How eCommerce Trends & Statistics help to understand online shoppers and their buying behaviour

Exabytes TV

4 Sept 201822:03

EducationalLearning

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TLDRKenneth Quan, Head of Sales at iPay88, provides an insightful overview of the e-commerce and payment industry's current landscape and future trends. He discusses the rapid growth of online commerce, particularly in ASEAN, and emphasizes the importance of understanding customer profiles to tailor business strategies effectively. Quan highlights the shift towards mobile commerce and digital payments, including the rise of alternative payment methods like e-wallets and QR code payments. He also touches on the potential of technologies like augmented reality to reduce fashion return rates and the significance of data analytics and blockchain in shaping the industry. Quan concludes with advice for businesses to embrace omni-channel strategies and leverage various payment solutions to drive traffic and build customer loyalty.

Takeaways

📈 **E-commerce Growth**: The global e-commerce market is expected to reach one trillion dollars, with ASEAN countries, including Malaysia, Thailand, and Indonesia, experiencing rapid growth.
💡 **Understanding Customers**: To succeed in e-commerce, it's crucial to understand your customer profile, including their shopping habits and preferences.
📱 **Mobile Commerce**: M-commerce is becoming the norm as more people use mobile phones for online shopping, necessitating mobile optimization for online stores.
💳 **Digital Payments**: Credit card usage is declining in favor of online banking and alternative payment methods like e-wallets and QR code payments.
🔍 **Data Utilization**: Big data and machine learning are becoming integral to understanding consumer behavior and driving business success in e-commerce.
🛍️ **Product Categories**: Fashion, beauty, health and beauty, electronics, home and living, and groceries are among the top purchased product categories online.
📊 **Return Rates**: High return rates in fashion e-commerce can be mitigated by technologies like augmented reality, which helps customers select the right size.
🛒 **Non-Online Shoppers**: Understanding the reasons why some customers prefer not to shop online is key to converting them, with trust and convenience being common concerns.
🌐 **Omni-Channel Approach**: The future of retail lies in an omni-channel approach, where both online and offline shopping experiences complement each other.
📈 **Market Leaders**: Ipay88, being PCI DSS compliant and owned by NTT DATA, positions itself as a market leader in payment solutions with a wide merchant network.
⚙️ **Technology Integration**: Ipay88 offers not just payment processing but also technology integration services, setting up a payment app to support multiple payment options.

Q & A

What is the background of iPay88?
-iPay88 was founded in the year 2000 by three founders and is a PCI DSS compliance company, capable of processing credit card transactions. It was acquired by NTT DATA, a Japanese company, in 2015, and currently has a customer base of 12,000 merchants.
How has the e-commerce market evolved globally and within ASEAN?
-The global e-commerce market is reaching one trillion dollars, with regions like the US, China, and others at a maturity stage of around 25 percent. Within ASEAN, the market is at a starting stage but growing very fast, potentially due to the widespread use of mobile phones.
What are the challenges faced by non-online shoppers when it comes to embracing e-commerce?
-Challenges include trust issues, particularly concerning security and privacy, a preference for seeing tangible products, concerns about delivery, and the perceived cumbersome nature of online transactions.
How does understanding customer profiles help in e-commerce?
-Understanding customer profiles allows businesses to make better judgment calls on their approach and strategies. It's suggested that understanding one's children can be a good way to predict the behavior of future customers.
What is the projected growth for e-commerce transactions in Malaysia?
-The Malaysian ambition is to achieve more than 170 billion ringgit in terms of e-commerce transactions, which would require doubling the current growth path.
What are the five most purchased product categories according to iPay88's data?
-The five most purchased product categories are fashion, beauty, health and beauty, electronics, home and living, and household groceries.
How does the use of technology like augmented reality help in reducing return rates in fashion e-commerce?
-Augmented reality can help customers scan their bodies and match product sizes, which can increase confidence in purchasing and potentially reduce return rates.
What is the significance of having a mobile-optimized online store?
-With the trend of mobile commerce (m-commerce) on the rise, it is crucial for online stores to be mobile-optimized to cater to the increasing number of customers using smartphones for online shopping.
What are the alternative payment methods that are gaining popularity?
-Alternative payment methods such as online banking, e-wallets like Boost, and QR code payments are gaining popularity and are considered important for driving more traffic to online businesses.
Why is it recommended for businesses to have their own online store in addition to being present on marketplaces?
-Having their own online store allows businesses to build customer loyalty and attract returning customers, which is more challenging to achieve when solely operating on marketplaces where competition is often based on price.
What are some of the key technological trends that will impact e-commerce in the future?
-Key trends include the integration of IoT, big data learning, blockchain technology, cryptocurrency, and the shift towards micro-payments and QR payments for the masses.
How does iPay88 support businesses in their payment solutions?
-iPay88 positions itself as a payment solution provider, offering integration services, a payment app, and various tools such as plugins for online businesses, Mobile SDK for mobile apps, APIs, and payment terminals.

