centra presentation (c) david strom inc. 20001 new ecommerce trends and technologies david strom...

Centra presentation (c) David Strom Inc. 2000 1

New eCommerce Trends and Technologies

David Strom

[email protected]

+1 (516) 944 3407

Centra Presentation 2/9/2000

mailto:[email protected]


Agenda

• Build or buy your web storefront?

• What becomes success?

• Future trends


Topic 1: Build or Buy Your Web Storefront

• Rent: outsource to a CSP

• Buy suite of software

• Build it yourself


Evaluating CSPs

• Do they offer storefront design?

• Have in-house programmers?

• Hosting of your own web server machine?

• How many payment systems do they support?

• What kinds of accounting reports do they offer?


Some CSP Examples• www.psi.net/web/ecommerce.shtml• www.Best.com/bizcomm.html• www.Brainlink.com/html/saleslink.htm• www.Earthlink.net• IBM: mypage.ihost.com• www.Netcom.com• business.Mindspring.com/prod-svc/smbiz/

• www.outer.net/ONCommerce (OuterNet)


Earthlink pricing explained

Program Monthly fee Setup fee

Starter Site 20 25

Total Access Acct. 20 (waived)

SSL cert. 20 10

Domain fee 75

Ecommerce 40 175

TOTAL 100 210


CSP Approaches

• GeoShop/Yahoo

• ViaWeb/Yahoo

• iCat/Intel

• Encanto

• iTool

• Others entering a very crowded field


GeoShop/Yahoo

• Builds on GeoCities “communities” but for merchants (www.geocities.com/join/geoshops)

• $25/month for just commercial listings• $180/month (or more!) for actual transactions

– working with Internet Commerce Services Corp. who uses Open Market Transact servers (www.icoms.com/pp.htm)


ViaWeb/Yahoo

• $100/month (<50 items) or $300/month options

• CyberCash processing $500 setup

• Solid reporting and admin options


iCat/Intel Commerce Online Hosting Solution

• Free for <10 items, $99/mo. for 100 items

• No per-transaction fees

• Email and browser-based notifications of purchase completion

• Advanced items like upsell, featured products, cybercash gateways


iTool Demo

• www.itool.com/admin/controlpanel.cfm

• $25-$100/mo.

http://www.itool.com/admin/controlpanel.cfm


Sitematic

• Flat rate for $40/mo

• Staging/production site concept

• More templates and controls


Encanto

• Turnkey server/software for free!• Payment gateway included ($50 initial,

$70/month)• Web storefront, shopping cart, catalog system• Also need secure cert, merchant bank account• All managed via browser, steps are clearly

documented


The Suite Approach

• Leading contenders

• What is part of the suite and what isn’t

• Prices and platforms


Popular eCommerce SuitesVendor, Product Version Price Platform

Inex Commerce Court

3.2 $ 50 - $995 NT

IBM Net.Commerce

3.2 $5000 - $20,000

NT, AIX, Solaris, AS/400, S/390

Microsoft SiteServer Commerce

3.0 $4600 NT


Popular eCommerce Suites (con’t)

Vendor, Product Version Price Platform

OM Transact Open Market

4.0 $250,000 Unix

Intershop Online Intershop

4.0 $5000

NT Unix

WebSite Pro O'Reilly

2.3 $800 NT, 95


Four Typical Elements

• Catalog

• Storefront designer

• Ordering/inventory system

• Shopping cart/check out system


The Cold Hard Reality of Suites

• Suites are nothing more than collection of products

• Lack integration among various elements

• Difficult to setup, customize, and use

• Require you to live “inside” their structure

• Limited payment options

• Sounds like early MS Office


Payment Systems Included in Each Suite

• Microsoft: Verifone, Buy Now

• IBM (Net.Commerce): Verifone, SET/eTill

• OpenMarket: Verifone

• WebSite Pro: IC Verify, PC Authorize, CyberCash, others

• Intershop: CyberCash, ICVerify, others


Sample Stores Included in Each Suite

• Microsoft: 4 stores

• IBM: eMall, simple and advanced sample stores

• OpenMarket: none

• WebSite Pro: 1 bookstore

• Intershop: 3 stores


Database Support

Product Databases Supported

Site Server MS SQL, Oracle

Net.Commerce DB2, Oracle

Inex Commerce MS SQL, MS Access

iCat 4D, Sybase SQL Anywh

WebSite MS Access

Intershop Sybase SQL


Dealing With ODBC

• Have to understand how to set up data sources

• Intimate knowledge of your data structure

• Re-install ODBC drivers at least once!

