School of Information Systems

DEFINITION, ADVANTAGES, DIFFERENCES AND EXAMPLES E-COMMERCE BUSINESS OF SHOPEE

04 Mar 2022

DEFINITION E-COMMERCE 

E-Commerce or which stands for electronic commerce, is all forms of trading activities which include sales and purchases made using electronic networks. By using E-Commerce, buyers and sellers meet through available platforms and carry out buying and selling activities online. Thus, this buying and selling activity can be done anywhere and anytime so it is more flexible and efficient. 

Types of E-Commerce 

  • Business to Business (B2B) 

E-Commerce website is an electronic transaction activity between business organizations and other business organizations. This type of E-Commerce is usually used by manufacturers and wholesalers. 

  • Business to Consumer (B2C) 

type of E-Commerce is a type of transaction activity carried out by companies with end consumers. Typically, this type of business deals directly with individual consumers. 

  • Consumer to Consumer (C2C) 

This business model is a business model that involves transactions between consumers and consumers. The two consumers did not meet in person, but instead used a third-party online platform. 

  • Consumer to Business (C2B) 

This business model is the opposite of C2C. Where, this type of transaction involves between consumers and companies. Usually, consumers will offer products or services to companies that need them. 

 

DEFINITION E-BUSINESS 

Electronic Business is a business process that is done digitally. Electronic business can be defined as any activity that is directly or indirectly related to the process of buying and selling goods or services using the internet as a medium of communication and transactions. E-Business allows a company to interact with data processing systems internally and externally so that business activities run efficiently. 

E-BUSINESS STRATEGY IN COMPANIES 

  • ERP (Enterprise Resource Planning) 

ERP is one of the business strategies of a company information system that can be used by companies to coordinate resources. In addition, ERP can also be used to find sources of information that can be used in business processes. 

  • EAI (Enterprise Application Programs) 

EAI is a business strategy related to the concept of integration of business processes. Using the EAI system allows companies to exchange business-related information. 

  • CRM (Customer Relationship Management) 

CRM is a business strategy that focuses on providing services to customers. CRM in the form of software specifically designed to increase company profits by paying attention to customer satisfaction. By using a CRM company can find out various things related to consumers directly through a system that has been specially designed. 

  • SCM (Supply Chain Management) 

The last E-Business strategy is SCM, which is a management strategy regarding the supply chain that occurs between the company and the supplier. By using this supply chain the company will get several benefits because it already has a relationship or collaboration with a supplier using the available computerized system. 

 

ADVANTAGES E-COMMERCE 

  • Faster buying process 

By using e-commerce customers can make purchases in less time. Customers can search and browse various items that they want to buy. By making purchases online, customers can be more time efficient than shopping visiting a physical store. 

 

  • Cost reduction 

Cost reduction is one of the advantages of online shopping using e-commerce. Sellers who use e-commerce services do not need to pay rental fees as they would if selling in physical stores. If by selling in a physical store the seller has to pay additional costs, this is different from E-Commerce which can reduce these expenses. 

 

  • Affordable advertising and marketing 

Another advantage of using e-commerce is that sellers don’t need to spend a lot of money to promote their products. E-commerce has several services that are fast and affordable for advertising products sold by sellers. This is because e-commerce is a visual channel that can be used by sellers to promote their products freely. 

 

  • Several payment models 

 

E-Commerce provides several payment methods that customers can choose to pay for their orders. Customers can make payments by means of Net banking, cash on delivery, credit or debit, paylater services and others. Thus, customers can make payments according to their wishes. 

 

  • Flexibility for customers 

Another advantage of e-commerce is that it provides flexibility to its customers. E-commerce services are available all day long so that sellers can offer their products at any time so that buyers can visit the store and buy products anytime and anywhere. 

  • Faster response to buyer  

The interaction between sellers and buyers will occur faster if you use e-commerce. Sellers can interact directly with customers through instant messaging services. In addition, e-commerce can meet market demand well, such as returning goods if the goods are not in accordance with customer wishes and exchanging goods. 

 

  • No reach limitations 

Sellers with online stores have the opportunity to reach wider customers than physical store sellers. The e-commerce market has a different sales and delivery system, so that this shop can reach its customers by using logistic facilities that are available at a lower price. So that all customers who shop online can be reached by the online shop. 

 

ADVANTAGES E-BUSINESS 

 

  • Easily accessible 

 

E-Business users can easily access their business anywhere and anytime. The E-business channel will run and be available for 24 hours, so that users can make transactions without being limited by working hours. 

 

  • Quick updates 

 

Websites, blogs and other social media outlets have access to updates quickly. System updates on E-Business can improve processing activities such as promotions, ordering and others for the better.  

 

  • Save time 

By using E-Business, business people can save time if they want to do things related to their business. Interaction between business people and customers can be done online so it doesn’t take up a lot of time. 

  • Requires little capital 

If in general, building a business must require large capital, but with e-business it can minimize capital expenditure. With little capital and assisted by an adequate internet connection, a person can start a business. 

