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Andrew Velovski
Tuesday 4:30 Tutorial

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Social commerce is a rapidly emerging trend in ecommerce that's radically augmenting the online shopping experience.

What is social commerce

Social commerce is the use of social media to drive ecommerce transactions. In years gone by this meant using paid, owned and earned media to build visibility and drive traffic to an ecommerce store. In recent years social media platforms are adding the ability to purchase products without leaving the app.

And the future is here. In March 2019 Facebook introduced Checkout, which lets users shop within Instagram although it's not yet available in Australia. Snapchat and TikTok are also planning to release similar capability in the near future.

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Why is social commence important

Social commerce is important as it helps business provide a seamless omnichannel shopping experience, allowing people to shop instantly from anywhere.

The rise of social commerce is makes sense when you consider 71% of Australians use social media for around two hours per day ( Social Media 2020). When it comes to social media usage, 89% of Aussie social media users spend time on Facebook and almost 50% on Instagram ( Yellow Report 2020). Furthermore, according to 10 Ecommerce Trends:

87% of e-commerce shoppers believe social media helps them make a shopping decision.

1 in 4 business owners are selling through Facebook.

40% of merchants use social media to generate sales.

30% of consumers say they would make purchases directly through social media platforms.

With a focus on customer experience and omnichannel ecommerce it was only a matter of time before social media platforms developed in-app ecommerce capability.

We expect to see rapid adoption of people transacting within social media platforms. Doing so is already common practice in countries such as Korea and China, where 'do everything' apps such as Kakao and WeChat are used as a primary means to transact with the world. I first saw this in Korea in 2015 while there for business. I remember being surprised when a colleague from the local office used the chat app, Kakao, to also pay for parking and other services.

Social commerce will continue to fuse social media and ecommerce, becoming an important revenue stream and component of the ecommerce playbook.

What should my business be doing today?

Instagram is currently in the process of rolling out its 'Checkout' feature, which will enable shopping within the app.
Have a social media strategy
The first thing your business should be doing to maximise revenue is to actively use social media. This includes a strategy that uses paid, owned and earned media to build visibility, drive qualified leads and provide customer service.

Note: You should also be using a business account for Facebook and Instagram. If you haven't already, Instagram provides this helpful guide.
Setup catalogues in Facebook
A catalogue is a feature accessed through Facebook Business Manager that draws different types of product inventory into Facebook and Instagram. Within the catalogue you can easily manage product details such as price, size and pricing. It's easy to create sets of products for ads or collections for shops.
Leverage your catalogues
Catalogues will be essential for selling through Facebook Shops and Instagram Checkout. In the meantime, you can leverage your catalogues to create powerful shopping experience. This includes being able to tag and link to products featured in posts. We use catalogues for clients to run dynamic ads, collection ads and carousel ads, which tend to have a good return on advertising spend ROAS).

Tip: See Facebook's help centre for more on catalogues.
Develop audience insights
Being able to find your audience is critical when it comes to selling anything. Social media is a good for finding and better understanding who their audience is and what they're into. We recommend dedicating part of your advertising budget to experiment with custom audiences, lookalike audiences, remarketing and content optimisation. By being intentional and tracking the performance of different content and audience targeting you can gain insight to better optimise your content and advertising strategy.
Optimise the customer experience
Being able to sell products and services directly within social media apps is one thing, but in order to keep customers coming back you'll want to optimise your customer experience. This includes having the right people, process and systems in place to provide a seamless customer experience.

Conclusion

When social media first came on the scene the focus for most brands was engaging their audience and building their online community. Its purpose was largely at the top of the funnel. As social media has evolved, it's become the world's most powerful direct marketing tool.

This shifted the focus away from community building and engagement to sales. This trajectory continues with the growth of social commerce. Facebook and Instagram are leading the way in Western countries by adding features to purchase products without leaving their respective platforms.

With brands around the world soon having the ability to sell direct to consumer via their favourite social media platforms, we step closer to being able to provide seamless omnichannel experiences. This is an exciting leap forward but not without some trade-offs.

Like Google and Amazon, social media channels are invested in doing whatever they can to keep people on their platforms. They can do this by removing our reasons to leave, including visiting your business website. It's too early to say what the impact of this will be in years to come. On the one hand they just become additional marketplaces for people to shop. On the other hand, there may be implications as more brands must rely on the social media giants (remember when reaching your page audience was free?).

Having seen how people use their 'everything apps' like WeChat or Kakao to transact with the world, be it friends or commerce, in China and Korea, it's easy to see the appeal of frictionless and instant shopping experience. There's no doubt we'll see rapid uptake in Australia. The real question is will Australia businesses be ready for it.

Checkout on Instagram is currently in closed beta for businesses and available to people in the US. The brands below will begin rolling out today and over the coming weeks - and more will be coming soon!

Adidas @adidaswomen & @adidasoriginals & @adidashoops
Anastasia Beverly Hills @anastasiabeverlyhills
Balmain @balmain
Burberry @burberry & @burberrybeauty
ColourPop @colourpopcosmetics
Dior @dior
H&M @hm
Huda Beauty @hudabeautyshop
Kith @kithfootwear & @kith
KKW @kkwbeauty
Kylie Cosmetics @kyliecosmetics
MAC Cosmetics @maccosmetics
Michael Kors @michaelkors
NARS @narsissist
Net-a-Porter @netaporter & Mr. Porter @mrporterlive
Nike @niketraining & @nikewomen & @nikegolf & @nikesb
NYX Cosmetics @nyxcosmetics
Oscar de la Renta @oscardelarenta
Ouai Hair @theouai
Outdoor Voices @outdoorvoices
Prada @prada
Revolve @revolve
Teespring @teespring
Uniqlo @uniqlousa
Warby Parker @warbyparker
Zara @zara

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Social commerce is a rapidly emerging trend in ecommerce that's radically augmenting the online shopping experience. In March 2019 Facebook introduced Checkout, which lets users shop within Instagram although it's not yet available in Australia. Snapchat and TikTok are also planning to release similar capability in the near future.

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Wasn't sure where to put this under
James Trainor
4:30 - 5:30

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Buy-back

With Buy-back, you can sell us pre-loved IKEA furniture you don’t need in a safe, streamlined way year-round. You get the value back on a refund card, and we give your piece a new home through our As-is department. Everyone wins, especially the planet.

How Buy-back works

1. Determine what you want to resell. Only unmodified, completely assembled second hand IKEA furniture is accepted for buyback. Refer to the lists of eligible/ineligible products below. For ineligible items, consider reuse, donation, selling via online marketplaces or recycling.

2. Use the buy-back estimator tool. Find what IKEA furniture you’re interested in selling and tell us its condition. You’ll get an estimate of what IKEA will pay to buy back your furniture.

3. Make sure your furniture is clean and assembled, ready for its new home. Bring it and your estimate to the Exchange and Returns section of your nearest IKEA store.

4. Pat yourself on the back. You’re helping us prolong product life, promote second hand furniture and waste less. Thanks for contributing to making IKEA more circular and to becoming people and planet positive!

5. Your IKEA Refund card can be used in any Australian IKEA store, or on IKEA.com.au. Your refund card is valid for 3 years from the date of issue.

What second hand IKEA furniture does IKEA buy back?

We are looking for...

Unmodified, completely assembled, clean IKEA products

Chest of drawers

Office chairs and desks

Bedside tables

Display cabinets

Sideboards

Bookcases and shelf units

Sofas and armchairs

Office storage

TV benches

Cabinets

Dining tables and chairs

And more

We can't accept...

Non-IKEA products, hacked IKEA products, modified IKEA products

Individual components of combination/modular IKEA products

Products that have been used outside (including outdoor furniture)

Market hall items (accessories, decorations, textiles, lighting fixtures)

Mattresses and bed textiles (blankets, mattress protectors)

Soft furnishings (pillows, towels, rugs)

Items that contain glass

Kitchens (including benchtops, cabinets, fronts)

PAX wardrobes and accessories

Other over-sized items

Appliances or other electrical items

Children’s and baby products (cribs, mattresses, changing tables)

Products purchased from the As-Is department

COVID-19 safety measures

The safety of our co-workers, partners and customers is our top priority. So, we are adopting the necessary preventive measures to reduce risks of exposure within our store. Read more about our precautions and how you can do your part.

Read more

Frequently asked questions

IKEA’s Buy-back service is available at all IKEA stores in Australia.

Any changes to the service availability will be communicated on the online tool.

Customers can find second hand IKEA products in the As-Is area of the store, located just before the checkouts.

Products here are not only better for your wallet but also better for the planet, giving products a second life.

For ineligible products, consider reuse, donation, selling via online marketplaces or recycling.

IKEA reserves the right to refuse to accept a product at in its sole discretion, including if your products are ineligible for the furniture Buy-back service, are not as described in the online web solution.Products that are not accepted must be taken away by the customer, products are not to be left on IKEA premises.

In Australia, the Buy-back & Resell service is available throughout the year, not just during the Black Friday event.Any changes to the service availability will be communicated on the online tool.

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IKEA buyback and resell your second-hand furniture

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Does IKEA buy back furniture? Yes! Give second hand IKEA furniture a longer life and receive a refund card with Buyback & Resell. You tell us what you want to sell back. We’ll give you an estimate and verify it when you bring the products to us. Learn more today!

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James Trainor
Tues 4:30 - 5:30

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We spoke with leaders in the industry about the changes this year and they had a lot to share. So, let's explore the biggest ecommerce trends and see where things are headed.

1. AR enhances the reality of online shopping.

2. There will be a growing volume of voice search.

3. AI helps shops learn about shoppers.

4. On-site personalization uses those insights to create individualized experiences.

5. Big data plays a big part in creating personalized experiences.

6. Chatbots improve the shopping experience.

7. Mobile shopping is still on the move.

8. More ways to pay.

9. Headless and API-driven ecommerce allow continued innovation.

10. Customers respond to video.

11. Subscriptions keep customers coming back.

12. Sustainability is becoming more important.

13. Businesses should optimise digital strategy for conversion.

14. B2B is growing...and changing.

1. Augmented reality enhances the reality of online shopping.

Augmented reality (AR) has been a complete game changer for ecommerce. With this type of technology, shoppers can truly see the item they're shopping for, which helps them make a buying decision. AR really changes the shopping experience in specific industries, such as fashion and home decor because the customer can get a better feel for the item without seeing it in-person.

In 2019, Gartner predicted that 100 million consumers will shop using AR by 2020, so it will be interesting to see how that shakes out next year.

Michael Prusich, Director of Business Development at 1Digital Agency, agrees with this prediction:

"Polls have shown some really powerful numbers in regards to AR too: 35% of people say that they would be shopping online more if they could virtually try on a product before buying it, and 22% would be less likely to visit a brick-and-mortar store if AR was available via their favorite ecommerce store. AR grants a person with the ability to not just see a 3D model of a product but lets a user see how it looks if they were actually wearing it. Some products and industries lend themself better to traditional shopping methods, but AR is going to shake things up sooner than later."

Tessa Wuertz, Director of Marketing & Partnerships, efelle.com, also sees the potential for even smaller to midmarket businesses joining the trend:

"We are expecting a lot more businesses to utilise AR for their products and businesses - so much so that it will become more standard in ecommerce and social media platforms. We're seeing it put to use with larger companies, but I think we're soon going to start seeing it become mainstream for businesses of all sizes."

2. There will be a growing volume of voice search.

Not only do more people own smart speakers, but they also rely on voice assistants to complete daily tasks. Loop Ventures forecasts that 75% of U.S. households will own a smart speaker by 2025.

As more homes adopt smart speakers, more consumers will utilise voice search to shop online, order food and organise their lives. The rise of voice search creates an opportunity for ecommerce businesses in terms of keywords and content.

