Electronic Retailing
Selling on the Internet
Source: NUA Internet Surveys
E-Commerce: Selling on the Internet
What is E-Commerce?
• “Conducting financial transactions by electronic
means”
• “Harnessing the power of the Internet to help
you make money more effectively and
efficiently”
Source: Cobb Microenterprise Center
E-Commerce Roadmap
While developing an ECommerce presence, it
is important to know
where you are now as
well as the appropriate
destination for your
business.
.com
Level 5
End-to-end
Fulfillment
 Workflow


Level 4
Integrated
Online orders, payments
 Order tracking, queries
 Funds transfer

Transactional
Level 3
Registration
 Forms
 E-mail

Seamless connectivity
to back-end system(s)
 Minimize/eliminate
manual input on
transactions.
 B2B automated
processes

Level 2
Advertising
 Marketing
 Information
Interactive



Secure transaction processing
Online payment authorization
Authentication and validation

Static
Level 1


No company web site
Can access other sites
No
Capability

Access




Web site connectivity to database
application(s) and email accounts
Web site
Content development & updates
Internet access through ISP
Email accounts
Legend
 - Functions at Level
 - Requirements to achieve next level
Adapted from:www.mepcenters.nist.gov/public/ecommerce-summit.nsf
Small Businesses:
Using the Internet
90%
78%
80%
70%
60%
60%
50%
40%
82%
41%
30%
20%
10%
0%
1999
2000
2001
2002
Source: Virginia Microenterprise Network Regional Conference
Small Businesses
Conducting e-Commerce
80%
72%
70%
58%
60%
50%
37%
40%
30%
20%
10%
8%
0%
1999
2000
2001
2002
Source: Virginia Microenterprise Network Regional Conference
Small Business:
e-Commerce Revenues
$ billions
250
229.8
200
150
135.8
100
72.8
50
35.4
14.9
0
1999
2000
2001
2002
2003
Source: Virginia Microenterprise Network Regional Conference
Source: NUA Internet Surveys
E-Commerce: Selling on the Internet
Reasons some do not sell online . . .
 Products/Services not easily sold on web
 Upfront costs
 Maintenance/upgrade costs
 Lack of in-house tech support
 Online security issues
E-Commerce: Selling on the Internet
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
E-Commerce: Selling on the Internet
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
Getting Started
E-Commerce: Selling on the Internet
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
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
ISP
Internet Service Provider
E-Commerce: Selling on the Internet
Hosting Service Criteria
 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
www.store.yahoo.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
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
What do E-Customers Want?
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
Reference: www.useit.com
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
Reference: Forrester Survey; 1999
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
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 clicks
and 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
Product
Information
Customer
Assistance
E-Commerce: Selling on the Internet
Contact Us:
 E-mail
 Telephone number
 Fax
 Snail Mail
Ordering
Process
Payment
Options
E-Commerce: Selling on the Internet
Methods . . .
 Snail Mail
 Telephone
 Fax
 Online
E-Commerce: Selling on the Internet
With . . .
 Check
 Money Order
 Purchase Order
 Credit Card
 Intermediary
Secure
Transactions
Shopper
Privacy
E-Commerce: Selling on the Internet
Privacy disclosure . . .
 Data gathered
 Use of information
 Disclosure of information
 Protection of information
 Use of cookies and tracking
 Access to account information
 Customer consent
 Customer input - Tell us what you think?
Customer
Service
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 in
as many browsers as possible:
 Netscape
 Explorer
 AOL
 Web TV
 Lynx
Color Palette
E-Commerce: Selling on the Internet
Color Considerations . . .
 Artistic
 Cultural
 Sales
 Technical
Black – United States & Europe
White – China & Japan
Yellow – Egypt & Burma
Purple – Thailand
Blue – Iran
Red – South Africa
Continuity
Home Page
User
Interface
E-Commerce: Selling on the Internet
 Usernomics
 User Interface Design
 Human-Computer Interface
E-Commerce: Selling on the Internet
You need . . .
good technology, and
usability
. . . for a successful web site.
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
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
Text Only
Default
Accessibility
E-Commerce: Selling on the Internet
For Example . . .
 The visually impaired use special readers that read only text.
 Blinking text can trigger seizures in some visitors.
 Poor color choices may render text unreadable to color blind visitors.
 Mouse-dependent site navigation can be difficult for visitors with
physical limitations.
 Information contained in sound clips is inaccessible to hearing-impaired
visitors.
E-Commerce: Selling on the Internet
The Law: Section 508 of the Rehabilitation Act
www.w3.org/WAI
www.cast.org/bobby
Business
Management
www.cjsbows.com
www.cjsbows.com
www.cjsbows.com
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!
Resource
Business to Consumer E-Commerce:
Selling on the Internet
www.msucares.com/business_assistance/homebusiness/ecommerce.html
Beth Duncan, Ph.D.
Small Business Specialist
Mississippi State University Extension Service
bethd@ext.msstate.edu