James E-commerce

8/2/2019 James E-commerce

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DIFINITION OF

COMMERCEThe exchange of goods and services formoney

Consists of:Buyers - these are people with money who

want to purchase a good or service.

Sellers - these are the people who offergoods and services to buyers.

Producers - these are the people whocreate the products and services that sellers

offer to buyers.


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ELEMENTS OFCOMMERCEYou need a Product or service to sellYou need a Place from which to sell the

products

You need to figure out a way to get people to

come to your place.You need a way to accept orders.

You also need a way to accept money.

You need a way to deliver the product orservice, often known as fulfillment.

Sometimes customers do not like what theybuy, so you need a way to accept returns.

You need a customer service and technicalsupport department to assist customers with


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ELEMENTS OF E-COMMERCE


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HISTORY OF E-COMMERCE

EFTElectronic funds transferE-Commerce refers to the buying and selling of products or

services over electronic systems such as the Internet andother computer networks.

1. E-Commerce applications first developed in

the early 1970s

- Electronic funds transfer (EFT)

v.Limited to:

- Large corporations


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2. Electronic data interchange (EDI)electronictransfer of documents:

- Purchase orders

- Invoices

- E-payments between firms doing business

v.Enlarged pool of participants to include:

- Manufacturers

- Retailers

- Service providers


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Key Drivers of E-

commerceTechnological degree of advancement of

telecommunications infrastructure

Political role of government, creatinglegislation, funding and support

Social IT skills, education and training ofusers

Economic general wealth and commercialhealth of the nation


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ADVANTAGES OF E-COMMERCE

Consumers can easily search through a largedatabase of products and services. They cansee actual prices, build an order over severaldays and email it as a wish list hoping that

someone will pay for their selected goods.

Customers can compare prices with a click ofthe mouse and buy the selected product at

best prices.


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Reduced advertising costs for online Vendors.The web and its search engines provide a

way to be found by customers.

Small online shops can reach global markets.

Web technology also allows to track customerpreferences and to deliver individually-tailoredmarketing.


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Four Categories of E-Commerce

B2B

B2C

C2B

C2CConsumers

Business

And sellingto...

Business originating from...

Business Consumers


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Four Categories of E-Commerce(contd)

l Business to Business (B2B) refers to the fullspectrum of e-commerce that can occurbetween two organizations.This includes purchasing and procurement,supplier management, inventory management,channel management, sales activities, paymentmanagement &service and support.Examples: FreeMarkets, Dell and GeneralElectric

l Business to Consumer(B2C) refers to

exchanges between business and consumers,activities tracked are consumer search,

frequently asked questions and service andsupport.


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Four Categories of E-Commerce(contd)

l Peer to Peer(C2C) exchanges involvetransactions between and amongconsumers. These can include third partyinvolvement, as in the case of the auction

website Ebay.Examples: Owners.com, Craiglist, Monster

l Consumer to Business (C2B) involves

when consumers band together to presentthemselves as a buyer in group.Example: www.planetfeedback.com


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Limitations of E-

commerceTo organizations: lack of security, reliability,

standards, changing technology, pressure toinnovate, competition, old vs. new technology

To consumers: equipment costs, access costs,knowledge, lack of privacy for personal data,relationship replacement

To society: less human interaction, socialdivision, reliance on technology, wastedresources


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Technical limitations

There is a lack of universally acceptedstandards for quality, security, andreliability

The telecommunications bandwidth isinsufficient

Software development tools are stillevolving

There are difficulties in integrating theInternet and EC software with someexisting (especially legacy) applicationsand databases.

Special Web servers in addition to thenetwork servers are needed (added


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Benefits of E-commerce

To consumers: 24/7 access, more choices, pricecomparisons, improved delivery, competition

To organizations: International marketplace

(global reach), cost savings, customization,reduced inventories, digitization ofproducts/services

To society: flexible working practices, connectspeople, delivery of public services

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Benefits to Consumers

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Convenience

Buying is easy and private

Provides greater product access and selection

Provides access to comparative information

Buying is interactive and immediate


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Benefits to Organizations

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Powerful tool for building customer relationships

Can reduce costs

Can increase speed and efficiency

Offers greater flexibility in offers and programs

Is a truly global medium


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Benefits to Society

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More individuals can work from home

Benefits less affluent people

Third world countries gain access

Facilitates delivery of public services


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E-Marketing in theDigital Age

The marketing side of e-commerce.

