A Beginners Guide to e-Commerce:
Tools for Profit
Extension Worker Training
Kimball P.Marshall, Ph.D., Alcorn State University
kimball.p.marshall@netzero.net
Ilya Smolyaninov, Alcorn State University
Igor Georgievskii, Alcorn State University
Leigh Junkin, Alcorn State University
March 15, 2008

Chapter 1: Introduction – Objective,
Premises, and Content of this Training
Manual
Objective
Provide guidance to Extension workers to encourage
rural people to begin small-scale Internet-based
e-Commerce activities
Premises
 Rural populations must have confidence in their ability to
use e-Commerce for personal goals.
 Extension workers must encourage this confidence and
provide support as skills are developed.
 Expectancy and Locus of Control theories provide
theoretical frameworks for building confidence in rural
populations who are just beginning internet businesses
 Existing e-Commerce private sector sites provide
opportunities for all skill levels to enter e-Commerce

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Chapter 1: Slide 1
Content of Remaining Chapters
Chapter 2 Explains how expectancy theory and locus of control
theory can be applied to rural populations that might
have limited internet skills.
Chapter 3 Provides success stories of using e-Commerce to
sell rural life skills products
Chapter 4 Provides guidance identifying rural life skills
products appropriate for e-Commerce
Chapter 5 Introduces simple approaches to e-Commerce such
as selling products on Internet auction sites
Chapter 6 Provides guidance in basic personal finance
management skills for entering e-Commerce
Chapter 7 Reviews what has been learned and encourages
actions, evaluations, and feedback
Chapter 1: Slide 2
Chapter 2: Building Confidence –
Expectancy and Locus of Control
Theories of Motivation

Rural populations may face many e-Commerce
barriers
 Lack of information and experience
 Lack of knowledge about similar people
 Lack of role models

Two key theories of managerial psychology can
help clients achieve goals
 Expectancy Theory
 Locus of Control Theory
Chapter 2: Slide 1
Expectancy Theory

Expectancy Theory involves establishing three basic beliefs:
 The individual must believe that he or she can perform the
required tasks.
 The individual must believe that performing the tasks
specified will lead to the intended results of the task.
 The individual must believe that, as a result of successfully
achieving the desired outcomes, the individual will achieve
the reward that the individual desires.
Chapter 2: Slide 2
Locus of Control Theory
Locus of Control refers to whether an individual perceives himself
or herself as having the ability to achieve personal goals or
whether the individual perceives their fate as controlled by
external conditions
Internal locus of control
External locus of control
You believe you can set
and achieve your own
goals
You believe you must
depend on others to set
and fulfill goals
Chapter 2: Slide 3
Self Reliance
Chapter 2: Slide 4
Challenges Facing Rural e-Commerce Beginners

Persons with an internal locus of control
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Persons with an external locus of control

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Have confidence in their ability to perform desired tasks
Recognize that this ability allows them to achieve personal
goals
Might not believe that they can accomplish the desired
tasks
Lack confidence in their ability to achieve personal goals
The Extension worker’s challenge is to build clients’
confidence



In their goals
In their ability to achieve their goals
In their ability to perform the necessary e-Commerce tasks
Chapter 2: Slide 5
Discussion Topics and Exercises

Explore clients’ desires for financial, social and psychological
rewards from self-owned business ventures

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Free flowing discussions with groups of clients and
extension workers can help clients identify desired rewards
(financial, social and psychological)
All members of the group should be encouraged to share
their ideas with one another
Explore clients’ awareness of neighbors who produce and sell
products on a small scale for “extra cash”

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Entrepreneurial small farmers who engage in truck farming
activities
People who participate in local farmers markets
Persons who are known to make special products such as
jams, jellies, toys, quilts or other craft products
Chapter 2: Slide 6
Chapter 3. Microenterprise Success
Stories from Rural Communities

Success stories will
 Build confidence
 Motivate
 Stimulate vision
 Provide reference groups for beginning clients