• Best to start with built-in database


Store Wizards Included in Each Suite

• Net.Commerce (the best)

• WebSite Pro (but doesn’t do much)

• Intershop (various wizards)

• MS Commerce (although you’ll really need to know COM!)


Tips

Don’t install anything before making sure you have everything!

Downloads for free, but they expire Can you export existing files to these

systems?


Prices of DIY ProductsProduct Type PriceInex Accounting US$6000SoftCart Shopping Cart 900MallManager Catalog 2000WebCatalog Catalog 1600Saqqara Search tool 700VPOS Payment server 2500WebMate Development tool 750


Putting Together Your Own Solution

• SQL Server database

• CyberCash payment system

• WebCatalog 3.0 (supports CCash)

• IIS web server

• Total price: <US$10,000


Topic 2: What Becomes Success?

• Overview of eCommerce market

• Review physical storefront success factors

• Propose some definitions

• Define success for the web

• Draw up eCommerce principles


Sad State of Today’s eCommerce Marketplace

• Poor quality tools

• Hard-to-find stores

• Limited payment methods

• Credit card snooping perceptions

• Older browser versions can’t view latest sites


Case in Point: Buying a Bike Rack

• Item not carried: outdated catalog

• Telesales not familiar with web

• No cross-sell or substitutions online

• Needed three phone calls to complete purchase


Another Case: Buying Theater Tickets

• Web site doesn’t carry event information in real time

• Orders are fulfilled weeks later

• No indication on web site of sold-out or nearly so events


Let’s Learn From the “Real World”

• Compare what works for physical stores

• Try to extend to the web


Critical Success Factors for Physical Storefronts

• Location

• Branding

• Good service

• Good product selection

• Proper pricing and margins

• Traffic


First Problem:

• None of these translate on the ‘net!


Now Try to Agree on Definitions for Web Stores

• What determines a good location?– Position on a search page – Nearness to popular destination– Ad on a popular server

• What determines branding?– Memorable domain name– Popular search category destination


An Example of bad location: Montana Meats

• Link

• Can’t they afford their own domain name?

• www.company.com/~anything is BAD NEWS!

http://www.imt.net/~lingerie/buffalo/buffalo.html


Determining Traffic

• Hard to do -- is it hits, page views, registered users?

• [HITS = How Idiots Track Success]

• Hard to measure -- do you count gifs? Use log files?

• No general agreement on any metrics!


One Working Definition of Success:

• SURVIVAL!

• If a site is still running after 12 months, and getting more traffic, it is a success.


Does a site actually have to sell something?

• Many actual eCommerce sites don’t do the complete transaction

• Require faxes or telephone calls!

• Some merely have catalogs

• Examples: Singapore Power Authority

• Cisco Connection Online

http://www.spower.com.sg/readmeter.cgi?cmd=form

http://www.cisco.com/pcgi-bin/front.x/config_root.pl


Principles of Good eCommerce

• Easy to find merchandize

• Good service

• Individual customization is key

• Simple navigation

• Make payments easy

• Make buyer feel transaction is secure

• Communicate effectively and frequently


AMP Connect

• Have customers in 100 countries

• Speak many languages

• Produce 400 catalogs covering 135,000 items

• Mailings cost US$7MM/yr

• Fax back cost US$800,000/yr

• But you can’t buy anything directly!


Solution: “Step Searching”• Saqqara.com software to enhance Oracle database• Provide user feedback as they type in the query• Show how many matches in the database• Different mechanisms for searching:

– by part number

– by alphabetical names

– by part family

– by picture even

http://connect.amp.com/


AMP Old Screen


AMP Connect (con’t)• And can set to list parts that are available in

specific countries!• Updated daily with over 200 item changes• Detailed drawings saves time for customers

to pick the right item• Saved AMP over US$5MM in production

costs• Saved US$1MM in translation costs


First Principle of eCommerce:

• Make it easy to buy!


