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Graduate School of Management (GSM)

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Lecturer Name DR. DAVID ASIRVATHAM

Assignment Title ASSIGNMENT II: E-COMMERCE WEBSITE EVALUATION □ Before due date & time
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Student Name as per I/C Matrix Number Signature

SUMARIA BINTI ABD MOIN 012018071565


VEMOSHINI A/P BALASANDRAN 012018070474
NURUL AMIRAH BINTI AZMI 012018070948
VIDTIYA DEVANDRAN 012018091304

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Results/ Grade

Copyright © Management & Science University (MSU)

1.0 COMPANIES OVERVIEW

 Lazada

Lazada Group is a Southeast Asian E-Commerce company founded by Rocket Internet in 2012 and is
owned by Alibaba Group. Lazada targets customers accessing the Internet via desktop, smartphone or
tablet and the goal of its performance marketing activity is to acquire new customers and generate
revenue while defending its position as a market leader. As one–stop shopping destination in South
Asia, Lazada offers an easy way to monetize website and apps through its affiliate program by a
revenue-sharing model with up to 10% commission from each generated orders.
 Lelong

Lelong is a surname, and may refer to Charles Lelong (1891-1970) a French track and field athlete.
Jacques Lelong (1665–1721) a French bibliographer. Lelong.my, Malaysia’s home grown online
marketplace provides complete and affordable E-Commerce platform for buyers while exposing them
with a variety of products and services from more than 10,000 sellers. Lelong.my is one of the largest
E-Commerce online shopping platform in Malaysia offering the finest selection of products and
dedicated to provide the opportunity for customers to own the best online shopping experience to shop
and buy hassle free. Lelong.my mission statement is “Serving the community and bringing a high
standard of quality into homes and businesses by providing an avenue for on-line trading at a low
cost”.

 11Street

11Street is a trustworthy and convenient marketplace that offers a great variety of products at
competitive prices. It strives to revolutionise customers’ online shopping experience by making it
more personalized and engaging. 11Street has a diverse selection of product categories which are
tagged on fashion, electronics, groceries, health & beauty, kids & baby, leisure & sports, home &
living and books & services including E-Vouchers. 11Street is also an optimised marketplace where
its merchandise ecosystem, education and training programs can fully support sellers regardless of the
size of their business. Besides that, 11Street is an open marketplace operated by Celcom Planet Sdn.
Bhd, joint venture between Axiata Digital Services Sdn. Bhd, SK Planet Ltd and PUC Ventures Sdn
Bhd.

1.1 BUSINESS MODEL

N Item Lazada Lelong 11Street


o
1. Business B2B2C B2C, C2C B2B2C
Model
2. Customer  Offer lower price  Offer more than 1.3  Offer variety of
Value  Free Delivery with million products across products at
Proposition payment option categories. competitive price
 Variety of products  Offering One-Stop E-  User friendly and
 User friendly Commerce Solutions navigation
 Promotion by  Offering Online  Offering Online
offering discounts, Payment Service Payment Service
cash voucher,  User friendly and  Frequent deals and
clearance sale and navigation promotions
flash sale

3. Key  Technology using  All purchases made  Escrow system


Resources agile development through NetPay provide safe
method. Faster and system. transaction.
safer.  Payment system which  Skilled IT
 Skilled IT personnel accredited by Bank personnel
Negara, are covered
under the Buyer
Protection Program
(BPP)
 Skilled IT personnel.
4. Key Process  Helps seller /  Saving Time and  Free member
merchant to conduct Money. registration and
stock management,  User friendly web line product listing
ensuring availability for easy access.
and packing of the  Implement fee for store.
product. Free store.
5. Profit  Received 2% profit  Provide online trading at  Zero cost of
from data network low cost. comparing prices
provider.  Pricing by product through internet.
 Commission paid to bundling – selling  Commission 1-10%,
web owner based on strategy. 4-20% (for
consumer access evouchers)
goods in the website.
6. Key  Built partnership  Managed by Interbased  Join venture with
Partnership program with many Resources Sdn. Bhd Axiata Digital
shops and brands  Provide free education Services, SK Planet
leverage such as classes covers e- and PUC Ventures
Friso, Mead Johnson, Commerce tips and  Competitive
Nestle, Nescafe and challenges to web transaction rates
lots more. owner or seller.  Large marketing
fund for campaigns
and promotions.