David Zimmerman, Director of eCommerce Solutions, Kensium, included "more involvement of voice-enabled solutions in the commerce space with Amazon Alexa and Google Home" high on his list of 2020 trends to keep an eye on.

3. AI helps shops learn about shoppers.

Artificial Intelligence (AI) and machine learning make it possible for the customer to have automated, personalized shopping experiences. AI is continuously collecting data on how a customer shops, when they buy purchases and what they're looking for in a product or a service. It's a piece of technology that really can't be replicated in-store.

Ron Smith, Editor in Chief, The Digital Outdoor, emphasizes how the complexity of AI and the ability to make it more human is also increasingly important:

"People want to know that brands care about them, and AI will be programmed accordingly. We have currently seen the opposite behavior on social media, where AIs learn from humans' more negative remarks, but it's highly likely that consumers will crave the impact. If bots can learn how to form sentences to convey an emotion, companies can soon teach them to offer comfort and products based on customers' moods."

4. On-site personalization uses those insights to create individualized experiences.

Buyers of all sorts - including B2C and B2B - are looking for personalized, custom shopping experiences online. The data collected from AI is what makes it possible for a buyer to get personalized product recommendations and detailed customer service.

Implementing personalized experiences on-site or in marketing efforts has been shown to have a strong effect on revenue, with one study finding it had a 25% revenue lift for retailers scaling advanced personalization capabilities.

For further context, this accounted for 19% of participating companies while retailers that were "building basic personalization capabilities" achieved "a revenue lift of 10% or more; the retailers in this tier account for 40% of the participating companies.

Kaleigh Moore, freelance writer and ecommerce specialist, sees AI-powered personalization becoming increasingly relevant in 2020:

"As brands harness and leverage more data, they'll be able to create incredibly relevant experiences for shoppers that feel tailor-made."

5. Big data plays a role in creating personalized experiences.

Today, many consumers are more aware that ecommerce sites are collecting personal data, which puts them at risk. Because of this, experts have mixed feelings about the benefits of big data and how it affects the personalized shopping experience.

Luis Catter, Conversion Rate Optimization Expert at Kensium Solutions, has his own predictions for how personalization will continue to evolve alongside data concerns:

"As the tech giants continue to expand and bring more services in-house, personalization will eventually make its way to the internet of things. In addition to seeing suggestions on search engines or shopping platforms, we'll also see them on our thermostats and our doorbell cameras. However, with some of the legislation being enacted, we'll be able to opt out of it. This will create an interesting dichotomy - people who have ultra-personalized experiences and those who do not. This will have interesting impacts on how we as marketers are able to reach new users."

6. Chatbots improve shopping experiences.

Chatbots interact with online shoppers much like an in-store sales associate would do. Today's shopper wants to be able to find and buy a product in just a few clicks, and if they can't, they get frustrated. This is where a chatbot can step in and save the sale.

Experts predict that 80% of businesses will be using chatbots in 2020.

Shane Barker, Founder and CEO of ecommerce thought leadership blog shanebarker.com/blog posits:

"Chatbots are all the rage today for customer support. However, I think they'll drastically change the way people shop online. They'll become one of the most important marketing tools. In the retail space, self-checkout kiosks will probably become the norm and in-store marketing will increase."

Duran Inci, CEO of Optimum7, sees chatbots becoming increasingly personalized to improve the customer experience:

"The same way chatbots are becoming more intuitive, so do I think that personal shopping assistant bots online will become more prevalent, using previous data to help anticipate new products that you'll like. Similar to Amazon's suggestions for similar products."

7. Mobile shopping is still on the move.

Mobile shopping allows customers to make purchases from anywhere, which is vital in today's world. However, if your ecommerce site isn't responsive on mobile or through web apps, you'll be missing out on big opportunities. Shoppers who are mobile users want the added convenience, plus the ability to pay digitally.

In 2019, Statista estimated that by the end of 2021, 73% of ecommerce sales will take place on a mobile device.

Corey Dubeau, VP of Marketing at Northern Commerce, is one of many who see "improved quality and more mobile payment integrations" to be a harbinger of change in 2020.

8. More ways to pay.

Customers have individual needs when it comes to payment methods, but they might cancel a potential sale if they can't pay how they want on an ecommerce website. Offering a wide variety of ways to pay is a good way to increase conversion rates on mobile devices. Plus, if customers can save their payment information on your site, they'll be able to checkout even faster the next time they make a purchase.

Joe Chilson, Head Writer and Account Manager, 1Digital Agency sees centralization of payments also making strides in 2020:

"Think about how easy it would be to buy a product on any website if, at checkout, you could simply give them an ID unique to you. This unique ID would be for a centralized wallet service that would securely store all your payment info, shipping and billing addresses, preferences, etc. Companies like Apple and PayPal have taken shots at this in the past, but I think it could become more normalized."

9. Headless and API-driven ecommerce allow continued innovation.

Headless commerce is a solution that allows an online store's ecommerce platform to be completely decoupled from the frontend presentation layer.

More ecommerce businesses are adopting headless because of its flexibility on the backend, plus the added SEO, content marketing and digital experience capabilities.

LARQ Ecommerce Architect Antonio Kaleb explains: "With headless, we get more control over our content and customer journey through checkout. We had a multi-region need that was solved for with the headless BigCommerce solution, allowing us to combine all of our stores into one single domain, for which we have developed additional features."

10. Customers respond to video.

Video proved to be a great way to engage customers in 2019, and it's not going away anytime soon. Creating videos for your website is a great way to instantly grab and engage a customer and inform them about your product or service.

Ron Smith, Editor in Chief, The Digital Outdoor considers how video can be used to help educate customers:

"I see the use of podcasting and short video content to augment the opportunity for buyers to learn about how an ecommerce brand's products and services provide the solution to the opportunity, challenge or problem a buyer is looking to answer. With these two forms of content development comes the technology to micro track a viewer's engagement..."

Shane Barker further emphasizes the importance:

"The importance of videos can't be understated. Videos can help you explain and showcase your products better than images ever can. You should consider adding videos of your products in your ecommerce store."

11. Subscriptions keep customers coming back.

There are subscriptions of all sorts these days and their convenience is attractive for consumers. For companies, subscription services create a way to plan for inventory and sales that are already locked in.

David Zimmerman, Director of eCommerce Solutions, Kensium still predicts that "more companies will offer subscription services or monthly payment options for larger purchases" in the coming year.

12. Sustainability is becoming more important.

Consumers and businesses alike are becoming more aware of the environment. Because of this, consumers are being more conscious about where they shop and the impact it has on the environment and related effects.

One survey found that 50% of respondents wanted more sustainability in the fashion industry, and 75% wanted to see less packaging.

Many businesses are finding ways to be more eco-friendly by going paperless when possible, using biodegradable packaging, and using recyclable supplies.

13. Businesses should optimise digital strategy for conversion.

Getting potential customers to your site is one task but getting them to convert is another. In 2020, businesses are looking to improve their conversion rates by optimizing their product pages. Multi-channel selling is also another way to get conversions, whether through Facebook advertising or shopping ads on Google.

Scott Ginsberg, Head of Content, Metric Digital adds:

"More and more brands are competing for the same eyes. Facebook's algorithm rewards video and motion-based creative that are more likely to hook your audience quickly. And customers are also more demanding, impatient and curious than ever before. Make sure you understand the ins and outs of Performance Ad Creative that doesn't only look cool, but also drives conversions. Using those channels intelligently is the best way to make sure your brand will be uniquely positioned to stand out in the continually changing digital marketing landscape."

14. B2B is growing...and changing.

If you were ever worried that B2B would go out of style, fear not. Global retail ecommerce sales for B2B are expected to reach $1.1 trillion in 2021, according to data from Statista.

Forrester predicts that by 2020 almost half of all adults will be Millennials, which also means an increase in Millennial B2B buyers. Both of these audiences want to be able to easily research their needs and related products without conversing with salespeople.

B2B ecommerce brands are working to meet these needs. Connie Wong, Marketing Manager, Silk Software, talks about this transition:

"The days of orders needing to be placed through fax order forms or phone calls only are shrinking. More and more businesses are beginning to see the value in servicing their customers online. By automating these tasks through their ecommerce site, teams are moving away from spending the bulk of their time on processing order entries from email spreadsheets or hard copy forms. Instead, they are shifting their focus towards what matters most: engaging with customers, providing them with an excellent customer experience, and establishing ongoing client relationships."

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Top 14 Ecommerce Trends in 2022 (+ Industry Experts' Insight)

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We spoke with leaders in the industry about the changes this year and they had a lot to share. So, let's explore the biggest ecommerce trends and see where things are headed. AR enhances the reality of online shopping. There will be a growing volume of voice search.

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Andrew Velovski
Tuesday 4:30 Tutorial

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For further information, do not hesitate to contact us.

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Companies that fail to keep up with logistics trends risk losing competitive advantage and falling out of favor with consumers.

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Wen Gao Zheng
Haosong Wu

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Rights & Responsibilities of e-businesses

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Rights & Responsibilities of e-businesses

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Andrew Velovski
Tuesday 4:30 Tutorial

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Australian Competition and Consumer Commission

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A growing number of people are choosing to start or expand a business online. This may seem like an easy option, but it’s important to know that your online responsibilities are the same as if you were operating a physical shop. We hear from many small business owners who have run into difficulty because they weren’t clear on their rights or responsibilities.

The ACCC promotes competition and fair trading to make markets work for everyone. We use a range of tools to encourage compliance with the Australian Consumer Law, including enforcement and business education.

Here is some guidance for any small business who may be starting up online or already has an online presence.

False or misleading advertising laws apply to online content

Online reviews must be genuine

Responsibilities to your customers continue after they make a purchase

Protect yourself when dealing with other businesses

Any information that you post online about your products, services or business must be accurate and truthful, whether it’s on social media, your website or any other online platform. This information includes prices, images and descriptions of what you are offering, as well as shipping options and delivery times.

It is against the Australian Consumer Law for businesses to make false or misleading claims, or engage in conduct that is likely to mislead or deceive, when advertising online.

Even if you did not intend to break the law, there can be significant penalties for non-compliance.

Case study

The ACCC alleged that Amaysim Australia Ltd and Lycamobile Pty Ltd each separately misrepresented that their mobile phone plans were ‘unlimited’ in advertisements on social media designed to entice new customers, when in fact the plans had a maximum data allowance.

The ACCC issued an infringement notice to each company for alleged false or misleading representations about their mobile phone plans. Amaysim paid $126,000 and Lycamobile paid $12,600 in penalties.

Read more in the Amaysim and Lycamobile ACCC media release.

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If you advertise a product or service, you probably know that what you say about it has to be truthful and accurate. But did you know that this also applies online?

If you advertise on social media or on your website or anywhere else online, what you say about your product or service has to be truthful and accurate. This includes prices, images, or descriptions, as well as shipping options and delivery times.

It's against Australian Consumer Law to make false or misleading claims, or to engage in conduct that's likely to mislead or deceive when advertising online.

For more information, visit our website.

Related information

False or misleading statements

Using social media to promote your business

Advertising and selling guide

Online reviews are a great way for consumers to make informed purchasing decisions, but reviews should be independent and genuine. Reviews should only be written by those who have actually experienced the product or service, and reflect their genuinely held opinion.

Writing fake or misleading reviews is against the law. You should not ask others, including family and third parties, to write reviews about your business without prominently disclosing their personal connection or commercial relationship with your business in that review.

Some businesses offer incentives to customers to encourage them to provide reviews. However, these incentives must be equally applicable to both positive and negative reviews, and be prominently disclosed to users.

If your business receives a fake review, you should notify the review platform immediately and request that the review be removed. You can also respond to the review directly in a professional manner to correct the public record. Businesses and review platforms that do not remove reviews that they know to be fake risk breaching the Australian Consumer Law.

Case study

Service Seeking Pty Ltd is an online tasking platform, where customers can seek quotes for jobs such as gardening, building or cleaning services from businesses registered with the platform.

