Electronic Retailing Selling on the Internet

Source: NUA Internet Surveys

E-Commerce: Selling on the Internet

What is E-Commerce?

• “Conducting financial transactions by electronic means”

• “Harnessing the power of the Internet to help you make money more effectively and efficiently”

Source: Cobb Microenterprise Center

.com

Static

Interactive

Transactional

Integrated

Access

Advertising Marketing Information

No Capability

No company web site Can access other sites

Registration Forms E-mail

Online orders, payments Order tracking, queries Funds transfer

End-to-end Fulfillment Workflow

E-Commerce Roadmap

Legend - Functions at Level - Requirements to achieve next level

Internet access through ISP Email accounts

Web site Content development & updates

Web site connectivity to database application(s) and email accounts

Secure transaction processing Online payment authorization Authentication and validation

Seamless connectivity to back-end system(s)

Minimize/eliminate manual input on transactions.

B2B automated processes

Level 1

Level 2

Level 3

Level 4

Level 5

Adapted from:www.mepcenters.nist.gov/public/ecommerce-summit.nsf

While developing an E-Commerce presence, it is important to know where you are now as well as the appropriate destination for your business.

Small Businesses: Using the Internet

41%

60%

78%82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1999 2000 2001 2002

Source: Virginia Microenterprise Network Regional Conference

Small BusinessesConducting e-Commerce

8%

37%

58%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1999 2000 2001 2002

Source: Virginia Microenterprise Network Regional Conference

Small Business:e-Commerce Revenues

14.935.4

72.8

135.8

229.8

0

50

100

150

200

250

1999 2000 2001 2002 2003

$ billions

Source: Virginia Microenterprise Network Regional Conference

Source: NUA Internet Surveys

E-Commerce: Selling on the Internet

Products/Services not easily sold on web

Upfront costs

Maintenance/upgrade costs

Lack of in-house tech support

Online security issues

Reasons some do not sell online . . .

E-Commerce: Selling on the Internet

What people are buying on the Web . . .

• Airline tickets• Hotel reservations• Computer hardware• Apparel• Consumer electronics• Car rental• Health/Beauty• Books• Music• Computer software• Jewelry• Toys/Video games

• Food/Beverages• Office supplies• Flowers• Linens/Home decorations• Sporting goods• Videos• Appliances• Furniture• Tools/Hardware• Footwear• Small appliances• Garden supplies

Reference: Forrester

E-Commerce: Selling on the Internet

Know why you are on the Web???Know why you are on the Web???

E-Commerce: Selling on the Internet

To make money ?

To disseminate information ?

To stroke your own ego ?

Reference: Flanders/Willis; Web Usability Specialists

E-Commerce: Selling on the Internet

The Internet Market Channel

E-Commerce: Selling on the Internet

"With few other sectors of the economy turning in double-digit growth, the Web continues to offer compelling opportunities as a sales and marketing channel." comScore Media Metrix

Getting Started

E-Commerce: Selling on the Internet

Who is going to design, build, and maintain the site???Who is going to design, build, and maintain the site???

In-house vs. Outsourcing

E-Commerce: Selling on the Internet

Outsourcing . . .

Know who you are hiring!

. . . and get it in writing!!!

E-Commerce: Selling on the Internet

What do you need for an e-commerce site . . .

• Domain name• Web site/store• Web server/host• Site marketing

E-Commerce: Selling on the Internet

What’s in a name???

EVERYTHING!!!

E-Commerce: Selling on the Internet

www.yourname.com

E-Commerce: Selling on the Internet

What do you need for an e-commerce site . . .

• Domain name• Web site/store• Web server/host• Site marketing

E-Commerce: Selling on the Internet

What do you need for an e-commerce site???

• Web store• Online product catalog• Shopping model/Ordering system• Merchant account/Payment processing• Customer communication system• Tracking system

E-Commerce: Selling on the Internet

What do you need for an e-commerce site . . .

• Domain name• Web site/store• Web server/host• Site marketing

E-Commerce: Selling on the Internet

Internet Service Provider

ISP

E-Commerce: Selling on the Internet

Setup fee Monthly fee Domain name Storage space Website builder Operating system Provider History

Technical support Site traffic report Technical support E-mail addresses E-Commerce capable Business management tools Portfolio

Hosting Service Criteria

www.store.yahoo.com

E-Commerce: Selling on the Internet

What do you need for an e-commerce site . . .

• Domain name• Web site/store• Web server/host• Site marketing

E-Commerce: Selling on the Internet

Common Mistakes . . .• Bad domain names• Somebody’s cousin built it• Somebody’s cousin hosts it• Only webmaster can make changes• Hokey unprofessional design• Too slow to download• Not organized properly• Stale content

What do E-Customers Want?

E-Commerce: Selling on the Internet

Reasons Why People Shop the Web . . .

• Easy to place an order• Large selection of products • Cheaper prices • Faster service and delivery • Detailed and clear product information • No sales pressure • Easy payment procedure

Reference: www.useit.com

E-Commerce: Selling on the Internet

Factors driving repeat visits to a Web site . . .