2.0 SUMMARY OF BOTH EVALUATIONS


3.0 SWOT Analysis

SWOT Analysis is a framework used to evaluate a business’s competitive position and also to develop
strategic planning. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. SWOT
Analysis assesses internal and external factors, as well as current and future potential. Below are the
SWOT Analysis for these three popular E-Commerce sites in Malaysia which are Lazada, Lelong and
11Street.
1. Lazada

STRENGTHS WEAKNESSES

 Global reach. Lazada Malaysia is a  Products’ quality. Lazada runs on


part of Lazada Group which operates full low cost leadership, so when the
Southeast Asia’s number one online cost is low, the outcome is the low
shopping and selling destination in quality of products. This will affect
Indonesia, Malaysia, Philippines, the business especially when
Singapore, Thailand and Vietnam. customers leave bad reviews in the
website.
 Wide array of choices. Lazada
offers over 20,000 products for its  Long delivery timing. Delivery
customers, ranging from electronics, time are based on the date of
gadgets, accessories, sports and dispatch, not the time of ordering.
automotive to health and beauty LEX-Lazada Express may extend to
products, as well as home appliances days or weeks and this causes
from local to international brands. inconvenience to the customers.

 Low cost or cost leadership. Since  Impossibility of physical


Lazada’s overall cost is low, the examination. Almost every
prices of the products sold will be products sold cannot be touched or
low as the prices have been marked hold and customers are only relying
down from their original prices. This on the pictures and description of the
will attract customers to shop in products before they can proceed
Lazada. with the order.

OPPORTUNITIES THREATS

 Can be accessed anywhere and  Competitors. Competition is


anytime. Customers are able to increasing day by day. Though
access Lazada using its mobile app Lazada leads in terms of website
to buy any desired products or even traffic, but Shopee overtook Lazada
to sell and run business from to rank as the best app on both
anywhere. Google Play and iOS App Stores.

 Lower selling rate. The barrier of  Security and fraud. Since Lazada is
entry to sell online gets lower which one of the biggest E-Commerce sites
will cause the increase in numbers of in Malaysia and with that popularity
merchants and new sellers. At the comes scammers taking advantage
same time, will influence of it. Besides that, Lazada system
competition. does not need the owner of old email
to verify any changes, which made it
is easier for people to exploit it.

2. Lelong
STRENGTHS WEAKNESSES

 Niche market. Almost everything  Website not updated. The website


can be sold in Lelong. Even if the is not fully responsive to certain
products are targeted to smaller mobile devices as some pages are
markets, the customers will always responsive but some are not which
be somewhere on the net. can be a bit confusing for customers.
 Wider selection of products.  Low popularity. Even though
Almost anything can be found in Lelong has been in the E-Commerce
Lelong and this gives customers a world in Malaysia for more than 10
wide variety of choices of their years, however the popularity of
desired products. Lelong is still low compared to the
 Faster shipping. Faster shipping other E-Commerce businesses.
helps to reduce shipping costs and  Expensive price. Some of the
this means Lelong will spend less products sold in Lelong are
money on expedited shipping and at expensive compared to Lazada,
the same time able to eliminate more Lelong and others. Customers are
expensive shopping options for its likely to seek for other websites to
customers. purchase their desired products.

OPPORTUNITIES THREATS

 Wide business growth. E-Business  Competitors are catching up.


has a wide scope and broader vision Lelong has to compete with other E-
to grow. Business always took place Commerce businesses such as
in gap. Gap filling is a never ending Lazada, Shopee, 11Street to stay
process hence the growth of business ahead in the business.
keeps increasing.  Fraud. This will indirectly cause the
 Regular global expansion. E- customers to lose confidence and
faith towards the E-Commerce
Commerce business can be operated
business.
anywhere anytime. Made it much
easier for the customers to reach.

3. 11STREET
STRENGTHS WEAKNESSES

 Attractive website. 11Street website  Hard to gain customers’ trust.


has indirect influence on its While 11Street is known by public
customers’ shopping behaviour. The but it still needs to gain the trust of
website is easy to use, navigate and its potential customers. The lack of
also time saving in loading the page. trust among customers are due to the
 Lower price. The website offers a several problems such as website’s
great variety of products at lack of security, payment issues and
competitive prices. This will attract so on.
customers to buy products using  Data security. Customers are
11Street. always found themselves insecure
about the safety of their personal and
financial details as these information
can be easily uncovered by hacking
made by irresponsible people.
 Personal aspect. A great number of
customers prefer to buy products at
the stores compared to buying online
as the products sold online cannot be
try or hold.
OPPORTUNITIES THREATS

