Early Promise of E-commerce

1. E-commerce for SMEsFacilitated by Low Cost Devices, Cloud Computing, and Social NetworkingICT Learning DaysWorld Bank - March 1, 2012by Daniel Salcedo, Founder & CEO of OpenEntry.comdsalcedo@OpenEntry.com - tel: +1.240.242.9798

2. Early Promise of E-commerce • Poor people generally produce stuff to sell or work for somebody who does. More efficient markets help the poor as producers as well as consumers. • Development experts in the 1990’s, “level the playing field for the little guy” • Bill Gates – disintermediation will enable “friction free capitalism”

4. Everybody thought it was a technical challenge of getting SMEs online • Complicated - needed to know HTML or hire an expert or buy software • Laborious – had to hand code every catalog page instead of pulling from a database • Expensive – own domain and hosting, credit card payment required • English required • Logistics of international payment and shipping

5. Even if a SME managed to build a beautiful catalog… • Buyers couldn’t find it among the billions of websites on the Internet • Even if they did, they wouldn’t trust it • So, besides the technical obstacles, the main challenge of e-commerce is visibility, credibility, and trust

6. Conventional Wisdom: • Though e-commerce worked for the big guys, it didn’t work for SMEs in international trade in spite of billions of dollars spent • Dot-com bubble burst and formerly infatuated experts fell out of love • The development fashion pendulum swung from way too positive to way too negative – the reality is somewhere in between • WSIS Forum – e-government, e-health, e-agriculture but no e-commerce for the poor

7. RecentAdvancesChangeEverything • Proliferation of low cost devices (mobile phones, netbooks, tablets) greatly expands the hardware choices for Internet access • Internet costs continue to drop while its reach/speed increase. Corporations now offer powerful "cloud computing" services • Social networking services enable millions to publish their information with images and demonstrate the power of trusted networks

8. OpenEntryis a Development Organization • Mission – to help artisans and SMEs to benefit from e-commerce • Support from World Bank, USAID, IDB, Rockefeller,Oracle, eBay, individuals, more • Developed an e-commerce platform for artisans and SMEs worldwide

9. Free Catalogs in 44 Countries on Google Cloud Computing • Gmail - account security • Docs– information storage • Picasa - image storage • Picnik – image editing • Translate– instructions in 57 languages • Checkout - also PayPal, 2Checkout • Apps Engine - execute programs on powerful/reliable Google severs • Android - offline mobile operation

10. Catalog Features • Build in an hour from any computer or smart phone • Multi-lingual instructions and output • Personalize with own banner/logo, choice of templates, fonts, colors • Enabled for credit cards or RfQ • Live User Support, chat from Nepal • FREE (100 products), $200/year for more products and catalog features

11. Low Cost Offline Operation • Also designed for poor individuals and communities without Internet • Apps for Windows and $100 Androids • Capture product images and related information (code, name, price, description, key word – 90% of the work of preparing a catalog) offline • For later WiFi upload (don’t need 3G) • Key mobile insight – only need to concentrate on one data point at a time

23. However, even if a SME builds a beautiful catalog… • Buyers can’t find it among the billions of websites on the Internet • Even if they do, they won’t trust it • The main challenge of e-commerce is visibility, credibility, and trust

24. OpenEntry Network Markets • Amazon.com EC2 Cloud Computing Facility enables scaling for mainstream businesses • Any high profile business network • Chamber of Commerce • Export Promotion Agency • Industry Association • Trade Show • Aggregates the catalogs of all its members (large & small) into a network market • Generating visibility, credibility, trust

34. Does it Work?http://goo.gl/EWd4b

36. UNDP Conclusions • The largest impact of implementing this “pro-poor” e-commerce approach was on income and employment. • Firms using it reported jobs directly attributable to on-line promotion . . . 3918 women • A relatively inexperienced group of young IT professionals could, with the proper tools, create employment for themselves while providing e-commerce services to local SMEs.

37. Additional Considerations • Don’t need credit card payments – for every $1 transacted online, $4 are influenced by the Internet • Can start with local CoD sales, 2CheckOut.com works everywhere • Most international sales are B2B • Shipping easier now - consolidated shipments can cut costs by 80%

38. Potential Impact is Huge Compared to the Costs • International trade promotion • Women and youth entrepreneurs earn income building catalogs for local SMEs • 100 million SMEs will need help moving online in next 10 years • Modest marginal cost of including e-commerce in projects for youth, women, employment, trade

39. OpenEntry Seeking Implementation Partners • Business networks helping their members sell online • Governments promoting exports • Development agencies generating income and employment

40. E-commerce for SMEsFacilitated by Low Cost Devices, Cloud Computing, and Social NetworkingICT Learning DaysWorld Bank - March 1, 2012by Daniel Salcedo, Founder & CEO of OpenEntry.comdsalcedo@OpenEntry.com - tel: +1.240.242.9798