Service Seeking allowed the businesses on its platform to use a template to draft their own reviews and give themselves their own star ratings of jobs the businesses had done, and send these on to their customers. If the customer did not respond to the business’ review within three days, the review was automatically published on Service Seeking’s platform.

Following ACCC action, the Federal Court ordered Service Seeking to pay $600,000 in penalties for making false or misleading representations regarding reviews of businesses which were offering services on the platform.

Read more in the Service Seeking ACCC media release.

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Online reviews are great. They help consumers make informed decisions about how to spend their money.

That's why it's so important that reviews are independent, genuine, and only written by those who have experienced the product or service. In fact, it's against the law to post fake or misleading reviews online, even as a favor to friends or family.

If your business receives a review that you know to be fake, you should notify the review platform immediately and request it be removed. However, you should not selectively edit or remove genuine reviews. Genuine reviews are in the best interests of everyone.

For more information, visit our website.

Related information

Managing online reviews

Under the Australian Consumer Law, consumers have automatic rights when purchasing products or services, and these don’t change for online purchases. These rights are called the consumer guarantees.

Consumers are guaranteed that a product or service they have purchased will work and do what they have asked for. The consumer guarantees include that products supplied must be of acceptable quality, meaning that the products are safe, lasting, free from defects, look acceptable and do all the things someone would normally expect them to do.

The consumer guarantees also include that services must be provided with due care and skill or technical knowledge and taking all necessary steps to avoid loss or damage, be fit for purpose, and be provided within a reasonable time when there is no agreed end date.

If your products or services fail to meet a consumer guarantee under the Australian Consumer Law, you will need to remedy the problem. Regardless of your own policies, you may need to provide a repair, replacement or refund and, in some cases, provide compensation.

If your online business has its own refund or return policy, you need to honour the terms and the policy should be made transparent to consumers before they make a purchase. But remember that your policies operate in addition to, not in place of, the consumer guarantees. There are penalties for making false or misleading representations to consumers about their consumer guarantee rights.

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Did you know consumers have rights when purchasing products or services from your business?

Under Australian Consumer Law, these are called consumer guarantees and apply to most purchases, including online purchases. The consumer guarantees are intended to ensure that consumers get the products they paid for and that they do what they're meant to do.

Consumer guarantees include that products must be safe, lasting, and free of defects, match the description provided and be fit for purpose. Consumer guarantees apply to services too and include they must be fit for purpose, provided with due care and skill and supplied within a reasonable time.

If your products or services do not meet a consumer guarantee, it is your responsibility to resolve the problem. You may need to provide a repair, replacement or refund, and in some cases, compensation. If your business has its own refund or return policy, this must operate in addition to, and not in place of, consumer guarantees.

For more information on consumer guarantees, visit our website.

When starting or operating an online business, you may purchase goods or services from other businesses. For example, you may need someone to build a website for your business, or you may be offered search engine optimisation services.

It’s in your interests to make sure any other businesses you deal with are genuine and that you carefully review any contracts before signing. This may mean researching the business and asking them to back up any claims they make, checking standard form contracts for any unfair terms and getting independent legal advice.

Consumer rights can also protect you in your dealings with other businesses. In many instances, when you purchase products or services for your small business, you may be considered a consumer and entitled to certain remedies under the consumer guarantees if something goes wrong.

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To start or operate an online business, you may need to purchase goods or services from other businesses.

Maybe you need help building a website. Maybe you need to buy advertisements. It's a good idea to do your research first. Try to make sure that the businesses you're dealing with are genuine.

If a business makes a claim, ask them to back it up, look through all your contracts carefully before signing. If your small business contract is a standard form contract, you should check it for any unfair terms. If you think a term is unfair, you can ask the other party to remove or amend it.

You can also get independent legal advice to make sure you know what you're getting into.

For more information, visit our website.

Related information

Unfair contract terms

Business rights

Consumer guarantees

For more business tips and guidance, head to our information pages for businesses.

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Your rights & responsibilities as a business online

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This page contains guidance for any small business who may be starting up online or already has an online presence.

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Andrew Velovski
Tuesday 4:30 Tutorial

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During the initial phase of new technological development, ideas and features are influenced by the areas on which developers choose to focus. But as a new technology matures, commercial use cases tend to drive future developments. If the future of IoT takes a similar path, we can look forward to seeing new devices and systems that are designed to solve specific business goals. If businesses can see clear and tangible benefits, they will be more inclined to invest in near future technologies related to the Internet of Things . This increased demand from the consumer will drive manufacturers to continue with the development of new IoT machines and ideas into the future.

With this in mind, this article focuses on existing use cases that already provide clear benefits and have the potential to become more popular in the future, along with some possible developments that appear to have great potential for commercial applications. They're all working towards a future of IoT that benefits both commercial organisations and consumers.

Among the many possible directions that the f uture of the Internet of Things may take, the following appear to offer significant benefits to both organisations and their customers.

IoT systems that utilise AI technology

Predictive maintenance for manufacturing equipment and machinery is another potential application that IoT future devices and systems could be used for. IoT sensors can collect a variety of data on the condition and usage patterns of manufacturing equipment, then use AI technology to predict when individual machines will next need to be serviced by technicians or replaced as they reach the end of their useful working life.

More 5G-connected IoT devices

The ability to process more data at faster speeds could make it possible for manufacturers, suppliers and retailers to deploy future internet technology on a larger scale than is currently possible. Systems that rely on hundreds of thousands of connected devices could be a not-so-distant possibility with the greater capacity that 5G provides.

Combined with edge computing, which is designed to put processing power closer to end users than Cloud computing currently does, 5G-connected devices could provide a more responsive experience for consumers too.

More smart home devices

The Internet of Things future for smart home devices is of interest to both manufacturers and consumers. In the USA, over 80% of respondents in a recent report said they already owned at least one smart home device, which illustrates the potential market for new, more capable devices in the future.

More wearable devices for health and fitness applications

According to research organisation Gartner, the future of Internet technology in the consumer sector will include a market for wearable IoT devices that will generate in excess of US$87 billion by 2023. While wearable device technology has been with us for some time, it is still very much in the early stages of development as far as its full potential is concerned. It's fairly safe to assume that this point of view is correct, given that complementary technologies, including AI and blockchain technology, have yet to be fully utilised in IoT devices.

When reading Internet of Things predictions online, you are sure to come across healthcare applications in almost every article you find. Wearable devices have numerous uses for the healthcare and pharmaceutical industries. Some possible future applications that have already been tested include IoT devices to monitor participants in clinical trials and devices that can monitor the movements of Parkinson's sufferers to help doctors accurately gauge changes in the severity of symptoms over time.

Smart farming

What might the Internet of Things do in the future to help farmers become more efficient? Possible applications include more effective disease control, cattle and crop monitoring systems and robotics that help to address labour shortages in various farming sectors. Navigational devices, which utilise machine learning, GPS and IoT technology, can give farmers the ability to control tractors, combine harvesters and other agricultural machinery from remote locations.

The machine learning component of these devices should also make it possible for them to adapt to different types of terrain. By storing information about the location of rougher patches of land and steeper gradients, they will be able to select appropriate gears and engine speeds when tackling these patches in the future.

Intelligent IoT drones have already been used to survey agricultural land. The images and data they are able to collect are likely to be used in future applications to assist farmers with tasks such as crop yield predictions and the application of fertilisers where they are most needed.

All these applications have the potential to make farming more efficient, enabling humanity to produce enough food for everybody as the global population continues to expand.

Smart cities

Digital applications have the potential to improve the quality of life for residents of urban areas, using Internet of Things-connected devices for purposes such as monitoring air quality, security surveillance, traffic management, building automation, waste collection management and water quality monitoring systems.

Let's take waste management as an example. It is a relatively simple task to install IoT sensors in rubbish bins and skips, which can then be connected to a central system. As bins become full, the sensors can send an alert, and the central system can schedule a visit from the local waste collection team to ensure the bins are emptied in a timely manner. Using such technology, it should be possible to streamline waste collection services by directing manpower to the locations where it is most needed at any given moment in time. It's possible that overflowing bins will become a thing of the past with these types of applications, and that cities will be able to manage their public service budgets more effectively.

A more efficient design process for consumer electronics products

By analysing all of the data collected from smart fridges, while also ensuring customers' privacy, engineers could improve the design of future models to cater better to real-world usage patterns. Perhaps a larger ice compartment will be indicated or more space in the vegetable drawer. With access to detailed data on how people use their fridges on a daily basis, considerable guesswork could be removed from future design work.

Improved security with blockchain technology

The same technology that is behind Bitcoin and other cryptocurrencies is already being used in some IoT systems. If the problems posed by its decentralised nature can be overcome, it is likely to be more widely adopted as companies seek to improve the security of their IoT systems. It could also help to ensure greater accuracy in applications such as supply chain management and facilitate better traceability of products in pharmaceutical IoT solutions.

Blockchain technology's data redundancy (data stored in many different locations) makes it an interesting proposition for IoT security and surveillance systems manufacturers. With current systems that collect data on a single server, hackers have an easier target if they wish to compromise the ability of a system to record footage from a security camera. In a distributed blockchain environment, they would have to target multiple servers, making it more difficult to compromise both commercial and domestic security systems.

The future of IoT

It is important to bear in mind that any future IoT technology and internet predictions always involve a degree of speculation. We may not see the widespread adoption of all these technologies in the next few years, even if some of them represent clear benefits. So what is the future of Internet of Things technology in Australia and elsewhere? We'll just have to wait and see.

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During the initial phase of new technological development, ideas and features are influenced by the areas on which developers choose to focus. But as a new technology matures, commercial use cases tend to drive future developments. If the future of IoT takes a similar path, we can look forward to seeing new devices and systems that are designed to solve specific business goals.

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Lillian Noyeaux
Tuesday 3:30-4:30

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The Internet of Things (IoT) describes the network of physical objects-"things"-that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. These devices range from ordinary household objects to sophisticated industrial tools. With more than 7 billion connected IoT devices today, experts are expecting this number to grow to 10 billion by 2020 and 22 billion by 2025. Oracle has a network of device partners.

Why is Internet of Things (IoT) so important?

Over the past few years, IoT has become one of the most important technologies of the 21st century. Now that we can connect everyday objects-kitchen appliances, cars, thermostats, baby monitors-to the internet via embedded devices, seamless communication is possible between people, processes, and things.

By means of low-cost computing, the cloud, big data, analytics, and mobile technologies, physical things can share and collect data with minimal human intervention. In this hyperconnected world, digital systems can record, monitor, and adjust each interaction between connected things. The physical world meets the digital world-and they cooperate.

What technologies have made IoT possible?

While the idea of IoT has been in existence for a long time, a collection of recent advances in a number of different technologies has made it practical.

Access to low-cost, low-power sensor technology. Affordable and reliable sensors are making IoT technology possible for more manufacturers.

Connectivity. A host of network protocols for the internet has made it easy to connect sensors to the cloud and to other "things" for efficient data transfer.

Cloud computing platforms. The increase in the availability of cloud platforms enables both businesses and consumers to access the infrastructure they need to scale up without actually having to manage it all.

Machine learning and analytics. With advances in machine learning and analytics, along with access to varied and vast amounts of data stored in the cloud, businesses can gather insights faster and more easily. The emergence of these allied technologies continues to push the boundaries of IoT and the data produced by IoT also feeds these technologies.

Conversational artificial intelligence (AI). Advances in neural networks have brought natural-language processing (NLP) to IoT devices (such as digital personal assistants Alexa, Cortana, and Siri) and made them appealing, affordable, and viable for home use.

What is industrial IoT?

