E-Commerce Clothing Introduction

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Introduction

When a consumer wants something, their first port of call is the internet. E-commerce has
grown at an incredible rate since its birth, and so has the competition to make the best use of
it. Customers no longer need to take a trip to brick and mortar stores to make their purchases.
The rise of digitalization has transformed the way companies operate. E-commerce
companies still deal in goods and services, but now this takes place across multiple
touchpoints within an online environment. Although this has made shopping a lot easier, it
has also brought with it some unique challenges.

Online Ordering is an e-commerce function where a company allows customers to order


products or access their services via their website. Since the internet is booming, having an
online ordering system can boost sales to some extent as it eases customers to place an order
for the company’s services anywhere and anytime, considering their free time and daily
activities.

With the development of modern technology, Internet offers people more and more
convenience. With the help of the Internet, people can do a lot of things without going out
like paying bills, watching movies, study online and so on. Among those, the most attractive
one for people is doing shopping clothes online. Shopping clothes online does have many
advantages.

Based on Interaksyon article, a study is conducted as early as 2015 found that 9 out of 10
Filipinos preferred online shopping. The same study found that convenience, cheaper prices
and special deals were the leading reasons for the respondents' preference for online
shopping. The market has rapidly grown since then.

Shopping clothes online attracts people because it has many advantages. Nowadays, more
and more people, especially for the office worker, housewives, students, don’t’ really have
much free time to go shopping for clothes they're busy working, doing house chores, studying
and doing other important things. It becomes the most convenient and best way for them.
Many people choose shopping clothes online also because they can't stand that crowded and
noisy environment. But when doing it online, they just need to choose the design and any
categories of clothes that they want and pay online, and then shopping is finished.
To most people, shopping clothes online is not a hard and anguished job anymore, they can
just stay at home, click the mouse, spend several minutes to get what they want without
stepping out of the room or standing in line for checking. People find this way of life more
convenient, because they can complete their daily chores from comfort of their own home.
That's why some people like to shop for their clothes online. With the click of a button, you
can order anything you want, and have it delivered directly to your front door. For someone
with a busy lifestyle, this seems ideal.

Background of the problem

Nerves x Vibes Clothes currently do not have their own website and instead just post pictures
of their products via social networking via Facebook. Nerves x Vibes Clothing is a small
business enterprise that focuses on their own clothing brand. The company is operated by Mr.
Frederick John since March, 2019. Today, the company has already decided to have an e-
commerce website for their clothing line because of the increase in sales via online
transaction through Facebook has led the client to revolutionize their mode of transaction to
keep up with the trend and the market.

The company Nerves x Vibes Clothing, is struggling with the tedious work of managing over
10 clothing with different designs in their sales transactions on a daily basis because of the
increased sales and bulk orders they are facing today.

The company’s mission is to provide the utmost quality service towards their clients and a
variety budget friendly clothes. Subsequently, the company’s vision is to be the best in the
clothing industry that develops relationship and character towards their clients.

The developer aims to develop a software that is specifically tailored to the needs of the
Nerves x Vibes Clothing company. A tailored e-commerce system is one of the probable
solutions that can handle specific tasks such as order management, purchase order, delivery
and sales transaction via walk-in.

Overview of the current state technology


The lack of modern technological approach has stagnated the growth of the company in
managing sales transactions efficiently. Automation has come a long way in providing task
efficiency such as order management, purchase order, reorder level, stock, and sales
transactions. The company was not able to utilize these technological trends

Mobile Phone and E-mail

When Nerves x Vibes Clothing receives an e-mail from a customer who wishes to inquire
about a product, they usually send pictures of their products with their respective details, as
well a size chart thru e-mail. Then, when a customer calls – to inquire and/or order, they will
determine the availability of the products. If the products are in stock, the company would
inform the customer and ask if he would like to continue the transaction. If the customer is
willing to continue with the order, the company would then prepare items. After preparing the
orders, the customer will then be given a choice if he wants to pick up the items of have it
delivered. For pick-ups the customer could pay through walk-in transactions. If he chooses
for his item to be delivered, he would have to pay for his item through CODash on delivery.

Promotion

In promoting and advertising their products, Nerves x Vibes Clothing post of their products in
the internet thru social networking via Facebook with details and information on how to reach
or contact them.