Key success story illustrations include
 Oyster Creek Mushroom Company
 Indian Village
Chapter 3: Slide 1
Examples of rural,
microenterprise e-Commerce
help people understand that
rural life skills have value and
that their products can be sold
through e-Commerce
Chapter 3: Slide 2
Oyster Creek Mushroom Company
Strategy in Action
www.oystercreekmushroom.com
Oyster Creek Mushroom Company of Damariscotta, Maine
shows how e-Commerce can serve specialty food niche
markets. The Web site explains that the company grows “the
very best” Shiitake Mushrooms, as well as a variety of fresh
wild mushrooms, and offers dried mushrooms, mushroom
powders, flavored mushroom oils, and gift boxes. The site
also tells the owners’ personal story, educates customers
about wild mushrooms, offers recipes, and allows customers
to purchase online.
Chapter 3: Slide 3
www.oystercreekmushroom.com
Reproduced with permission from Dan Heydon, Oyster Creek Mushroom Company
Chapter 3: Slide 4
Indian Village
Strategy in Action
www.indianvillage.com
One of the most interesting rural e-Commerce Web sites is
www.IndianVillage.com, an online shopping mall with many
links to Indian related web sites such as Durango Silver
Company that offers turquoise jewelry and cabochons through
its eBay store. Other IndianVillage.com Web site links
displays American Indian artisans offering pottery, basketry,
textiles, beadwork and Indian jewelry.
Chapter 3: Slide 5
www.indianvillage.com
Reproduced with permission from John Hartman, Durango Silver Company
Chapter 3: Slide 6
Discussion Topics and Exercises

Seek local area success stories from clients
 Identify family members, neighbors, work colleagues, and
friends who have sold products on the Internet
 Ask questions such as
• How did they do it?
• What auction site(s) do they know about?
• Did they make money?

Review Web pages success stories
 Print or display Web pages
 Ask clients to think of products they might sell
 Discuss costs involved
• Time
• Supplies
 Compare prices of similar products being sold on the Internet
• With client, search Internet stores and online auctions
Chapter 3: Slide 7
Chapter 4. Valuing Rural Life Skills and
Products
Rural clients need to recognize the market value of his or her
skills and the products they can produce
Chapter 4: Slide 1
Common Rural Life Skills

A variety of job skills can produce
marketable products appropriate
for high-margin e-Commerce
sales:
 Food processing
 Fabric crafts
 Carpentry and wood working
 Visual arts
 Music
 Book publishing
Chapter 4: Slide 2
Food Processing

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Jams, jellies, candies, relishes
“Home grown” or “gourmet” foods
Extension workers can help with health regulations and licenses
Chapter 4: Slide 3
Fabric Crafts
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Sewing
Knitting
Crocheting
Quilting
Leather goods
Embroidery
Fabric toys
Chapter 4: Slide 4
Carpentry and Woodworking

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Furniture
Toys
Art objects
Yard décor
Dollhouses
Mailboxes
Chapter 4: Slide 5
Visual Arts

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Painting
Photography
Sculpture
 Clay
 Metal
 Ceramic
 Wood
Pottery
 Decorative
 Functional
Chapter 4: Slide 6
Music

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Independent artists
Musical groups
Church choirs
Chapter 4: Slide 7
Book Publishing

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Rural authors
Cultural or historical organizations
Club fund raisers
Genealogical materials
Chapter 4: Slide 8
Discussion Topics and Exercises


Discover the clients’ skills and products
 Products that were made as presents or to use at home
Explore market potentials for client-made products
 Seek similar products on Internet auction sites
 Note final prices and bid patterns
 Observe intensity of bid activity in the final hour of the
auction
 Note number of different sellers offering similar products
Chapter 4: Slide 9
Chapter 5: Simple E-Commerce
Approaches for Getting Started
Online auction and shopping Websites are where people and
businesses buy and sell goods and services worldwide
Chapter 5: Slide 1
Things Clients Need to Know About Selling
Online
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Obtain Internet access and an e-mail address
Register as a seller on an Internet auction site
Establish a payment system to receive your money
Create a listing to offer your product
Actively sell your product during the offering time
Arrange payment and shipping
Buyer and seller feedback through the Internet auction site
Chapter 5: Slide 2
Obtain Internet Access and an E-mail Address


Free Internet access is often available in the community
Free e-mail accounts are available through several reputable
internet sites
Chapter 5: Slide 3
Register as a Seller
 Basic Steps:

Enter basic information

Choose your User ID and password

Click on the register link at the top of most Internet
auction pages

Get a confirmation e-mail
Chapter 5: Slide 4
Establish a Payment System
 Requirements for efficient, secure
sales:

