Lec 5 E-Commerce Stud

BEN2014 Introduction to Cyberpreneurship (by: TPL)
Original Source: Zimmerer & Scarborough (Pearson)
Lecture 5: E-Commerce
Overview
1. The Internet
2. Benefits of Selling on the Web
3. E-Commerce
4. Twelve Myths of E-Commerce
5. Strategies for E-Success
1
The Internet: Changing the Face of Business Pg 310-351
• The most successful companies embrace the

Internet as a mechanism for transforming their
companies and for changing everything about
the way they do business.
• Business basics still apply online just as much
as they do in brick-and-mortar businesses.
• In the world of e-commerce, size matters less
than speed and flexibility.
2
The Internet: Changing the Face of Business Pg 310-351
• Nearly 10 percent of the world’s population –

627 million people – has shopped online at least
once.
• Items purchased most often online: books,
music, DVDs, travel services, clothing, tickets for
entertainment events, electronics, and toys.
• In the U.S., 12 percent of total retail sales will
occur online in 2010.
• Study: by 2010, the Internet will influence one-
half of all retail sales.
3
Benefits of Selling on the Web Pg 310-351
• Opportunity to increase revenues and profits

– Study: 72 percent of small online companies
report increased sales, and 65 percent report
higher profits.
• Ability to expand into global markets
• Ability to remain open 24 hours a day, seven
days a week
• Capacity to use the Web’s interactive nature
to enhance customer service
• Power to educate and inform
4
Benefits of Selling on the Web Pg 310-351
• Ability to lower the cost of doing business

– Study: 73 percent of online small companies
experienced savings because of lower
administrative costs.
• Ability to spot new business opportunities
and capitalize on them
• Ability to grow faster
• Power to track sales results
– Conversion rate – the percentage of
customers to a Web site who actually make a
purchase. 5
E-Commerce Pg 310-351
• 70 percent of small businesses in the U.S.

have a Web presence.
• Of those small business owners who do not
have Web sites:
– 77 percent say their products and services are not
suitable for selling online.
– 37 percent say they do not see any benefits of
selling online.
• Barriers:
– Not knowing how or where to start
– Cost and time concerns
6
Factors to Consider Before Launching Pg 310-351
Into E-Commerce
• How a company exploits the Web’s

interconnectivity and the opportunities it creates
to transform relationships with suppliers,
customers, and others is crucial to its success.
• Web success requires a company to develop a
plan for integrating the Web into its overall
strategy.
7
Factors to Consider Before Launching Pg 310-351
Into E-Commerce
• Developing a deep, lasting relationship with

customers takes on even greater importance on
the Web.
• Creating a meaningful presence on the Web
requires an ongoing investment of resources –
time, money, energy, and talent.
• Measuring the success of a Web-based sales
effort is essential to remaining relevant to
customers whose tastes, needs, and
preferences constantly change.
8
12 Myths of E-Commerce Pg 310-351
Myth 1: Setting up a business on the Web is easy and inexpensive.

Myth 2: If I launch a site, customers will flock to it.
Myth 3: Making money on the Web is easy.
Study: Web retailers invest 65 percent of revenue in marketing
and advertising, compared to just 4 percent for their off-line
counterparts.
Myth 4: Privacy is not an important issue on the Web.
Myth 5: The most important part of any e-commerce effort is
technology.
Myth 6: 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 itself.
9
12 Myths of E-Commerce Pg 310-351
Myth 7: On the Web, customer service is not as important as it is

in a traditional retail store.
Myth 8: Flash makes a Web site better.
Lesson: Simplicity rules!
Myth 9: It’s what’s up front that counts.
Myth 10: E-commerce will cause brick-and-mortar retail stores to
disappear.
Myth 11: The greatest opportunity for e-commerce lies in the
retail sector.
Myth 12: It’s too late to get on the Web.
10
Follow-up Investments Pg 310-351
Setting up a Web site is only the first investment:

• Redesign Web site
• Buy more computer hardware
• Automate or expand warehouse to meet customer demand
• Integrate Web site into inventory control system
• Increase customer call-center capacity
Lesson: Focus on your company’s core competencies and
outsource all other aspects of doing business online.
11
Promotion is the Key! Pg 310-351
• Print URL on everything related to your

business
• Web-based newsletters
• Write articles that link to your company’s Web
site
• Host a customer chat room
• Sponsor online contests
• Establish a blog
12
Strategies for E-Success Pg 310-351
• Focus on a market niche.