• High quality content• Ease of use• Minimal download time• Updated often

Reference: Forrester Survey; 1999

E-Commerce: Selling on the Internet

The key is consumer confidence . . .

Fun and easy to navigate sites

Pages that appear professional

Clear and accurate product information and representation

Real time answers through self help features, e-mail, and a toll-free telephone number

E-Commerce: Selling on the Internet

The key is consumer confidence . . .

Good prices and clear representation of all charges

Payment options

Secure transactions

Easy to use return or exchange policy

Quick processing time and delivery Shopper privacy

Navigation

E-Commerce: Selling on the Internet

Navigational Tools

Location

Consistency

E-Commerce: Selling on the Internet

Where am I?

Where have I been?

Where can I go?

Don’t make me think!!!

3 clicksand you’re out!

Professional Pages

E-Commerce: Selling on the Internet

“People want to do business with people they believe to be professional.”

Reference: Flanders/Willis; Web Usability Specialists

ProductInformation

CustomerAssistance

E-Commerce: Selling on the Internet

E-mail

Telephone number

Fax

Snail Mail

Contact Us:

OrderingProcess

Payment Options

E-Commerce: Selling on the Internet

Methods . . . Snail Mail

Telephone

Fax

Online

E-Commerce: Selling on the Internet

Check Money Order

Purchase Order

Credit Card

Intermediary

With . . .

                                     

SecureTransactions

Shopper Privacy

E-Commerce: Selling on the Internet

Privacy disclosure . . . Data gathered Use of information Disclosure of information Protection of information Use of cookies and tracking Access to account information Customer consent Customer input - Tell us what you think?

Customer Service

Technical and Design Considerations

E-Commerce: Selling on the Internet

Elements to consider . . .

Bandwidth Browser compatibility Color palette Continuity Frames Homepage

E-Commerce: Selling on the Internet

Elements to consider . . .

User Interface Screen compatibility Readability Text only default Accessibility

Bandwidth

E-Commerce: Selling on the Internet

Download time . . .

1-2 seconds

< 13 seconds

> 20 GONE!

E-Commerce: Selling on the Internet

Decrease download time by . . .

designing for 56k modem

keeping page sizes <50k

applying the KISS rule

E-Commerce: Selling on the Internet

“Remove graphic; increase traffic. It’s that simple.”

Reference: Dr. Jakob Nielsen; Web Usability Specialist; www.useit.com

Browser Compatibility

NETSCAPE

EXPLORER

NETSCAPE

EXPLORER

E-Commerce: Selling on the Internet

Browser Testing - view your site inas many browsers as possible:

Netscape

Explorer

AOL

Web TV

Lynx

Color Palette

E-Commerce: Selling on the Internet

Artistic

Cultural

Sales

Technical

Color Considerations . . .

Black – United States & EuropeWhiteWhite – China & JapanYellowYellow– Egypt & BurmaPurplePurple – ThailandBlueBlue – IranRedRed – South Africa

Continuity

Home Page

User Interface

E-Commerce: Selling on the Internet

Usernomics

User Interface Design

Human-Computer Interface

E-Commerce: Selling on the Internet

You need . . .

good technology, and usability

. . . for a successful web site.

E-Commerce: Selling on the Internet

How are your customers accessing your site?

Desktop

Laptop

Hand-held

Web TV

E-Commerce: Selling on the Internet

How are your customers accessing your site?

PC

Mac

E-Commerce: Selling on the Internet

Recommendation . . .

Specify pages in terms that enable

browsers to optimize the display

for each individual user’s circumstance

Readability

How’s this for readability?

E-Commerce: Selling on the Internet

Recommendations . . . Good background/text contrast

Avoid patterned backgrounds

Easy to read fonts

Make words count

Short paragraphs

Bulleted lists

E-Commerce: Selling on the Internet

www.cedcc.psu.edu/ritter/web-demo/elements.html

Text Only Default

Accessibility

E-Commerce: Selling on the Internet

The visually impaired use special readers that read only text.

Blinking text can trigger seizures in some visitors.

Poor color choices may render text unreadable to color blind visitors.

Mouse-dependent site navigation can be difficult for visitors with physical limitations.

Information contained in sound clips is inaccessible to hearing-impaired visitors.

For Example . . .

E-Commerce: Selling on the Internet

The Law: Section 508 of the Rehabilitation Act

www.cast.org/bobby

www.w3.org/WAI

BusinessManagement

www.cjsbows.com

www.cjsbows.com

www.cjsbows.com

E-Commerce: Selling on the Internet

The Bottom Line . . .

Getting customers to come to your site,

Getting customers to make a purchase once they get to your site, and

Getting customers to return to your site and purchase again, again, and again!

www.msucares.com/business_assistance/homebusiness/ecommerce.html

Resource Business to Consumer E-Commerce: Selling on the Internet

Beth Duncan, Ph.D. Small Business SpecialistMississippi State University Extension Service bethd@ext.msstate.edu