as they
don’t need to publish multiple
advertisements, whether on
billboards or on television, and
rather can post one advertisement
on their website
VIRAL MARKETING
- Using social media networks on the
Internet to promote their goods
- Can be in the form of mass emails
which is sent to potential and existing
clients
- Includes online banners and pop-up
advertisements
DISADVANTAGE:
- Spam emails have been criticized as
unethical and undesirable
- People have been accustomed to
pop-up ads, hence are used to
ignoring it
 - Use the internet to promote
corporate missions and product
range
- Create an online platform that
supports the needs of an
international community:
Promotion
businesses can allow users to
select their preferred language
- Businesses can have a ‘frequently
asked questions’ (FAQs) page, in
which they can pass on important
information for their customers
- Information can be easily updated on
their websites, at a low cots
- If new variants of products are
created, it can be easily informed to
customers, without the need to spend
high costs making new
advertisements
- E- commerce: An additional medium
of promotion for businesses to reach
customers
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THANK YOU