Critical analysis of ecommerce and delivery

HUTECH UNIVERSITY OF TECHNOLOGY

LINCOLN UNIVERSITY

E – COMMERCE AND DERLIVERY
ASSIGNMENT

eBay
Student

: Pham Thi Thuy Trang

Student ID : 161101049
Class:

: 16BLBA01

Ho Chi Minh City – September 2018
1


Table of Contents
I.

Abstract:_______________________________________________________________3

II.

Introduction:____________________________________________________________3

III.

eBay vision statement:__________________________________________________5

IV.

eBay's Mission Statement_______________________________________________5

V.

Seven unique feartures of E-commerce (student, 2017)__________________________6
1.

Ubiquity:___________________________________________________________________6

2.

Global reach:________________________________________________________________6

3.

Universal Standards:__________________________________________________________7

4.

Richness:___________________________________________________________________7

5.

Interactivity:________________________________________________________________8

6.

Information Density:__________________________________________________________8

7.

Pesonalization:______________________________________________________________8



Implement well:_____________________________________________________________9



Implement Poorly:___________________________________________________________9



Summary of seven unique features of E-commerce technology:_______________________9
VI.



2

How delivery strategy can increase ecommerce sales?____________________________________9
Delivery strategy can increase website conversion rates:_________________________________10
Delivery strategy can increase repeat purchases:_______________________________________11

E- commerce: Critical Analysis of E-commerce and Delivery
eBay
  
I.

Abstract:

The purpose of the present study is to explain strategic planning and its relatedness to the
company’s mission, objectives and goals of a company. How delivery of product bought
online can be improved to increase the amount of domestic or cross-border E-Commerce.
How evaluate e-commerce and delivery in relation to strategic planning and marketing
online of eBay. eBay is an online auction and shopping website for individuals and business
to buy and sell goods, like the Trading Post or Tiki, Lazada[ CITATION Lib14 \l 1066 ]
II.

Introduction:

E-commerce, also called electronic commerce is use of the Internet and to transact the
business. More formally, we must focus on the digital enabled commercial transactions
between and among the organization and the individuals. Each of these components is very
important in the e-commerce. The digitally enabled transactions are include all the
transactions that mediated by the digital technology[ CITATION Stu16 \l 1066 ]. These
means the transactions will occur over the Internet and the Web. Besides that, the
commercial transactions are involved with the exchange of the value such as money across
the organizational or the individual boundaries in return for the services and the
products[ CITATION stu17 \l 1066 ]. The exchange of the value is very important for
understanding the limits of the e-commerce because without an exchange of the value, there
will not have the commerce occurs. Other than that, e-commerce can do different types of the
business activity such as online shopping, electronic payments, online auctions, internet
banking, online ticketing and others. The online shopping is the people can buy or selling the

goods through the Internet. The electronic payments are when the people buy the goods at the
e-commerce website, they will be use the electronic payments to pay the fee and this also can
3


reduce the inefficiency and associated with writing or mailing the checks. The internet
banking is the people can do the banking operations through the bank’s website and no need
to visit to the bank, so it will save our time. The online ticketing is the people can book the
tickets such as train tickets, movie tickets, air tickets and other tickets through the online, so
the people no need to queue up at the ticket counters. Moreover, there have the seven unique
features of the e-commerce technology, which are ubiquity, global reach, universal standards,
richness, interactivity, information density and personalization/ customiz ation[ CITATION
Stu16 \l 1066 ]. So, the e-commerce website that I choose is the eBay.com.

Figure 1:eBay in USA

E-commerce is growing at an exponential rate. The credit card company Visa, for example,
reports that its clients' Internet purchases reached the $13 billion mark this year, accounting
for approximately 1% of its total charge activity. This figure is expected to reach the $100
billion mark and 11% of its total transactions by the year 2003 and is expected to be one of
the major activities of credit card companies in the future[ CITATION And97 \l 1066 ]. This
forecast is anything but farfetched, given that only as far back as 1996 Internet commerce
was only between $500 and $600 million. Among the most popular items of E-commerce,
according to the Better Business Bureau are books, CDs, and subscriptions to
magazines[ CITATION And97 \l 1066 ]

4


Established in 1995. Up to now, after more than 20 years of establishment and development.

eBay now has over 1.4 billion unique visitors every month from every country. This customer
only counts on eBay.com.[ CITATION Tyz17 \l 1066 ]

Figure 2: What is eBay?