Amazon.com• Services frequent readers with a variety of

programs– Editorial comments– If you liked this book, you’ll like...– Notification of new books by author, topic– Simplified “1-Click” ordering

• Uses simple pages and email• Associates program for commission kickbacks• Gift certificates via email• And ... lots of stuff to choose from


Use Affiliates Programs Wisely

• They bring traffic to your doorstep

• Nice revenue sharing model

• Lots of them to choose from to model your own on: – AssociatePrograms.com– Refer-it.com

• Shopnow.com (payment processing)


A Different Take on Affiliates: ClickRewards

• Pays you in airline miles for your patronage

• Accrue miles on many sites

• You redeem benefits on their site


Amazon vs Borders

• Borders link

• Cookies vs logins

• Who makes it easier to buy books?

http://www.borders.com/msprotect/ncommerce/;order/list?status=C


Update your directories!

• This one is more than a year old!

http://www.asiapage.com/alist.html#jewellery


Another Side of Service: Repeat Business

• Make the shopper feel part of the family

• Shopping as entertainment (online auctions)

• “Do what I mean” search function (Amazon again looks at common misspellings made in the previous 24 hours for book searches)

• Periodic targeted email updates and reminders


Second Principle of eCommerce:

• Deliver solid service!


Dell positives

• Most notable site for computer buyers

• Customize the features you want via a web form

• Simplifies and personalizes the shopping experience

• WYSIWYB (buy)


Dell problems

• Site is now very complex

• Print ads contain “eValue” codes

• Too many pages to get to actual PC configuration


Now Compare with Other PC Makers

• Gateway

• IBM

• Compaq

• Micron

• … which is easiest to customize your PC?


Third Principle of eCommerce:

• Individual customization is key


BMW Motors

• Example of what not to do

• Use gratuitous graphics

• Cheesy low-res videos

• Toys, not tools


You Never Want To See This Screen!


Compare with Subaru

• Find specific information about each car

• Can price options to your particular needs

http://www.subaru.com/


A better example: fishing licenses

• Simple, quick, and does the job with a minimum of clutter

http://www.permit.com/


How NOT to Design a Payment Screen

• http://www.netmar.com/new/norderform.shtml

http://www.netmar.com/new/norderform.shtml


Common mistakes with payments

• Provide too few or too many order confirmation pages

• Confusing methods and misplaced buttons on order page

• Make it hard for customers to buy things

• Don’t make your customers read error screens


Fifth Principle of eCommerce:

• Make payments easy!


Perceptions of Credit Card Snooping Still Exist

• But are largely popularized by media, not consumers!

• Internet fraud stories are still common from both buyer and seller sides

• Just starting to see authentication services (such as Cybersource) ramp up

• Trust will take a long time


Sixth Principle of eCommerce:

• Make the buyer feel secure!


How Should You Use Email?

• When to communicate?

• What to communicate?

• When is email helpful and when is it spam and annoying?


Email Uses in eCommerce

• Sending order acknowledgement

• Sending shipping notification

• Purchase receipt

• Telling customer when item is in stock or on sale

• Responding to specific queries about service issues


Email Receipts Should Contain the Following Items

• Total price, including shipping • Your address and the store’s• Items ordered• Whether they are in stock or not• When they shipped• Bonus: order number and URL to view this

info online, link to UPS/Fedex tracking system


When to Send a Customer Email?

• To acknowledge the order was placed

• To say items shipped (or not ) and money changes hands


Seventh Principle of eCommerce:

• Communicate effectively and frequently!


Communicate Effectively and Frequently

• Get your response systems in place

• Tie in your storefront with any existing customer relationship management tools and call centers

• Send replies within an hour of initial order, within 24 hours of any query


Topic 3: Future Trends

• eWallets and secure transactions

• Caching technologies

• Internet Appliances


eWallet Trends

• eWallets will eventually go away

• SET becomes a server-side issue

• SSL still dominates eCommerce transactions for many years


Caching Trends

• More caching appliances as time goes on

• Better and cheaper caching devices appear

• Most ISPs will use them within a few years if they want to retain customers


Internet Appliance Trends

• More of them and cheaper too

• Still for SO/HO environments mainly, although that is changing

• Already some vendor consolidation


Conclusions

• eCommerce crosses many different skill sets

• Software is still too dicey in many areas

• Standards aren’t much use right now

• Suites don’t offer much in the way of integration

• DIY may be the best solution


Thanks!

• David Strom

• +1 516 944 3407

• [email protected]

• Copies of this presentation and other eCommerce resouces can be found at http://strom.com/pubwork/ecommerce

mailto:[email protected]

http://strom.com/pubwork/ecommerce






centra presentation (c) david strom inc. 20001 new ecommerce trends and technologies david strom...

Documents

technologies david strom

month slide

system slide

outernet slide

documented slide

crowded field slide

month web storefront

web storefront rent