 

DIFFERENCES BETWEEN E-COMMERCE & E-BUSINESS 

  • E-Commerce 
  • It is expected to be smaller because it is part of E-Business 
  • E-Commerce is the only medium of online trading 
  • It only requires marketing systems and strategies such as verification and analysis in sales activities. 
  • As a medium to promote products and services 

 

  • E-Business 
  • Its reach is wider 
  • Includes capital management, human resources and all product and service marketing processes 
  • Can be a forum for education so that customers can find out more about the benefits of the products and services being marketed. 
  • Consists of a complete system 
  • Consists of many business support sections 
  • E-Business is more complex and complete 
  • E-Business is part of the process of planning, production, risk management, developing a product and service, system development and financial management. 

 

E-COMMERCE BUSINESS OF SHOPEE 

Shopee is a young E-Commerce that is growing rapidly in Indonesia in the online buying and selling market category. Shopee officially entered Indonesia in 2015 with an online-based marketplace type. In 2018 Shopee reached 1.5 million transactions within 24 hours and this made Shopee the largest e-commerce in Indonesia to beat its previous online buying and selling platform. Shopee offers a type of e-commerce Customer to Customer (C2C), namely buying and selling activities carried out from customer to other customer. Shopee offers a wide range of products that are equipped with safe and varied payment methods, integrated shipping services and a platform with innovative features, so customers can shop safely and comfortably. 

In its payment system Shopee Indonesia provides an interactive buying and selling service system between sellers and buyers through the chat feature provided by the application. Shopee provides a variety of payment methods that can be used by buyers, including bank transfers, Indomaret and Alfamart transfers, Kredivo, to credit cards. In addition, Shopee also provides a Shopee pay service that can be used to save funds from both purchases and sales. In the Shopee application, Shopee Indonesia provides the service “Shopee Coins”, namely virtual coins that can be collected by customers from purchases. These “Shopee Coins” can be exchanged for discounts by customers on their next purchase, so this makes this E-Commerce popular. 

In addition to providing various payment services, Shopee also provides a Shopee guarantee system as a guarantee provided to customers. Shopee tries to ensure that its products arrive in the hands of customers, therefore Shopee guarantees a refund if the goods do not arrive. In addition, one of the advantages of Shopee as a marketplace is also supported by well-known logistics facilities. Some logistics such as JNE, J&T, Ninja Express, GO-JEK (Go-Send) and Pos Indonesia work together with Shopee to serve customers. 

 

Shopee Marketing Strategy 

  • Using the latest marketing techniques 

One of the Shopee marketing strategies is to always use new things that are viral and trending among the public. Shopee has the courage to issue ambassadors for well-known artists to promote its platform. With the idea of ​​releasing creative content at each promotion it makes this application easy to remember because the content is widely known, relatable, and right on target. 

  • Using the right media 

This strategy is applied because it refers to eMarketer’s research which states that Indonesian mobile phone users are growing rapidly when compared to other countries in Southeast Asia. With this information Shopee focuses its business on cellphone users. In that case the Shopee is successful so that accurate information is used as the basis of a profitable business. 

  • Holding Promo 

Weapon most favored by Shopee consumers is by holding a free postage promo for customers. Shopee provides free shipping to customers with certain purchases, so that it can attract consumers to shop. 

  • Lowest price guarantee 

Price is a major factor for consideration for consumers. Shopee takes advantage of this to compete with other marketplaces by using the “Lowest Price Guarantee, 2x Money Back” campaign. Thus customers can be interested in shopping using Shopee. 

  • Have a clear target market clear 

Shopee has target market, and the main target of Shopee is women. This is because because there are more female e-commerce users than men, so Shopee are more focused on products that are related to women’s needs. 

  SHOPEE MANAGEMENT SYSTEM 

  • Transaction Processing System (TPS) 

TPS is a computerized information system that can be developed for business purposes. By using this system businesses can process large amounts of data for transaction activities such as payroll and inventory. The process in this system includes sorting data, viewing data, updating data and the output received is a report with details, a complete list and a summary. In Shopee companies that are part of TPS are Customer Services, Sellers, buyers and financiers who manage company finances. 

  • Management Information System (MIS) 

MIS produces information that is used by companies to make decisions and also to unify computerized business information. At the Shopee company which is part of the MIS, namely the Marketing Officer in charge of bringing progress in the company’s marketing activities. 

  • Decision Support System (DSS) 

Decision Support System is almost the same as MIS because both are related to decision making. DSS began because of the pressure from the MIS in the decision support function. DSS vary in complexity and level of troubleshooting support. In the company Shopee DSS is the Chief Marketing Officer who leads the marketing officer and is in charge of making decisions and policies. 

  • Executive Information System (EIS)  

EIS is a computerized system that provides easy access to the executive branch. At the Shopee company, who acts as EIS is the Chief Executive officer who is in charge of managing and analyzing all functional business activities. 

Reference : 

Risa Santika