E-Commerce and the E-Commerce and the EntrepreneurEntrepreneur

The internet remains a place The internet remains a place where you can start with nothing where you can start with nothing

and soon challenge the gods.and soon challenge the gods.--Mark DiMassimoMark DiMassimo

Benefits of Selling on the Benefits of Selling on the WebWeb

The opportunity to increase revenues and The opportunity to increase revenues and profits.profits.

The ability to expand their reach into global The ability to expand their reach into global markets.markets.

The ability to remain open 24 hours a day, The ability to remain open 24 hours a day, seven days a week.seven days a week.

The capacity to use the web’s interactive nature The capacity to use the web’s interactive nature to enhance customer service.to enhance customer service.

The power to educate and to inform.The power to educate and to inform. The ability to lower the cost of doing business.The ability to lower the cost of doing business. The ability to spot new business opportunities The ability to spot new business opportunities

and to capitalize on them.and to capitalize on them. The ability to grow faster.The ability to grow faster. The power to track sales results.The power to track sales results.

Factors to Consider before Factors to Consider before Launching into E-CommerceLaunching into E-Commerce

How a company exploits the web’s interconnectivity How a company exploits the web’s interconnectivity and the opportunities it creates to transform and the opportunities it creates to transform relationships with its suppliers and vendors, its relationships with its suppliers and vendors, its customers, and other external stakeholders is customers, and other external stakeholders is crucial to its success.crucial to its success.

Web success requires a company to develop a plan Web success requires a company to develop a plan for integrating the web into its overall strategy. for integrating the web into its overall strategy.

Developing deep, lasting relationships with Developing deep, lasting relationships with customers takes on even greater importance on the customers takes on even greater importance on the web.web.

Creating a meaningful presence on the web requires Creating a meaningful presence on the web requires an ongoing investment of resources-time, money, an ongoing investment of resources-time, money, energy, and talentenergy, and talent

Measuring the success of its web-based sales effort Measuring the success of its web-based sales effort is essential if a company is to remain relevant to is essential if a company is to remain relevant to customers whose tastes, needs, and preferences are customers whose tastes, needs, and preferences are always changing.always changing.

Factors to Consider before Factors to Consider before Launching into E-Commerce Launching into E-Commerce

(cont’d)(cont’d) What exactly do you expect a web What exactly do you expect a web

site to do for your company?site to do for your company? How much can you afford to invest in How much can you afford to invest in

an e-commerce effort?an e-commerce effort? What rate of return do you expect to What rate of return do you expect to

earn on that investment?earn on that investment? How long can you afford to wait for How long can you afford to wait for

that return?that return? How well suited are your products How well suited are your products

and services for selling on the web? and services for selling on the web? How will the “back office” of your How will the “back office” of your

web site work?web site work? How will you handle order fulfillment?How will you handle order fulfillment?

Factors to Consider before Factors to Consider before Launching into E-Commerce Launching into E-Commerce

(cont’d)(cont’d) What impact, if any, will your web site have on What impact, if any, will your web site have on

your company’s traditional channels of your company’s traditional channels of distribution?distribution?

What mechanism will your site use to ensure What mechanism will your site use to ensure secure customer transactions?secure customer transactions?

How will your company handle customer How will your company handle customer service for the site?service for the site?

How do you plan to promote the site to draw How do you plan to promote the site to draw traffic to it?traffic to it?

What information will you collect from the What information will you collect from the visitors to your site? visitors to your site?

Have you developed a privacy policy?Have you developed a privacy policy? Have you tested your site with real, live Have you tested your site with real, live

customers to make sure that it is easy to customers to make sure that it is easy to navigate and easy to order from?navigate and easy to order from?

How will you measure the success of your How will you measure the success of your company’s web site?company’s web site?