Industrial IoT (IIoT) refers to the application of IoT technology in industrial settings, especially with respect to instrumentation and control of sensors and devices that engage cloud technologies. Refer to this Titan use case PDF for a good example of IIoT. Recently, industries have used machine-to-machine communication (M2M) to achieve wireless automation and control. But with the emergence of cloud and allied technologies (such as analytics and machine learning), industries can achieve a new automation layer and with it create new revenue and business models. IIoT is sometimes called the fourth wave of the industrial revolution, or Industry 4.0. The following are some common uses for IIoT:

Smart manufacturing

Connected assets and preventive and predictive maintenance

Smart power grids

Smart cities

Connected logistics

Smart digital supply chains

Unlock business value with IoT

As IoT becomes more widespread in the marketplace, companies are capitalizing on the tremendous business value it can offer. These benefits include:

Deriving data-driven insights from IoT data to help better manage the business

Increasing productivity and efficiency of business operations

Creating new business models and revenue streams

Easily and seamlessly connecting the physical business world to the digital world to drive quick time to value

What are IoT applications?

Business-ready, SaaS IoT Applications

IoT Intelligent Applications are prebuilt software-as-a-service (SaaS) applications that can analyze and present captured IoT sensor data to business users via dashboards. We have a full set of IoT Intelligent Applications.

IoT applications use machine learning algorithms to analyze massive amounts of connected sensor data in the cloud. Using real-time IoT dashboards and alerts, you gain visibility into key performance indicators, statistics for mean time between failures, and other information. Machine learning-based algorithms can identify equipment anomalies and send alerts to users and even trigger automated fixes or proactive counter measures.

With cloud-based IoT applications, business users can quickly enhance existing processes for supply chains, customer service, human resources, and financial services. There's no need to recreate entire business processes.

What are some ways IoT applications are deployed?

The ability of IoT to provide sensor information as well as enable device-to-device communication is driving a broad set of applications. The following are some of the most popular applications and what they do.

Create new efficiencies in manufacturing through machine monitoring and product-quality monitoring.

Machines can be continuously monitored and analyzed to make sure they are performing within required tolerances. Products can also be monitored in real time to identify and address quality defects.

Improve the tracking and "ring-fencing" of physical assets.

Tracking enables businesses to quickly determine asset location. Ring-fencing allows them to make sure that high-value assets are protected from theft and removal.

Use wearables to monitor human health analytics and environmental conditions.

IoT wearables enable people to better understand their own health and allow physicians to remotely monitor patients. This technology also enables companies to track the health and safety of their employees, which is especially useful for workers employed in hazardous conditions.

Drive efficiencies and new possibilities in existing processes.

One example of this is the use of IoT to increase efficiency and safety in connected logistics for fleet management. Companies can use IoT fleet monitoring to direct trucks, in real time, to improve efficiency.

Enable business process changes.

An example of this is the use of IoT devices for connected assets to monitor the health of remote machines and trigger service calls for preventive maintenance. The ability to remotely monitor machines is also enabling new product-as-a-service business models, where customers no longer need to buy a product but instead pay for its usage.

What industries can benefit from IoT?

Organizations best suited for IoT are those that would benefit from using sensor devices in their business processes.

Manufacturing

Manufacturers can gain a competitive advantage by using production-line monitoring to enable proactive maintenance on equipment when sensors detect an impending failure. Sensors can actually measure when production output is compromised. With the help of sensor alerts, manufacturers can quickly check equipment for accuracy or remove it from production until it is repaired. This allows companies to reduce operating costs, get better uptime, and improve asset performance management.

Automotive

The automotive industry stands to realize significant advantages from the use of IoT applications. In addition to the benefits of applying IoT to production lines, sensors can detect impending equipment failure in vehicles already on the road and can alert the driver with details and recommendations. Thanks to aggregated information gathered by IoT-based applications, automotive manufacturers and suppliers can learn more about how to keep cars running and car owners informed.

Transportation and Logistics

Transportation and logistical systems benefit from a variety of IoT applications. Fleets of cars, trucks, ships, and trains that carry inventory can be rerouted based on weather conditions, vehicle availability, or driver availability, thanks to IoT sensor data. The inventory itself could also be equipped with sensors for track-and-trace and temperature-control monitoring. The food and beverage, flower, and pharmaceutical industries often carry temperature-sensitive inventory that would benefit greatly from IoT monitoring applications that send alerts when temperatures rise or fall to a level that threatens the product.

Retail

IoT applications allow retail companies to manage inventory, improve customer experience, optimize supply chain, and reduce operational costs. For example, smart shelves fitted with weight sensors can collect RFID-based information and send the data to the IoT platform to automatically monitor inventory and trigger alerts if items are running low. Beacons can push targeted offers and promotions to customers to provide an engaging experience.

Public Sector

The benefits of IoT in the public sector and other service-related environments are similarly wide-ranging. For example, government-owned utilities can use IoT-based applications to notify their users of mass outages and even of smaller interruptions of water, power, or sewer services. IoT applications can collect data concerning the scope of an outage and deploy resources to help utilities recover from outages with greater speed.

Healthcare

IoT asset monitoring provides multiple benefits to the healthcare industry. Doctors, nurses, and orderlies often need to know the exact location of patient-assistance assets such as wheelchairs. When a hospital's wheelchairs are equipped with IoT sensors, they can be tracked from the IoT asset-monitoring application so that anyone looking for one can quickly find the nearest available wheelchair. Many hospital assets can be tracked this way to ensure proper usage as well as financial accounting for the physical assets in each department.

General Safety Across All Industries

In addition to tracking physical assets, IoT can be used to improve worker safety. Employees in hazardous environments such as mines, oil and gas fields, and chemical and power plants, for example, need to know about the occurrence of a hazardous event that might affect them. When they are connected to IoT sensor-based applications, they can be notified of accidents or rescued from them as swiftly as possible. IoT applications are also used for wearables that can monitor human health and environmental conditions. Not only do these types of applications help people better understand their own health, they also permit physicians to monitor patients remotely.

How is IoT changing the world? Take a look at connected cars.

IoT is reinventing the automobile by enabling connected cars. With IoT, car owners can operate their cars remotely-by, for example, preheating the car before the driver gets in it or by remotely summoning a car by phone. Given IoT's ability to enable device-to-device communication, cars will even be able to book their own service appointments when warranted.

The connected car allows car manufacturers or dealers to turn the car ownership model on its head. Previously, manufacturers have had an arms-length relationship with individual buyers (or none at all). Essentially, the manufacturer's relationship with the car ended once it was sent to the dealer. With connected cars, automobile makers or dealers can have a continuous relationship with their customers. Instead of selling cars, they can charge drivers usage fees, offering a "transportation-as-a-service" using autonomous cars. IoT allows manufacturers to upgrade their cars continuously with new software, a sea-change difference from the traditional model of car ownership in which vehicles immediately depreciate in performance and value.

Make the best business decisions with Oracle IoT

With Oracle Intelligent Applications, you can extend your supply chain, ERP, HR, and customer experience (CX) applications to the digital world. Leverage intelligent, predictive algorithms and digital twins to improve operational efficiency, boost worker productivity, enhance CX, and create new business models and opportunities.

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The Internet of Things (IoT) describes the network of physical objects-"things"-that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. These devices range from ordinary household objects to sophisticated industrial tools.

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Lillian Noyeaux
Tuesday 3:30-4:30

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AI in e-Commerce: How Artificial Intelligence is Being Leveraged in the Online Retail Space

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Lillian Noyeaux
Tuesday 3:30-4:30

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Lillian Noyeaux
Tuesday 3:30-4:30

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Over the past two decades, e-commerce has become a major channel for selling products and services around the world. This method of doing business has resulted in numerous conflicts between purchasers, sellers and vendors, as unexpected challenges and ethical problems have arisen. Understanding these issues is critical when trying to develop a respected online brand.

Business Representation

By using a well-designed website, stock photographs, well-written copy, search engine optimization and paid-for social media followers, it is possible for a small business with a limited track record to represent itself online as larger, better-funded company that has leadership that is more experienced and competent than it actually is.

While it is understandable that a business owner would want to create a strong online brand, doing so can sometimes cross the line into misrepresentation, one of the more common problems of e-business. Things that a business owner could do to create a professional online manage while also being honest with website visitors or social media contacts include:

Avoid using stock photographs of large office buildings, professional conference rooms or employees at work on business websites. Using these photographs can give the impression that the business actually owns or rents the facilities or employs the pictured workers.

Include an “About" section on its website that conveys pertinent information about the company, including how long it has been in business.

Avoid paying for social media “likes” or followers. While doing so can be tempting, many social media companies now have algorithms that can detect real versus paid followers. Business owners should strive to build a social media following through the development of quality content and interaction.

Intellectual Property Violations

Ethical fallouts from intellectual property violations often plague online businesses. In some cases, these violations are the result of ignorance and poor legal advice, while others are deliberate. Some of the most common violations include:

Unoriginal logos: Logos are an essential part of a company's branding. Some entrepreneurs have a small budget for logo design and may either copy a logo from another company or may hire a logo designer who, due to budget constraints, copies a design that is already in use.

Image theft: Quality images are a vital component of a quality website. Hiring a professional photographer or purchasing stock photographs can be expensive. As a result, unethical web designers will sometimes steal images and use them on the websites they create.

Content theft: When a business cannot afford to hire quality copy and content writers, its web designer or administrator may lift blog posts, product descriptions and other content for use on its site, online catalog or social media platforms.

Selling counterfeit items: Small online retailers sometimes sell counterfeit items. In some cases, this happens because the retailer is itself the victim of a scam by an illegitimate wholesaler. In other cases, the owner of the company is fully aware that it is selling fake products.

Unauthorized use of audio and video files: This can become a significant issue for businesses that use music and other sound files in podcasts and video programming. Audio content, including music, may be copyrighted and standard use permissions may not apply to podcasts or videos that can be downloaded and replayed over and over again on a user's device. It is possible for a business to purchase the rights to use a copyrighted song in a live broadcast, only to run into trouble when a recorded podcast version of the show is posted online for download or streaming.

Using content and images without permission can result in lawsuits, suspension of web hosting accounts, public shaming, removal from social media platforms or a lowered search engine ranking. Business owners can avoid intellectual property violations by purchasing the creation of original content, working with quality stock photography or content creation services and ensuring that they have documentation authorizing the use of all online content.

Information Security

One of the most commonly discussed ethical issues in e-commerce is information security and data protection. Companies that sell products and services online typically collect sensitive information from customers that includes credit card or bank account information, along with the customer's name, address, and phone number. In addition, many e-commerce sites offer customers the option of setting up an online account, requiring the customer to set up a username and password.

Hackers are very willing to attempt to breach websites and their e-commerce software in an attempt to get consumer information, which can then be used to steal money from customers' accounts or perpetrate identity fraud. This information is often sold on the black market, increasing its exposure and subjecting users to increased risk of identity theft and financial loss.

Companies that fail to protect their data can be held liable for information security breaches. Consumers may become disgruntled and cancel their accounts, opting to take their business to competitors.

Product Quality

One advantage to shopping in a brick-and-mortar store is being able to view and inspect merchandise before purchasing it. This can't happen online, which means that the customer has to trust the merchant to sell her an item that matches the photographs and descriptions posted on the retailer's website.

Unfortunately, some companies take advantage of the distance between consumer and product to sell inferior goods. Many consumers have opened a package expecting a high-quality item, only to find a product that is shoddily made or that does not resemble its online images.

Vendor Compliance

Many online retailers sell products purchased from manufacturers, wholesalers and other suppliers. In some cases, the vendor that actually owns the brand being sold establishes stipulations under which the products can be sold by a third-party retailer. These often include:

Obtaining permission to sell the product as an authorized retailer.

Using approved content, such as photographs, company logos and descriptive copy in sales efforts.

Respecting price points established by the vendor.

Some e-retailers fail to honor these requirements. This failure can confuse customers and can create branding problems for vendors. In some instances, vendors may take legal action against non-compliant suppliers.