Outlines

00:00

😀 Introduction to I Paid It and Payment Trends

Kenneth introduces himself and provides a background on I Paid It, a company founded in 2000 and acquired by NTT DATA in 2015. He discusses the company's compliance with PCI DSS and its role as a market leader in processing credit card payments. The summary highlights the growth of e-commerce globally and within ASEAN, particularly the rapid growth in Malaysia, Thailand, and Indonesia. Kenneth emphasizes the importance of understanding customer profiles and the potential of mobile phones in driving e-commerce. He also mentions the goal of achieving more than 170 billion ringgit in e-commerce transactions and the need to understand customer profiles to achieve this growth.

05:03

🛍️ Understanding Online Shoppers and Non-Online Shoppers

Kenneth delves into the behavior of online shoppers, noting that most are not daily or weekly shoppers but rather monthly or yearly ones. He addresses the challenges of converting non-online shoppers to online shoppers, citing trust issues, security and privacy concerns, and the preference for tangible experiences as barriers. The summary also touches on the rise of QR code payments and the concept of omni-channel shopping, which combines the benefits of online and offline retail experiences. Kenneth discusses the five most purchased product categories and the high return rates in fashion due to sizing issues, suggesting that augmented reality could help reduce returns.

10:06

📈 E-Commerce Trends and Customer Experience

The paragraph discusses the continuous growth of online shopping and the shift towards mobile commerce (m-commerce). Kenneth highlights the importance of digital payments, which include online banking and alternative payment methods like e-wallets. He also talks about the role of marketing funds and deals in driving traffic and the significance of customer experience in retaining customers. The summary outlines the importance of mobile optimization for online stores and the trend of fewer people using credit cards, with a preference for online banking and e-wallets, especially for small ticket items. It also mentions the potential of easy payment plans for high-value items.

15:07

💡 Emerging Technologies and Omni-Channel Retail

Kenneth talks about the integration of emerging technologies like IoT, big data, blockchain, and cryptocurrency in the future of e-commerce. He emphasizes the importance of micropayments and QR payments in enabling more progressive e-commerce growth, especially for startups and SMEs. The summary explains the concept of an omni-channel approach, where both online and offline components work together to provide a seamless shopping experience. It also mentions the various payment solutions offered by I Paid It, including plugins, Mobile SDKs, APIs, and payment terminals.

20:09

🤝 Partnership and Integration Opportunities

In the final paragraph, Kenneth discusses the role of I Paid It as a payment solution provider and the benefits of using their payment app, which integrates multiple payment options. He contrasts this with single-wallet mobile applications and argues that a single app with various payment methods is more beneficial for users. The summary also addresses the question of how e-wallets can expand their reach and acquire more merchants, highlighting I Paid It's position in facilitating integration and providing technology solutions.

Mindmap

Keywords

💡I Paid It

I Paid It is an online payment processing company established in 2000 and acquired by NTT DATA in 2015. It is a key player in the e-commerce payment solutions space, facilitating transactions for merchants and being PCI DSS compliant, which is a standard for credit card data security. In the video, Kenneth Quan, from I Paid It, discusses the company's role in the evolving payment landscape.

💡E-commerce Market

The e-commerce market refers to the global industry of buying and selling goods and services over the internet. The video mentions that this market is projected to reach one trillion dollars, with ASEAN countries, including Malaysia, Thailand, and Indonesia, experiencing rapid growth. This growth is significant for understanding the context of online payment trends and the opportunities they present.

💡Mobile Commerce (M-commerce)

Mobile commerce, often abbreviated as m-commerce, involves using a mobile device to conduct e-commerce transactions. The video emphasizes the shift towards m-commerce, as more people use smartphones for online shopping. This highlights the importance of mobile optimization for online stores and the integration of mobile payment solutions.