Walk – in Transaction

Once the customer visits the shop, he is then treated as a walk-in customer wherein Nerves x
Vibes Clothing shall present or show them the products they have to offer, or present the
product that the customer had seen one of their pictures in the internet. If the customer is
satisfied with the product, and it is currently in stock according to their inventory, the
marketing personnel or the office secretary prepares the customer’s orders and he is then
required to pay the amount of products as whole.

Returns
In case of a product return due to factory damage or wrong size, the customer needs to
present his official receipt to the company. If the item which the customer bought is still
within seven (7) days from the date of purchase, the company shall repair the item, if it has
already been used, the customer would be allowed to replace his item with the same item or
he may choose another product which has either the same value as the first one or a higher
value wherein he would need to pay an additional fee. In case, the customer wants to
exchange his product to another product with a lower value, it’ll be within his discretion if he
wants to continue to do so or not, because according to the company’s terms and conditions,
they do not give out refunds. In such a case wherein wrong item/s has been delivered and
when an item has a factory defect, the delivery charge shall be shouldered by the company
when replacing the item. Although, if the product has exceeded the seven (7) days period
from the date of purchase, the company shall not entertain the request.

Cancellation of Orders

The customer can also cancel his orders but is not subjected for a refund based from the terms
and conditions of the company. If the customer deposited a 50% down payment, it shall also
not be returned, since the company also pays the manufacturer for production. Although, in
case the customer cancels the order due to a delay from the company, the company shall give
the customer a refund. Additionally, any unclaimed items shall be forfeited.

Replenisment

In replenishing their stocks, Nerves x Vibes Clothing, first determines the item’s level –
whether it is in re-order level or critical level – by judging if the stocks already at 50% and
25% respectively. Also depending on the demand of the product, the company replenishes
their products every month. When the company would replenish their stocks the marketing
personnel then generates a purchase order with a list of products which needs to be restocked,
along with their details, such as the design, color and size, to their supplier. The purchase
order will then be sent to supplier. When the delivery arrives from the supplier, the marketing
personnel or the office secretary shall then receive the items. The personnel will then check
the number of delivered items from the delivery receipt issued by the supplier to the purchase
order of the company, and at the same time inspects the item.

Returns
In case of a bad-order or back-order, such as defective item/s or wrongly delivered items, the
company informs the supplier of the items which needs to be returned and replaced.

Objectives of the study

The developer’s general objectives and goals is to develop, design and implement an E-
Commerce Website or an Online Ordering System for Nerves x Vibes Clothing that will be
efficient and accurate to support the business productivity and reliability level. A system that
would be able to process the orders, that can be easily observed, and provide their customers.
The proponents aimed for information about the business and be able to record all the
transaction.

1. To design, develop and implement an Administrator Dashboard module that will


provide quick access to the different modules of the web system.

The developer will design and develop a module where the administrators can search
for specific items that is displayed. Administrators will be notified if there are items
for reorder and items that are pending for delivery.

2. To design, develop and implement a secured and reliable scheme.

The developer will make the work of the admin easier, to avoid any frauds or
unauthorized access by providing a log-in account permission. The developer will
also give the admin an advantage to separate and differentiate who just want to cause
confusion in Nerves x Vibes Clothing.

3. To design, develop and implement a Report Module that will provide


administrators an overview of the transaction history of the company.

The developer will design and develop multiple journal forms such as Product
Journal, Delivery Journal, Purchase Order Journal and Product Return Journal. These
journal/s will provide the transaction history of a certain selected query that the
administrators seek to review.

4. To design, develop and implement a module where the administrators can


dynamically add and/or update products, add new designs and add a category.
This module will provide administrators a web system that can grow with the
company in case of company expansion.

5. To design, develop and implement a User Home Page wherein the user can sign
up/sign in their account for Product Viewing.

Product Viewing will present the description of a specific product in view. The details
will be displayed such as the size, price, shipping information, reviews, and other
relevant information customers may want to know before making a purchase.

6. To design, develop and implement a module for a cart system for the user’ order
purchasing more than one item at once.

The developer will create a Transaction Module that shows the number of items they
want to purchase and that will include the Cart System, as well as the accumulated
amount before checking out. This module, the user has the option to add and remove
items from the Cart before the user purchase the orders.

Scope

To develop an Online Ordering System for Nerves x Vibes Clothing which the administrator
can easily manage its clothing shop and provide a system that has a user interface that is user
friendly with intention of the owner where the products of Nerves x Vibes Clothing can be
displayed and modules for the admin wherein they can perform the task and to handle the
Clothing Store.

