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Selling on the Internet
Source: www.clickz.com
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
.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.
Know why you are on the Web???Know why you are on the Web???
To make money!!!
Web design is not about art, it's about making money!!!
The Internet Market Channel
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
Examples of Mississippi E-Tailers ...
www.jubilations.com
www.pleasantgrovesoaps.com
www.pennysanford.com
www.dirty-hippie.com
www.iceboxframes.com
www.mscheesestraws.com
www.ebicom.net/~bbj1
www.dixiesnow.com
www.spirit-song-studio.com
www.pashapillow.com
www.deltapecan.com
www.cjsbows.com
Who is going to design, build, and maintain the site???Who is going to design, build, and maintain the site???
In-house vs. Outsourcing
Outsourcing . . .
Know who you are hiring!
. . . and get it in writing!!!
Building a Web Store: Options E-business Template Site
– Yahoo Web Store
Contracting / Outsourcing– Individuals or companies
Do it Yourself– From scratch, combination of the above
Template Site Advantages
– Easy to use: browser based interface– All-in-one solution: domain registration, website
design, administration, and hosting– Relatively fast setup, do not need extensive
technical knowledge– Browse before buying (can look at other sites and
available templates)– May list in online categories and directories
Disadvantages– Limited flexibility in store design and layout– Your store looks very much like other stores
developed with the template service– Additional features, bandwidth, or support may be
extra– Costs usually increase as additional items are
added– Limited support (may be web only)
Template Site
Contracting Websites Advantages
– Increased complexity and customization available
– Experienced individuals can guide your online business and goals
– Technical translation and increased support
Disadvantages– May take hours or days to make changes– Requires time for meetings and reviews– Contractors differ with services, support,
professionalism and assistance– Pricing system may quickly escalate costs
Contracting Websites
Considerations– Always have a contract signed by both
parties with complete disclosure– Contractors will often retain the code,
design, features, images, or even content until payment is received
– Make sure you have agreements on the length, limits, and rates or total price
Contracting Websites
Build it Yourself Advantages
– Customization limited only by your time and financial resources
– Unlimited and free updates (instantly)– Wealth of software and design support
available on the Internet– Easy to incorporate site and business for
continuity
Disadvantages– Time investment: learning software– Time investment: designing site– Time investment: troubleshooting, updating– May require initial upfront costs (often used
as business investments)– Must learn Internet marketing and search
engine techniques
Build it Yourself
Building a Web Store: Costs E-business Template Site
– $40 - $200 (monthly)
Contracting / Outsourcing– $500 - $15,000
Build it Yourself– $0 - $3000 (depends on current situation)
Other Needs: – Domains ($15-$35 annually) – Hosting ($15 - $200 monthly)– Secure Connection ($200-$400 annually)
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
• Domain name• Web site/store• Web server/host• Site marketing
Building Blocks of a Web Store
• Domain name• Web site/store• Web server/host• Site marketing
Building Blocks of a Web Store
Domain Nameswww.yourname.com
Domain Names– Should be your website name (ex. acme.com = ACME, Inc.)– Shorter names are usually easier to remember– Avoid hyphenated names– Avoid plurals, “the”, and “my” if possible– Easy to remember, type and promote– Remember! You can have more than one domain for your
website: amazon.com, amazonbooks.com, amazonvideos.com, amazonndvds,com, amazonkids.com
• Domain name• Web site/store• Web server/host• Site marketing
Building Blocks of a Web Store
• Web site/store• Online product catalog• Shopping model/Ordering system• Merchant account/Payment processing• Customer communication system• Tracking system
Building Blocks of a Web Store
Shopping Cart, SSL, & Online Payment Methods
Shopping Carts/Bags– Must be easy (intuitive) to use– Support common functions (add, remove, modify, clear,
save, checkout)
Secure Socket Layer (SSL)– Provides a secure transaction link– Gives buyer and sellers confidence
Online payment processing system – Standard: credit cards
– Alternatives: PayPal
Methods . . . Snail Mail
Telephone
Fax
Online
Check Money Order
Purchase Order
Credit Card
Intermediary
With . . .
www.paypal.com
What do you need for an e-commerce site . . .
