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ABSTRACT
In the current era, e-commerce has become a new way to start a business can even be
done by the students. In Indonesia, e-commerce has grown since the beginning of 2010 and
still happening until now. The majority of startup companies started their business by selling
their goods through e-commerce. In 2016, e-commerce has become one of the various ways
for consumers to buy any goods without going to a physical store. E-commerce is very helpful
both in terms of the buyer and seller in which the seller does not require a large capital to
build a physical store and the buyer does not have to waste time to go to a physical store like
department store, music store, mall, etc. and also saving money for transportation needed to
reach a physical store can be replaced by the shipping cost. E-commerce is certainly
developed along with the development of the Internet in a country, when the internet can be
reached by everyone, e-commerce also growing coincide.
CHAPTHER I
INTRODUCTION
1.1.
Background
Anthony Giddens states that modernity, which is synonymous with
technological advances has become unbearable conditions. Humans as a subject can
have the ability to make technology, but at a certain point man can no longer regulate
the advancement of technology. Technology cant be controlled as a dynamic entity,
including when the technology came in and encourage the development of public
information systems. Startup Company in the era now more likely to invest their
capital in technology than building a physical store to start a startup business. ECommerce is one of the effects or results of technological developments. In early
2010, e-commerce is not trusted by both the buyer and the seller are particularly at risk
due to purchase or sell over the internet. But, along with the development of
technology that includes security exchanges, good quality internet, etc., consumers
began to migrate to seek goods through e-commerce that provide consumer goods
1.2.
Scope
The following is the scope of impact of e-commerce to Startup Company:
Introduction of e-Commerce
Analyze impact of e-Commerce
About e-Payment
1.3.
The following are the benefits of writing paper the author make are as follow:
1.4.
Methodology Research
CHAPTHER II
THEORETICAL FRAMEWORK
2.1.
Introduction to e-Commerce
What is 'Electronic Commerce e-Commerce'?
Electronic commerce (e-commerce) is a type of business model, or segment of a larger
business model, that enables a firm or individual to conduct business over an electronic
network, typically the internet. Electronic commerce operates in all four of the major market
segments: business to business (B2B), business to consumer (B2C), consumer to consumer
(C2C) and consumer to business (C2B).
the next few years, Indonesia is likely to create its own unique hybrid version of these two
huge e-commerce markets.
The retail market in Indonesia (2012) is estimated at US$ 134 billion in sales per year,
of which only 0.7% (US$ 1 billion) are facilitated online, compared with 5% in the US and
China. In 2012, around 6% of all internet users in Indonesia made an online purchase.
Note the word facilitated in the above sentence. Many online transactions in
Indonesia are paid for offline, either through a bank transfer to the seller or via cash on
delivery. Even the CEO of online payment gateway Veritrans defines e-commerce in
Indonesia as transactions facilitated but not necessarily completed online.
In 2012, 70% of e-commerce users made a payment via bank transfer, 35% via credit
or debit cards and 30% via cash on delivery. So while payment habits will shift towards credit
and debit cards over time, Indonesias e-commerce market will also be about managing
effective offline payment methods.
As well as payments, the e-commerce providers are also steadily solving the logistics
challenges of a country with 240 million people spread across 17,000 islands. This is being
addressed in two ways:
Firstly, the logistics infrastructure as a whole is shifting towards the efficient delivery
(and occasional return) of online orders, as local companies such as JNE and Tiki begin
upgrading their IT systems and expanding their nationwide networks.
Secondly, through the emergence of a number of e-commerce verticals, which tend to
have a tighter geographic focus than the all-things-to-all-people sites like Lazada and
Tokobagus. As a perspective on the viability of verticals, remember that Jakarta alone has
roughly the same sized economy as the whole of Malaysia.
Forecasts of the value of Indonesias e-commerce market vary widely, from around
US$ 1 billion in 2015 to nearer US$ 10 billion. This partly reflects the many unknowns in
how the market will grow over the next few years, and also the vagaries in counting the value
of offline purchases that originated with online activity.
Redwings weighted forecast suggests the e-commerce market is currently worth over
US$ 1 billion, and will grow 250% over the next three years.
