Internet and Business

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Internet and Business
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Sales Estimates 2006

• Online retail sales 195 billion
• 25 (48 billion) from online auctions

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E-Commerce Models

• Storefront Model
• Shopping Cart Technology
• Search, Directory and Featured Items
• Uses Database
• www.amazon.com

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E-Commerce Models

• Auction Model
• Buyers bid on products
• Minimum Price
• Reserve price
• Dutch Auction
• Fixed-Price Option
• Reverse-auction model
• E-bay not involved with money exchange.
• E-bay strategies (misspellings)
• Ebay

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E-Commerce Models

• Portal Model
• Advertising Model
• Charge Business for Links
• Excite
• Portal/Mall Model Yahoo (Yahoo shopping)

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E-Commerce Models

• Dynamic Pricing Models
• Name-Your-Price Model
• Priceline.com
• Comparison-Pricing Model
• BottomDollar.com
• Rebates
• eBates.com

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E-Commerce Models

• Advertising
• iWon.com
• Freemerchant.com

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E-Commerce Models

• Click-and-Mortar Business
• Brand name already created
• Allows growth of customer base.
• Always open (24/7)
• Allows for greater inventory.
• Can mix services buy online, return to store.
• Walmart.com

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Business-to-Business Models

• Larger portion of e-commerce sales.
• B2B aided by technologies like
• EDI Electronic Data Interchange
• standardizes orders and invoices.

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Developing an E-Business

• Mostly the same as a non-e business.
• Study the competition.
• Decide what makes your company unique and
  better.
• Figure costs. (An online business may have a
  lower startup costs.)
• Pick domain name register.com
• Choose web server redundant systems,
  bandwidth, storage
• Find distributors, wholesalers, or make or find
  your own product.

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Developing an E-Business

• Sites exist (B2B) that help you develop
  e-commerce or auction sites. Normally, there is
  a fee or a charge per transaction.
• Yahoo stores.

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Payments in an E-Business

• Credit Card Transactions
• POS (point of sale) transactions not available
• CNP (card not present) sales are used
• Requires further authentication (billing
  address, code on back of credit card)
• Process also involves authorization (is money
  available)
• Companies (like Verisign) exist to process
  online transactions.
•  Personal Check or Certified Payment

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Payment in an E-Business II

• Paypal allows one user to send money to another
  individual. (used in Ebay.)
• Both participants must have e-mail.
• Funds can be transferred between banks or a
  check can be sent.

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Payment in an E-Business III

• Micropayments allow small fund transfer on the
  web.
• (per click payment).
• B2B companies support this option.

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New Connections to the Internet

• Wireless Devices
• PDAs and Cell Phones can access the web.
• Limited or no graphics.
• Challenges for web designers.
• Called m-business (mobile business)
• More popular outside the USA.

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Marketing

• E-Mail marketing (SPAM? Permission?)
• HTML pages (or BLOG addresses) sent
• Promotions.
• (Sales in print or online directcoupons.com)
• Traditional media (ebay ads)

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Marketing

• Banner Advertising
• Pay for banner
•  Pay for each click.
•  Pay for actual purchase.

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Marketing

• Media-Rich Advertising
• Follows model for television or radio.
• Plays before or in between content.
• Video or sound (quicktime, realplayer)
• Flash or Shockwave
• Survivor
• Gamespot

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Marketing

• M-Commerce
•  Pay people to accept ads on cell phones
• Send ads to people in malls.

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Marketing a Website Search Engines and Keywords

•  Words on page (in title and in headers)
•  For logos as images, use alt tags.
•  Use naturally. (Dont repeat endlessly)

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Marketing Search Engines

• Add your site to search engines.
• Sites such as submitit.com will add to many
  engines for a fee, but just add them yourself to
  the main sites.
• Yahoo http//docs.yahoo.com/info/suggest/
• Google http//www.google.com/addurl.html
• Altavista http//www.altavista.com/sites/search/a
  ddurl

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Affiliate Programs

• One website is paid to have a link to another
  site.
• Pay-Per-Click (or 1000 clicks)
• Pay-Per-Lead
•  Pay-Per-Sale
• Amazon.com

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E-Businesses

• Retail
• Banks (online banking)
• Investments (etrade.com)
• Online learning (formal)
• Online learning (casual Barnes and Noble)

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Publishing

• Online newspapers and magazines.
• Online Journals
• Self-publishing/Print-on-demand

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Online Entertainment

• Online Games (gamespot, yahoo)
• Sports on the web (espn.com)
• Films (atomfilms.com)

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Personalizing E-Commerce

• Cookies
• Intelligent Agents
• Privacy Policy
• FAQs (Frequently Asked Questions)
• E-Mail
• Chat (between customer and service reps)

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Globalization

• Canada U.S. and Western Europe widespread
  internet connections.
• Some of Latin America is limited by the costs of
  computers, but programs include
• Computers in Schools
• Low-cost loans to buy computers
• Free internet access in some countries.

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Globalization

• Majority of individuals do not have computers
• Some Governments in the Middle East as well as
  China limit access to the internet (educational
  and government institutions).
• In many cases, if credit card usage is limited
  (as in China), the internet is only a tool for
  communicating and acquiring information.

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Globalization

• Nonetheless, international companies must offer
  international websites.
• Ebay
• Ikea

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Education and the Internet
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Finding Information

• General Research
• Library Research
• Popular Articles
• Research Articles
• Is it accurate?
• How is it used? Is it cited correctly?

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Class Use of the Internet

• E-Mail
• Discussion Boards
• Blackboard
• Virtual Classics Department in six southern
  college

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Distance Learning

• Lectures by video, audio, or no lecture
• Considerable reading and self-study
• Chat Room/Discussion Board
• All work submitted online
• For the self-directed student.