Introduction video and photo

(a) Overview of The E-marketplace of DHGate from Perspective of 5W1H

WHAT are the benefits of DHgate membership?

DHgate provides many types of benefit to its member, such as DHgate birthday gift, customer's birthday gift, upgrade gift, exclusive discounts, prioritized online chat access, 5hour message reply, toll-free phone number, 3day dispute escalation, 15day dispute resolution, account manager and online/offline activity. DHgate membership is divided into 6 levels, from D1 to D6, higher the level, more benefit given.

WHEN is DHgate establish?

DHgate is founded in the year 2004 by Diane Wang, the current CEO.

WHO is the founder of DHgate ?

Diane Wang is the founder of DHgate and the CEO of DHgate. She has over 20 years of experience running the online business. She has thrived through every phase of the digital revolution.  Before she founded DHgate she served as an executive for Microsoft and Cisco. 

WHERE to get DHcoupons from DHgate?

The DHcoupons will send out during promotional event and information about the activities will be sent to customers' email account directly. Customers can redeem DHcoupons when they place an order and the order has reached the requirement. The system will provide the best-matched coupon automatically and apply the discount. 

WHY consumers use DHgate ?

On-time delivery and estimated delivery timeframe are the factors attracting customer to make an order in DHgate. DHgate required all sellers guarantee their product deliver on time. The guarantee is beginning when the seller uploaded the shipping tracking number on the system. On the other hand, estimated delivery time frame is provided by DHgate with a reference time. 

HOW does DHgate protect consumers?  

When a customer does not receive the order on time, or the order is not described, 
(1)Customer can contact the seller. If the seller unable to solve the problem faced by the customer;
(2)Customer can submit a dispute or a refund agreement by following the steps in 
     Return and Refund Policy, provided by DHgate. If the seller's suggested solution unable to                fulfill customer's satisfaction; 
(3)Customer can apply DHgate Mediation, where DHgate will evaluate the evidence collected from      the seller and customers, and come out a solution. 

Diagram 7: How DHgate safeguard buyers' rights?

Authorized Third-party Inspection Company

(b.i) Account Registration in DHgate

 Step 1: Click "Join Free"

Step 2: Key In information (email address, password) before creating my account

Step 3: Account created successfully

Step 4: Account has been verified by email. END!

Additional Offer: Received discount voucher after created an account

(b.ii) Negotiation with reseller through DHgate

Seller's shop name: Electric_factory

Item's price            : US $15.93 - 16.62 / Piece

Minimun order       : 30pcs (30 and above only available for free shipping to Malaysia) 

Item's link              : 

http://www.dhgate.com/product/new-style-qcy-qy7-bluetooth-wireless-stereo/376065328.html                            

(b.iii) THREE (3) relevant examples how DHgate boost its sales and marketing and find out the obstacle(s) faced in this course of action

Discounts and Promotions

Indeed, discounts are an important and effective way to motivate buyers and building lasting relationships, in order to boost sales and marketing. DHgate.com platform have two discount and promotion sections, which are " Daily Deals" and "Just For You". These two sections provide different product and discount. 

For “Just For You”, this section show the product that customer had searched for, the website collect the cookies and recommend the most recently or high rating and positive review product for you. Next section, "Daily Deals", this section offer 90% discount product. Most of the product are luxury goods, like branded watch, branded handbag, etc. 

 Apart from that, DHgate.com also provides discount and promotion through third party. For example, Retail Me Not and Groupon, which are the popular collections of coupon website.

Obstacle faced in this Course of Action

It is true when we go to shopping and when we see the word discount and promotion we will get excited because discount means buyer would be saving money on the products he or she intends to buy more. In contrast, buyer may suspect that product is not quality or real branded due to the cheap price after discount. Especially in the Daily Deal section, the product is getting cheap of the 90% discount.

Show off customer reviews and footprints.

As an online visitor or buyer, we know that we not only consider a seller’s reputation but also the product reputation. Many people use "external conscience" when comparing products online. From the company chosen DHgate.com e-marketplace platform, we can see that the platform provide a space for previous buyer to write their review toward the seller, and transaction histories of the supplier has shown too. Customer tend to buy hot deal product, thus it encourage customer feedback and show off those customer footprints. 

Other than that, after the customer consider and read the review, they might want to see other similar products with more price options. DHgate.com have provide a section “Customers Who Bought This Item Also Bought”, it give buyer or visitor more option to search for their desired product with ideal price.

As an example, the customer might like the appearance of Product A more than Product B, but finds there are no comments for A but 78 positive reviews and transaction history for B. After considering his options he decides to add Product B to his cart. The customer is not willing to risk a product that may not have been bought by other people so he used ‘external conscience’. This product comparing behaviour is common. When the supplier is selling a quality product, they get positive review from buyers and thus the product sales will increase. 

Obstacle faced in this Course of Action

The more the positive review, the higher the sales of product. What if a good product does not have or have few review, rating or transaction history? Buyers would not consider buying the product without positive review, good rating, and transaction history. Thus, the sales of the product may affected. 

Advertising and Marketing outside of DHgate.com

The method of advertising to outside of DHgate.com is a direct way to lead people gets to know to this platform. Every year, the company will put a lot of effort in advertising to foreign media, it cooperate with Google, Yahoo and other websites and media. 

