E-Commerce Applications and Strategies for a Toy Company Report

This report provides a comprehensive overview of e-commerce applications, focusing on the context of an organic toy company. It begins with an introduction to e-commerce, defining its principles and exploring the relationship between these principles and various e-commerce models, such as B2C and B2B. The report then delves into the impact of e-commerce on businesses, highlighting both the advantages, such as high-speed transactions and global reach, and the disadvantages, including issues of product quality assurance and customer loyalty. The report continues by examining the benefits and opportunities of electronic commerce, emphasizing convenience, product data sheets, and search engine visibility. It also addresses potential threats to the company and recommends strategies to mitigate these risks. Furthermore, the report presents an e-commerce model tailored for the company and conducts a critical study of revenue models and e-commerce strategies. The report concludes with a discussion on ways to establish an effective online presence for the company, offering insights into different applications and their evaluation for online business success.

E-Commerce Applications

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Principles of E-Commerce...........................................................................................................1
Relation of E-Commerce Principles and E- Commerce Models.................................................3
Effect of E commerce in the Business.........................................................................................3
ACTIVITY 2....................................................................................................................................5
Benefits and Opportunity of Electronic commerce.....................................................................5
Threats to the Company...............................................................................................................7
Recommendation to Reduce the Threats.....................................................................................7
ACTIVITY 3....................................................................................................................................8
E-Commerce Model for Company of Director............................................................................8
Critical study of Revenue model..................................................................................................8
E-Commerce Strategy..................................................................................................................9
Way to Show Online Presence of Company................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
E-commerce is also known as electronic commerce and internet commerce. The E-
commerce is all about the selling and buying of goods online using internet by using online
method of fund transfer. This is the easiest way to sell a physical product online using internet.
This report is providing a brief of e-commerce for organic toy company that is operated from
home (Laudon and Traver, 2016). To expend the business of organic toys around the world the
director of company is looking to grow business in online market to generate higher profit.
Different principle of E commerce are explained in report. A brief relation between E commerce
principle and E commerce models is provided in report. Influence of e commerce application for
various type of organization is explained in the report. The opportunities and benefits of e
commerce for small business company which is selling the organic toys. Thee threats of the
adopting E commerce and there solution in business are also explained in study. For the small
business e commerce model is provided for utilization. To make the business successful on the
online platform E-commerce strategies are explained. Different applications that can be used for
online business are evaluated.
ACTIVITY 1
Principles of E-Commerce
To move a business on online platform company have to follow some principles for the
successful implementation of business on internet. These principles are important to follow to
make better impression on the visitor of online appearance of company. The second important
principle is about the information that is provided by the organization on the online platform
(Vinodhini and Chandrasekaran, 2017). The last important thing for the online business is the
process of buying should be enough stable and easier for customer to make decision.
Apparent, consistent Branding
When a business organization moves on the online platform then it is important for them
to perform good branding and promotion of name of company. The colours combinations,
designed and visuals used by company on the online platform should be enough effective to
make better impression on the mind of customers. This is important for organization that user or
customer identify the company with its logo and branding on the websites. To complete this goal
company should consult with Information Technology specialist to catch the eye of consumer.
Audience Targeting
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On the online platform the company will be visible to huge crowd and the company is
providing the product that is related to the children (Rahayu and Day, 2015). To sell the organic
toys in the online market company need to target the specific customers to attract them towards
the product of the company. This specific goal related to the customer is important for the
business organization to increase the sales of company product on the E Commerce. This will
provide better option to design and produce the product for specific group of people and this will
improve the business marketing of company of Director.
Competitive Differentiation
There are many online sellers on the E Commerce who are selling the same product as
the company of Director. So it is important for the organization to make certain changes in the
online appearance of company to make is different from the competitor in the market. Cause this
will present the company appearance different from other companies that are selling the same
product on E Commerce (Akter and Wamba, 2016). This will provide an innovative reason to the
customer to revisit the site of company. This differences made by the company on online site
will provide more effective interface to company.
Usability
For the business of company on the online platform it is important to provide better
experience to the customer to make them feel satisfied with the process of purchase on the
online services of company. User experience is important for the company because the success
of company online operation is based on the user experience. Experience of the user will
influence their further behaviour and view for visiting online site of toy company.
Intuition Services
For the user it is important to find what they are looking for on the website or application
of company. People usually don't want to spent their much time to find the product on
application that is providing option to them. If the company wants to make the user more
comfortable with the application the company should provide some easy function to consumer to
fins and sort the product they want (Hussain and Mkpojiogu, 2016). This is possible by
providing them with different navigation bars and search bars on the application to find the
product of their interest.
Accurate Description
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For the higher satisfaction of the consumer description provided on the company website
or online application should be relevant and to provide better information of product to
consumers. This can make them more convince buying the product of Toy Company.
Minimalism
Application used by organization is the way to communicate with the consumer. So the
interface of the application dose matter in the communication process with the consumer. To full
fill this requirement the content on the application should be specific and should be clear for
customer. There should be enough free space to make user attracted towards the product of
company.