Twelve Myths of E-Twelve Myths of E-CommerceCommerce1.1. Setting up a business on the web is easy and inexpensiveSetting up a business on the web is easy and inexpensive

2.2. If I launch a site, customers will flock to itIf I launch a site, customers will flock to it3.3. Making money on the web is easyMaking money on the web is easy4.4. Privacy is not an important issue on the webPrivacy is not an important issue on the web5.5. The most important part of any e-commerce effort is The most important part of any e-commerce effort is

technologytechnology6.6. ““Strategy? I don’t need a strategy to sell on the web! Strategy? I don’t need a strategy to sell on the web!

Just give me a web site, and the rest will take care of Just give me a web site, and the rest will take care of itself”itself”

7.7. On the web, customer service is not as important as it is On the web, customer service is not as important as it is in a traditional retail storein a traditional retail store

8.8. Flash makes a web site betterFlash makes a web site better9.9. It’s what’s up front that countsIt’s what’s up front that counts10.10. E-commerce will cause brick-and-mortar retail stores to E-commerce will cause brick-and-mortar retail stores to

disappeardisappear11.11. The greatest opportunities for e-commerce lie in the The greatest opportunities for e-commerce lie in the

retail storeretail store12.12. It’s too late to get on the webIt’s too late to get on the web

Strategies for E-SuccessStrategies for E-Success Focus on a Niche in the MarketFocus on a Niche in the Market Develop a CommunityDevelop a Community Attract Visitors by Giving Away “Freebies”Attract Visitors by Giving Away “Freebies” Make Creative Use of E-mail, but Avoid Make Creative Use of E-mail, but Avoid

Becoming a SpammerBecoming a Spammer Make Sure Your Web Site Says Make Sure Your Web Site Says

“Credibility”“Credibility” Consider Forming Strategic AlliancesConsider Forming Strategic Alliances Make the Most of the Web’s Global ReachMake the Most of the Web’s Global Reach Promote Your Web Site Online and OfflinePromote Your Web Site Online and Offline Develop an Effective Search Engine Develop an Effective Search Engine

Optimization (SEO) StrategyOptimization (SEO) Strategy

Designing a Killer Web SiteDesigning a Killer Web Site Understanding Your Target CustomerUnderstanding Your Target Customer Give Customers What They WantGive Customers What They Want Select an Intuitive Domain NameSelect an Intuitive Domain Name Make Your Web Site Easy to NavigateMake Your Web Site Easy to Navigate Create a Gift Idea CenterCreate a Gift Idea Center Build Loyalty by Giving Online Customers a Build Loyalty by Giving Online Customers a

Reason to Return to Your Web SiteReason to Return to Your Web Site Establish Hyperlinks with Other Businesses, Establish Hyperlinks with Other Businesses,

Preferably Those Selling Products or Preferably Those Selling Products or Services That Complement YoursServices That Complement Yours

Include an E-mail Option and a Telephone Include an E-mail Option and a Telephone Number in Your Site Number in Your Site

Designing a Killer Web Site Designing a Killer Web Site (cont’d)(cont’d)

Give Shoppers the Ability to Track Their Orders Give Shoppers the Ability to Track Their Orders OnlineOnline

Offer Web Shoppers a Special All Their OwnOffer Web Shoppers a Special All Their Own Follow a Simple DesignFollow a Simple Design Create fast, simple checkout processCreate fast, simple checkout process Assure customers that their online transactions Assure customers that their online transactions

are secureare secure Post shipping and handling charges up frontPost shipping and handling charges up front Confirm transactionsConfirm transactions Keep your site updatedKeep your site updated Test your site oftenTest your site often Consider hiring a professional to design your siteConsider hiring a professional to design your site

Tips for Website DesignTips for Website Design Avoid clutter.Avoid clutter. Avoid huge graphic headers that must download first, Avoid huge graphic headers that must download first,

prohibiting customers from seeing anything else on your prohibiting customers from seeing anything else on your site as they wait (or most likely, don’t wait).site as they wait (or most likely, don’t wait).