• Domain name• Web site/store• Web server/host• Site marketing
Hosting and Support Hosting Company - MUST HAVE!
– Easy to use interface, navigation, support– Telephone support number (try it out!)– Reliable hosting (99.999% uptime guaranteed)– Support for the features of your website
(ASP/PHP, FrontPage extensions, SSL, database support)
– Clear pricing structure, quick turn-a-round
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
http://smallbusiness.yahoo.com/merchant
Merchant Starter$50 start-up; $39.95/month; 1.5% transaction fee
Merchant Standard$50 start-up; $99.95/month; 1% transaction fee
Merchant Professional$50 start-up; $299.95/month; .75% transaction fee
What do you need for an e-commerce site . . .
• Domain name• Web site/store• Web server/host• Site marketing
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
Factors driving repeat visits to a Web site . . .
• High quality content• Ease of use• Minimal download time• Updated often
Reference: Forrester Survey; 1999
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
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 System Always present (located on every page – possibly
more than once) Intuitive menu names Interactive effects (highlighting, changing sizes,
shapes, or colors) Compatible with audience viewing level (text, images,
JAVA, Flash) Minimal searching (approximately 1-3 “clicks” for any
location on your site)
Navigational Tools
Location
Consistency
Where am I?
Where have I been?
Where can I go?
Don’t make me think!!!
3 clicksand you’re out!
Content, Content, Content Content should be:
– Clear, concise and complete– Bold, italics, and underlines for quick searching– Descriptive and dynamic (changing to the user’s
needs)– Grammatically correct
“People want to do business with people they believe to be professional.”
Reference: Flanders/Willis; Web Usability Specialists
Telephone number
Fax
Snail Mail
Contact Us:
Elements to consider . . .
Bandwidth Browser compatibility Color palette Continuity Frames Homepage
User Interface Screen compatibility Readability Text only default Accessibility
Elements to consider . . .
Download time . . .
1-2 seconds
< 13 seconds
> 20 GONE!
Decrease download time by . . .
designing for 56k modem
keeping page sizes <50k
applying the KISS rule
“Remove graphic; increase traffic. It’s that simple.”
Reference: Dr. Jakob Nielsen; Web Usability Specialist; www.useit.com
NETSCAPE
EXPLORER
NETSCAPE
EXPLORER
Browser Testing - view your site inas many browsers as possible:
Netscape
Explorer
AOL
Web TV
Lynx
Artistic
Cultural
Sales
Technical
Color Considerations . . .
Black – United States & EuropeWhiteWhite – China & JapanYellowYellow– Egypt & BurmaPurplePurple – ThailandBlueBlue – IranRedRed – South Africa
www.nwa.com
How’s this for readability?
Recommendations . . . Good background/text contrast
Avoid patterned backgrounds
Easy to read fonts
Make words count
Short paragraphs
Bulleted lists
www.cedcc.psu.edu/ritter/web-demo/elements.html
www.cjsbows.com
www.cjsbows.com
www.cjsbows.com
www.cjsbows.com
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
Business to Consumer E-Commerce: Selling on the Internet
Resource
Beth Duncan, Ph.D. Small Business SpecialistMississippi State University Extension Service [email protected]
Selling on the Internet
http://coldfusion.art.msstate.edu
http://www.everestgum.com
http://offeringsjewelry.com
http://www.chipotle.com
http://www.bernheimerhouse.com
http://www.pleasantgrovesoaps.com
http://www.jubilations.com
http://www.hersheys.com
http://www.crystalls.com
http://www.shoppingbargains.com
http://www.personalizedboutique.com
http://www.satellitediscountstore.com
http://www.bagpipesonly.com
http://www.atouchof-elegance.com
http://www.vermontteddybear.com