In addition, in all countries eBay has almost registered its brand domain. However, I only list
the major markets of eBay as above. Interestingly, right ? Only at eBay.com can you reach
billions of customers! Not to mention that you can use eBay to market in all the countries
where eBay is already[ CITATION Tyz17 \l 1066 ]
III.

eBay vision statement:

eBay vision statement is, they seek to create a global platform that provides individuals
and businesses of all types and sizes with access to broad markets that focus on commerce,
payments and communication.[ CITATION Mar \l 1066 ].In the statement they discuss what
they want to become. Not only do they want to play a part in commerce, payment and
communication, but they want to create a fully global platform that combines their product
and services. They want these product and services to work together for both individuals
and business to allow their customers to reach more market than they would typically have
been able to reach[ CITATION Mar \l 1066 ]
IV.
eBay's Mission Statement
 ebay's general mission is to provide a global trading platform where practically
anyone can trade practically anything[ CITATION Mar \l 1066 ]. In the statement,
they mention their business provide wide product and services range, customer
and market in trading items within eBay[ CITATION Mar \l 1066 ]
5

eBay has several general specific mission throughout the years. In 2005, the mission



statement is “They intend to achieve their mission statement of creati ng the
world’s online marketplace by improving and expanding across three main areas:
categories, formats, and geographies.”2006’sspecific mission statement is “they
intend to achieve their mission of creating the world‘s leading e-commerce
franchise by building upon their core Marketplace business and building their
adjacent business”. In 2007, “They intend to continue to work toward their
mission of creating the world’s leading e-commerce franchise by investing in
their core Marketplace segment and continuing to build their adjacent
Marketplaces business”. In 2010, and the latest one, eBay’s purpose is to pioneer
new communities around the world built on commerce, sustained by trust and inspired
by opportunity[ CITATION Mar \l 1066 ]
V. Seven unique feartures of E-commerce[ CITATION stu17 \l 1033 ]
1. Ubiquity:
 Ubiquity means that the commercial transaction or any activities that related with the
e-commerce is available at everywhere such as at workplaces, at homes and even on
the mobile devices and also can sign in to the e-commerce websites
anytime[ CITATION Stu16 \l 1066 ]. The ubiquity of e-commerce website can help the
consumers reduces the transaction costs that the costs of participating in the market.
In additional, the consumers no need to spend the time to go market to make a
purchase. During this time, the people will always choose the path that requiring the
least effort and can make them more convenient, so the e-commerce website is more



suitable to them[ CITATION stu17 \l 1033 ]
In addition, eBay also has many other major markets in the world. Typically in

countries such as:
 eBay.com - The US and Global Markets[ CITATION Tyz17 \l 1033 ]
 eBay.co.uk - UK Market[ CITATION Tyz17 \l 1033 ]
 eBay.de - German Market [ CITATION Tyz17 \l 1033 ]
 eBay.com.au - Australia Market [ CITATION Tyz17 \l 1033 ]
 eBay.it - Italy market [ CITATION Tyz17 \l 1033 ]
 eBay.fr - French Market [ CITATION Tyz17 \l 1033 ]

So, the consumers can purchase the goods from other country. In addition, this website also
can stay connected to Facebook, Google+, Twitter and eBay mobile.


2. Global reach:
Global reach means that the e-commerce technology is permits the commercial
transaction to cross the national boundaries and make it more conveniently. So, they

6


have many e-commerce merchants will create an e-commerce website to make it
become a potential market and famous in the world. The total number of the users or
consumers in the e-commerce business can obtain is a measure of its


reach[ CITATION stu17 \l 1033 ]
eBay website is the ubiquity website, so people in the whole world can go through this
website to do the goods sales or purchases[ CITATION Stu16 \l 1066 ]. It also can let
people do the commercial transaction between each nation.[ CITATION stu17 \l 1033
]



3. Universal Standards:
A universal standard means the standards that are shared by all nations around the
world. The universal technical standards of the e-commerce are a greatly lower
market entry cost, which means the merchants must pay the costs of the goods that
they bring to the market [ CITATION stu17 \l 1033 ]. Besides that, for the consumers,
the universal standards will reduce the search costs, which means the effort required
to find the suitable products [ CITATION stu17 \l 1033 ]. Furthermore, to create the
one-world marketspace, where the prices and product descriptions must be
inexpensively displayed for all people to see and the price discovery must becomes



faster, simpler and more accurate.[ CITATION Stu16 \l 1066 ]
eBay website has the universal standard that can share by all nations which have this
website. The entire eBay website will have free cost of visit this website for users and
users can register the account to get more details information of the products.