Customer Service

By definition, e-commerce involves a barrier between customers and retailers. When a customer has a question, needs assistance, receives a damaged product or wants to inquire about a refund, he can't just walk into a store to get help. Instead, customers have to rely on the contact methods made available by an online retailer. Many retailers are committed to providing quality customer service and offer online chat, phone-based customer service as well as email assistance.

Unethical e-commerce companies can make it very difficult to get help. They may simply refuse to respond to emails and other attempts to contact them. In addition, the company may continuously promise a customer that the company will deal with the customer's concern, but will continually delay taking action, until the customer gives up trying to get her problem resolved or when is too late for her to request a chargeback from her credit card company.

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The Ethical Problems In E-Business. Online commerce has been growing rapidly since the 1990s, and nearly every retail operation of any size has a website for the sale of its goods. With the anonymity of the Internet, however, it’s very difficult for a buyer to really know and trust the seller. If yo…

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Lillian Noyeaux
Tuesday 3:30-4:30

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E-commerce and its impact on operations management

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Electronic commerce (EC) is possibly the most promising application of information technology witnessed in recent years. It is revolutionizing supply-…

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Business Model from a customer perspective

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Business Model from a customer perspective

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Lillian Noyeaux
Tuesday 3:30-4:30

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Lillian Noyeaux
Tuesday 3:30-4:30

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Amazon is turning to its legions of contracted Flex drivers to deliver packages from mall-based retailers, allowing sellers to ship products from their own stores using the e-commerce giant's delivery service

Amazon has been notifying some Flex drivers in recent months that it's testing a new program where workers fetch packages from retailers in their area and drop them off at customers' doorsteps, Amazon said in a notice to drivers that was viewed by CNBC.

"Amazon Flex is testing a new offer type near you," the notice says. "Retail delivery offers will allow you to pick up and deliver pre-packaged orders directly from non-Amazon retail stores in participating local shopping centers."

The notice was sent to drivers in Las Vegas and only includes orders placed at stores in Fashion Show Mall, a 2-million-square-foot shopping mall located on the Las Vegas Strip. It's unclear what stores are participating in the test.

Amazon is also testing the service in Chandler, Arizona, and Tysons Corner, Virginia, according to Bloomberg, which first reported on the program. The company also appears to be trialing the program in Friendswood, Texas, a city located southeast of Houston, according to a post on a popular Reddit group for Flex drivers.

Kate Kudrna, an Amazon spokesperson, said a handful of "existing Amazon sellers" are participating in the program, and that Flex drivers operate as normal, but pick up orders from retail stores, rather than Amazon delivery stations or supermarkets.

"We have been delivering from third-party stores for years," Kudrna said in a statement. "This is another way we are able to connect Amazon sellers with customers via convenient delivery options."

Amazon Flex, launched in 2015, is a component of the company's fast-growing in-house logistics arm. The program uses everyday drivers to deliver packages from their own vehicles and operates in over 50 cities. They earn between $18 and $25 an hour, depending on the type of shift, and are responsible for costs like gas, tolls and car maintenance.

Amazon has made logistics a major focus as it seeks to shuttle packages to customers' doorsteps at faster speeds. In 2019, before the coronavirus pandemic upended its fulfillment and delivery operations, Amazon said it would spend $800 million over a three-month period to expand one-day shipping in the U.S.

Recently, the company opened up its vast shipping and fulfillment network to other retailers, allowing them to apply Prime benefits to orders places on their own sites.

Amazon isn't the only company offering fast delivery to retailers. On-demand delivery providers like DoorDash, Uber's Postmates and Instacart have expanded beyond food and grocery to offer other products from local and national retailers.
WATCH: As Prime One Day shipping expands, here's what it's like to be an Amazon Flex delivery driver

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Amazon tests using Flex drivers to make mall deliveries

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Amazon is turning to its legions of contracted Flex drivers to deliver packages from mall-based retailers, allowing sellers to ship products from their own stores using the e-commerce giant's delivery service Amazon has been notifying some Flex drivers in recent months that it's testing a new program where workers fetch packages from retailers in their area and drop them off at customers' doorsteps, Amazon said in a notice to drivers that was viewed by CNBC.

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Welcome

- Would you like to understand what the Internet of things is and how it works? Well, that's what this course is all about. Hi, I'm Bruce Sinclair. I'm an IoT business consultant that helps leading brands, manufacturers, and enterprises define their IoT business and product strategies. In this course, I'll provide a broad overview of the technical aspects of the Internet of things. I'll begin with an architectural overview, explaining the main components of IoT. Next, I'll explain the software defined product. This is a digital twin of the physical product, and it's core to understanding and differentiating an IoT product from a smart product or a connected product. Then I'll discuss the hardware defined product: the sensors, the actuators, and the embedded systems used to gather data from the physical world. Next, I'll discuss the network fabric. It joins the software defined product to the sensors and the external sources of data. Finally, I'll discuss external systems, exploring how external systems of data can be tapped into to provide more data for an IoT product. So if you're ready, let's put on our gunboots and wade into the abyss.

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Welcome - IoT Foundations: Fundamentals Video Tutorial | LinkedIn Learning, formerly Lynda.com

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Would you like to understand what the Internet of things is and how it works? Well, that's what this course is all about. Hi, I'm Bruce Sinclair. I'm an IoT business consultant that helps leading brands, manufacturers, and enterprises define their IoT business and product strategies.

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Lillian Noyeaux
Tuesday 3:30-4:30

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Lillian Noyeaux
Tuesday 3:30-4:30

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New ways of managing operations are emerging as businesses embrace the internet-based ICTs of e-commerce within their business processes. Yet progress in many e-businesses is hampered because of an apparent mismatch between their business and operations strategies. This paper examines the strategic management of operations in e-businesses using the well-known Hayes and Wheelwright four-stage model of the strategic role and contribution of the operations function. The research uses a case study methodology based on interviews with senior managers in twelve e-businesses in the UK, which encompass organizations of differing size, using different e-commerce models, operating in a variety of industries. The paper closes by discussing the generalizability of the findings and recommends what future work might be conducted to advance understanding of what is an under-researched aspect of e-business.

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The strategic management of operations in e-business

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New ways of managing operations are emerging as businesses embrace the internet-based ICTs of e-commerce within their business processes. Yet progress in many e-businesses is hampered because of an apparent mismatch between their business and operations strategies.

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What's new in social commerce?

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- [Instructor] Have you been to the newest mall? You don't have to drive to get there, or spend time looking for a place to park. Social commerce is changing the way we discover, buy, and recommend products. So grab your smartphone and let's start to browse. Sites like Instagram, Facebook, and TikTok let brands set up stores and showcase product collections and launches with images and video. And merchant platforms like Shopify offer a seamless integration with your digital shop, so you can manage multiple locations from a single dashboard, kind of like a digital head office in chain stores. You've all heard this saying, "A picture is worth a thousand words," well, with visual search on platforms like Pinterest, people can take a picture of a product and match it to items in your store. And now, with Google's multi-search feature, shoppers can take a picture of a product and then customize it by adding in a short text description. So your customers can see how that couch or dress might look in another color and easily find just what they need. What about trying things on? That's where augmented reality comes in. Snapchat's Catalog-Powered Shopping Lenses gives customers a chance to find prices, descriptions, and product carts that take you right to a purchase so you can try and buy. And Pinterest try on feature lets you visualize how you look in a beauty product or virtually position a piece of furniture to see how it fits in your home. If your brand has a relationship with influencers, you may want to partner with them for a live stream shopping event. You can host it on platforms like Instagram or YouTube. Just be sure to involve your influencer early in the process and encourage them to help you conceive, plan, and promote the event. Think of it like a live TV show where you need to blend the right mix of entertainment, insider tips, products, and a seamless checkout to keep your customers tuned in. So how do you decide if social commerce is right for your brand? Well, it starts with your customers and understanding their needs, and what they like to do. Then, figure out the best platforms to reach them and create a visual shopping experience with stunning photos, videos, 3D images, and AI. You'll also need to develop a promotion strategy that integrates both paid and organic posts. Above all, be social and let your brand personality shine through to make social shopping as fun and aspirational as it is in real life.

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What’s new in social commerce? - Digital Marketing Trends Video Tutorial | LinkedIn Learning, formerly Lynda.com

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Join Martin Waxman for an in-depth discussion in this video, What’s new in social commerce?, part of Digital Marketing Trends.

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Hien Lam
Tues 3:30 tut

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Live Chat

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Lillian Noyeaux
Tuesday 3:30-4:30

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It's no secret that 2020 has been a bumper year for e-commerce. Just ask Amazon founder and CEO, Jeff Bezos.

Multiple lockdowns and the closure of brick-and-mortar stores have caused brands and consumers alike to pivot to online retail. Technophobes who had never journeyed online to shop before suddenly began to explore the world of e-commerce. Even regular e-commerce users began to use Amazon to purchase products they'd never considered buying pre-Covid-19. My company commissioned a survey of more than 1,000 U.K. consumers to investigate lockdown Amazon trends, and we found that 15 million Amazon shoppers ventured into new product categories during the first national lockdown.

But while this watershed moment for e-commerce and the increase in online demand is positive for many brands, it also piles the pressure onto their supply chains and requires meticulous inventory management. E-commerce managers tend to focus on advertising and content optimization. To be fair, this is the exciting and creative part, but too often this means they neglect the basics of supply chain management. As I like to say, you need to eat your greens as well as dessert.

Investment in on-site optimization goes down the drain if the supply chain is not primed and the stock is simply unavailable. A recent report (paywall) by Profitero called "The Costly Penalties of Going Out of Stock" found that brands could lose up to 42% of sales when their stock rate drops from 90% to less than 30% and that it takes three to four days to regain full sales volume after being out of stock for just one day. If the drop in sales happens during a major sales event, the revenue lost can be devastating for a brand's success.

And the impact on a brand goes beyond losing short-term sales. For example, it takes six to seven days to recover organic placement on Amazon after being out of stock for two days. Not only does this impact sales longer-term, but recovering search ranking may also require further investment, especially if products have fallen off the hallowed first page of search terms and become virtually invisible to shoppers in the process.

And with unprecedented demand this year, which has caused even the e-commerce giants to struggle to fulfill orders, it has never been more important for smaller brands to stay in control of their supply chain.

What's more, the end of the Brexit transition period will signal inventory changes for sellers and force brands to split their stock between the UK and the EU, adding more complexities and further underscoring the need for diligent supply chain management, especially since countries will be entering and exiting periods of lockdown at different times.

Achieving a 100% stock rate has always been a near-mythical feat, even pre-pandemic. Profitero's report advises that brands should ideally be aiming for around 90% stock rate. But with the additional challenges presented by Covid-19 demand, a more realistic goal currently is around 60%. How do brands reach this magic number?

Not having a specialized team or even a set of processes in place for managing supply chains could be a fatal error for sellers this year. More than ever before, it's successful supply chain management that sets brands apart from their competitors rather than simply pushing up advertising spend or giving content a makeover. Brands must bring supply chain management to the forefront of their business agenda, tightly integrating the supply chain roles into e-commerce teams.

Data is a brand's best friend when it comes to forecasting potential supply chain hiccups. Sellers can analyze search trends to predict any change in consumer demand, look at consumer traffic to forecast peaks and troughs and react accordingly to get ahead of these trends with their inventory management.

Brands should also be keeping an eagle eye on individual product performance and inventory levels. It's crucial that brands don't spread themselves too thinly across a wide range of products when inventory is such an added complexity. They should instead prioritize a portfolio of products that sell well and have a generally high in-stock rate. These products will have the best potential for sales recovery, should stock become a problem. With a smaller portfolio, brands can hone in on getting the process right and limit the likelihood of stock mishaps.

