Basics of

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• Topic 1
• Basics of
• e-Commerce
• Getting Started

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Objectives of Topic 1

• What is e-commerce?
• Differences from traditional commerce
• Advantages, statistics, benefits of
• e-commerce
• Roadmap of getting started in
• e-commerce

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Objectives of Topic 1 CONTINUED

• Types of e-commerce
• Example of e-commerce
• Technology requirements of e-commerce
• Evaluate whether e-commerce is right for YOUR
  individual business situation

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So, what is e-commerce?

• E-commerce
• is defined as
• the buying and selling of goods and services on
  the World Wide Web

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Differences between e-commerce and traditional
commerce

• Traditional commerce
• transactions consist of person-to-person contact
  -- in person, over the phone, or via snail mail
• E-commerce
• transactions are transmitted over a computer
  network world wide web

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Differences between e-commerce and traditional
commerce CONTINUED

• Traditional commerce
• transactions handled manually
• E-commerce
• automates transactions
• Customers go to a web site
• Get information
• Click a button to make a purchase
• Can choose and order products services, make
  payments, and even monitor their order status

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Differences between e-commerce and traditional
commerce CONTINUED

• Traditional commerce
• constrained by physical location and/or business
  hours
• E-commerce
• global market
• 24 hours-a-day, 7 days-a-week

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Advantages of e-Commerce

• A small business can
• Provide better service to
• existing customers
• Reach out to new markets
• Reduce cost of sales, and
• Grow its bottom line!

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e-Commerce Statistics
Source ActivMediad
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e-Commerce Statistics CONTINUED

• Service industry quote requests have increased by
  180 percent in the past 14 months NUA Internet
  Surveys
• Sales in the nine leading on-line categories
  have the potential to grow from 34 billion in
  2000 to 168 billion by 2005 The Boston
  Consulting Group

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Benefits of e-Commerce

• By using e-commerce, ANY business, regardless of
  size, can reach out to new markets that might
  otherwise be unobtainable
• Products and services sold over the web are
  available to customers all over the world anytime

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Benefits of e-Commerce CONTINUED

• E-commerce can increase the speed, accuracy and
  efficiency of business transactions by reducing
  errors and duplicated work, and minimizing
  product returns

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Benefits of e-Commerce CONTINUED

• E-commerce also lowers the cost of sales by
  allowing customers to create and send purchase
  orders
• on-line
• This reduces both time and expensive overhead
  costs of sales processing

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Benefits of e-Commerce CONTINUED

• Finally, businesses can use
• e-commerce data to refine product offerings
  and forecast product sales
• This lets them focus on their best-selling
  products, thereby controlling procurement
  expenses

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E-Commerce Roadmap
While developing an E-Commerce presence, it is
important to know where you are now as well as
the appropriate destination for your business
Level 5

• End-to-end
• Fulfillment
• Workflow

• Seamless connectivity to back-end system(s)
• Minimize/eliminate manual input on transactions.
• B2B automated processes

Level 4
Integrated

• Online orders, payments
• Order tracking, queries
• Funds transfer

Transactional
Level 3

• Registration
• Forms
• E-mail

• Secure transaction processing
• Online payment authorization
• Authentication and validation

Level 2
Interactive

• Advertising
• Marketing
• Information

• Web site connectivity to database application(s)
  and email accounts

Static
Level 1

• No company web site
• Can access other sites

• Web site
• Content development updates

Access

• Internet access through ISP
• E-mail accounts

• Legend
• - Functions at Level
• - Requirements to achieve next level

No Capability
Adapted from www.mepcenters.nist.gov/public/ecomm
erce-summit.nsf
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Level 0 NO CAPABILITY
Where we are ...

• No Internet Access
• Internet access through ISP
• E-mail accounts

?
To Get to Next Level ...
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Level 1 ACCESS
Where we are ...

• No company web site
• Can access other sites
• Web site
• Content develop-ment updates

e-mail
To Get to Next Level ...
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Level 2 STATIC
Where we are ...