Includes efforts to communicate about,

promote, and sell products and services overthe Internet.

E-purchasing is the buying side of e-commerce.

It consists of companies purchasing goods,services, and information from online18

T f


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Types of e-Marketers

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Cli k O l


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Click-OnlyCompanies

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E-tailers

Search

Engines andPortals

InternetService

ProvidersTransaction

Sites

ContentSites

Enabler Sites

Types ofSites


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Reasons for dot.comFailures

Poor research or planning.

Relied on spin and hype instead of marketing

strategies.Spent too heavily on brand identities.

Devoted too much effort to acquiring newcustomers instead of building loyalty.

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c -an - or arCompanies

Most established companies resisted

adding Web sites because of the potentialfor channel conflict and cannibalization.

Many are now doing better than click-only

companies.Reasons:

Trusted brand names and more resources

Large customer basesMore knowledge and experience

Good relationships with suppliers

Can offer customers more options22


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Setting Up for E-MarketingOnline Marketing

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Setting up for E-Marketing

Creating websites

Creating or using Webcommunities

Using E-mail

Corporate websites

Build goodwill andrelationships; generate

excitement

Marketing websites

Engage consumersand attempt to

influence purchase

Website design

7 Cs of effectivewebsite design

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Options


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Context

Content

Community

Communication

Connection

Commerce

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Seven Cs of Website Design

lCustomization


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The 7Cs of Website design

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Context

Sites layout and design

Commerce

Sites capabilities to enablecommercial transactions

Connection

Degree site is linked to other sites

Communication

The ways sites enable site-to-

user communication or two-waycommunication

Customization

Sites ability to self-tailor todifferent users or to allow users to

personalize the site

Community

The ways sites enable user-to-user communication

Content

Text, pictures, sound and videothat web pages contain


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Setting up for E-Marketing

Creating websitesPlacing onlineads and

promotionsCreating or usingWeb communities

Using E-mail

Online forms of ads

and promotionsBanner ads/tickers

Skyscrapers

InterstitialsContent

sponsorships

Microsites

Viral marketing 27

Options


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Web AdvertisingBanner ads: allows for more targeted

advertising

Pop-up ads: pop-under ads are displayed in aseparate browser window beneath your mainbrowser window

and remain there until you close them

Skyscrapers: An advertisement on a Web sitethat is vertically oriented on the page and larger 28

This is a pop-up ad

Click here to close me


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Interstitials: are usually full-page adsdisplayed while a user is in transit from onepage to another, triggered by code included inthe link

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7 Critical Success Factors

in E-C0mmerce1) Site-Wide Search Engine

Visitors can't buy products that they cannotfind. Obviously, it's critical that your

ecommerce site helps them to easily find whatthey want, and a good site search function iscritical for this. Visitors should be able to enterdescriptive words or item numbers and get

accurate, helpful results. This will create alandscape where your visitors wouldremember your site and would talk about itwith others.


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2) Simple CheckoutIf you want to lose customers to yourecommerce site, one of the best ways to doit is to make the checkout process long andcomplicated. The shorter and easier yourcheckout process is, the less abandoned

carts you will have. Work to streamline thecheckout process so it involves as few stepsas possible.

3) AccessibleIt's a simple concept, if someone cannotaccess a website they will not be able tobuy anything from it. Take the time to testyour ecommerce site in all browsers andoperating systems and test in a wide


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4) VisitedThis is kind of obvious, but in order to make

sales your site will need traffic/visitors. Youmay have a great design and the coolestproducts out there, but if no one is seeingthem it really doesn't matter. Make sure

that you have a marketing plan orsomeone who is dedicated to promotingthe site because simply putting it up willnot draw enough visitors.

4) TrustworthyThere are a lot of scammers out there and

unfortunately that means that those whoare trustworth need to be able to rove it.


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6) Optimized for Search EnginesOnline searches provide some of thehighest quality of traffic that you can get toyour site. People who find your site througha search are looking for what you have tooffer, so they are pretty likely to buy if your

site does a good job. Many ecommercesites suffer from poor search engineoptimization. This is a huge topic thatcannot be covered here, but if you are not

familiar with SEO make sure that youconsult with a professional.

7) Quality DesignThe looks of an ecommerce site are not asimportant as the functionality and the

Di i


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DiscussionQuestionsWhat features do you look foron a Web site that you feel

make the site appealing?What are your major concernsabout making online purchases?

What types of things can anonline retailer do to create amore secure buying

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