Finally, sellers must regularly evaluate if their distribution method - whether that be fulfillment by Amazon (FBA), seller-fulfilled Prime (SFP) or direct-to-consumer fulfillment (DTC) - is the most effective for their supply chain. Although FBA might seem the most convenient option, I believe brands should consider alternatives to this method during the current peak period for e-commerce, since Amazon's fulfillment centers are at their bursting points, which could easily lead to in-stock issues and delays. Instead, brands can diversify their networks and strengthen their SFP or DTC capabilities to gain more control over the distribution process and ease the reversal of any supply chain setbacks.

My company's report found that Amazon shoppers are expected to spend £400 before Christmas on the e-commerce platform. Brands have the golden opportunity to capture a large market share and get a head start over this year's increased competition if they master the basics, smooth out their supply chains and then reap the rewards in sales revenue.

But future sales moments have the potential to be even rosier. The unprecedented 2020 busy period has dictated that most brands will have more stock problems than usual, and yet many are still seeing a huge boost in sales. But as brands begin to get a firm grip on inventory management after this peak has lulled and adjust to the post-Covid-19 boom in online traffic, I believe the potential for e-commerce success will be unparalleled. Supply chain dominance has well and truly become the linchpin of e-commerce strategies in the time of Covid-19, and although it may not be glamorous, it's about time decision-makers value effective inventory management as the hero it is for their brand.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

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Council Post: Supply Chain Efficiency: The Unglamorous Hero Of E-Commerce

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It's no secret that 2020 has been a bumper year for e-commerce. Just ask Amazon founder and CEO, Jeff Bezos. Multiple lockdowns and the closure of brick-and-mortar stores have caused brands and consumers alike to pivot to online retail. Technophobes who had never journeyed online to shop before suddenly began to explore the world of e-commerce.

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Lillian Noyeaux
Tuesday 3:30-4:30

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By

What is B2B (business-to-business)?

B2B (business-to-business), a type of electronic commerce ( e-commerce), is the exchange of products, services or information between businesses, rather than between businesses and consumers ( B2C).

A B2B transaction is conducted between two companies, such as wholesalers and online retailers. In most B2B business models, each organization benefits in some way and typically has similar negotiating powers.

By 2027, global B2B e-commerce is forecast to reach $20.9 trillion, representing a CAGR (compound annual growth rate) of 17.5% during the forecast period (2020-2027), according to Grand View Research.

B2B is conducted via different categories of websites, such as the following:

Company websites. The target audience of a company website is the business clients and employees of other businesses. Think of B2B websites as round-the-clock mini-trade exhibits. Sometimes, a company website provides an entrance to an exclusive extranet, available only to customers or registered users. Some company B2B sites sell directly from the B2B website to other businesses.

Product supply and procurement exchanges. These exchanges allow a company purchasing agent to shop for supplies from multiple vendors, request proposals and, in some cases, bid on products. At times called e-procurement sites, some serve a range of industries while others serve a niche market.

Specialized or vertical industry portals. These portals provide dedicated information, product listings, discussion groups and other features for specific businesses. Vertical portal sites have a broader purpose than procurement sites, although they may also support buying and selling.

Brokering sites. These sites act as an intermediary between service providers and potential customers that need their specific services, such as equipment leasing.

Information sites. Sometimes known as infomediaries, these sites provide information about a particular industry to companies and their employees. Information sites include specialized search sites and those of trade and industry standards organizations.

Many B2B sites fall into more than one of these groups. Models for B2B sites are still evolving, however.

Another type of B2B enterprise is software for building B2B websites, including tools and templates, databases, methodologies and transaction software.

Business-to-business and business-to-consumer commerce differs significantly.

How does B2B work?

In B2B, one business sells a set of products or services to another business. Typically, there is a group or department that uses the vendor's products and services. Occasionally, a single user on the buyer side makes a transaction in support of the company's business goals. And some B2B transactions involve the entire company's use of the products, such as office furniture, computers and productivity software.

For larger or more complex product purchases, the B2B product selection process is handled by a buying committee, including:

a business decision-maker, such as the person responsible for the budget;

a technical decision-maker, or someone who evaluates the capabilities of the prospective products; and

influencers, such as individuals who provide input on the decision.

Large purchases might involve a request for proposal, in which the buyer invites prospective vendors to submit proposals detailing their products, terms and pricing.

Why is B2B important?

B2B is important because every business needs to purchase products and services from other businesses to launch, operate and grow.

A company's B2B suppliers offer office space, office furniture, computer hardware and software, and so on. The food that companies stock in their kitchen and the signs displayed on their office building are purchased from suppliers.

Types of B2B companies

There are several types of B2B companies, including the following:

Producers design, create and manufacture their own products. Producers may sell their products directly to businesses or indirectly through retailers or resellers.

Retailers and resellers sell products and services made by other companies directly to businesses. Retailers and resellers may sell online, from physical stores or both, including B2B e-commerce vendors.

Agencies and consultants provide advice, oversight and subcontracted work to businesses. For example, an advertising agency manages and executes a multimillion dollar advertising budget for a consumer brand. A website agency designs and builds a website and mobile app for the same brand.

B2B industries

B2B companies operate in many industries, such as:

Financial services

Technology

Manufacturing

Construction

Retail

Telecommunications

Insurance

Healthcare

Education

Engineering

Marketing and sales

Real estate

Food and beverage

Benefits of B2B

The following are benefits of B2B:

Large average deal size. A B2B company can grow sales with a smaller number of high-value deals compared to a B2C company, which may require thousands or even millions of individual sales. Since B2B companies sell and buy in bulk, the average B2B transaction is about $491, as opposed to $147 for a B2C sale.

Higher switching costs. B2B customer loyalty is likely if they are satisfied with the product and service. In contrast, B2C customers can be finicky and not loyal, resulting in large churn rates.

Large market potential. B2B companies can target enterprises across many industries and geographies, resulting in a big playing field. Or they can specialize in one industry, such as technology, and become leaders in that field.

B2B organizations advertise their products and services and conduct business online, making it easy for clients to place bulk orders via an efficient digital transaction model.

Faster delivery. Because B2B e-commerce tools make the sales process efficient for sellers, they accelerate the process for buyers. Integrated systems enable the transacting companies to sync data across channels, automate fulfilment and inventory updates, and manage complicated orders.

Built-in order management Cloud-based e-commerce platforms easily integrate with back-end systems or order management systems. This enables B2B sellers to synchronize order inventory and customer data across every channel.

B2B challenges

B2B e-commerce has some challenges, such as the following:

Long-term customer retention. B2B companies often have a difficult time convincing buyers to make repeat purchases.

Limited market. Although B2B companies can target organizations in many industries, the business market is still limited in size. This makes B2B particularly risky for small and midsize B2B organizations.

More competitive. Since the B2B market is small, it's competitive.

Longer decision-making process. Decision-making in business can be slow because many stakeholders are involved in the process.

Price negotiation. Since B2B buyers purchase in bulk, they typically negotiate for better prices, ask for discounts or demand extra services.

E-commerce supply chain management can be complicated. This is especially true when multiple partners are involved in the supply chain and they all need access to the same information. Miscommunication at any point in the supply chain can slow down the process.

What are examples of B2B companies?

Here are some examples of B2B companies:

Amazon

Amazon, one of the best known B2C companies, also has a B2B business called Amazon Web Services ( AWS). AWS provides compute power, database storage, content delivery and related features to businesses. It is one of the leading cloud providers with customers such as GE, Hess, Expedia, Philips and BP. AWS Cloud spans 80 availability zones within 25 geographic regions, globally.

Caterpillar

Caterpillar manufactures construction and mining equipment, diesel and natural gas engines, industrial turbines and diesel-electric locomotives and sells these products to other businesses. The company also provides financial services to businesses through its Caterpillar Financial Services business unit.

Alibaba

Alibaba is one of the world's largest online commerce companies. The Alibaba B2B marketplace is where buyers and sellers worldwide connect and transact business.

Quill

Owned by Staples, Quill is a B2B e-commerce company that sells office supplies to small and midsize businesses. Quill markets over 100,000 products under the Quill brand, as well as under the Medical Arts Press, Mead, Coastwide, Snack Jar and Java Roast names.

Upwork

A job search platform, Upwork connects freelancers with employers on projects such as web and mobile app development, social media marketing, content writing, graphic design and more.

Continue Reading About B2B (business-to-business)

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What is B2B (business-to-business) commerce and how does it work?

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By B2B (business-to-business), a type of electronic commerce ( e-commerce), is the exchange of products, services or information between businesses, rather than between businesses and consumers ( B2C). A B2B transaction is conducted between two companies, such as wholesalers and online retailers.

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https://www.the-future-of-commerce.com/2021/01/12/what-is-social-commerce/

- Joshua Maclean - 3:30 Tut

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The Future of Customer Engagement and Experience

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For nearly as long as humans have existed, so has a form of retail. Granted, it's evolved, but history shows people have always been taking part in social commerce: sharing, bartering, selling, and consuming resources.

The first currency dates back as far as 3000 BC in Mesopotamia, and from around 800 BC in ancient Greece, markets had been developed in the Agora in the city centre, with merchants selling to consumers. And, one of the first product catalogs is reported to have been created in 1498 by Aldus Manutius in Venice, who printed a catalog of the books he was painting.

History also shows it's not just the local, physical "bricks-and-mortar" (or in the case of ancient Greece, stone), stores that have always piqued our interest.

The first modern mail order arrived in the world of retail, in 1861, when Welsh entrepreneur Pryce Pryce-Jones utilized the extension of the railway network to distribute his goods to consumers across the country, after they had browsed his catalog, and placed an order via the post.

Then, in the 1970's we were introduced to the concept of telesales (or telemarketing) - an expansion on our opportunity to source products further afield, and continue that age old tradition of sharing, bartering, selling, and consuming resources.

Fast-forward to today, and the world is even more connected. Through the development and adoption of technology we can now access a wealth of products and services at the click of a button, from anywhere around the world, at any time of the day.

And with that, social commerce arrived on the scene.

#CXTweetChat unveils retail doing it right, social platforms letting loose

What is social commerce? Social commerce defined

Social commerce is the use of a social network community to drive e-commerce sales, and it's a massive market: By 2027, it's projected that social commerce will drive $604 billion in sales.

Apps like Facebook, Instagram, and Pinterest have both dedicated "buy now" indicators on ads, as well as live streams run by influencers that are resulting in e-commerce goods being sold out on the regular.

Social commerce has been a game-changer for smaller brands, allowing them to easily compete in crowded marketplaces. However, now big retailers are hopping on board. For example, Walmart plans to start selling their products via influencers directly on TikTok in 2021.

As you might have guessed, social commerce grew tremendously in 2020: "Amid the COVID-19 crisis, the global market for Social Commerce estimated at US$89.4 Billion in the year 2020, is projected to reach a revised size of US$604.5 Billion by 2027, growing at a CAGR of 31.4% over the analysis period 2020-2027."

A brief history of social commerce

1997 presented us with the first recognizable social media platform, Six Degrees, allowing users to create an online profile and connect with friends and other platform users. Many marketeers initially viewed this as a fad that would fade away just as quickly as it appeared.

However, as access to the internet and technology picked up pace, so did our adoption of an ever-increasing variety of online channels to source and share information.

In 2011, with growing momentum, and a change in consumer behavior and expectations, Facebook launched sponsored stories as a form of advertising.

For merchants, this opened the door to a wealth of consumer purchase data, and a broader, worldwide audience. However, from a merchant's perspective, it also meant more competition and noise to cut through in order to stand out.

From a consumer perspective, it provided more sharing, bartering, and consuming power. After all, how often do you settle for the first price now while online shopping? You don't need to fret over bartering in person - a couple of searches or checks on a comparison site, and you can easily tick the "buy now" box.

The power of customer reviews was also borne of the social commerce revolution.

