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

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BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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 onehalf of all retail sales. 3

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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 5 purchase.

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

Factors to Consider Before Launching Into E-Commerce

Pg 310-351

• 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.

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BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

Factors to Consider Before Launching Into E-Commerce

Pg 310-351

• 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

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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.

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BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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.

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BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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

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BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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.

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BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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.

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BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

Designing a Killer Web Site

Pg 310-351

• 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

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

Designing a Killer Web Site

Pg 310-351

• 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

BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

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.

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BEN2014 Introduction to Cyberpreneurship (by: TPL) Original Source: Zimmerer & Scarborough (Pearson)

Ensuring Web Security

Pg 310-351

• Virus detection software • Intrusion detection software • Firewall

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