The other factor that we believe will underpin rapid growth in the Indonesian ecommerce market is the business mix: small and medium businesses (SMBs) represent 99%
of all companies in Indonesia, and there are over 40 million of them throughout the country.
Right now only a few tens of thousands of SMBs are online. But with companies such
as Google actively trying to bring them online through nationwide education programs, and
with multiple e-commerce providers actively courting them, a rapid expansion is underway.
The model most likely to be followed is the Chinese one, where sites such as Alibaba,
Taobao and TMall have played a major role in facilitating the smaller companies to come
online, while catering to the different needs of established and work-at-home traders.
E-commerce in Indonesia will also need to include a very strong social component,
reflecting the existing habits of Indonesian shoppers.
So the winners will be those who can make it so ridiculously easy to get an online
shop running online that the SMBs can overcome their general lack of technology expertise,
while showing the users how buying online can be fun, sociable, safe and cheap.
Mechanism of e-Commerce
The first good thing to do is make the vision of E-Commerce among the entire
management of the company through a variety of formal and informal approaches.
Board of Directors and Senior Management should have a clear vision and firm, and
understood by all devices company to produce motion similarity in the development of the
implementation of E-Commerce. A clear vision is also expected to reduce the barriers or
resistance that may arise because the program is not supported by the management or staff of
existing companies.
Socializing the vision of E-Commerce in the company can be done through various
means, such as formal training, discussion / monthly meetings, seminars, discussions and
question and answer, and so forth. Vision E-Commerce should also socialized among business
partners and customers, because however they will be a part that directly or indirectly will
have an influence in the development and implementation of E-Commerce.
The next step is to coordinate between the various parties will build a system of ECommerce together with related companies. The parties e.g. business partners (such as
suppliers and distributors), information technology vendors, customers, banks (credit card
services provider), insurers, and others. The purpose of this coordination is the development
of a framework of cooperation agreed upon together, so that in the course of its
implementation, E-Commerce did not get significant interference. Entire parties to the
"consortium" must be aware that they are all in an ecosystem of E-Commerce, where the
existing system will only work properly if each component had a good performance in
accordance with their respective functions.
The next phase is a phase that is quite difficult, because it requires a good understanding
of what is referred to as a method of systems approach (systems thinking). Merging multiple
business processes for companies using the framework of E-Commerce is not only connecting
one division to another division with the use of telecommunications equipment and
computers, but more an attempt to form a business system that is larger and wider
(internetworking). An understanding of the behavior of a system, which consists of various
components of the architecture are interlinked and integrated an absolute thing that must be
mastered by those responsible for the system. This stage has the purpose to conduct an
analysis of the major issues related to the basic principles of business after neighborhood of
new cooperation between companies formed, such as:
1. Determining the business model will be applied in E-Commerce;
SWOT Analysis
SWOT analysis is intended to determine the strategic steps in order to realize its
mission to build a strong e-Commerce involving Indonesian businessmen as the main actors
with regard strengths and weaknesses and the opportunities and threats of the external
environment. Based on the analysis of strengths, weaknesses, opportunities and threats
(SWOT) was then determined strategic steps that should be implemented to accomplish their
mission, which is to build a strong e-Commerce.
1. Opportunity
In fact, Amazon seems to be finally edging its way out of a largely retail business model
that was giving it serious bottom-line challenges. What is all the more surprising is that
Amazon is doing it in this sordid economic climate.
First-quarter revenues grew an impressive 18% to $4.89 billion; earnings per share grew
17% to 41 cents, compared to 34 cents a year ago. Amazon handily beat analysts estimates of
31 cents per share on revenues of $4.75 billion.
Amazon continued to remain silent on details of Kindle sales but did say that the number
was higher than their expectations. This week they also acquired Lexcycle, the company
behind Stanza, a popular free E-Book application for the iPhone. In its effort to enhance
margins, I am also anticipating that Amazon will acquire another Seattle company, BlueNile, a
diamond jewelry seller.
EBays performance was less bright than Amazons. First-quarter revenues of $2 billion
were marginally higher than the Streets expectations of $1.9 billion, but they were down 8%
from the year-ago quarter. Earnings per share of 39 cents were also higher than the Streets
expectations of 34 cents, but 7% lower than they were in a year ago.