A recent report shows that approximately 86% of consumers view product reviews as an essential aspect when researching and selecting products to buy. And, social media is a very strong platform for sharing such information - bringing marketeers the arena of social proofing.

In essence, social proofing is the notion that people follow the actions of others. When purchasing a product or service, this is shown to be a very valuable tool consumers use, with access to an array of information and very little need to search. From friends and family sharing a brand's social post, reading the comments left by other platform users, or a post endorsing the brand by an influential celebrity - they all play a part in the sales funnel - either driving or diverting engagement along that path.

Whether you're a small start-up, or a global brand, social media is very likely to now be a key part to your sales strategy - through both social media marketing and social commerce. It's not just about posts to advertise and drive awareness; the social commerce world is shifting, perhaps as a result of 2020, quicker than we imagined.

Consumers are showing an appetite to use these platforms as a method to not just research, but to also transact; making a purchase with a couple clicks, while scrolling and catching up on the latest from friends or influencers they follow.

So, what's the difference between social media marketing and social commerce?

At a high-level, here's the difference between social media marketing and social commerce:

Social media marketing is used by brands to drive traffic to their websites. Brands will post ads showcasing their products and/or services, and include a CTA (call to action), for consumers to click-through to the website.

The cost of such ads is usually based on the number of likely impressions the ad will gain and/or a cost-per-click (CPC, although that's more commonly used in search engine paid ads, like Google). But, this cost is factored into that all important CPA (cost per acquisition), and ultimately takes the consumer out of their social media journey.

Social commerce allows consumers to purchase products and services from a brand directly, from within the social commerce platform. This could be via either clicking on a paid ad (like the above), or by clicking on the "View Shop" CTA on the brand's social media profile (page).

Using social commerce, the entire online shopping experience can happen without the consumer having to leave the social media site they're on. In essence, this can mean less interruption for the consumer, allowing them to transact in the moment, with fewer clicks, and utilizing features like autofill payments.

Throughout 2020, the digital world evolved even faster than anticipated as a result of the COVID-19 global pandemic. An almost overnight change in consumer behavior and expectations accelerated the online retail arena, and it's often said that as a result, the e-commerce world has accelerated five years of growth in just five months.

In some instances across the globe, retailers have had to close their physical locations and/or scale back. As a result, they've prioritized cash preservation and overhead costs, demanding automation and digitalization even more to meet the rapidly changing landscape.

In parallel, the same can be seen across consumer behaviors, with people staying home and instead shopping online; growing numbers of consumers have adapted to the online shopping methods and channels available to them, which they may have overlooked before.

While the more traditional brick-and-mortar stores will always have a role in our retail world, they're likely to evolve greatly with regard as to how they serve consumers, and the role they play in the consumer lifecycle. Whereas the recent shifts we're seeing across the e-commerce arena are likely to become even more embedded in our everyday world and will continue to grow from there.

Although the global pandemic may have accelerated these commerce changes, they were already emerging. As consumers, in a world that's continually becoming more and more connected and fast-paced, we often crave convenience, which digitalization of commerce world helps provide.

I have a small glimpse of this experience first-hand, from both the perspective of a consumer and a merchant.

The consumer e-commerce experience

When it comes to e-commerce, like many, I'd have considered myself an established consumer, and prior to 2020, thought of myself as an early adopter. However, we've come to learn just how much social media platforms can be used throughout all stages of the buying lifecycle.

Before 2020, consumers may have simply followed brands they liked for inspiration (or to know when a sale was launched). But now we've come to realize social channels can be a great tool for researching products, or we save posts and ideas for future purchases.

Social platforms are also an excellent place to contact brands or their communities, post-purchase for help and advice.

What's more, in a world where we're presently separated from friends and family, social has become more of a tool for us to share ideas and similar interests.

We should expect these conveniences will stay in our online world as we become more accustomed to them, and anticipate further mass adoption of social commerce into our regular shopping habits.

However, while the shopping experience is relatively simple, there are a few minor items that can be a bit annoying.

For example, as a consumer, if I'm scrolling, catching up on updates from friends and the latest news or funny cat videos (who can resist), and your ad catches my attention, getting me to click that "Shop Now" button, please navigate me to that item. Some brands will expect you to find your own way.

Even better: Only tempt consumers with items that are actually in stock, and available to be shipped to where they live or else they're likely to bounce, and probably think twice about tapping on your "Shop Now" post in the future.

Social media customer service: Top 10 best practices

Merchant perspective on social commerce

Whether you're a small start-up or an established brand, social media and social commerce are hugely powerful tools. With a small e-commerce storefront of my own, I've experienced first-hand how powerful building an online community can be in helping reach your audience and make the world (or at least a small corner) aware of your offerings.

Building an online community, no matter how big or small, can be invaluable for helping with social-proof. We all know happy customers can be a great social advocate among their network, and how this can grow organically.

And, with more and more of us flocking to social media sites, it's where your customers are most likely hanging out, providing a great chance they'll see your latest offerings. That includes those already following you, who will see your organic posts, and those who aren't, but could be reached with relevant paid ads and promoted posts.

With a world that's becoming increasingly accustomed to being able to source products and information, anywhere, and at anytime of the day, you can easily make use of tools available to pre-load and schedule content and to continually work towards increasing engagement and awareness, without having to always be physically working.

However, while the foundational tools to achieve both a near personalized social commerce experience and optimization of CPA are mostly there today, from a merchant's perspective, the methods to bring it all together in a seamless consumer journey can still feel overwhelming, complex, and disconnected between platforms.

The consumers are there - they're engaged and actively using social at a vastly growing rate, each and every day (and night). However, as a merchant, I believe there's still a long and exciting journey to embark upon in the world of social commerce and social marketing to truly unlock the power of using these platforms to better showcase offerings to existing and potential customers throughout the buying lifecycle.

So, what comes next in social commerce?

It goes without saying, that as consumer behaviors surrounding e-commerce and social commerce rapidly evolve, so will a new wealth of data and opportunity, allowing brands to understand even more about their existing and potential audiences.
Here are several items about social commerce to watch and understand:

1. Brands will need to embrace an end-to-end commerce strategy, supporting consumers in the buying lifecycle, and bringing relevancy from browsing to post-sales support.

2. Using brand data across all digital touch points allows for better interactions with consumers.

3. Personalization allows brands to present products and services that are of greatest interest to consumers specifically, at the right time and place, without causing annoyance or disruption to their social or onsite experience.

4. Providing consumers with even more relevant experiences can help better optimize marketing spend, with clear and measurable strategies to utilize both paid and organic activity, further supporting brands to prioritize cash preservation and overhead costs.

As both a merchant and consumer, a core foundational element of promoting and selling via social media is using only products and services that are in-stock and available to consumers in their region. This is a fundamental element in succeeding in those early engagement stages, as we ensure consumers are seamlessly guided towards a successful purchase.

As more brands become increasingly familiar with building their social commerce and social marketing strategy, they'll learn how to best use data and insights from across digital experiences to focus small volumes of higher quality, and more relevant content to help entice consumers at the right time, with the right product.

And, in doing so, they'll cut through the extra noise from the competition on this same path.

Shopping.
Love or loathe it, everyone does it.
Are you ready, or falling behind?
Find out HERE.

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What is social commerce? Definition, examples, stats

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For nearly as long as humans have existed, so has a form of retail. Granted, it's evolved, but history shows people have always been taking part in social commerce: sharing, bartering, selling, and consuming resources.

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Lillian Noyeaux
Tuesday 3:30-4:30 Tutorial

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5 Types of Ecommerce Business Models That Work Right Now

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Ecommerce business models of all types are thriving. Sales from online stores are expected to increase 78% by 2020. It's easy to get caught up and excited in the latest ecommerce trends, but unless you know the fundamentals, you'll hit a profitability wall without knowing it.

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Richard Nolan 3:30

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-monica melani
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- Monica Melani
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Abstract

Purpose - To provide an empirically based analysis and evaluation of the existing and possible future evolution of Internet business models within the digital content market, focusing particularly on the possibilities for cooperation and coopetition within this market-space.

Design/methodology/approach - The paper is based on a three-year study of the European online news and online music sectors, comprising a set of preliminary, scene-setting case studies of a number of major players within the European online news and music sectors; a detailed, two-stage survey made up of online questionnaires and face-to-face interviews; and a small number of in-depth case studies.

Findings - Provides a discussion of the changes taking place in the online news and music sectors, the evolution of the business models within them, the driving forces we have identified, and finally some predictions about what the future may hold for both these sectors.

Research limitations/implications - The research is indicative, rather than general - being centred on European participants in two sectors of the digital content market-space in the period between May 2003 and August 2004.

Practical implications - A rich evaluation of these two fast-moving digital content sectors, providing empirically based insights into the ways in which they are evolving and changing and into parallels with other, similar sectors of the digital content market.

Originality/value - This paper is the first major empirical evaluation of the digital content market-space and offers practical assistance, as well as new theoretical insights on e-business model evolution in this area.

Keywords Worldwide web, Internet, Electronic media, Music industry, Newspaper publishers, Europe

Paper type Research paper

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Swatman, Paula M C; Krueger, Cornelia; van der Beek, Kornelia.

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The changing digital content landscape: An - ProQuest

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Hien Lam
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Internet of Things, Big Data, Industry 4.0 – Innovative Solutions in Logistics and Supply Chains Management

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Internet of Things, Big Data, Industry 4.0 – Innovative Solutions in Logistics and Supply Chains Management

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Hien Lam
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E-business evolution: an analysis of mobile applications’ business models

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E-business evolution: an analysis of mobile applications’ business models

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ABSTRACT
Prior scholars have deeply defined the sources of value, typologies, and value capture mechanisms of website businesses. The advent of new e-businesses, i.e. mobile applications, requires investigation into which are the successful variations of e-businesses that have been selected and retained for surviving the new digital era, and how they have been formed. A mixed qualitative-quantitative business model analysis of 2250 mobile applications of the Google Play Store is proposed. Results are interpreted according to evolutionary lenses. Content apps, whose value is driven by their efficiency, lock-in, design, and ability to add complementary monetisation mechanisms (i.e. In-App purchases) beside the ads value capture schema (or 'mixed' for 'pay per download' apps), are the ones that can survive digital Darwinism. E-business models and their innovations are the products of evolutionary processes; from that, e-business models should be evaluated and re-evaluated over time according to the modifications of the multi-level environment.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes on contributor

Matteo Cristofaro is Research Fellow in Management at the University of Rome 'Tor Vergata', Department of Management and Law. His interests lie mainly in strategic decision making, behavioural strategy and organisational adaptation.

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E-business evolution: an analysis of mobile applications' business models

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ABSTRACT Prior scholars have deeply defined the sources of value, typologies, and value capture mechanisms of website businesses. The advent of new e-businesses, i.e. mobile applications, requires investigation into which are the successful variations of e-businesses that have been selected and retained for surviving the new digital era, and how they have been formed.

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https://blog.hootsuite.com/social-commerce/

-Joshua Maclean

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Social Media Marketing & Management Dashboard

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This blog post may be titled "What is social commerce?," but maybe it should actually be called "Do you want to make some money?"

Social commerce is a $89.4 billion market right now. It's projected to grow to $604.5 billion in the next seven years.

If you're a business with products to sell, this info probably makes you feel like that dollar-sign-eyes-green-tongue emoji.

Curious about how you can get a chunk of that change? We've got you covered. Read on for social commerce 101.

Bonus: Download a free guide that teaches you how to turn Facebook traffic into sales in four simple steps using Hootsuite.

What is social commerce?

Social commerce is the process of selling products directly on social media.

With social commerce, the entire shopping experience - from product discovery and research to the check out process - takes place right on a social media platform.

Currently, social apps that allow for social commerce include Instagram, Facebook, and Pinterest.

With social commerce, you might see a pair of sweet strawberry-print clogs on your Instagram feed, hit "shop now" and complete the purchase right there in the app.