 Changing trends. Customers today  Lower barriers for entry. Allows


are very brand conscious. They are almost anyone to sell their products
more interested in buying branded online via social media like
products. If such products are Instagram, Facebook and others.
available cross border, they will still  Payment conflicts. The payments
be able to purchase by ordering are handled by an automated
online using E-Commerce websites. electronic system which is prone to
Any payment transactions also can errors especially when it handles
be made from any part of the world. large amount of payments on a
 Increasing number of users. Daily frequent basis with more than one
number of Internet users is recipients involved.
increasing day by day as people are
more prefer to shop online.

4.0 Enhancements Proposed for E-Commerce Business

When it comes to E-Commerce internet site s, it is all about functionality, feature article, and design.
Lazada, Lelong and 11Street are the three popular E-Commerce sites in Malaysia that we have
evaluated. The success of many web sites are determined by not only the products whirled and how
well the internet site is marketed, but also by the feature the websites offer for both the clients and the
website possessor. As evaluated, Lazada, Lelong and 11Street have several weaknesses in terms of
website features that they have developed so far. Examples as listed below need to be enhanced. The
data and puppet we have shared so far should be enough to get started in building a display case for
pageboy speed optimization and to improve the E-Commerce sites public presentation.

1) SEO Friendly URL Test

2) HTML Page Size Test

3) Site Loading Speed Test

4) Google Analytics Test

5) Media Query Responsive Test

6) Inline CSS Test

a) Getting Google Analytics

Google Analytics is a valuable ally in the E-Commerce battle for customer clam. The insights it
provides contains a wealthiest of entropy about the site, the visitant and where they came from. All
this information can be used to find new customers and increase conversions. Using Google Analytics
can give a better understanding on the effectiveness of the marketing efforts, better understanding of
the visitors and optimizing the store for conversions and gross revenue.

b) Leverage a Content Delivery Network (CDN)

A Content Delivery Network or Content Distribution Network (CDN) consists of a grouping of


optimized waiters that are dispersed around the world. It distributes the load of delivering content via
the host that is closest to the visitor’s fix. Essentially, the copy of site content are stored in each
location to shuffle a local user’s experience faster and more reliable. CDN with tag direction system
(TMS) is used to improve the E-Commerce site performance. Instead of relying on just one server, the
CDN will wrench tags from the most optimal server and load them on the fastest server(s). Given the
increasingly international nature of E-Commerce, leveraging a CDN or CDNs can both increasing
upper and reducing price.

c) Organize Tracking with Google Tag Manager

To successfully optimize the E-Commerce website and digital selling strategy, host of customer data
must be collected. Unfortunately, all those JavaScript tracking tag end — for general analytics,
conversions and goals and behavioural retargeting can eventually slow down the site performance. It
is also a time and resources essence for the marketing teams to deploy, test and proctor the tags
throughout the system. As explains, by adding, updating, and maintaining all those tags, it becomes
cumbersome for developers, so vendors like Google created tag management systems to simplify
things.

A tag management system (TMS) like Google Tag Manager condenses all of the MarTech tags into
one JavaScript request. According to Tag Inspector, this supporter is to reduce the number of required
outside call and also making this request asynchronously (in the background, letting the quietus of
your website load independently of the response result). Likewise, if a tag nonstarter causes the
website to go down, having a TMS enables the website to remove the tag quickly.

d) Optimize Website Layout

After launching the E-Commerce site, it is important to test the website’s layout, language, and
placement of conversion elements. When customers visit the website, it must be easy and simple to
check out so that they will feel naturally inclined to purchase products. Besides that, the language
displayed on the landing and product pages must be tested as well as the language in the conversion
elements and even the strategic placement of icons and elements.

One really nifty tool is Mouseflow which is a free heat map software that reveals valuable patterns in
customers’ behaviour on website. One of the most popular heat maps is the movement heat map that
reveals the most attractive parts of website which based on the visitor movement data to the website.
With a colour guide, Mouseflow will tell where do customers spend the most time and the least
amount of time. If a specific area of page receives more attention (in white) consider moving your
conversion elements to those more attractive areas. Mouseflow’s heat maps can help to improve the
conversions, increase sales and keep prospects interested.

e) Use Pay per Click Advertising as a Balance to Search Engine Optimization

Pay per click advertising is similar to search engine optimization except it is paid ads in the search
engines as opposed to organic listings. Pay per click advertising is present at the top of the search
results for different groups of keywords that advertisers specify at the beginning of a campaign.