EBays core auctions business revenues fell 18% to $1.2 billion due to a 20% drop in the
sites Gross Merchandise Volume. This was despite some big offers, such as free shipping on
nearly 30% of items sold on the site.
PayPal, however, continued to perform well, increasing the number of registered users by
22% to more than 184 million. PayPal is now also being used by third party e-commerce sites,
like Sears, and continues to enjoy a near monopoly in the segment.
Skype also performed very well: First-quarter revenues grew 6% to $150 million and the
company added 37.9 million users. Nonetheless, eBay is finally getting out of Skype. It took a
long time, but I am glad to note that John Donohoes strategy to turnaround eBay includes
spinning off Skype through an IPO.
Besides Skype, eBay is also divesting StumbleUpon. I like the fact that Donohoe is
starting to deal with mistakes like Skype. But it is still unclear where eBay is headed. Is
acquiring MercadoLibre part of its strategy? It could certainly give eBay an excellent growth
engine in Latin America.
According to comScore, Amazon has 60 million visitors on its shopping site compared
with 50 million a year ago. By comparison, eBay has 70 million visitors, down from 80.1
million a year ago. So, Amazon has the potential to overtake eBay. I have not been bullish on
eBay for a while now and have been anticipating this all along.
In the quarter, Netflixs subscriber base increased nearly 10% to 10.3 million from the
previous quarter. The addition of 920,000 net subscribers was the largest ever addition in the
companys history.
Netflix also said it continued to invest in consumer electronics manufacturers and hopes to
form tie-ups so that within a few years, all Internet-connected consumer devices will include a
Netflix streaming client.
Netflix, however is facing stiff competition from the DVD rental kiosks operated by
Redbox. These kiosks are located in areas that have significant foot traffic, and Redbox
charges only a dollar a day for movie rentals. Netflix is aware that with further refinement to
the system, the kiosks will be able to make money in the next three years and be present in
every 7-Eleven, every Starbucks and every airline gate.
In fact, Netflixs churn rate has edged up as subscribers cite kiosks as the reason for
moving out. Still, Netflix said its not too concerned about the kiosks because they focus on
newly release DVDs, which constitute only about one-third of Netflixs rental business.
Every time I look at Amazon, eBay and Netflix, they remind me of John Doerrs famous
quote, The Internet is under hyped. To think that most of the worldlarge parts of Asia,
Africa, Latin America, Chinaare not yet on the Internet, is a sobering thought.
Can you imagine how many more significant businesses are yet to be built as the next
billion get online?
Sramana Mitra is a technology entrepreneur and strategy consultant in Silicon Valley. She
has founded three companies and writes a business blog, Sramana Mitra on Strategy. She has
a masters degree in electrical engineering and computer science from the Massachusetts
Institute of Technology. Her first book, Entrepreneur Journeys (Volume One), is available
from Amazon.com. Her second book, Bootstrapping, Weapon of Mass Reconstruction, is now
ready for pre-order.
Convenience.
Every product is at the tip of your fingers on the internet, literally. Type in the product
you are looking for into your favorite search engine and every option will appear in a
well-organized list in a matter of seconds.
Time saving.
With e-commerce there is no driving in circles while looking and digging in hopes of
finding what you need. Stores online offer their full line as well as use warehouses
instead of store frontsproducts are easy to locate and can be delivered to your door
in just days.
Easy to compare.
Side by side comparisons are readily available and easy to do. When products are
placed online, they come with all the specifics, and they want you to compare them
with others, know they have the best options and come back for more!
With every online business wanting you, more and more coupons and deals cant be
avoided, which are totally great for customers. With major sites that act as department
store, you may find items up to 80% off! Take advantage of the competition and find
the best price available.
b. E-Commerce Advantages for Businesses
Rise in sales.
By not managing a storefront, any business will have more sales online with a higher
profit margin. They can redistribute money to make the consumer shopping experience
faster and more efficient. While being available to international markets, more
products will sell.
Instant transactions.