User’s Interface Module

This module is specially designed for the user for the Product Viewing and Purchase an Order
which can be seen by the Admin and the Client. This can also be rearranged by the admin
after being viewed by the client. This module contains the following:

 Home Page

The main page of the website which is composed of the featured products of Nerves x
Vibes Clothing, and where the user/customer can sign up and log-in their account.

 Product Clothing Gallery

The user/customer can view and choose the following product which are displayed.

 Cart

This module will display the accumulated number of product that the user/customer
will purchase as well the total amount for all of it during the transaction. The user can
also remove the product that he does not wish to purchase anymore during the
transaction.

 About Us

This module will display the background history of the Nerves x Vibes Clothing
company as to how the they started their own brand of clothing, the location of the
store, services offered, and for the users/customer who wants to contact the Clothing
Store.

 Terms and Conditions

This is where the Clothing Store gives their general terms and conditions. This is to
avoid any misunderstanding or miscommunication in case of loss and cancellation of
orders and the system payment. In any occurrences to the unexpected events, this is
where the Clothing Store will look for the appropriate actions in order to make things
accurate and efficient.

 Contact Us

This is where the contact number of the establishment will be displayed for any
concerns and inquiries of the users/customers.

 Check-out

This is where the user/customer’s current transactions will be displayed.

Administrator Dashboard’s Module


It will provide quick access to the different modules of the web system. The developer will
design a form will include Product search query, notifications for Product/s order pointa and
Product/s pending delivery. That will allow administrators to view the details of each
notification cards. Furthermore, a product search query for clothes sizes is also included. This
module contains the following:

Reports Module

 Product Journal Module

The developer will design a form to view the history of a product which. This will give the
administrators an overview of the transactions of the products had underwent.

 Delivery Journal Module

The developer will design a form to view the product/s delivered under the specified delivery
number. The number of products and total quantity of products delivered will also be
included.

 Purchase Order Journal Module

The developer will design a form to view the products ordered in a specific purchase order
number. The number of products and total quantity of products ordered will also be included.

 Product Returns Journal Module

The developer will design a form to view the product/s returned under the specified return
reference number.

 Sales Journal Module

The developer will design a form to view the sales activities of the company. The customer
information will also be provided to organize the structure of the journal.

Product Activity Journal


The developer will design forms for the following product activities. Add and Delete
Products, and Add and Delete Category. These forms will contain fields that are required to
be filled out by the administrators to fit the product activity itinerary.

Purchase Order Module

The developer will design a module that will enable administrators to monitor the
products that are on the reorder level to accommodate Purchase Orders ahead of time.

Product Delivery Module

The developer will design a module that will enlist the items from a certain purchase
order. This automation will help the administrators to shorten the time of encoding
delivered products.

Product Return/s Module

The developer will design a module that will enable administrators to return products
with the necessary remarks and actions for the affected products. This module will
ensure that the product/s will be returned to the supplier with the proper
documentation.

Sales Module

The developer will design a page that will provide the sales moderator a transactional
module that will input the customer information and product information that the
customer bought from the company. This module is also capable of printing a sales
invoice that would be given to the customer.

Log-in/Log-out

An added security scheme, this module will be used for existing accounts of the
administrator.

Limitations
 The system does not have the capability to process online payments, specifically
credit card payments.

 The quantity of the available stocks will not be displayed in the website for the
company’s confidential reasons.

 The system will not process special orders.

 The system will cater the inventory and point-of-sales.

 The system does not have the capability of reservation for the customers.

Project Rationale

To the Company

The proponents intended to develop an Online Ordering System for Nerves x Vibes Clothing.
This is to design, develop and implement to help the business to widen its advertisement and
to increase its sales. Additionally, this system is proposed to also help the business to increase
the data integrity of it by having it deliver its services precisely and accurate report.

To the Users/Customers

The benefit of the proposed system from the customers’ point of view is significant increase
and saves of time and eases access from anywhere. Customer can place a purchase order at
any time to provide the utmost quality service towards their clients and a variety budget
friendly clothes. Subsequently, the company’s vision is to be the best in the clothing industry
that develops relationship and character towards their clients.

To the Developer

The Online Ordering System for Nerves x Vibes Clothing will be an opportunity to enhance
the abilities in computer programming and problem analysis.

To Future Researches
This study could help and could be used as a basis and foundation for the future projects. This
study can provide and also contribute to fundamental concepts of a system development. This
study can be guide to expand the knowledge in doing a study for designing, developing and
implementing a system.