Or, you could spot a well priced umbrella as you're scrolling through your Facebook feed, click "Buy." Once your purchase is complete, you can continue to enjoy your usual Facebook experience by creeping pics of your friend's sister's ex-boyfriend's new baby, without missing a beat.

These are shopping opportunities (shopportunities!) right on the digital platforms that your audience uses most. And you should be taking advantage of them.

Social commerce vs. e-commerce

E-commerce refers to a shopping experience via a website or dedicated branded app. Social commerce, by definition, allowing the customer to make their purchase their social media experience. Social commerce is not e-commerce.

Social commerce is also not social selling. Social selling refers to cultivating relationships on social media in order to build your sales prospect list. Read more about social selling here.

Why should you try social commerce?

Not sure if setting up a social media shop is a good idea? Here are seven reasons why social commerce is worth a shot.

Social commerce makes shopping a social experience

Shopping on social media makes the experience much more interactive than a typical e-commerce spree.

Consumers can easily consult with their friends on purchases, show off those hip new hightops, comment on Aunt Jackie's new "I Love My Niece" tee, review comments from other savvy shampoo shoppers, and interact directly with the kombucha brands they love.

For those who miss the social aspect of a day out at the mall, social commerce might just be the next best thing. (Though unfortunately without an Orange Julius pit stop.)

Social commerce removes friction

See it, click it, buy it. Social media shops remove friction from the consumer journey, making it easy to follow through from discovery to purchase. They're there. The product's there. Nowhere to go but the checkout.

Ultimately, every click of the mouse is an opportunity for a potential customer to change their mind. If they have to go from your ad, to your website, to add the product to a cart, to filling in their credit card info, that's a lot of moments to lose their attention.

Take those unnecessary steps away and just bring the shopping right to social.

There's some serious money to be made

Like Shakira's hips, numbers don't lie. Researchers are forecasting that e-sales will surpass $735 billion in the next three years.

If you want in on this action, it makes sense to bring your goods to the online spaces where your customers are already hanging out.

81% of shoppers research products on Instagram and Facebook, and shopping is a top priority for 48% of Pinterest users. Why not give 'em what they're looking for?
Social commerce offers an instant focus group
Not only does social commerce speed up the transaction process, it also offers an incredible way to collect feedback.

Your catalog of goods is out there in the world for consumers to review and discuss together. No crystal ball required: your customers can just tell you what they like or don't like.

Why not get your audience to vote and weigh in on product development and inventory decisions while they're there? (How are we feeling about my glow-in-the-dark wolf backpack design? Anyone? Hello?)

On social, you have clear data about exactly who your customers are, and the opportunity to chat with them after via comments or direct message, to provide personalized customer service.

It's where Millennials and Gen Z like to shop

If your target demographic lies in the 18-to-34 age range, they're already online and waiting to shop while they scroll.

48% of U.S. internet users this age made a purchase on social media in 2019. For those in that demographic who haven't shopped on social media yet, 27% have expressed interested in giving it a go.

This is the modern mall. Time to open up shop!
Hyper-target your prime audience
With an incredible wealth of customer data available on social, you've got a prime opportunity to tweak and target your advertising.

Your horse-print bathrobes can be directly advertised to the flannel-loving equestrians out there. Adorable baby-sized sunglasses can be beamed right to the feeds of cool young dads.

Social commerce offers the chance to get specific, ready-to-buy products in front of the specific people who would love them, in a way that traditional e-commerce and marketing cannot.

What are the best platforms for social commerce?

At the moment, only a few of the top social platforms offer social commerce. But as the interest (and revenue) grows, it's likely we'll see more of these social media brands integrating "shop now" options.

Here are the current social commerce platforms available.

Facebook Shops

You use your Facebook Business Page to share news, connect with fans, and show off your cute new logo. Why not use it to sell a few things while you're there? Set up a Facebook Shop and you can do just that.

Facebook Shops are customizable. Choose which collections or goods to feature, and customize the fonts, images, and colors to suit your brand. Import an existing catalog of products from your website, or create one from scratch.

Your Facebook shop will be accessible from your Facebook Page, your Instagram profile, your Instagram Shopping ads, or shoppable stories and post.

When it's conversion time, you've got the option for your customers to do an in-app checkout, or open up a direct Messenger chat with your business. You can also send them to your website.

One nice feature of Facebook shops: you can create a test shop to learn more. Here, you can add items, manage orders, and even test out the customer experience.
Learn how to set up your own Facebook Shops with our step-by-step guide.
Instagram Shops

60% of people discover new products on Instagram. Your products should be among them.

Instagram Shops allows users to buy products featured in your photos and videos from anywhere in the app.

Once catch: you do need to set up a Facebook Shop first (see above). Your Instagram Shop will be pulling data from your FB catalog.

Business profiles can create a customizable storefront page that acts as a curated collection of products for sale. Each product gets its own detail page, featuring pricing, media, and a detailed description.

Instagram's Shopping Tags allow businesses to tag their products in their Stories or posts. U.S. brands also have the option to highlight products in post captions and bios.

For eligible U.S. businesses and creators, Checkout on Instagram lets customers complete a transaction using Facebook Pay. (Those without Checkout can use other tools that complete the purchase offsite.)

To get your Instagram Shop set up, you just need to live in an eligible region and have an Instagram Business account that's connected to a Facebook page. You also need to comply with Instagram's commerce policies and merchant agreement.

It's also probably worth noting that Instagram Shops can only sell products not services.

Learn more about how to set up your Instagram shop in our video:

Pinterest

Okay, here's some news you should pin right now: Pinterest does not strictly offer social commerce.

Yes, for business accounts, Pinterest does offer the option to create "Product Pins" (formerly Buyable Pins), which are displayed in your brand's Pinterest Shop.

But it's important to note that these are not available to purchase within the app. Clicking on a beautiful vase, and you'll be sent off of Pinterest to an ecommerce site to complete the sale.

Is Pinterest still a helpful tool for getting your goods out into the world? Absolutely - especially given that 89% of Pinterest users are there for shopping inspiration.

For more on making the most of your Pinterest account, here are eight business strategies to try.

Snapchat

In July 2020, Snapchat announced a closed beta launch of Brand Profiles. One of the profiles' features? A "Native Store" experience (powered by Shopify) that enables users to browse and purchase right from the app.

They debuted the feature with the help of five official approved influencer accounts - congrats to Kylie Jenner, Kim Kardashian, Shay Mitchell, Spencer Pratt, or Bhad Bhabie on this early access!

A few other brands have been approved in the meantime, and it's likely that this feature will expand to the rest of the non-Kardashian world eventually.

In the meantime, keep an eye on Kylie Cosmetics in the meantime to see how she's making the most of the app's "swipe up to shop" capabilities.

Or brush up on your snap cred with the help of our Snapchat for Business strategy guide.

6 tips and tools for effective social commerce

Your shop is set up. You're motivated and ready to sell. Here are key tips and tools that will help you make the most of this brave new digital shop-o-sphere.

Streamline sales and customer service with an AI chatbot

A swift and professional answer to a customer's question can make the difference between a sale and an abandoned shopping cart. With the right tools, you can automate your customer service and make sure that your customers are taken care of 24/7/365 (a.k.a. even when your team is not online).

Use a tool like to engage with your customers on their preferred channels and convert customer service conversations into sales.

Heyday is an AI chatbot for retailers that integrates your online store with your social media channels. It allows you to automate as much as 80% of your customer support conversations. When customers reach out to you on social media with questions regarding your inventory or order tracking, the chatbot assists them in real-time (and passes more complex inquiries over to your support team).
Request a Heyday Demo
Heyday can also help you boost sales by automatically sending out back-in-stock and price-drop notifications to customers who had previously expressed interest in a product.

Engage with your followers

To create a great social commerce experience, you've got to remember the "social" part.

You can't just toss up your catalog and forget it. Answer questions, offer value and interesting content, be human and authentic, and so on. Set up a chatbot to help people move forward with their shopping journey.

The same best practices that you usually use for engaging your following all apply here.

Listen strategically

You've got a front-row seat to your audience. Make the most of it.

Keep a close eye on comments and shares on your Shop, and respond or offer customer service when necessary.

Setting up social monitoring across all platforms can be a great way to catch feedback or industry news outside of your own bubble, too.
Check out our guide to social listening here.
Encourage reviews

93% of online shoppers say a review can make or break their decision. If you've got a product people are happy with, get them to help spread the word.

Whether it's an automated follow-up email asking for a review after a product has been delivered, or incentives like a contest to encourage previous customers to weigh in and share their experience, collecting social proof is vital to building a positive reputation online.

Once you've got some positive reviews, share them on your social feeds in creative ways, whether that's posting user-generated content, hosting a Live video with happy customers, or simply creating a carousel of positive comments. There are tons of ways to do this that won't make you sound like you're bragging.

Target your reach

Take advantage of the incredible data available to you on social to get your products or Shop in front of the right people.

Not sure who your audience is, exactly? Here's how to find and target your dream customer.

Price your products to move

Social commerce offers a great opportunity for lots of different kinds of products - clothing, dog toys, risqué pottery - but luxury products typically aren't successful here.

Because of the risk associated with buying something unseen, consumers are less likely to splurge on something with a larger price point.

Shopify's data show that an under $70 price tag is ideal: right in that "why the heck not" sweet spot for many social users.

Include products from your Shopify store in your social media posts with Hootsuite

Though not strictly falling under the definition of "social commerce", Hootsuite users are able to easily post products from their Shopify, Magento, Woocommerce and Bigcommerce stores to their social networks via the Shopview app. It's an easy way to use social media to enhance your customers' online shopping experience.

Of course, social commerce is likely just one piece of your overall digital marketing puzzle.

To craft a robust strategy that engages, sells, and intrigues all across the wide plains of the internet, dive into our Social Media Advertising 101 guide. Build up your brand across all your platforms for your best chance at success, online or offline.

Frequently Asked Questions

What is social commerce?

Social commerce is the use of social media platforms to promote and sell products and services. It can involve the use of native shopping solutions (e.g. Facebook and Instagram Shops) or ecommerce integrations (e.g. browsing a product catalog and adding items to cart on a social platform, then completing checkout in an online store).

What are the types of social commerce?

1. Marketplace sales, a.k.a. peer-to-peer sales (e.g. Facebook marketplace, Craigslist, eBay)

2. Native social media shopping solutions (e.g. Facebook and Instagram Shops)

3. Curated shopping lists (e.g. Shopping Lists on Pinterest)

4. Live shopping events (e.g. on Facebook Live)

5. Shoppable AR filters (e.g. shoppable Lenses on Snapchat)

How does social commerce work?

Social media users can discover and explore brands, products and services, add products to their shopping lists or carts, and complete checkout - all without leaving the social network.

Why is social commerce important?

Social commerce allows brands to make sales directly on social media. It's an effective sales strategy, because it removes friction from online shopping experiences that start on social platforms. Many people discover products they like while browsing social media. Allowing them to click through to checkout without leaving the social network makes for a quick and streamlined experience, and reduces the risk of abandoned carts.

What are some social commerce examples?

Examples of social commerce include:

Domino's Pizza taking orders via an automated Facebook Messenger flow

Mac Cosmetics' shoppable AR Lense on Snapchat

Gap using Instagram Guides for curated shopping lists

Nike using Product Pins on Pinterest

Best Buy Canada's Shop tab on Facebook

Engage with shoppers on Instagram and turn customer conversations into sales with Heyday, our dedicated conversational AI tools for social commerce retailers. Deliver 5-star customer experiences - at scale. Request a Heyday Demo

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What is Social Commerce and Why Should Your Brand Care?

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This blog post may be titled "What is social commerce?," but maybe it should actually be called "Do you want to make some money?" Social commerce is a $89.4 billion market right now. It's projected to grow to $604.5 billion in the next seven years.