[ CITATION stu17 \l 1033 ]
4. Richness:
Richness means the complexity and content of a message. Back to the early days, the
traditional markets have a great richness; they are able to provide the personal, faceto-face services using an aural and visual cue when they do the selling with
consumers[ CITATION Stu16 \l 1066 ]. So, the richness of the traditional markets
makes them have a powerful selling or commercial environment.[ CITATION Stu16 \l
1066 ] The e-commerce technologies have changed the traditional trade-off between
the richness and reach, the larger the people reached, the less rich the
message[ CITATION Stu16 \l 1066 ]. For example, the eBay website will deliver the

full descriptions or details of each product. So, it will let the consumers know the
feature of each product and decide whether want to buy the product or not.



[ CITATION stu17 \l 1033 ]
eBay website provide the community to let the seller communicate with the consumers
to promote and explain the products to them.

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

5. Interactivity:
Interactivity means the technology that allows for two-way of communication between
the merchant and consumer.[ CITATION Stu16 \l 1066 ] The interactivity is works
through the interaction with the people. Moreover, the interactivity is allows the
online merchant to attract the consumer in the ways similar to the face-to-face



experience and it is more massive and global scale[ CITATION Stu16 \l 1066 ]
The eBay website has provided a community to allow everyone do any announcement,
enquiry and discussion between each and other. So that, the buyer and consumers
which are stay at different nation also can do the commercial transaction. They can
communication at the eBay website or change the e-mail each other for more detail



asking [ CITATION stu17 \l 1033 ].
6. Information Density:
Information Density means the total amount and the quality of information are
available to all market participants[ CITATION Stu16 \l 1066 ]. It is reduce the
information costs and increases the quality of the information to making it more



useful and important.[ CITATION stu17 \l 1033 ]
The eBay website is full of the information such as the detail information of the goods
with the picture. So that, the consumers no need to pay any costs for searching the
details information and the information that provide by eBay website is accurate and



useful.[ CITATION stu17 \l 1033 ]
7. Pesonalization:
Personalization means the merchants can target their marketing messages to the
specific individuals by adjusting the message to the person’s name, last purchases and
interests eBay website will send the different marketing messages to the different
consumers which are already register and have the record in their system[ CITATION
Stu16 \l 1066 ]. The customization means the users can change the delivered goods or
service based on their own preferences or prior behaviour[ CITATION stu17 \l 1033 ]
 eBay website will send the different marketing messages to the different



consumers which are already register and have the record in their system
The customization means the users can change the delivered goods or service based
on their own preferences or prior behaviour[ CITATION stu17 \l 1033 ]

 eBay website allows the consumers do the wish list that is which products that

you want to deliver first or which service you want to the seller to do
 Implement well:
The ubiquity is implementing well in the eBay website because there are many country have
this official website, so the people can sales or purchase the goods from different country. So,

8


consumers can do the comparison of products between different country and choose the
suitable products that they need.[ CITATION stu17 \l 1033 ]
 Implement Poorly:
The interactivity is implementing poorly in the eBay website because it is not a real time
chat. They just provided the community to allow everyone do any announcement, enquiry and
discussion between each and other. If the consumers do the announcement, they must wait for
the seller do the reply and this is inconvenience. In my opinion, I suggest the eBay website
must add the real time chat like the Facebook’s real time chat because it let the consumers
and seller can communicate to each other, so can easily do the commercial transaction. This
method can increase the interactivity between the seller and consumer and can make eBay
website more famous.[ CITATION Stu16 \l 1066 ]

 Summary of seven unique features of E-commerce technology:
 There have many advantages of the online purchase:
 The first advantages are lower price. The goods are usually cheaper on the
website because the warehouse and staff costs are lower and the e-commerce
website want to attract and keep the customers.[ CITATION stu17 \l 1033 ]
 The second advantages are convenience. People can access the e-commerce
website through the internet and they can do it at anywhere such as home and
it also can save their time.[ CITATION stu17 \l 1033 ]

 The third advantages are wide choice. There have many e-commerce website
around the world, so it will give more choices to the people to choose the good
and famous website.
 The last advantages are quick delivery. Most of the e-commerce website will
deliver the goods to consumer within a few days[ CITATION stu17 \l 1033 ]
The e-commerce website gives many benefits to the people.[ CITATION stu17 \l 1033 ]
VI.