Through Google, Yahoo and other major search engine, DHgate.com bought a lot of advertisements to bring visitors to its e-marketplace platform. For an example, the company using Google's search keyword. Adsense, target site to promote its platform. By Google search keyword, when a web user search related key word, the online advertisement like keyword banner shown together with the search result. Adsense, the company's display advertisement will put in a website, it also depend on the willingness of the website owner. 

Obstacle faced in this Course of Action

Adsense not only used by DHgate.com, the competitor Alibaba.com also using it to promote its platform. When compare the popularity, Alibaba is more well-known by buyer. Thus, when the adsense display related to the keyword china online wholesaler, there will be resulted in two adsense of DHgate.com and Alibaba.com, buyers may choose to enter Alibaba.com due to its famous and well-known worldwide.

(b.iv)The awareness and participation of DHgate in virtual world

Ways on how customers communicate with DHgate

      In order to make use of the website, DHgate provide customer service to teach customers how to use the website to make purchases online. Chat Assistance is always available to guide new customers as well as other users in using the website. Any problems or questions regarding the service or websites faced by users can also be reported through the website. Other than that, DHgate is also in cooperation with Facebook and Google. Users can always use these social media to give feedback to DHgate. 

 DHgate wants to create a better, faster, safer and easier to use transaction platform for users. Therefore, DHgate has launched a program called “Customers Experience Improvement Program". This program is to improve DHgate system by allowing customers to share their needs and suggestion to DHgate. Users that joined that program are able to provide suggestions on how to improve in the website. Users are also given chances to  do the user satisfaction surveys. Moreover, users will have the priority in experiencing any of the website new features and functions. 

          Nowadays, people are mostly attached to the Internet as well as social media. Therefore, DHgate created a phone application for users to use the service and make purchases anytime and anywhere with their smart phones. The application is available in both App Store and Android Market. Users can make purchases with their smart phones by using the application. In order to prevent fraud,  users can download the application from the website. 

         To create brand awareness to new customers, DHgate created a page in Facebook. Users can share their experience in using DHgate services in Facebook. DHgate Facebook page is a community where customers can interact with each other and share their experience in using the service. Other than that, DHgate also update their facebook page frequently so that users can know the latest news of the websites as well as products. DHgate create advertisement of products in Facebook page to gain more users in using their services.  

There is also a search engine in the website where users can search for the particular items or category of items they wanted. Other than that, DHgate also categorized their items into particular category. Whenever users want to look for the particular items, it is easier to be found by searching through the categories. 

       

     DHgate is a well known worldwide platform, therefore DHgate will have customers that from different nation. In order to allow customers to understand the operation of the website not only in english, DHgate are able to operate in 7 types of different languages which is Spanish, Portugese, Russians, French, Dutch, Italian and Turkey. 

DHgate are willing to make changes in their website in order to improve their system. Therefore, complaints can be submitted through the website. DHgate will look into it and create a better serive to their users. Other than that, users can get full refund whenever they don't receive the items they had purchased. 

(c) Conclusion include success factor of implementing e-marketplace using DHgate

              The success factor of implementing e-market using DHgate are lower cost needed to be expense compared to dealing physically. According to Sammy (2005), e-marketplace trading reduced waste and supplier margins. Another important point is, it is retrieving price transparency on the market. DHgate used to discount and promotions, show off customer reviews and footprint and lastly Advertising and Marketing outside of DHgate.com.

              Besides, DHgate has launched a program called “Customers Experience Improvement Program" to ensure the customer have a better, faster, safer, and easier to use transaction platform. Other than that, by implementing e-commerce marketplace such as DHgate, there will be less or even free of transaction cost needed. According to Sammy (2005), e-marketplace often included the process of standardization and automation of agreement, inquiring, paying/receiving and ordering. Such attributes reduce transaction costs and streamline business methods which able to lower the transaction cost for the business. 

                Other than that, DHgate provides customer service to teach customers how to use the website to make purchases online. According to Aaron (2016), the explosion of the social network, to email and website marketing, also gives marketers the opportunity to interact more directly with their customers, whether businesses or consumers. 

               Besides, DHgate also allowed us to find or conduct more new business as we can find the company of business partner that have the same goal as the previously we can't find. According to Sammy (2005), the global span of the Internet allows many-to-many interactions which allow business to search for more same interest business parent or company. In addition, the costs of finding and promoting new customers are minimal through such e-marketplaces which are the additional benefits of it. 

                E-marketplace has been upgrading constantly after the explosion of Internet usage, to compete in nowadays e-marketplace DHgate has done a good job from the promoting, sales and upgrading. The increase of the efficiency of supply chain definitely speeds up the business process or even speed up the global business. By using DHgate as the e-commerce marketplace, the supply chain has become much easier without delay compared to the old time dealing physically and having a lot of supply chain and communication issues. 

Reference

                     8 practical tips to increase E-commerce sales. (2014, July 23). Smart Insights. Retrieved from http://www.smartinsights.com/ecommerce/merchandising/emma-willis-8-tips-maximising-e-commerce-sale/

                   Aaron, C. (2016). What Are the Advantages of B2B & B2C to Conduct Business Using the e-marketplace. Retrieved 2 March, 2017 from http://smallbusiness.chron.com/advantages-b2b-b2c-conduct-business-using-internet-50884.html

                   Sammy, E.G. (2005). BENEFITS AND BARRIERS ON E-MARKETPLACES . Retrieved 27 FEB, 2017