Review the following: Barriers to Entry in the Ecommerce Business Google Analyti

Question

Review the following:

Barriers to Entry in the Ecommerce Business

Google Analytics Collection

How Cloud Integration Is Defining The Future Of CRM

The top 10 customer relationship management services

Provide an example of how two different companies accumulate customer information for their customer and sales database. Describe in detail.

Moore's Spreaesheet- Hnal [4 Compabblry Mode Exce Irsat Page Layou Fomu D RaviVi Hl Tel me what you wan to do pboard Stl:s 014 5230000 19 095 00 2,00000 Frepsid Dpenses 11000.00 $574713 Total Current 551.118 Tatel Caurrent Ast Dullding 30.97 Gullding 35500.00 818 S0000 1432 1s Total Fined 77,280.97 Total fined Assets Accouns Payable $57 432.00 105159 Acccumts Payable 137,.00 Total Curremt 79,951.59 Total Current Labiities 175,122 00 Tem Loan $70,0000 Term Loan TotelLonc-Term Uilties 570,00000 Totel Loec-Teem lwbiltles 70000 $1.17A,457 Dwnee fq.ity $1,3474 I Lishi Hies end Owner Eoulty 51,328,398 97 O lype hene to search

Explanation / Answer

Below are some of the barriers to entry in E-Commerce business:

1. Exiting competition - More and more e-commerce companies are coming up with different products and selling it online. The market is saturated and a big differentiating factor is required to acquire customers and initiate churn of customers in existing e-commerce sellers.

2. Competetive advantage - It is important to have a competitive advantage before you can enter an industry like e-commerce. The competitive advantage could be in the form of differentiated products, differentiation focus or cost advantage. For Example - Indian e-commerce industry is dominated by players like Amazon and Flipkart. However, some companies such as Pepperfry and UrbanLadder have thrived in this environment by finding a niche i.e. just by selling furniture online.

3. The cost to acquire customers - The market size is finite. It is limited to the number of buyers online. There are many existing firms selling online and it requires a lot of marketing and promotion expenditure to get new customers / to gain market share from the competition. Generally, before you start selling online you need sufficient funds to build a customer base. Most of newly launched e-commerce companies start with a strong financial backing.

4. Customer Trust - The customers are still skeptical while buying products online. It is even difficult to trust a website that is just going to launch itself in the market.

5. Logistics - The backbone of an e-commerce company is the presence of a strong supply chain, relationship with suppliers and contracts with the delivery partners. The sellers who wish to sell their product online would choose an alternate only if they are offered something extra than other online platforms selling their products. Getting quality sellers on your platform is a big obstacle and then handling the logistics is another problem.

6. Political and Govt. Pressures - In some countries, Govt sets the minimum price for selling a product to protect local offline stores from going out of business, In such a regulated environment it becomes difficult for companies to operate freely and gain certain cost advantages over local sellers in the market.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.