Visible and Call to Action
To make the online function of company more effective there a regular communication is
needed to make customer aware of company product and maintain good relation with consumer
for possible future business. This will also help the company to gain more online customers.
Relation of E-Commerce Principles and E- Commerce Models
B2C Model
As the online business the organization is directly connected to the customers and the
deal completed between only customer and company there is now any influence of other people
in the deal. This Model is known as business to consumer or B2C type of business. Companies
use different tools to make communication and deal with customer through this method. This
help the organization to full fill the requirement of continuous connection between user and
company. This is how the business organization meet the principle of Visible Call of action.
B2B Model
In this type of model the deal completed between organization and other organization.
There could be difference between size of organization. This type of deal completes in bulk
amount goods. In this procedure one company buys good from one organization and provide this
to customer in different way (Rahayu and Day, 2015). The goods transported in this process is
mostly of raw material type. This is used to encourage the use of online platform for business.
This model provide continence to conduct the business with higher efficiency.
Effect of E commerce in the Business
There are different positive and negative impact of E commerce on the business
organization.
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Advantages of E Commerce
High Speed Business
This is the simplest way of business and the speed of business is also too high cause in
this way of business no physical appearance is required cause customer buys the product by
provided specifications and customer comments & reviews.
Easy Product and Services
for the customer it is easy to find out the required product and they do not need extra time
in searching of goods.
Easier Time Management
The E Commerce business if free from time customer and organization can make deal
any time and there is no limit of time. This reduce the need of time management in business.
Does Not Require Much Space
In the online business company does not need any physical store to conduct the business.
Vendor only need an inventory of storage house to store the goods and products of company.
N Geographic Limitation
There are no limits of online business cause it is conducted on the online platform and it
is available to all beyond the boundaries of countries. This help the company to grow the
business on global level.
Higher Quality and Lower Operational cost
This is the most suitable and cost efficient way of business cause company do not need
extra effort on promotion and physical stores. This saves a lot cost to the company.\
Disadvantages of E commerce
No Guarantee of Product Quality
In the online business the quality of the product can be differ from the actual product
(Mazzarol, 2015). The trust of customer depended on the quality of product and uncertainty in
the buying procedure reduce the trust of perform in company and that is not good for Organic
Toy Company.
Customer Loyalty
The customer of the online business are not loyal to the organization cause in the online
platform customers are always looking for better deal and cheaper price. This thing force them to
move to other seller. So there is less customer loyalty in this process.
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High Competition
The level of competition is too high in the E Commerce market cause it is easy to tart any
business online and may the owner of company will face major competition from the other seller.
ACTIVITY 2
Benefits and Opportunity of Electronic commerce
Benefits of Online Business
Convenience and Easiness of business
In the online form of business it is really easy to conduct business with higher efficiency.
The become shorter with internet. People prefer the online platform for shopping cause it is
easier for them to purchase goods without moving out of home. It also easy for company to earn
higher profit by spending less cost on extra expenses.
Offer product Data sheets
In E commerce business the company is able to provide a product sheet to the customer
to provide them better chances to selected product and customer can take there whole time to
compare and select the product and this will not waste the time and money of company (Awa,
Ojiabo and Emecheta, 2015). The large number of options can help the customer to select
product as per their need. This high number of selection option will also encourage the customer
to buy more from the company application.
Search Engine Visibility
The E commerce provide the option to the company to use the facility of search engine
visibility to improve the traffic on the company application and facilitate more customers. This
will improve the business of organic Toy Company. Search engine optimization can also help the
organization to gain new customer from around world.
Specific Information
E commerce provide the opportunity to the vendor to provide the product related
information directly to consumer. This thing reduces the chances of error and misunderstanding
between consumer and company (Awiagah, Kang and Lim, 2016). Mainly the products that are
comes with warranty and guarantee and this information can be easily conveyed to customer by
simply presenting this information on the portal of website to attract more consumer.
Decreases the Cost of Inventory Management
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The cost of the inventory management id minimum is this procedure cause the company
is not in physical contact with customers and they do not need to display their product to anyone
and this provide option of easy management of inventory and save cost to the company.
Consumer Research
There are different decisions are made by organization to gain success in the market
place. To make the decisions related to the product and catalogue provided to the consumer on
the company application (Abed, Dwivedi and Williams, 2015). E commerce also provide the
option to the company to conduct the research on the customer movement, purchases and
activities on company application.
Competence
For the expansion of business companies have to make large investments and they also
need large number of resources to operate on new location but in the online business they do not
need extra investments in business and also the bills of transportation are paid by customer so
this will provide pure benefit to the company.
Positive promotion
This is so easy for the company to perform marketing with the positive comments of the
customers (Al-Bakri and Katsioloudes, 2015). The star rating provided by customer on the
specific product will promote the other customer to check out the product and buy it on the
recommendation of other customers.