How delivery strategy can increase ecommerce sales? [CITATION Chl17 \l 1066 ]
One of the main reasons that customers fail to buy online is delivery - be it the cost,
the lack of delivery options or a customer's lack of faith in the delivery promise. So if
you can improve your delivery strategy and address areas that stop customers from
buying, you will increase your online sales. [CITATION Chl17 \l 1033 ]



Your delivery strategy covers everything to do with the delivery of your products from how you present the delivery information on your ecommerce website and in
your marketing, right down to the product that arrives on the doorstep.[CITATION
Chl17 \l 1033 ]

9




It is shaped by what your customers require from you, as well as what it's possible for
you to provide - that might be limited by volumes, finances, or manpower. Every
business will have a different delivery strategy[CITATION Chl17 \l 1033 ]

 Delivery strategy can increase website conversion rates:
Delivery is the number one reason people don't buy online - so how can you reduce that on
your website?[ CITATION Chl17 \l 1066 ]
You need to offer the delivery options your customers want. Do a quick survey to find out
whether speed, convenience or cost is the most important for your customers. Then find the
couriers who will help you deliver what the customers want.[CITATION Chl17 \l 1033 ]
The delivery space is one of the most exciting in ecommerce right now and the options for the
smaller retailer are improving all the time - it's well worth scouting the marketplace at least
once a year to make sure you have the best delivery service for your business.[CITATION
Chl17 \l 1033 ]
Once you have the right services in place, make sure you are presenting them clearly on your
website. You need to get it right in all these places:


On every page: a header with the headline offering, and then a link to the
delivery options. Do not hide the prices.[CITATION Chl17 \l 1033 ]



Clear information on every product page. Is it in stock? When will it
despatch? Relevant postage prices.[CITATION Chl17 \l 1033 ]



Clearly explain it on the checkout and basket pages too.[CITATION Chl17 \l
1033 ]

Offers on delivery are one of the most powerful promotional tools you have. Any promotion is
your opportunity to get the customer to do what you want them to do as cheaply as possible in other words, with minimal impact on your margins. So use your most powerful tool only
when it suits you to do so.[CITATION Chl17 \l 1033 ]

If you are already offering free P&P on everything then use "Free upgrade to (better delivery
service)" as the big promotion
 Delivery strategy can increase repeat purchases:

10


In ecommerce we're all looking to turn our buyers into repeat buyers. Your delivery strategy
has a key part to play in this.[CITATION Chl17 \l 1033 ]
The first order someone places with you is about testing you out. Customers want to see if
they can trust you - so you really must do a good job with the first online order.[ CITATION
Chl17 \l 1066 ].That means you must deliver on your promise; the goods must be delivered as
promised, in one piece, on time, with all the right things in the parcel.[CITATION Chl17 \l
1033 ]
And that's just the minimum you need to do. If it goes wrong you need to be awesome at
dealing with the issue - any issue is a great opportunity to build trust.[CITATION Chl17 \l
1033 ]
Great calls to actions to put in a parcel could be:


A copy of your catalogue (if you have one);[CITATION Chl17 \l 1033 ]



A leaflet featuring your bestselling products;[CITATION Chl17 \l 1033 ]



An offer such as free P&P on your next order, or a code for a discount on the
next order.[CITATION Chl17 \l 1033 ]

If you want to really wow the customer, you can:


Brand your packaging; this could be as simple as a sticker or a stamp (some
find this helps recruit new customers when their parcels arrive in offices).
[CITATION Chl17 \l 1033 ]



Include a surprise free gift; it need not be big or complicated. A coaster, pen,
sticker or bookmark can have a big impact.[CITATION Chl17 \l 1033 ]



Wrap the products nicely in tissue paper etc, anything you can do to make
opening that parcel feel special.[CITATION Chl17 \l 1033 ]



Add a "packed by" card from the person who actually packed it creat[ CITATION Stu16 \l 1066 ]ing a human connection always helps.
[CITATION Chl17 \l 1033 ]

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