• Advertising
• Marketing
• Information
• Web site connectivity to database appli-cation(s)
  and e-mail accounts

FOR SALE
To Get to Next Level ...
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Level 3 INTERACTIVE
Where we are ...

• Registration
• Forms
• E-mail
• Secure transaction processing
• Online payment authorization
• Authentication and validation

To Get to Next Level ...
ORDER FORM
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Level 4 TRANSACTIONS
Where we are ...

• Online orders, payments
• Order tracking, queries
• Funds transfer
• Seamless connectivity to back-end system (s)
• Minimize/eliminate manual input on transactions
• B2B automated processes

ON-LINE ORDERING
To Get to Next Level ...
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Level 5 INTEGRATION
Where we are ...

• End-to-end
• Fulfillment
• Workflow
• At .com Level

We're There!!
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E-Commerce Roadmap
While developing an E-Commerce presence, it is
important to know where you are now as well as
the appropriate destination for your business
Level 5

• End-to-end
• Fulfillment
• Workflow

• Seamless connectivity to back-end system(s)
• Minimize/eliminate manual input on transactions.
• B2B automated processes

Level 4
Integrated

• Online orders, payments
• Order tracking, queries
• Funds transfer

Transactional
Level 3

• Registration
• Forms
• E-mail

• Secure transaction processing
• Online payment authorization
• Authentication and validation

Level 2
Interactive

• Advertising
• Marketing
• Information

• Web site connectivity to database application(s)
  and email accounts

Static
Level 1

• No company web site
• Can access other sites

• Web site
• Content development updates

Access

• Internet access through ISP
• Email accounts

• Legend
• - Functions at Level
• - Requirements to achieve next level

No Capability
Adapted fromwww.mepcenters.nist.gov/public/ecomme
rce-summit.nsf
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Types of e-Commerce

• Business-to-consumer B2C
• Business-to-business B2B
• Business-to-government B2G

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Lets Look at Newly Developed e-Commerce Site
www.techfarmsales.latech.edu
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Home Page
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Map
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Background Info
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FAQ's
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Subscription Services
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Other Methods of Contact
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Tech Farm Salesroom

• What characteristics of the web-site are similar
  to your needs?
• What characteristics are different from your
  needs?

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Tools to Get Started

• Internet Software
• Browsers
• Internet Explorer
• Netscape
• Other
• e-mail Clients
• MS Outlook
• Netscape Mail
• Pegasus Other

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Tools to Get Started

• Web Site Design Software
• Dream Weaver
• FrontPage
• Other WYSIWYG html editor
• FTP (File Transfer Protocol) Software
• optional if you have Dream Weaver or FrontPage
  
• Graphics Software
• Photoshop
• Other

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Estimated e-CommerceHardware Requirements

• Personal Computer 700
• Printer 75
• Scanner 100
• TOTAL HARDWARE 875

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Estimated e-CommerceSoftware Requirements

• Microsoft FrontPage 169
• Microsoft Office XP Pro 328
• Photoshop 325
• Winzip 35
• WS_FTP 40
• TOTAL SOFTWARE 897

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Estimated e-CommerceServices Requirements

• Internet Service Provider ISP 420
• Web Hosting 350
• Domain Name Registration 35
• TOTAL SERVICE FOR 1 YR. 805

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Estimated Fees for Transaction Processing
Technologies

• Storefront Shopping Cart 895 -
  one time
• Secure Certificate 128/40 bit 895 (349) -
  annual
• Payflow Pro 895 - one time
• OR SSL ID Payflow Pro 1395 - one
  time
• iBill charges 15 of sales flat fee for all of
  the above No merchant account required

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Estimated Fees for Transaction Processing
Technologies

• Setup fee VeriSign 0
• Visa/Mastercard rate 2.3
• Visa/Mastercard transaction fee 0.30
• Minimum monthly payment 25
• Monthly service fee 10
• Non-Visa/Mastercard 0.30
• transaction fee

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Tools to Get Started

• If you want to accept checks and credit cards
  online you will need
• An Internet merchant account
• A secure server layer ID
• Transaction processing software
• Shopping cart software

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Thank You!!

• Are there any questions?