With e-commerce there is no more waiting for the check to clear, or a 30-day wait for
certain other types of payment. Transactions are cleared immediately or at most two to
three days for the money to clear through the banking system.
E-Commerce Disadvantages
a. E-Commerce Disadvantages for Customers
Quality.
While e-commerce makes everything easily accessible, a consumer cannot actually
touch products until they are delivered to the door. It is important to view the return
policy before buying. Always make sure returning goods is an option.
Hidden costs.
When making purchases, the consumer is aware of the product cost, shipping,
handling and possible taxes. Be advised: there may be hidden fees that wont show up
on your purchasing bill but will show up on your form of payment. Extra handling
fees may occur, especially with international purchases.
While the rules and regulations of each e-commerce business is laid out for you to
read, there is a lot to read and it may be confusing when it comes to the legalities.
With large or important orders, there is no one you can talk to face to face when you
have questions and concerns.
b. E-Commerce Disadvantages for Businesses
Security issues.
While businesses make great efforts to keep themselves and the consumer safe, there
are people out there that will break every firewall possible to get the information they
want. We have all seen recently how the biggest and most renowned business can be
hacked online.
business, be sure your area can handle the telecommunication bandwidth you will
need to run effectively.
Constant upkeep.
When a business has started as e-commerce, they must be ready to make changes to
stay compatible. While technology grows, the systems that support your business must
be kept up to date or replaced if needed. There may be additional overhead in order to
keep data bases and applications running.
E-Payment
E-payment is a subset of an e-commerce transaction to include electronic payment for
buying and selling goods or services offered through the Internet. Generally we think of
electronic payments as referring to online transactions on the internet, there are actually many
forms of electronic payments. As technology developing, the range of devices and processes
to transact electronically continues to increase while the percentage of cash and check
transactions continues to decrease. In the US, for example, checks have declined from 85% of
non-cash payments in 1979 to 59% in 2002, and electronic payments have grown to 41%.
The Internet has the potential to become the most active trade intermediary within a
decade. Also, Internet shopping may revolutionize retailing by allowing consumers to sit in
their homes and buy an enormous variety of products and services from all over the worlds.
Many businesses and consumers are still wary of conducting extensive business
electronically. However, almost everyone will use the form of E Commerce in near future.
This site will discuss the e commerce developing procedure in national level
especially one payment system. Also strategy for fostering increased business and consumer
confidence in the use of electronic networks for commerce and payment system.
CHAPTHER III
RESULT AND DISCUSSION (CONTAINS OF THE PAPERS)
3.1.
Background Choosing
This paper includes the topics of e-commerce and its relationship with business startup
because besides I quite like the development of e-commerce, the renewal of the e-commerce
is also booming and quite popular in the 2016's. Initially, e-commerce can be said to be just
ideas alone, but over time, people are increasingly reliant on e-commerce for the system
running is good in the present. I associate it with a business startup because there is proof of
successful person in Indonesia. I took a sample is Tokopedia, headed by someone from Bina
Nusantara University named William Tanuwijaya which had not previously been thought of to
make an online marketplace. But, ended up to be CEO and Founder Tokopedia which is one
of the largest e-commerce and trusted in Indonesia. At the start of designing Tokopedia, eCommerce is still impossible for the people of Indonesia because there are still a few people
who believe can make buying and selling online through the internet. So instead of that, there
is a challenge for the CEO and Founder of this Tokopedia to find investors willing to fund the
startup project. Unlike the case with nowadays, many companies are interested in e-commerce
and want to participate in the competitive e-commerce. A recent example is
MatahariMall.com, they are considerable focus on competition in e-commerce. Matahari was
originally just a department store which opened its business physically and sell various
fashion needs of young children until adult people. However, in 2015, Matahari began to enter
the online business website where they promote MatahariMall.com with massively. Now we
can see that the Matahari is quite aware of the development of e-commerce and want to try to
compete with online businesses model.
Discussion of e-commerce is very interesting because the system designed by each
company is unique. There are many variations of the system at each of the e-commerce
website, here I will discuss about Qoo10 and Tokopedia only.