Literature Review
Review of Related Literature, Studies or Systems

This chapter concentrated on the review of foreign literature, local literature, foreign studies,
and local studies from selected research materials, articles, journals and books that aimed to
support the findings, analysis and conclusions derived from this study related to Online
Ordering System specifically to clothes that is used of various reading materials by the
proponents such as Thesis and other Web Articles that will help and expand the knowledge of
the proponents to design, develop and implement an Online Ordering System. The reading
materials will be a guide to the proponents that will enhance and develop their proposed
system effectively.

Foreign Related Literature

Based on AVA ROOS article, consumer goods in different categories including electronics,
grocery, apparel and home appliances are available online F&B sector where online ordering
system is high on demand with the other range of products is expected to grow further. An
interesting trend is that Fashion and Restaurants (ROOS)is emerging as the fastest growing
category in India’s booming e-commerce market, backed by strong technology and marketing
strategies.

By 2020, India is expected to generate US$ 100 billion online retail revenue out of which
US$ 35 billion will come from fashion e-commerce followed by the updated system for
Restaurants becoming trendy within people for various reasons. This clearly implies that
online sales are set to grow four times in the next five years and will contribute significantly
to the burgeoning growth in e-commerce.

According to Periscope by McKinsey surveyed more than 2,500 consumers around the world
(including 1,000 in the U.S.) in March, 2018 to see how consumers are researching and
purchasing/ordering consumer fashion CPG products online. Like many other industries that
were once dominated by offline sellers, the new research shows the CPG transactions are
increasingly happening on the internet.
In diverse fashion markets across the globe, a significant number of consumers are relying on
the internet to shop. In all of the fashion markets surveyed by Periscope by McKinsey, the
findings revealed that at least 70 percent of the respondents are undertaking some form of
online CPG shopping clothes activity. Despite the perception of American being the most
tech savvy nation, French (40 percent) and UK (39 percent) consumers exhibiting the greatest
balance of multichannel shopping preferences followed by German (33 percent) and then
U.S. (32 percent) shoppers.

According to the NPD Group, more ordering clothes online will soon be placed online than
over the phone, with digital clothing store ordering growing 300% faster than by dropping to
the mall and looking for a perfect fashion store. By offering online ordering, your business is
catering to convenience, which will strengthen customer relationships. Ordering online
improves operational efficiency by effectively eliminating order errors. By giving total
control to the consumer to place an order, you can streamline your operations and increase
output, leaving no room for human error. With more orders, less staff involvement, time
saved, and a barrage of other benefits gleaned from the adoption of online ordering platforms,
your business’ operations will indefinitely be optimized and at the height of efficiency.

Based CMO.com article, a consumer report surveyed women to find out what social
networking sites they used to find inspiration when buying clothes and apparel. The results
are pretty conclusive. Facebook leads the pack in fashion influence, followed by Twitter,
Instagram, and so on. This doesn't mean that marketing efforts should focus solely on
Facebook, though.

More than 80 percent of respondents stated that they consult one or more platforms for
different fashion categories, and nearly one-third are social shoppers who are primarily
influenced to buy brands that their social network contacts buy. On the other hand, roughly
the same number are considered “trendsetters” who are willing to pay more to be “the first to
know.”

All these responses indicate that the people who offer online shopping for designer clothes,
and online fashion shopping in general, benefit from social network saturation. The study
also notes that fashion-related message boards and blogs (input from strangers) have a
significant impact on how many Millennials (around 64 percent) decide to buy, especially in
cosmetics, special occasion clothing, casual wear, and accessories.

Based on Businessweek article, a majority of Millennials (75 percent) will do an online


search on appropriate sites to get more information about the clothes, shoes, bags or any
accessories. They also favor brick-and-mortar (BAM) establishments where they can order
online and pick up the product themselves. Stores and brands with apps that allow shoppers
to compare prices online before making a purchase in store are likewise popular.

This behavior is borne out by a study discussed in this Forbes article, which notes that
Millennials still like to go shopping as much as the older generations. They just don't buy as
fast or as much.

Local Literature

Based on Inquirer.Net article, more and more Filipinos are beginning to shop clothes online.
According to the results of MasterCard’s Online Clothes Shopping Behavior Study 2012 in
14 Asia Pacific countries. The survey also shows that the country’s e-commerce potential is
expected to grow even more with the emergence of enabling technologies.