Include a menu bar at the top of the page that makes it Include a menu bar at the top of the page that makes it easy for customers to fine their way around the site.easy for customers to fine their way around the site.

Make the site easy to navigate by including navigation Make the site easy to navigate by including navigation buttons at the bottom of pages that enable customers to buttons at the bottom of pages that enable customers to return to the top of the page or to the menu bar.return to the top of the page or to the menu bar.

Regularly look for a broken links on your site and purge Regularly look for a broken links on your site and purge them.them.

Incorporate meaningful content in the site that is useful Incorporate meaningful content in the site that is useful to visitors, well organized, easy to read, and current.to visitors, well organized, easy to read, and current.

Tips for a Website Design Tips for a Website Design (cont’d)(cont’d)

Include a “frequently asked questions” section.Include a “frequently asked questions” section. Be sure to post prominently privacy and return Be sure to post prominently privacy and return

policies as well as product guarantees the policies as well as product guarantees the company offers.company offers.

If your site is heavy on content, say, 100 or more If your site is heavy on content, say, 100 or more pages, or has more that 100 products for sale, pages, or has more that 100 products for sale, include a search tool that allows visitors to find include a search tool that allows visitors to find the product or information they want.the product or information they want.

Avoid fancy typefaces and small fonts because Avoid fancy typefaces and small fonts because they are too hard to read.they are too hard to read.

Be vigilant for misspelled words, typographical Be vigilant for misspelled words, typographical errors, and formatting mistakes; they destroy a errors, and formatting mistakes; they destroy a site’s credibility in no time.site’s credibility in no time.

Avoid using small fonts on busy backgrounds; no Avoid using small fonts on busy backgrounds; no one will read them!one will read them!

Tips for a Website Design Tips for a Website Design (cont’d)(cont’d)

Use contrasting colors of text and graphics.Use contrasting colors of text and graphics. Be careful with frames.Be careful with frames. Test the site on different web browsers and Test the site on different web browsers and

on different-size monitors.on different-size monitors. Use your web site to collect information for Use your web site to collect information for

visitors, but don’t tie up visitors visitors, but don’t tie up visitors immediately with a tedious registration immediately with a tedious registration process.process.

Avoid automated music that plays Avoid automated music that plays continuously and cannot be cut off.continuously and cannot be cut off.

Remember: Simpler usually is better.Remember: Simpler usually is better.

Tracking Web ResultsTracking Web Results

Software solutionsSoftware solutions Commerce Commerce

metrics.metrics. Visitor Visitor

segmentation segmentation measurements.measurements.

Content reports.Content reports. Process Process

measurements.measurements.

Tracking Web Results Tracking Web Results (Cont’d)(Cont’d)

Other common web site performance Other common web site performance include the following:include the following:

Click-through rate (CTR)Click-through rate (CTR)CTR = number of clicks / number of impressionsCTR = number of clicks / number of impressions

The cost per acquistion (CPA)The cost per acquistion (CPA)CPA = total cost of acquiring a new customer / CPA = total cost of acquiring a new customer /

number of new customersnumber of new customers The conversion (or browse-to-buy) The conversion (or browse-to-buy)

ratioratioConversion rate = number of customers who made Conversion rate = number of customers who made

a purchase / number of visitors to the sitea purchase / number of visitors to the site

Tracking Web Results Tracking Web Results (cont’d)(cont’d)

Gathering performance Gathering performance indicatorsindicators Clustering.Clustering. Collaborative filtering.Collaborative filtering. Profiling systems.Profiling systems. Artificial intelligence (AI).Artificial intelligence (AI).

Ensuring Web Privacy and Ensuring Web Privacy and SecuritySecurity

PrivacyPrivacy Take the inventory of the Take the inventory of the

customer data collectedcustomer data collected Develop a company privacy Develop a company privacy

policy for the information policy for the information you collectyou collect

Post your company’s Post your company’s privacy policy prominently privacy policy prominently on your web site and follow on your web site and follow itit

SecuritySecurity