For many companies, pay per click advertising is a complement to their SEO efforts that reap results
in the long-term, while PPC can return results in the short-term since they are paid for. SEO can be
best described as an oven, since it heats up overtime and takes a while to cool down. PPC is more like
a microwave that heats up quickly and cools down quickly. When spending on PPC the ads turn on
immediately, but they turn off just as quickly when the campaign is complete, losing all the
company’s rankings for particular keywords that were paid for through PPC.

f) Minify Code

Poorly coded HTML, CSS, and JavaScript on the web page can seriously slow down the site’s
performance. For an easy fix, Google Developers have created a process known as “minification” and
offer a list of HTML, CSS, and JavaScript-specific resources to help. More detailed guidance is
provided by kangax/html-minifier on GitHub:

Figure 1
g) Search Engine Optimization

One of the most important and manual methods of optimizing a successful E-Commerce website is
making sure that the search engines are optimized. With today’s Search Engine Optimization (SEO)
standards, it is now more important than ever to make sure that the website is constantly updated with
rich and relevant content, promotes a good user experience (UX), and is optimized to be as error-free
as possible.

The content within the website should be rich, reliable, and provide information to the customers that
is useful and relevant to what they are looking for. For example, if the website is selling camping
supplies, it is wise to provide detailed product information and possibly even host sections of website
that offers generous amount of contents that elaborate on the topics of camping, supplies, or related
subjects. Using keywords within content in a genuine way will also flag the website as a matching
result in search engines when customers are looking for something specific.

h) Build ‘Assortment Intelligence’ Tool


Customers are forcing retailers to change their pricing strategies. Therefore, it is imperative that
multichannel retailers apply flexibility when it comes to their price structuring in order for them to
retain customers. Retailers are turning to assortment intelligence, a tool that facilitates an
unprecedented level of 24/7 visibility and valuable insights into competitors’ product assortments.
Businesses can monitor their competitors’ product mix, which would be segmented by product and
brand as well as the percentage of overlap. This intelligent tool then provides businesses with the
ability to quickly adjust their own product-mix and pricing with high accuracy. The intelligent
software puts retailers in a strong position to make specific assortment and planning decisions, and
track the business impact of those actions.

k) Reduce Redirects and Broken Links

Additional performance issues can be caused by too many redirects and broken links. While redirects
are helpful to send visitors to new URLs, they should be used sparingly. 302 redirects, which indicate
a page has been moved temporarily can hurt your SEO, trigger additional HTTP requests and delay
data transfers. Instead, use a “cacheable redirect” or Shopify’s built-in redirects function which are
301s by default within the Navigation panel.

l) Easily Understood Navigation


Good navigation helps new customers find what they are looking for without hassle. On the other
hand, poor navigation frustrates them and may even lead them to abandon the site. The main idea is to
present a clear path from the landing page to checkout.
Much of the time, this is going to constitute presenting only the most crucial categories or pages in the
main navigation and delegating less important destinations to drop-downs or the site footer. If the site
has quite a few products and navigation is getting tricky, the built-in Layered Navigation widget can
be added thus allowing customers to filter their search results by colour, size or other criteria.

m) Media Queries

Media queries have existed since the early 2000s, but it wasn’t until 2012 that they became a W3C
recommended standard. Like fluid grids, media queries represent a cornerstone technology behind
responsive web design. Thanks to media queries, a website can gather data that helps determine the
size of the screen a visitor is using to access it. Once it has that information, it then conditionally
loads CSS styles that are appropriate for that particular screen size.

5.0 CONCLUSION
Electronic commerce eliminates the construct of national borders in transactions between enterprises
and customers. It will increase the amount of cross border transactions that happen and can thus be a
force within the creation of more and more borderless markets. The emergence of cross-border
transactions on the web provides developed and developing countries (both corporations and
individuals) the chance to participate in world markets and might be a tool for overcoming the
disparities between countries (or individuals) in access to data.

Staying current with the most recent selling trends and techniques is crucial for any no-hit E-
Commerce web site. It is vital to deliver relevant, attention-grabbing and valuable content and product
that really suite the wants of the target market. Reach resolute customers in a very kind of ways in
which and ensure everybody are operating with a team of specialists with varied talent sets. Besides
that, looking over at the web site analytics to look at trends will keep the website optimized and at the
same time tracking the results.

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