Local bank account to receive
payments

Secure payment method for
customers
–
PayPal
(https://www.paypal.com/)
Chapter 5: Slide 5
Create a Listing

Decide what to sell

Complete online listing form

Auction format

Fixed price format

Classified ad format

“Store” format

Select a category

Specify a title

Write a description

Take digital photographs

Beginning and ending times for the auction

Other listing information
Chapter 5: Slide 6
Sell the Product

Monitor the process regularly
 Check e-mail and the auction

Communicate with interested buyers
 Reply to information requests quickly

Promptly close the sale
 Notify winning bidder
 Confirm purchase
Chapter 5: Slide 7
Payment and Shipping

Monitor payment method

Ship product when
payment is received

Pack product properly

Insure the product

Get a tracking number

Use a reputable carrier
 USPS
 UPS
 FedEx
 DHL
Chapter 5: Slide 8
Buyer and Seller Feedback

Use the auction site process
for buyer and seller feedback

Feedback is important to
create a trustworthy online
auction community

Trust builds sales
Chapter 5: Slide 9
E-Commerce
Check-sheet,
Sales Listing
Worksheet, and
Sales Log
Chapter 5: Slide 10
Chapter 5: Slide 11
Discussion Topics and Exercises

Work with clients to identify free computer and e-mail access
resources

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Churches, public libraries, schools
Ask friends and relatives for assistance
Demonstrate how to use e-mail and the Internet
Demonstrate Internet auctions with clients who are
beginners.
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Perform searches
Monitor auction activity
Determine shipping options and costs
Calculate realistic prices for products to be sold
Chapter 5: Slide 12
Chapter 6: Financial Literacy, Records,
Taxes and Internet Transactions

The Extension worker should help the client develop basic
financial literacy skills needed for e-Commerce

Basic recordkeeping

Sales tax
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Income tax

How to get paid?
Chapter 6: Slide 1
Recordkeeping
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Simple accounting approaches of keeping records
Use IRS Schedule C as template
Help client organize simple ledger
Chapter 6: Slide 2
Schedule C
Chapter 6: Slide 3
Simple Ledgers
Chapter 6: Slide 4
Sales Taxes

Consult with state tax authority to determine current policies

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Sales tax may be state, county, or city specific
Most states do not require the Internet seller to pay sales
tax on out-of-state sales
Local Extension worker assistance will be important

Assist with setting up a sales
tax account if necessary
Chapter 6: Slide 5
Personal Income Taxes

Profits from e-Commerce sales are subject to taxes

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Federal, state, and local income taxes
Self-employment taxes

Portion of e-Commerce revenues should be set aside
in a bank account

Forms to become familiar with
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IRS Form 1040 Schedule C
IRS Schedule SE
State income tax form (state-dependent)
Again, local Extension worker assistance will be
important
Chapter 6: Slide 6
How to Get Paid: The Need for a Basic Bank
Checking Account and Third Party Payment
System

Important challenge is to encourage clients to
develop trust in credit and banking systems

Bank checking account is critical for e-Commerce
selling

PayPal third party payment account is strongly
advised

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Provides a safe and secure method to
purchase goods
Speeds up the seller’s receipt of funds from a
sale
Bank, PayPal, and shipping fees should be taken
into consideration when setting product prices
Chapter 6: Slide 7
Discussion Topics and Exercises

Financial literacy discussions

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Discuss how client feels about banks and payment systems
Discuss client’s current method of handling personal
finances
Include information about credit and interest rates
See the Financial Fitness Quiz at
http://njaes.rutgers.edu/money/ffquiz
The need for basic recordkeeping


Clients should work in groups to review the IRS Schedule C
(1040 form)
Keeping good records is critical to the success of any
business
Chapter 6: Slide 8
Chapter 7: Now Let’s Get Started
We have addressed these key issues…
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Expectancy and Locus of Control Theories
e-Commerce success stories
Common rural life skills can become marketable products
Steps to begin e-Commerce activity
Financial management issues
Let’s bring these opportunities to our
Clients!
Chapter 7: Slide 1
A Trainer’s Checklist for Introducing
E-Commerce to Clients
Chapter 7: Slide 2
Evaluation
Evaluation is important to ensure that the training program is
effective and to provide for continuous improvement. Evaluation
forms are included in the manual. Thank you for taking the time
to see that they are completed.
Chapter 7: Slide 3