4.8 eCommerce
Keep a Personal Checklist:
Describe the features of e-commerce [AO1]
Analyses the effects of changing technology and e-commerce on the marketing mix [AO2]
Distinguish between the three types of e-commerce [AO2]
BE A CRITICAL THINKER: [AO3]
Discuss the costs and benefits of e-commerce to firms and consumers
Examine the impact of the setting ethical objectives in the eCommerce industry
Who says there’s only one way to do something? Not Bonobos. Not Ula
Disruptive strategies in the retail industry.
Bonobos (B2C) and Ula (B2B) innovate through eCommerce to make life of consumers easier.
Ula, a new Indonesian eCommerce B2B startup, was founded in 2020 during the pandemic to service retailers who are frustrated with the traditional retail and mom-and-pop kiosks' burdens, by helping them modernize their business model and offer them a inventory & logistic services as well as financing.
A main constrain of the traditional retailers are space and heavy stocking costs. With that, it is difficult to satisfy customers who often leave empty handed or get frustrated when hearing, “Sorry, we don’t have your size”.
"Bonobos revolutionizes the way traditional stores function. It's the e-tailer’s answer to traditional retail – a hassle-free shopping experience with highly personalized customer service". (Stayer Education, 2015)
Dropshipping - a new eCommerce Trend. But..
Be cautious of the 'Get Rich Quick Schemes'
Why Products Sold On Instagram, TikTok May Not Be What They Seem?
"Dropshippers are the ultimate middlemen. The trendy e-commerce model is what's behind the ads for products all over Facebook, Instagram, TikTok and YouTube. While some sellers make millions dropshipping from overseas without ever touching the merchandise, others use it as a get-rich-quick scheme that's hurting legitimate businesses and unassuming customers". (CNBC, 2021)
BM Connections:
Unit 1.3 Ethical Behaviour & Ethical Objectives
Unit 1.5 External factors
Unit 2.4 Employees motivation
Unit 2.6 [HL] Employee & employer's relationships
Unit 4.5 4Ps Marketing Mix
Unit 4.6 [HL] 7Ps Extended Marketing Mix
Unit 5.5 [HL] Production & Stock Planning
