April 6, 2020
The Digital eCommerce Business

The Digital eCommerce Business

Hi. Patric Chan and welcome to today’s
marketing class. And in today’s marketing class, I’d like to touch on the topic of e-commerce. And the reason why we decided on e-commerce is simply because that seems to be like the hottest topic that’s going on all around the world right now. It’s like everyone who I see, starts some kind of e-commerce business or there are those who are already considered pro doing e-commerce. So, when we talk about e-commerce, what’s the first
thing that comes to our mind? We will instantly think of buying and selling of products. And that’s what e-commerce is. It’s just buying and selling on the
internet, by using an online platform, social websites and so on. So when we talk about buying and selling products, the first thing that comes to our mind are physical products. Physical products such as the computer, watch, clothes, specs … anything that are tangible because after all, physical products is the simplest form of an online business. This is very straight forward. I’m still on the chair. So it means that if you like this chair, you like black color … it has all the specs that you want. Then you will buy it and you compare pricing like which website, which merchant has a better offer. I mean logically that’s how e-commerce actually works, down to
simplicity form. Now, so if you look at its perspective, physical products it’s
always leading the game. This is the main type of e-commerce business. Because
after all, it’s about adapting towards these before you can go on to the next one and so on. When I use the word adapting, it’s not something fancy but it’s what the market are adapted towards what’s happening. Because if you think again, you are not going through this training, this marketing class as a
consumer, but you’re going through this marketing class as a marketer or an online business owner or an online entrepreneur. You’re trying to think how you can
capitalize on the market and see what does the market want so that you can provide the solution, the offer … so that they may want to buy your product. So as I said, physical products is like leading the whole e-commerce. But the other big e-commerce are services and also digital
products. So these are the one that people don’t really tap on. And when I
use the word ‘people’, I’m referring to more like marketers or entrepreneurs and so on.
Because many people are very focused on the physical products aspect. Now, we focus on physical products because that is how the market is being … I would say … penetrated to. How the market opens. But once that market opens, then the next
thing that follows are services and also digital products. And if you
think again… the digital product business is actually
way bigger than even the e-commerce physical products. Now I know it’s a somewhat of a big claim, but i predict the market will just gonna explode, gonna go even bigger. Now, let me share with you more insights in this marketing
class. As you know, this is a very casual video. There’s nothing on my computer, there’s no script, there’s no paper and so on. Everything just comes from my mind
because I just want to share with you as if that you’re sitting from me and I’m like talking to a friend. So when the market, the consumers are
used to purchasing online, the next phase is where they will start to go for
learning and acquiring knowledge and education by using the internet. Because it needs them to be familiar to buy online. Like how to buy a computer
and so on. Once they are familiar with that then they understand the process of acquiring a different types of products, which is knowledge
through the internet. So when we look at this perspective, we understand that ‘Hey physical product, the e-comm market is huge’. And that actually set the stage for the
next explosion. When e-com is getting famous, you’ll see a lot of competitors. So let’s say you sell, I’m just simply gonna take something. Let’s say you sell these glasses. So if you sell this glasses and it sells well, it’s just a matter of time you’ll see a lot knockoff coming in. And
then that’s where the competitors becomes much much more stiff. And then there will be other designs of glasses that comes in, like the way cheaper
pricing and so on. So your business will now take a dive, in that sense, because you don’t have a lot of competitors and they are selling the ‘same products’
because there’s no much differentiation that you have, unless you are a leader in the market, unless you have brand, unless you have something
that’s very unique. If not, you’re gonna face strong challenges. But you have to
approach me, to speed up first, to come up first when the market is matured, you come out and open a brand new market of business and you focus on the segment of digital e-commerce. So that’s the next so-called ‘frontier’ is, if you understand where I’m coming from. And the next thing I want to share is about building e-commerce business. It’s like many people always think that it’s
about like selling overseas, which is a good market, which I encourage you to do that. But at the same time, you may underestimate your own local market. Now, let’s take China as the biggest example here. Do you know that Alibaba, there’s one day, on the singles’ day of the year of 2016, in 24
hours Alibaba site generated more revenue than whole US combined, on Cyber
Monday and Black Friday. So that’s what I want to share you, some insights about
e-commerce. That there is more than just say … selling physical products. Because when you look into digital e-commerce, the cost is relatively very low. Now when I talk about digital e-commerce, I’m more referring towards the digital products. Digital products are information like video training, e-books, intellectual properties, like information, knowledge, content. It
could be even be music, it could even be movies. But the one I’m
referring more towards are educational based training like videos and so on. Now, like for instance, I am creating one right now, by doing this
marketing class. But I’m just doing this for free. Now where am I doing this? I’m
doing my own house. I’m using an iPhone to do the video with a selfie
stick, if you can see that. There’s nothing fancy here
and that’s about it. Just try to evaluate my inventory costs. That’s nothing much inventory cost. But what if I do this marketing class
right now and instead of doing a 10 minutes marketing class, I do a 10 hours marketing class. Let’s say, just let’s say I do that. But I’m not doing a 10 hours
marketing class. But let’s say if I do a 10 hours marketing class. I’m pretty sure
I will be able to sell for price. Because if you think again, if you go to
a bookstore, there are so many books selling at whether it’s 50 or 100 and so on. What are all of those? All of those are
information products. But they are just not digital. But if people are buying books,
physical books and Malaysians love buying books. Can you imagine if those books are actually e-books. Maybe the price could be half the selling price in the book stores. I just want you to start pondering on that point. Now how would
your business be? Now if those books are e-books and they’re selling that way but
half the price and the author doesn’t have inventory costs and doesn’t
have to wait say 180 days to take the first check. I mean don’t you
see that how this business is all revolutionize. And the consumers,
first they are used to reading books and they buy books anyway and because of the e-commerce with physical products opening up the market and making them familiar to just buy products using the Internet, whether they use Paypal or credit card and so on. That has helped you to get started into the business because the market, the consumer, your potential customers are now ready to follow to the next trend.

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