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Electronic Commerce Selling on the Internet
E-Commerce: Selling on the Internet
1.17 billion by 2005
E-Commerce: Selling on the Internet
What is E-Commerce?
• The use of diverse applications of the Internet such as Email, Usenet, Chat, FTP, World Wide Web, to conduct business operations.
Source: Dr. Rob Moore, MSU
.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.
Source: NUA Internet Surveys
E-Commerce: Selling on the Internet
U.S. e-commerce retail sales ...
$36 billion in 2001
Approximately 1.1% of total retail sales
Source: U.S. Department of Commerce; August, 2002
E-Commerce: Selling on the Internet
What people are buying on the Web . . .
•Airline tickets•Computer hardware•Apparel•Toys/Video games•Consumer electronics•Hotel reservations•Books•Music•Videos•Software•Food/Beverages•Jewelry
•Health/Beauty•Car rental•Linen/Home decor•Sporting goods•Footwear•Office supplies•Tools/Hardware•Small appliances•Furniture•Flowers•Appliances•Garden Supplies
Source: 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
E-Commerce: Selling on the Internet
U.S. small business stats . . .
80% have at least one computer
Two-thirds have Internet access
37% have a Web site
27% are selling on the Internet
The Small Business Internet Survey conducted in July 2001 by The Gallup Organization, Inc. Based random survey of 500 U.S. companies with 50 or fewer employees.
E-Commerce: Selling on the Internet
Small businesses using Internet for customer relations and marketing tool . . .
>50% with Web sites exchange e-mailwith customers daily
20% with Web sites have an e-mail newsletter
36% use Web site to advertise andprovide company information
E-Commerce: Selling on the Internet
Small business Web site stats . . .
50% indicate Web site provided 100% return on investment
Majority expect Web site business toincrease
E-Commerce: Selling on the Internet
Examples of Mississippi E-Businesses ...
www.iceboxframes.com
www.virtualcities.com/crown.htm
www.dixiesnow.com
www.mcdonaldfuneralhome.com
www.cjsbows.com
www.dixiecraft.com
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
Service Brochure Site
Storefronts
Setup fee $25-50 $50-100
Web site design $200-1000 $1500-6500
Web site hosting & maintenance
$15-25/mo $100-500/mo
Secure server N/A $50/mo
Secure server certif. N/A $125
Domain name $3-4/mo $3-4/mo
Total setup cost $225-1050 $1675-6725
Total monthly fees $18-29 $153-5541
Source: Dr. Gary Wingenbach, Texas A&M
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 . . .
• 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
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
Advertising and Promoting Your Web Site
Build It And They Will Come???
www.searchengines.com
What do E-Customers Want?
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
Source: Forrester
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
Source: www.useit.com
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
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
Telephone number
Fax
Contact Us:
OrderingProcess
Payment Options
E-Commerce: Selling on the Internet
Snail Mail
Telephone
Fax
Intermediary
Online Processing
SecureTransactions
Shopper Privacy
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 . . .
Continuity
Frames
E-Commerce: Selling on the Internet
Frames . . .
Browsers don’t like them
Printers don’t like them
Search engines don’t like them
People/customers don’t like them
FRAMES
Home Page
User Interface
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
Screen Compatibility
E-Commerce: Selling on the Internet
Recommendation . . .
Resolution-independent pages
800x600 pixels (770x430)
E-Commerce: Selling on the Internet
Resolution Testing - look at your sitewith monitor set to resolutions:
640 x 480
800 x 600
1024 x 768
1152 x 864
1280 x 1024
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
E-Commerce: Selling on the Internet
serif
sans-serif
Text Only Default
Accessibility
E-Commerce: Selling on the Internet
The Law: Section 508 of the Rehabilitation Act
www.cast.org/bobby
[Selectable Image] Bobby Approved Symbol. A friendly uniformed police officer wearing a helmet displaying the wheelchair access symbol. Words “Bobby Approved v3.2” appear to his right. Links to “http://www.cast.org/bobby”.
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!
Beth Duncan, Ph.D. Small Business SpecialistMississippi State University Extension Service [email protected]
Electronic Commerce Selling on the Internet