How it works Qoo10 and Tokopedia are quite different because Qoo10 uses many
requirements to become sellers, while Tokopedia, enables everyone to easy-selling on
Tokopedia. On the website Qoo10.co.id (Indonesia), a seller must register themselves first as
a seller. In addition, sellers must register all the information either personal information,
account numbers, category items to be sold, etc. The verification process for the seller takes a
few days in which to become a seller on Qoo10, they also have to pay Rp 500,000, - for the
registration fee at promotion events Qoo10 (Time Sale, Daily Deal, Group Buy). It is
mandatory, although, as a seller, we refuse to be promoted at Qoo10 events. In addition,
Qoo10 also has merchandiser (MD) as the manager who helped us in managing e-commerce
store that we have on their website. So instead of it, before selling the items to be sold, we
have to meet MD entrusted from Qoo10 office to provide guidance on the use Qoo10 system.
Selling items on Qoo10 are charged 12% (only new sellers / green level) for Qoo10 as a
commission for the Qoo10. Automatically, this makes the price posted on the website Qoo10
will be more expensive than other websites because as a seller, we have to add a commission
fee of 12% before determining the price of goods to sell. There are things more complex for
website sellers to arrange the goods distinguished by the website for the shop. Sellers can only
set the items to be sold through the website qsm.qoo10.co.id while buyers purchase such
items on the website qoo10.co.id. If you want to talk to a customer, as a seller, we have to
download the app Q-Post to talk to customers, send a message to the customer or to the
system Qoo10, receive notification of purchase, etc. There is also, for the application of QTalk Mobile Phone paired on each to speak without going through a PC. From here, it can be
concluded that the system used by Qoo10 enough to make it difficult for both buyer and
seller. However, Qoo10 often hold the promo form of coupon rebates, price discounts, etc.
that may attract consumers to buy goods that are sold in Qoo10.
Unlike the Tokopedia, the seller and the buyer is quite facilitated by Tokopedia for
application and website both for the buyer and seller equated. ID buyers can also be used as
ID sellers and vice versa. The process of registration as a seller is also very fast and does not
cost you anything. Sales of goods are also not charged a commission for the Tokopedia. And
payment of goods sold, can be withdrawn within a few days. From this comparison, we can
see that the system adopted by both company is very different. Whereby the Qoo10 also hold
money that should be accepted by the seller for 21 (twenty-one) working days for a guarantee
that the goods arrived to the buyer without any damage or faults.
Talking about Tokopedia, Tokopedia successfully for implementing e-commerce
systems to websites that they developed. There is also considerable variation secure payment
systems, either COD (Cash on Delivery), Credit Card, BCA KlikPay, KlikBCA, etc. that can
assure buyers that money has been paid is not lost. Their successful story is from a small idea
that would not be anything if not done properly. So instead of that, a startup company should
invest a portion of the budget to build an e-commerce because it can promise the products we
sell can be recognized and purchased by everyone who can access the internet.
CHAPTHER IV
CONCLUSION AND RECOMMENDATIONS
E-Commerce is one method that is effective enough to be applied for business startup
because their capital is not too much but they should prepared thoroughly to compete with a
competitors from all over the country and even internationally. E-Commerce cannot be
undertaken only as a part-time job because it takes time and effort to manage these business.
People who exclude the e-commerce will not be able to succeed or work because it would
compete with competitors that is responsive to consumer demand.
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Cosseboom, L. (2014, 4 14). Paypal coming to Indonesia could speed up natural selection.
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BIOGRAPHY
PERSONAL INFORMATION
Binusian ID
1701303491
Full Name
MICHAEL SAPUTRA
michael.saputra@gmail.com
Address
Current
JLN. MARTAPURA 4 NO. 10
JAKARTA PUSAT 10230
DKI Jakarta, Indonesia
Permanent
JLN. MARTAPURA 4 NO. 10
JAKARTA PUSAT 10230
DKI Jakarta, Indonesia
Phone Numbers
Mobile
Home
Gender
Male
Nationality
Indonesia
Marital Status
Single
Religion
Christian
FORMAL EDUCATION
Nov 2012 present
INFORMAL EDUCATION
Mar 2011 Mar 2013
WORKING EXPERIENCE
Aug 2013 Oct 2013
Sales (Non-Technical)