Dominating the Philippine e-commerce landscape are local deals and promo websites,
although the most visited website is eBay (12.5%). It is followed by Sulit (10.1%), Metrodeal
(7.2%), Cebu Pacific (6.0%), Ensogo (5.5%), and Amazon (5.1%). The preference for local
sites is due to fear of hidden charges, concerns about security and speed of delivery, and the
availability of most of the items in local sites.

Based on ABS-CBN news article, More Filipinos are turning to online clothes shopping, a
recent study by Visa showed.

The Visa eCommerce Consumer Monitor 2014, which revealed insights into the behavior and
spending habits of Filipino consumers, showed nine out of 10 Filipino consumers go online
to shop clothes at least once a month. The survey shows 72 percent of the respondents
shopped clothes online in the last 12 months.

The reasons they cited for online shopping are convenience (58%), price (47%), and deals
(46%). "As local and international e-commerce websites become more popular among
Filipino consumers, we can expect a steady increase in online shopping and e-commerce
growth in the country. The Visa eCommerce Consumer Monitor will give us an in-depth
analysis of what Filipino consumers look for when they shop online,” said Stuart Tomlinson,
Visa Country Manager for the Philippines and Guam.

Based on the study, the top three categories for online transactions are bill payments (39%),
fashion-related items (39%), and movie tickets (34%). Filipinos still can't help but compare
prices when shopping online. The study showed 63% of Filipinos compared prices of the
items they were buying, without going to the brick-and-mortar stores.

Filipino consumers also choose e-commerce sites which store their payment details, citing
faster checkouts for their orders (58%). Visa's eCommerce study also showed many Filipinos
prefer using payment cards (65%) over cash on delivery (35%) and bank transfers (34%)
when making online transactions.

According to Robert Gantuangco, director and co-founder of Digital Commerce Association


of the Philippines (DCOM.ph) said there is robust potential for e-commerce to grow in the
Philippines, on the back of the country’s strong 41 percent Internet penetration rate because
of shopping online such as shopping clothes, shoes, bags and accessories online. “Almost all
Filipinos now are mobile, with 25 percent of the population smartphone users. This makes the
Philippines a prime market for e-commerce,” said Gantuangco during the recently held Cebu
ICT-BPM Conference.

With this development, he urged local entrepreneurs to embrace e-commerce so they could
grow their businesses and expand their target markets, including those overseas. “The digital
tide is rising. A lot of merchants now, especially in the Philippines, are selling cross-border,”
said Gantuanco. “And the trend will continue with a lot more people shifting online.”

Growth of cross-border selling via American online payment firm Paypal stood at 23 percent
year-on-year. He noted that since the birth of the digital economy in 2000, seven foreign-
origin websites, namely, Amazon, Lazada, Metro Deal, Alibaba, Ali Express, Ebay and
Zalora, have become the most visited shopping destinations by Filipino Internet users,
according to Alexa.com.

According to a study by digital research and consulting firm, Research and Tech Lab (RTL).
FILIPINO consumers still prefer shopping in brick and mortar stores over online platforms,
favoring the physical appeal of products despite the convenience of online purchases.

RTL recorded the sentiments of online shoppers from July to September, which coincided
with the sale promo of leading e-commerce sites Lazada and Shopee. Here, the company
found that 68.61% of Filipinos still favor traditional shopping.

“The data revealed that although shoppers are drawn to the appeal of purchasing online for
reasons such as no checkout queues, 24/7 access to stores, and available reviews for products,
many are still wary of site legitimacy,” RTL said in a statement.

Filipino shoppers also prefer inspecting the products themselves before making a purchase,
while others factored in the cost of shipping and the length of delivery time. RTL noted that
Filipinos feel more assured when they examine the products before checkout, while being
able to take the item immediately after payment gives them peace of mind.

The research firm’s study also revealed that majority of shoppers who use both online and
traditional platforms are aged 18 to 31 years. While preferring to see the products for
themselves, shoppers were found to be searching for products online before buying them in
physical stores.

Based on Interaksyon article published by Dan Manglinong, Online shopping like clothes,
shoes, bags, accessories and many more has been a growing craze in the Philippines in the
past few years. A study conducted as early as 2015 found that 9 out of 10 Filipinos preferred
online shopping.

The same study found that convenience, cheaper prices and special deals were the leading
reasons for the respondents’ preference for online shopping. The market has rapidly grown
since then.

According to Eshopworld.com, there are at least 37.7 million e-commerce users in the
country in 2018 from the 30.2 million estimated in 2016. The number is expected to rise to
53.8 million by 2022.

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