💡Omni-Channel

Omni-channel refers to the integration of multiple shopping experiences across different channels, such as online, mobile, and physical stores. In the video, Kenneth Quan discusses the concept of omni-channel retailing, suggesting that businesses should not view themselves as strictly online or offline but rather as a seamless blend of both to enhance customer experience.

💡Payment Trends

Payment trends denote the evolving methods and technologies used in processing transactions. The video covers various trends such as the rise of digital payments beyond credit cards, the use of online banking, and alternative payment methods like e-wallets and QR code payments. These trends are crucial for businesses to stay competitive in the digital marketplace.

💡E-wallets and QR Code Payments

E-wallets are digital platforms that allow users to store and use funds for online transactions, while QR code payments involve scanning a code to facilitate a payment. The video mentions the emergence of e-wallets like Boost and the use of QR codes as part of the shift towards more convenient and secure payment methods.

💡Customer Profile

A customer profile is a detailed description of a company's target customers, including their demographics, behaviors, and preferences. In the context of the video, understanding the customer profile is emphasized as crucial for tailoring business strategies, particularly in e-commerce, to meet the evolving needs and expectations of consumers.

💡Return Rate

The return rate refers to the percentage of goods sold that are later returned by customers. In the video, it is mentioned that fashion items have a high return rate due to issues with sizing. This statistic is important for e-commerce businesses as it impacts profitability and customer satisfaction.

💡Augmented Reality (AR)

Augmented reality is a technology that overlays digital information onto the user's view of the real world, enhancing their perception. The video discusses how AR could be used to help customers visualize clothing items on themselves, potentially reducing return rates by increasing the accuracy of size selection.

💡Big Data and Machine Learning

Big data refers to the large volumes of data that are generated daily, while machine learning is an application of artificial intelligence that gives systems the ability to learn and improve from experience without being explicitly programmed. The video suggests that the utilization of big data and machine learning will become increasingly important in driving e-commerce growth by providing insights into customer behavior and preferences.

💡Blockchain and Cryptocurrency

Blockchain is a decentralized and secure technology that underpins cryptocurrencies like Bitcoin. The video mentions blockchain and cryptocurrency as innovative technologies that extend beyond Bitcoin and have the potential to enable more progressive e-commerce growth, suggesting their importance in future payment systems and transactions.

Highlights

Ipay88 was established in 2000 and is now 18 years old, highlighting its longevity and experience in the online payment industry.

Ipay88 was acquired by NTT DATA, a Japanese company, in 2015, which now owns 51% of the company.

The company is PCI DSS compliant, allowing it to process credit card transactions securely.

Ipay88 has a network of 12,000 merchants and partnerships with numerous financial institutions.

E-commerce market globally is projected to reach one trillion, with ASEAN showing rapid growth.

Malaysia, Thailand, and Indonesia are at the starting path of e-commerce growth with an incredible trajectory.

Understanding customer profiles is crucial for e-commerce success, with a focus on the younger demographic.

Malaysia has an ambition to achieve more than 170 billion ringgit in e-commerce transactions.

Non-daily shoppers are the majority, with many being weekly, monthly, or yearly shoppers.

Trust issues, security and privacy concerns, and tangible product preferences are barriers for non-online shoppers.

The rise of QR code payments and mobile wallets is changing the landscape of online transactions.

Top purchased product categories include fashion, beauty, health and beauty, electronics, home and living, and groceries.

Augmented reality can help reduce high return rates in fashion e-commerce by helping customers find the right size.

Online shopping is poised to continue growing, with a shift towards mobile commerce and digital payments.

Alternative payment methods like mobile wallets and online banking are becoming more popular than credit cards for transactions.

E-commerce businesses should focus on providing a good customer experience to ensure return customers.

Ipay88 offers various payment solutions including plugins, Mobile SDK, APIs, and payment terminals to cater to different business needs.

Blockchain and cryptocurrency are seen as innovative technologies that can enable progressive e-commerce growth beyond Bitcoin.

Micropayments and QR payments are becoming more prevalent, especially among SMEs and startups.

Policy and industry regulation will play a significant role in shaping the future of e-commerce and payment solutions.

Ipay88 is developing a payment app to integrate multiple payment options, aiming to provide a more comprehensive solution for businesses.

Transcripts

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