Opportunities of E-Commerce
1. The customers have access to the internet and most of the people uses the internet and
this improves the access of company to the consumer. This provide the opportunity to
organization to grow the business on the intensive level.
2. For the E commerce the there is no limitation for the companies to conduct online
business. Small and large both type of organization can use the online platform to
perform business (Kabanda and Brown, 2017)
. For the organic toy company this will provide better platform to the company owner to improve
the profit through online selling of product.
3. The social network is also can be used to improve the business of organization by
promoting the product on the social media network. The trend of posting pictures of
product of company can help to improve the demand.
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4. The cost of promotion reduces to the minimum level by use of the internet business or E
Commerce.
Threats to the Company
There are different threats in the online form of business and this threats are more related
to the security, safety and privacy of data of consumer and company.
Safety and Security Threats
The security concerns are most important for the company and there are many chances of
hacking and data leaking from the company website. This application is the soft target to the
computer and online hackers. Criminal minded people can hack these websites to steal the
personal information of customers and owner of organization (Idris, Edwards and McDonald,
2017). The customer data is stored in the server of the application and this data can be misused
by any person for criminal activity. There are also chances of information leak that is related to
the bank details of customer and company. These are the security and safety threats to the
company.
Competitor Threats
It is easy to start the online business and this can lead to greater market competition. In
the online business the company will face competition be both online and offline competitors and
this can reduce the market share and profit of company.
Customer Depute
In the online business there are many cases or situation can occur that are related to the
product related issues. The consumers are connected to the company by online platform and the
application provided by the company and cause of no physical and face to face communication
this can lead to larger dispute between company and customer.
Transportation Threats
Company use different courier services to transport the product to the consumer. During
this period of transportation any mishandling could be happen with product and this will reduce
the level of satisfaction of consumer in online purchase and this can reduce the business of online
merchants.
Recommendation to Reduce the Threats
The issues and threats can be reduced by making different changes in the method of
inline business. Different security and safety software can be used by the company to reduce the
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threats of hacking and security breach. Change in the business procedure also can help the
company to resolve different issues related to the consumer dispute. The Artificial intelligence
also can be used by the company to detect malfunction activity on the server of company of
Organic Toy Company (Valmohammad and Dashti, 2016). Also, the company can hire the
courier company to safe and secure transportation of company product.
ACTIVITY 3
E-Commerce Model for Company of Director
For the Organic Toy Company the best suitable E-Commerce model is the business to
customer. This can be used by the company to provide better satisfaction to the customer. In this
model the company can directly interact with the consumer to avoid the problems that are caused
by lengthy process. Cause the organic toy company is a small business organization then the
production strength of company is too low and cause of fewer employees and limited customer
this model of E-Commerce will provide good customer satisfaction and higher management
efficiency in the company.
Critical study of Revenue model
The revenue models are used by the company to manage the profit and revenue of
company. The different revenue models used by organization are- markup, Licensing,
commission, rent, free for service.
Markup- This is the most common kind of model for the business organization. In this model
company sell the product with added profit and extra cost of the process. This is the good method
to earn profit. The customer pay for the product that include the company profit and overhead
charges. This will provide pure profit to company.
Licensing- In this method company provide or grant licences to the customer to use product,
service or name of company for personal use. The rights cones under the licence is protected
under the law.
Commission- In this type of revenue model company charges the customer for the each
transaction that is made by using the service of company.
Rent- In this model company provide the company property to the customer on rent for some
time and charges for it. After the completion of agreement the property is handled back to
company.
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Free for Sale- In this model the customer pay for the services that are utilised by them. In this
type of revenue model company charges customer for the service or product provided by them.
For the Organic Toy Company the best suitable revenue model is mark up model. In this
company can charge the consumer for manufacturing cost, profit of company and transportation
cost and other overhead charges.
E-Commerce Strategy
The E-Commerce strategy used by the Organic toy company is based on the plan to
provide the best satisfaction to the consumer. In this process the different things are considered
and these things are- provide information of sales cycle to consumer, optimise check out
procedure, make the procedure easier, provide transaction details to customer, provide better
product to customer and help the consumers to deal with their issues related to product. This is
how the strategy for the Organic Toy Company can be designed.
Way to Show Online Presence of Company
Different ways can be used by the company to make strong online presence. These
methods are related to set goals to achieve the minimum number of likes on the online platform
of company (Suder and Wu, 2017). By using the search engine optimization appearance of
company can be improved on different search engines. The customer reviews and sharing of
these comments on the social media company presence can be proved. This is how the company
can improve its visibility on online platform.
CONCLUSION
This report is concluding the use on E-Commerce or online business in the success of
small business organization. Different principles of E-commerce are evaluated to find there
relationship with models of E-commerce. Influence of E-commerce is analysed in the different
applications of business company. The opportunities, benefits and threats to the business are
evaluated in the report. The e-commerce model and revenue models are recommended for the
Organic Toy Company.
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REFERENCES
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