• Develop a community.
• Attract visitors by giving away “freebies.”
• Make creative use of e-mail, but avoid becoming a
“spammer.” Make sure your Web site says “credibility.”
• Consider forming strategic alliances.
• Make the most of the Web’s global reach.
• Promote your site online and offline.
• Develop an effective search engine optimization strategy.
13
Search Engine Strategies Pg 310-351
• Natural (organic) listings – arise as a result of “spiders,”

powerful programs search engines use to crawl around the
Web.
• Paid (sponsored) listings – short text ads with links to the

sponsoring company’s Web site.
• Paid inclusion – when a company pays a search engine for

the right to submit either selected pages or its entire Web site
content for listing.
14
Designing a Killer Web Site Pg 310-351
• Understand your target customer.

• Give customers what they want.
• Select a domain name that is consistent with the
image you want to create for your company and
register it.
– Short
– Memorable
– Indicative of a company’s business
– Easy to spell
15
• Make your Web site easy to navigate.

• Create a gift idea center.
• Build loyalty by giving online
customers a reason to return to your
Web site.
• Establish hyperlinks with other
businesses, preferably those selling
complementary products.
16
• Include an e-mail option an a

telephone number in your site.
• Give shoppers the ability to track their
orders online.
• Offer Web shoppers a special all their
own.
• Follow a simple design.
• Create a fast, simple checkout
process.
17
Ensuring Web Privacy Pg 310-351
• Take an inventory of the customer data

collected.
• Develop a company policy for the
information you collect.
• Post your company’s privacy policy
prominently on your Web site and follow it.
18
Ensuring Web Security Pg 310-351
• Virus detection software

• Intrusion detection software
• Firewall
19

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BEN2014 Introduction to Cyberpreneurship (by: TPL)

Original Source: Zimmerer & Scarborough (Pearson)

2. Benefits of Selling on the Web

4. Twelve Myths of E-Commerce

5. Strategies for E-Success

The Internet: Changing the Face of Business Pg 310-351

• The most successful companies embrace the

The Internet: Changing the Face of Business Pg 310-351

• Nearly 10 percent of the world’s population –

Benefits of Selling on the Web Pg 310-351

• Opportunity to increase revenues and profits

Benefits of Selling on the Web Pg 310-351

• Ability to lower the cost of doing business

• 70 percent of small businesses in the U.S.

Factors to Consider Before Launching Pg 310-351

• How a company exploits the Web’s

Factors to Consider Before Launching Pg 310-351

• Developing a deep, lasting relationship with

12 Myths of E-Commerce Pg 310-351

Myth 1: Setting up a business on the Web is easy and inexpensive.

12 Myths of E-Commerce Pg 310-351

Myth 7: On the Web, customer service is not as important as it is

Follow-up Investments Pg 310-351

Setting up a Web site is only the first investment:

Promotion is the Key! Pg 310-351

• Print URL on everything related to your

Strategies for E-Success Pg 310-351

• Focus on a market niche.

Search Engine Strategies Pg 310-351

• Natural (organic) listings – arise as a result of “spiders,”

• Paid (sponsored) listings – short text ads with links to the

• Paid inclusion – when a company pays a search engine for

Designing a Killer Web Site Pg 310-351

• Understand your target customer.

Designing a Killer Web Site Pg 310-351

• Make your Web site easy to navigate.

Designing a Killer Web Site Pg 310-351

• Include an e-mail option an a

Ensuring Web Privacy Pg 310-351

• Take an inventory of the customer data

Ensuring Web Security Pg 310-351

• Virus detection software

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